Talentum Oyj - Interim report (Q1 and Q3)

Talentum Group Q1/2012 interim release

TALENTUM OYJ      INTERIM REPORT    27 April 2012 at 9:00



January-March 2012 in brief, continuing operations

- Talentum Group's net sales came to EUR 20.5 million (EUR 21.5 million), a
decrease of 4.5%. 

- Talentum Group's comparable net sales sales excluding Talentum HR AB were EUR
20.5 million (EUR 20.4 million), an increase of 0.5%. 

- Operating income without non-recurring items was EUR 0.2 million (EUR 1.0
million). 

- Operating income (EBIT) was EUR -2.6 million (EUR 1.0 million).

- The amount of advertising in Talentum's media decreased by -13.0%

- Net liabilities were EUR -1.8 million (EUR -1.5 million on 31 December 2011).

- Talentum Group carried out a savings program during the first quarter.



Net sales by business area:

- Magazine Business Finland: EUR 7.5 million (EUR 7.5 million)

- Magazine Business Sweden: EUR 6.2 million (EUR 7.0 million)

- Events: EUR 3.2 million (EUR 2.4 million)

- Books and Legal Training: EUR 2.0 million (EUR 2.2 million)

- Direct Marketing: EUR 2.7 million (EUR 2.2 million)



KEY FINANCIAL FIGURES, CONTINUING OPERATIONS *)



EUR million                                       1-3/2012  1-3/2011  1-12/ 2011
--------------------------------------------------------------------------------
Net sales                                             20.5      21.5        83.5
--------------------------------------------------------------------------------
Operating income without non-recurring items           0.2       1.0         2.4
--------------------------------------------------------------------------------
Operating income                                      -2.6       1.0        -0.7
--------------------------------------------------------------------------------
as % of net sales                                    -12.7       4.8        -0.8
--------------------------------------------------------------------------------
Net cash from operating activities                     0.7       1.8         4.6
--------------------------------------------------------------------------------
Total assets                                          61.9      68.0        57.3
--------------------------------------------------------------------------------
Investments                                            0.2       0.2         1.4
--------------------------------------------------------------------------------
as % of net sales                                      0.8       1.1         1.7
--------------------------------------------------------------------------------
Equity ratio %                                        39.3      35.5        54.1
--------------------------------------------------------------------------------
Gearing ratio % (net debt to equity)                 -10.6      58.6        -6.7
--------------------------------------------------------------------------------
Interest-bearing liabilities                           1.8      12.3         1.2
--------------------------------------------------------------------------------
Net interest-bearing liabilities                      -1.8      10.8        -1.5
--------------------------------------------------------------------------------
Personnel on average                                   771       734         754
--------------------------------------------------------------------------------
Earnings per share, EUR                              -0.05      0.01       -0.04
--------------------------------------------------------------------------------
Cash flow from operating activities per share,        0.02      0.04        0.11
 EUR                                                                            
--------------------------------------------------------------------------------
Equity per share, EUR                                 0.40      0.42        0.50
--------------------------------------------------------------------------------



*) These figures do not include the construction information business sold in
August 2011, which is presented as discontinued operation. The figures include
Talentum HR AB. 

Reporting

Talentum's business operations are divided into six segments: Magazine Business
Finland, Magazine Business Sweden, Event Business, Books and Legal Training,
Direct Marketing, and Other Operations. 

A separate stock exchange release was issued on 17 April 2012 regarding the
change in the reporting segments. 



CHIEF EXECUTIVE OFFICER AARNE AKTAN:"In the first quarter, Talentum Group's net sales totalled EUR 20.5 million, an
increase of 0.5%. Talentum Group's comparable net sales excluding Talentum HR
AB were EUR 20.5 million (EUR 20.4 million), an increase of 0.5%. 



Operating income for the first quarter was weighed down by non-recurring items
resulting from personnel reduction measures, which were initiated in January
2012, as well as other expenses connected with the reorganisation. These
measures yield the target savings of EUR 4.5 million on a yearly level. 

Our operating income without non-recurring items was EUR 0.2 million. We are
not satisfied with this result, but the efficiency enhancement measures will
enable Talentum to improve its competitiveness and profitability. 

Our operating income including non-recurring items was EUR -2.6 million.

Of the business segments, Events and Direct Marketing grew steadily.

Sweden's advertising market is unstable and sales of professional journals, in
particular dropped close to 10 percent. The performance of the Magazine
Business Sweden unit decreased more strongly than the advertising market in
general. 

The advertising market in Finland decreased by 1.4% during the first quarter
compared with the corresponding quarter in 2011. Online advertising market in
Finland grew by 13.7% in January-March from last year. Talentum's print media
sales in Finland developed weaker than the markets in general. Especially
recruitment advertising decreased in unstable economic situation compared with
the corresponding quarter last year. Talentum's online sales grew at the same
pace with general online advertising sales. 

Circulation revenue in Finland grew during the first quarter despite the fact
that Finnish Government decided to raise the VAT on subscription magazines to 9
percent effective January 1, 2012. Also the group subscription agreement with
Union of Professional Engineers in Finland (UIL) was terminated at the end of
2011. We were able to compensate the lost subscriptions better than expected by
determined input into sales. Our circulation sales organization gave a very
good input into this. 

Our key goal in 2012 is to increase profitability, and we are now working in a
determined way with the help of a restructured organisation and competent
personnel.” 

Operating environment and seasonal variation

In the period from January to March, general economic uncertainty has continued
in both Finland and Sweden, which may have a weakening effect on the operating
environment in the near future. 

According to TNS Media Intelligence, spending on advertising for
January-February grew by 1.4% in Finland. Growth excluding advertising
connected with the presidential election was 1.3%. In periodicals, advertising
decreased by 
-1.7%. Advertising in professional and organizational journals decreased by
-7.0%. Online advertising revenues increased by 13.7%. In Sweden, total media
advertising rose by 9.3% in the first quarter, while in professional journals
there was a decrease of -9.7% (Sweden's Media Agencies - Sveriges Mediebyråer). 

The media and advertising markets are subject to seasonal variations.
Talentum's magazines and books do not generally come out during the summer
holiday season, which is why the third quarter is the weakest in terms of
sales. Profit for the third period is almost always negative. Operations are
generally at their busiest in the final quarter. 

Sector and Talentum prospects for 2012

The company estimates that moderate economic growth in the company's main
markets of Finland and Sweden will support moderate growth in advertising in
2012. 

Talentum estimates that, in 2012, its comparable net sales (2011: excluding
Talentum HR AB sold at the end of the year, about EUR 79 million) will remain
at the same level and that operating income without non-recurring items will
increase compared to 2011. 

This interim report is unaudited.

General statement

The forecasts and estimates presented here are based on the management's
current view of economic development, and the actual results may differ
substantially from what is now expected of the company. 

Next interim report

Talentum Oyj will publish its interim report for the second quarter of 2012 on
20 July 2012. 

TALENTUM OYJ

Board of Directors



ADDITIONAL INFORMATION

CEO, Aarne Aktan, tel. +358 40 342 4440 and CFO, Niclas Köhler,
tel. +358 40 342 4420.


DISTRIBUTION

NASDAQ OMX Helsinki
Principal media
www.talentum.com



ENCLOSURE: Talentum Group Q1/2012 interim report

BRIEFING

A briefing in Finnish will be held for analysts and the media today, 27 April
2012 at 10:30 at the Talentum head office, Annankatu 34-36 B, Kamppi, Helsinki,
Finland. The interim statements will be presented by Aarne Aktan, Chief
Executive Officer. Welcome. 

Talentum Oyj
Annankatu 34 - 36 B, 00100 Helsinki
Telephone +358 20 442 40
www.talentum.com

Attachments:

TALENTUM_GROUP_Q1_2012_interim_report.pdf