2007-10-26 07:30:00 CEST
2007-10-26 07:30:00 CEST
REGULATED INFORMATION
Talentum Oyj - Quarterly report
TALENTUM'S NET SALES AND FINANCIAL PERFORMANCE FOR JULY-SEPTEMBER STILL IMPROVING
- The 10% growth in net sales by Talentum's publishing operations in
July-September increased the entire Group's net sales to growth of 3.8% in spite
of the restructuring carried out in the Premedia business area.
- The consolidated operating profit in the period under review improved by EUR
2.2 million, the impetus coming from the publishing business and the
restructuring of the Premedia business area.
- The readership of the Ny Teknik magazine went up by about 8% and it now has
282,000 readers, the number of people visiting the website has doubled to
95,708.
TALENTUM'S INTERIM REPORT JANUARY-SEPTEMBER 2007 (IFRS)
July-September
Talentum's net sales in July-September were EUR 24.2 million (EUR 23.3 million),
an increase of 3.8%. The operating profit in July-September was EUR 1.9 million
(EUR -0.3 million), which is 7.8% of the net sales (-1.3%) The earnings per
share in July-September were EUR 0.02 (EUR -0.01).
January-September
Talentum's net sales in January-September were EUR 87.7 million (EUR 84.5
million), i.e. an increase of 3.8%. The operating profit in January-September
was EUR 7.4 million (EUR 2.7 million), 8.4% of the net sales (3.2%). The
operating profit in January-September without non-recurring items was EUR 9.1
million (EUR 3.7 million). The earnings per share in January-September were EUR
0.11 (EUR 0.04).
CEO JUHA BLOMSTER
”The structural reorganization and corporate restructuring carried out in
Finland have proved successful: the operating profit made a greater improvement
than the net sales. Talentum will continue its measures in line with the
strategy and focus in the future on developing the core activities i.e.
publishing. The operating profit for the whole of 2007 seems to develop as
expected.
Talentum's net sales continued to improve, even though some of Premedia's
business was divested. Most of the growth in Talentum's net sales still came
from the good progress made by Publishing in Sweden, where the magazines
acquired in the first half of the year, Arbetarskydd and Dagens Media, have made
a good start in the Talentum media family and are contributing to the good
progress. Publishing achieved moderate advances in Finland and its profitability
remained at a good level.
Advertiser-customers are still purchasing at a quick tempo and their overall
input in advertising fluctuates greatly from month to month. So advertising's
development is not to be forecasted very far ahead, but a continuation of the
good general economic development may keep the recruitment and advertising
market lively. Talentum's magazines and online services have strengthened their
position further as recruitment media in both Finland and Sweden.”
KEY INDICATORS OF FINANCIAL DEVELOPMENT
--------------------------------------------------------------------------------
| KEY | 7-9/ | 7-9/ | Chang | 1-9/ | 1-9/ | Change | 1-12/ |
| INDICATORS | 2007 | 2006 | e | 2007 | 2006 | % | 2006 |
| | | | % | | | | |
--------------------------------------------------------------------------------
| EUR Million | | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 24.2 | 23.3 | 3.8 | 87.7 | 84.5 | 3.8 | 121.1 |
--------------------------------------------------------------------------------
| Operating | 1.9 | -0.3 | 727.8 | 7.4 | 2.7 | 176.1 | 4.3 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 7.8 | -1.3 | | 8.4 | 3.2 | | 3.5 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 1.9 | -0.3 | 727.8 | 9.1 | 3.7 | 148.0 | 8.7 |
| profit | | | | | | | |
| without | | | | | | | |
| non-recurring | | | | | | | |
| items* | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 7.8 | -1.3 | | 10.4 | 4.3 | | 7.2 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Total assets | | | | 89.5 | 91.2 | -1.9 | 89.7 |
--------------------------------------------------------------------------------
| Investments | 0.4 | 0.5 | -21.6 | 5.5 | 4.4 | 25.3 | 5.1 |
--------------------------------------------------------------------------------
| % of net | 1.5 | 2.0 | | 6.3 | 5.2 | | 4.2 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio | | | | 32.4 | 35.2 | | 36.1 |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Gearing % | | | | 41.2 | 40.9 | | 15.7 |
--------------------------------------------------------------------------------
| Interest-bear | | | | 29.3 | 29.8 | -1.7 | 25.5 |
| ing | | | | | | | |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | 11.7 | 13.0 | -10.1 | 5.1 |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Personnel, | | | | 927 | 1048 | -11.6 | 1064 |
| average | | | | | | | |
--------------------------------------------------------------------------------
| Earnings/shar | 0.02 | -0.01 | 386.0 | 0.11 | 0.04 | 193.3 | 0.05 |
| e EUR | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | -0.08 | -0.11 | 30.5 | 0.14 | 0.02 | 472.5 | |
| from business | | | | | | | |
| operations/sh | | | | | | | |
| are EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity/share | | | | 0.61 | 0.67 | -9.3 | 0.69 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Market | | | | 155.0 | 160.3 | -3.3 | 144.9 |
| capitalizatio | | | | | | | |
| n on closing | | | | | | | |
| rate at | | | | | | | |
| period end | | | | | | | |
--------------------------------------------------------------------------------
*non-recurring items shown in the tables section
All key indicators have been calculated from EUR thousands.
Consolidated net sales and Group financial performance July-September
The consolidated net sales increased in July-September compared with the
previous year by 3.8% and were EUR 24.2 million (EUR 23.3 million). Publishing's
net sales rose by 10.0% to EUR 15.3 million (EUR 14.0 million). The growth came
mainly from Talentum Sweden's publishing operations. Arbetarskydd and Dagens
Media accounted for EUR 0.6 million of the growth in the net sales of the
publishing operations in Sweden. Premedia's net sales went down by -36.8% as a
result of corporate restructuring.
The consolidated operating profit in July-September was EUR 1.9 million (EUR
-0.3 million) 7.8% of the net sales (-1.3%). Publishing and Premedia improved
their financial performances over the previous year. Publishing's operating
profit was EUR 1.6 million (EUR 0.7 million). Net financial expenses came to EUR
-0.8 million (EUR -0.1 million), including a loss of EUR 0.5 million on the sale
of shares in an associated company.
The profit before tax was EUR 1.2 million (EUR -0.3 million).
Consolidated net sales and Group financial performance January-September
The consolidated net sales increased in January-September compared with the
previous year by 3.8% and were EUR 87.7 million (EUR 84.5 million). Publishing's
net sales were 56.8 million (EUR 51.2 million) i.e. a growth of 10.9%. The
publishing operations in Sweden accounted for EUR 4.6 million of the growth in
the net sales, EUR 2.2 million of which come from the net sales of magazines
acquired this year.
The consolidated operating profit without non-recurring items in
January-September was EUR 9.1 million (EUR 3.7 million) and 10.4% of the net
sales (4.3%). The consolidated operating profit in January-September was EUR 7.4
million (EUR 2.7 million) i.e. 8.4% of the net sales (3.2%).
Publishing's operating profit without non-recurring items was EUR 8.5 million
(EUR 5.3 million). The non-recurring items are shown in the tables section.
OPERATING ENVIRONMENT AND SEASONAL VARIATION
The general economic situation still remained relatively good in the third
quarter of 2007. In both Finland and Sweden the media market continued to grow.
According to TNS Gallup, in Finland the media market grew by more than 5% in
January-September and in Sweden, according to Sifo Research International,
branded-products marketing by 2%. Job advertising in particular progressed well
in both Finland and Sweden.
The media and media service market are subject to seasonal fluctuation and
business is at its briskest during the final quarter of the year. During the
summer holidays magazines and books do not generally come out and for this
reason the third quarter is the lowest in terms of sales.
OUTLOOK FOR WHOLE OF 2007
Talentum expects the core operations' net sales to increase and the consolidated
net sales for the whole year to be at last year's level.
The consolidated operating profit in 2007 without non-recurring items will be
improved by the sale of the business operations of the loss making Reprostudio &
Heku Oy in the first half of the year and the improved cost structure of the
publishing business in Finland and administration. The consolidated operating
profit for the whole year is expected to be much better than last year's.
During the autumn instability in the financial markets has increased. We expect
that at least in the short term it will not have an impact on Talentum's
business operations.
CASH FLOW, FINANCIAL POSITION AND BALANCE SHEET
The cash flow from business operations was EUR 6.0 million (EUR 1.0 million) in
January-September and EUR -3.5 million (EUR -5.0 million) in July-September. The
change in working capital was EUR -3.3 million (EUR -2.4 million) in
January-September. Net financial expenses in January-September were EUR -1.1
million (EUR -0.3 million), which was 1.2% of the net sales (0.4%). Net
financial expenses include a loss of EUR 0.5 million on the sale of shares in an
associated company.
The total assets stood at EUR 89.5 million (EUR 91.2 million) on September 30,
2007. Interest-bearing net liabilities were EUR 11.7 million (EUR 13.0 million).
The Group's liquid assets, EUR 17.6 million (EUR 16.8 million), have been
invested in financial instruments. The consolidated interest-bearing liabilities
at the end of the period under review amounted to EUR 29.3 million (EUR 29.8
million).
The equity ratio was 32.4% (35.2%) at the end of the period under review. The
Group's equity per share was EUR 0.61 (EUR 0.67) at the end of September.
INVESTMENT
Gross investment in fixed assets in January-September totalled EUR 5.5 million
(EUR 4.4 million), i.e. 6.3% (5.2%) of net sales. The effect of corporate
acquisitions on investment was EUR 4.0 million (EUR 1.4 million).
Other investment comprised mainly normal replacement and maintenance, such as
procuring equipment, software and fixtures.
PERSONNEL
The Group employed an average of 927 persons (1,048 people) in
January-September. Of the employees, 34.1% (27.8%) worked abroad.
CHANGES IN GROUP STRUCTURE
Talentum's Swedish subsidiary Talentum Sweden AB acquired the share capital of
Dagens Media Sverige AB on June 12, 2007, from which time the company has been
consolidated into the Group accounts. Dagen's Media's net sales total about EUR
2 million at the annual level and the company is operating at a profit. It
employed 13 people on the date of the acquisition.
The repro business operations of Reprostudio & Heku Oy, which was part of the
Premedia business area, were sold on June 13, 2007. The transfer of 45 people
was part of the transaction. The net sales of the sold business operations
amount to about EUR 5 million at the annual level.
Talentum sold the shares of an associated company, Acacom Academic
Communications Oy, which publishes customer magazines, through a transaction
carried out on September 21, 2007. The created loss of EUR 0.5 million on the
sale is included in financial expenses.
RISKS TO BUSINESS OPERATIONS IN NEAR FUTURE
The biggest risk to the Group's business operations is associated with product
and job advertising, which is sensitive to economic trends. About 40% of the
consolidated net sales are tied to advertising. We aim to control this market
risk by increasing revenue from circulation sales and content sales.
BUSINESS AREAS
Publishing
July-September
The third quarter in Talentum's publishing operations is the year's quietest
mainly because of the holiday period. Net sales for July-September were EUR 15.3
million (EUR 14.0 million) and the operating profit was EUR 1.6 million (EUR 0.7
million). Publishing grew by 10.0% in the third quarter (33.3%) and its
operating profit percentage was 10.6% (5.0%).
Talentum's magazine circulation revenue went up by 3.1% in Finland and 21.6% in
Sweden. Advertising revenue rose by 0.5% in Finland and 43.4% in Sweden. 13.3
percentage points of the growth in advertising revenue in Sweden is attributable
to the acquisition of the magazines Arbertarskydd and Dagens Media.
The net sales of book publishing and training remained at the level of the
previous year. Book publishing business is strongest on the final quarter of the
year.
Recruitment advertising was still strong in Talentum's media in both Finland and
Sweden.
January-September
Publishing's net sales for January-September were EUR 56.8 million (EUR 51.2
million) and the operating profit was EUR 8.5 million (EUR 4.3 million), which
is 14.9% of the net sales (8.3%). Sweden continues to play a growing role
overall, accounting for 33.7% of net sales (28.3%) and 27.7% of the operating
profit (7.3%).
The net sales of magazine publishing amounted to EUR 48.9 million in
January-September (EUR 43.7 million), of which online services accounted for
some EUR 3.6 million (EUR 4.2 million). Book publishing's net sales totalled EUR
6.1 million (EUR 5.9 million) and training's net sales EUR 1.6 million (EUR 1.5
million).
The circulation revenue of Talentum's magazines went up by 8.5%. Advertising
revenue rose by 0.4% in Finland and 34.1% in Sweden. 12.8 percentage points of
the growth in advertising revenue in Sweden is attributable to the acquisition
of the magazines Arbetarskydd and Dagens Media.
In Sweden Ny Teknik increased its readership by about 8% and it now has 282,000
readers (Orvesto Konsument 2007:2). Furthermore, Ny Teknik's online service has
increased the number of weekly visitors considerably during this year, and it
will probably exceed the 100,000 limit by the end of the year, compared with
about 60,000 at the end of 2006. According to the National Readership Survey
published in Finland in September (autumn 2006/spring 2007), the readership of
printed magazines has fallen. However, Talentum's magazines still fared better
than its peer group and, for example, Arvopaperi, bucked the trend by increasing
its readership, in this survey by 3,000 readers to 61,000. MikroPC increased its
readership by 14,000 to 163,000.
Direct marketing
July-September
Direct Marketing's net sales in July-September were EUR 2.2 million (EUR 1.9
million) and the operating profit EUR 0.3 million (EUR 0.3 million). Direct
Marketing grew by 15.8% (10.1%) in the third quarter and the operating profit
percentage was 12.9% (13.2%). The growth and profitability were as expected.
January-September
Direct Marketing's net sales in January-September rose by 14.8% (14.8%) and were
EUR 7.1 million (EUR 6.2 million). The operating profit was EUR 1.0 million (EUR
0.9 million). 6.3 percentage points (4.6 percentage points) of the growth of
Direct Marketing's net sales are derived from intra-group business.
TV Content Production
July-September
TV Content Production's net sales for July-September amounted to EUR 5.5 million
(EUR 5.0 million) and the operating profit was EUR 0.2 million (EUR 0.2
million). The operating profit percentage was 2.9% (3.2%).
Net sales of commercials were EUR 1.5 million (EUR 1.4 million) and the net
sales of TV programme production were EUR 3.3 million (EUR 2.6 million).
January-September
Net sales in January-September went up by 10.4% (10.0%) to EUR 17.2 million (EUR
16.9 million). The operating profit was EUR 0.7 million (EUR 1.0 million).
Net sales of commercials were EUR 5.5 million (EUR 6.0 million) Net sales of TV
programme production rose to EUR 9.4 million (EUR 8.4 million).
Premedia
July-September
The net sales of the Premedia business area fell compared with the corresponding
period in the previous year by 36.8%, totalling EUR 2.2 million (EUR 3.5
million). The operating profit was EUR 0.2 million (EUR -0.8 million). Financial
performance has improved since the sale of the loss-making repro business
operations in June.
The business area's sub-areas i.e. prepress production, prepress services for
packaging printing and digital material management, have developed as planned.
January-September
The net sales of the Premedia business area in January-September fell compared
with the corresponding period in the previous year by 25.2% (13.2%) to EUR 10.1
million (EUR 13.6 million). The operating profit was EUR -1.0 million, (EUR -0.7
million). The sale of the repro business operations reduces the net sales from
June onwards, and the June result includes a non-recurring expense of EUR 1.7
million for the reorganization.
SHARES AND SHARE CAPITAL
At the end of the period under review, Talentum Oyj's market capitalization was
EUR 155.0 million, the closing price of the shares was EUR 3.52 (EUR 3.64), the
company had 4,488 shareholders and the share capital totalled EUR 18,593,518.79
divided among 44,220,817 fully paid-up shares. The shares are listed on the OMX
Nordic Exchange Helsinki.
At the end of the period under review, the company and its subsidiary held
181,000 company shares, 0.41% of Talentum's total shares and votes.
Shareholdings of the Board of Directors and CEO
On September 30, 2007, the number of Talentum Oyj shares and options owned by
members of the Board of Directors and the CEO personally and through companies
in which they have a controlling interest was 4,470,162, representing 10.1% of
the company's total shares and votes.
Board of directors' authorizations
The Annual General Meeting on March 27, 2007 authorized the Board of Directors
to decide on a share issue that contains assignment of the company's own shares
and on the issuing of special rights and acquisition of the company's own
shares. On September 30, 2007 the authorizations were unused.
Notifications
There were no notifications in July-September 2007.
Liquidity providing agreement
An agreement with Nordea Securities Oyj on liquidity providing for Talentum Oyj
shares became effective on June 21, 2004. Under the agreement, Nordea Securities
will submit a purchase and sale offer so that the maximum permitted differential
between them is 3% of the purchase offer. The offers will include a minimum of
2,500 shares.
Shareholder agreements
The company is not aware of any mutual shareholder agreements between its
shareholders relating to the operations or ownership of the company.
IMPORTANT EVENTS SUBSEQUENT TO THE REVIEW PERIOD
There were no important events subsequent to the review period.
GENERAL STATEMENT
The forecasts and estimates presented here are based on the management's current
view of the trend in the economy, and the actual results may significantly
differ from what is expected at the moment.
--------------------------------------------------------------------------------
| INCOME STATEMENT | 7-9/2007 | 7-9/2006 | 1-9/2007 | 1-9/2006 | 1-12/ |
| | | | | | 2006 |
--------------------------------------------------------------------------------
| 1000 EUR | | | | | |
--------------------------------------------------------------------------------
| Net sales | 24 203 | 23 324 | 87 723 | 84 494 | 121 061 |
--------------------------------------------------------------------------------
| Other operating | 761 | 379 | 1 134 | 1 470 | 1 722 |
| income | | | | | |
--------------------------------------------------------------------------------
| Employee benefits | -10 757 | -12 109 | -39 907 | -40 532 | -56 689 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -665 | -821 | -2 353 | -2 532 | -5 233 |
| amortization | | | | | |
| expense | | | | | |
--------------------------------------------------------------------------------
| Other operating | -11 661 | -11 072 | -39 233 | -40 233 | -56 587 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1 881 | -300 | 7 364 | 2 667 | 4 275 |
| (adjusted) | | | | | |
--------------------------------------------------------------------------------
| Financial income | -761 | -138 | -1 096 | -349 | -524 |
| and expenses | | | | | |
--------------------------------------------------------------------------------
| Share of profit of | 61 | 107 | 199 | 295 | 464 |
| associates | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 1 181 | -331 | 6 467 | 2 613 | 4 215 |
--------------------------------------------------------------------------------
| Income tax expense | -218 | 119 | -1 871 | -438 | -1 497 |
--------------------------------------------------------------------------------
| Profit for the | 963 | -212 | 4 596 | 2 175 | 2 718 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of | 840 | -327 | 4 399 | 1 634 | 2 179 |
| the parent | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 122 | 115 | 198 | 541 | 539 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 0.02 | -0.01 | 0.11 | 0.04 | 0.05 |
| (EUR) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEET | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| 1000 EUR | | | |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Goodwill | 27 507 | 25 220 | 23 686 |
--------------------------------------------------------------------------------
| Other intangible assets | 11 592 | 12 003 | 12 196 |
--------------------------------------------------------------------------------
| Tangible assets | 6 731 | 8 096 | 7 854 |
--------------------------------------------------------------------------------
| Investments in associates | 2 173 | 2 838 | 2 750 |
--------------------------------------------------------------------------------
| Deferred income taxes | 2 645 | 3 913 | 3 514 |
--------------------------------------------------------------------------------
| Other long term receivables | 737 | 1 329 | 1 445 |
| and investments | | | |
--------------------------------------------------------------------------------
| Total non-current assets | 51 385 | 53 399 | 51 444 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 4 389 | 2 939 | 3 326 |
--------------------------------------------------------------------------------
| Trade receivables and other | 16 137 | 18 110 | 14 448 |
| receivables | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 17 581 | 16 768 | 20 468 |
--------------------------------------------------------------------------------
| Total current assets | 38 106 | 37 817 | 38 242 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 89 491 | 91 216 | 89 686 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 18 594 | 18 594 | 18 594 |
--------------------------------------------------------------------------------
| Share premium reserve | 5 893 | 5 896 | 5 896 |
--------------------------------------------------------------------------------
| Own shares | -1 314 | -1 314 | -1 314 |
--------------------------------------------------------------------------------
| Fair value reserve and other | 4 | 4 | 4 |
| reserves | | | |
--------------------------------------------------------------------------------
| Exchange differences | 200 | 162 | 543 |
--------------------------------------------------------------------------------
| Retained earnings | 3 482 | 6 284 | 6 741 |
--------------------------------------------------------------------------------
| Total | 26 860 | 29 626 | 30 464 |
--------------------------------------------------------------------------------
| Minority interest | 1 586 | 2 262 | 1 689 |
--------------------------------------------------------------------------------
| Total equity | 28 445 | 31 889 | 32 153 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Long term debt | 9 028 | 7 881 | 8 224 |
--------------------------------------------------------------------------------
| Short term debt | 52 018 | 51 447 | 49 310 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | 89 491 | 91 216 | 89 686 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENT | 1-9/2007 | 1-9/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
| 1000 EUR | | | |
--------------------------------------------------------------------------------
| Profit for the period | 4 596 | 2 175 | 2 718 |
--------------------------------------------------------------------------------
| Adjustments | 6 028 | 3 076 | 6 893 |
--------------------------------------------------------------------------------
| Change in working capital | -3 277 | -2 368 | 999 |
--------------------------------------------------------------------------------
| Net financial items and taxes | -1 377 | -1 840 | -1 536 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 5 970 | 1 043 | 9 074 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries and | -3 304 | -3 779 | -3 907 |
| associates | | | |
--------------------------------------------------------------------------------
| Sales of subsidiaries and | 600 | 0 | 0 |
| associates | | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -1 591 | -2 971 | -3 615 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Other investments | 0 | -1 327 | -29 |
--------------------------------------------------------------------------------
| Other investing activity related | 268 | 342 | 542 |
| items | | | |
--------------------------------------------------------------------------------
| Net cash used in investing | -4 027 | -7 735 | -7 009 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in short term loans | 3 388 | 16 000 | 12 000 |
--------------------------------------------------------------------------------
| Change in long term loans | -102 | -1 542 | -1 943 |
--------------------------------------------------------------------------------
| Dividends paid and equivalents | -8 183 | -13 431 | -13 734 |
--------------------------------------------------------------------------------
| Other financing activities | 67 | -244 | -596 |
--------------------------------------------------------------------------------
| Net cash used in financing | -4 830 | 783 | -4 273 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | -2 887 | -5 909 | -2 209 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 20 468 | 22 677 | 22 677 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 17 581 | 16 768 | 20 468 |
| period | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| 1000 | Equit | Share | Fair | Ex | Re | Attrib | Minor | Total |
| EUR | y | pre | value | chan | tained | utable | ity | equity |
| | | mium | re | ge | earn | to the | inter | |
| | | re | serve | dif | ings | equity | est | |
| | | serve | and | fer | | holder | | |
| | | | other | ence | | s of | | |
| | | | re | s | | the | | |
| | | | serves | | | parent | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 18594 | 5896 | 4 | -44 | 16808 | 41258 | 2043 | 43302 |
| 1.1. | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Ex | | | | 206 | | 206 | | 206 |
| change | | | | | | | | |
| differ | | | | | | | | |
| ences | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | -260 | -260 | | -260 |
| income | | | | | | | | |
| recog | | | | | | | | |
| nized | | | | | | | | |
| direct | | | | | | | | |
| ly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | 1634 | 1634 | 541 | 2175 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | -13212 | -13212 | -219 | -13431 |
| dends | | | | | | | | |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | | | -103 | -103 |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 18594 | 5896 | 4 | 162 | 4970 | 29627 | 2262 | 31888 |
| 30.9. | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 18594 | 5896 | 4 | 543 | 5427 | 30464 | 1689 | 32153 |
| 1.1. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Ex | | -4 | | -344 | | -348 | | -348 |
| change | | | | | | | | |
| differ | | | | | | | | |
| ences | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | 195 | 195 | | 195 |
| based | | | | | | | | |
| incent | | | | | | | | |
| ive | | | | | | | | |
| plan | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | | 22 | 22 | | 22 |
| income | | | | | | | | |
| recog | | | | | | | | |
| nized | | | | | | | | |
| direct | | | | | | | | |
| ly in | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | 4399 | 4399 | 198 | 4596 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | -7927 | -7927 | -256 | -8183 |
| dends | | | | | | | | |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | 54 | 54 | -45 | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 18594 | 5892 | 4 | 199 | 2170 | 26859 | 1586 | 28444 |
| 30.9. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
NOTES
This interim report has been drawn up according to the IFRS recognition and
valuation principles.
The interim report for January-June is reported in accordance with IAS 34
Interim Financial Reporting.
In drawing up this interim report for January-September, Talentum has applied
the same accounting principles as in the financial statements for 2006, but in
such a way that it has introduced from January 1, 2007 the following new/revised
standards and interpretations: IFRS 7 Financial Instruments: Disclosures, IAS 1
Presentation of Financial Statements and IFRIC 10, Interim Financial Reporting
and Impairment. The introduction of these has had no effect on Talentum's
interim report.
RESTRUCTURING COSTS
The Talentum Group has carried out measures aimed at improving profitability in
the Publishing and Premedia business areas and Group Administration. The
restructuring of Publishing and Group Administration was scheduled for the final
quarter of 2006. Most of the expenses of EUR 1.6 million applying to them were
included under personnel expenses. Non-recurring expenses of EUR 1 million were
recorded for unrealized projects in the first and second quarter of 2006.
A goodwill impairment of EUR 1.8 million was recorded for the Premedia business
area in the final quarter of 2006. Repro business activities were sold in the
second quarter of 2007, causing the recording of other expenses of EUR 1.7
million relating to the reorganization of Premedia business operations. It is
expected that the 2007 reorganization expenses will increase the Group's
effective tax rate.
The reorganization expenses are included in the income statement under the
following headings:
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2007 | 2006 | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Employee benefits | 0 | 0 | 0 | 0 | 1 550 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 0 | 0 | 0 | 0 | 1 837 |
| amortization expense | | | | | |
--------------------------------------------------------------------------------
| Other operating | 0 | 0 | 1 729 | 1 000 | 1 011 |
| income | | | | | |
--------------------------------------------------------------------------------
| Total | 0 | 0 | 1 729 | 1 000 | 4 398 |
--------------------------------------------------------------------------------
TALENTUM GROUP / SUB-SEGMENTS
--------------------------------------------------------------------------------
| 1000 EUR | | | | | | 12 | 12 |
| | | | | | | rolling | rolling |
--------------------------------------------------------------------------------
| | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | 10/06-9/ | 10/05-9 |
| | 2007 | 2006 | 2007 | 2006 | 2006 | 07 | /06 |
--------------------------------------------------------------------------------
| Net sales | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 15348 | 13952 | 56798 | 51215 | 74674 | 80258 | 72839 |
--------------------------------------------------------------------------------
| Direct | 2235 | 1930 | 7073 | 6163 | 8177 | 9088 | 7957 |
| marketing | | | | | | | |
--------------------------------------------------------------------------------
| TV content | 5503 | 4986 | 17209 | 16858 | 24641 | 24992 | 23016 |
| production | | | | | | | |
--------------------------------------------------------------------------------
| Premedia | 2187 | 3459 | 10148 | 13572 | 18021 | 14598 | 18918 |
--------------------------------------------------------------------------------
| Sales | -1070 | -1002 | -3506 | -3313 | -4451 | -4645 | -3944 |
| within | | | | | | | |
| group | | | | | | | |
--------------------------------------------------------------------------------
| Total | 24203 | 23326 | 87723 | 84495 | 121062 | 124291 | 118786 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | | | | | | | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 1631 | 700 | 8452 | 4267 | 7143 | 11328 | 8785 |
| * | | | | | | | |
--------------------------------------------------------------------------------
| Direct | 288 | 254 | 952 | 859 | 1122 | 1215 | 1155 |
| marketing | | | | | | | |
--------------------------------------------------------------------------------
| TV content | 157 | 162 | 729 | 1007 | 1769 | 1491 | 1350 |
| production | | | | | | | |
--------------------------------------------------------------------------------
| Premedia** | 214 | -815 | -1020 | -697 | -2510 | -2833 | -1091 |
--------------------------------------------------------------------------------
| Parent | -408 | -601 | -1748 | -2769 | -3249 | -2229 | -3609 |
| company | | | | | | | |
| and group | | | | | | | |
| items *** | | | | | | | |
--------------------------------------------------------------------------------
| Total | 1881 | -300 | 7365 | 2667 | 4275 | 8972 | 6590 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1000 EUR | 7-9/ | 7-9/ 2006 | 1-9/ 2007 | 1-9/ 2006 | 1-12/ 2006 |
| | 2007 | | | | |
--------------------------------------------------------------------------------
| * Includes | 0 | 0 | 0 | 200 | 1761 |
| restructuring | | | | | |
| costs in | | | | | |
| Publishing | | | | | |
--------------------------------------------------------------------------------
| ** Includes | 0 | 0 | 1729 | 0 | 1837 |
| restructuring | | | | | |
| costs in Premedia | | | | | |
--------------------------------------------------------------------------------
| *** Includes costs | 0 | 0 | 0 | 800 | 800 |
| of unrealized | | | | | |
| projects | | | | | |
--------------------------------------------------------------------------------
PUBLISHING BY GEOGRAPHICAL AREA
--------------------------------------------------------------------------------
| 1000 EUR | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2007 | 2006 | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Finland | 10 522 | 10 371 | 37 516 | 36 488 | 52 645 |
--------------------------------------------------------------------------------
| Other | 4 826 | 3 581 | 19 282 | 14 727 | 22 029 |
--------------------------------------------------------------------------------
| Total | 15 348 | 13 952 | 56 798 | 51 215 | 74 674 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | | | | | |
--------------------------------------------------------------------------------
| Finland | 1 424 | 948 | 6 058 | 3 888 | 5 525 |
--------------------------------------------------------------------------------
| Other | 207 | -248 | 2 393 | 379 | 1 618 |
--------------------------------------------------------------------------------
| Total | 1 631 | 700 | 8 452 | 4 267 | 7 143 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | 30.9.2007 | 30.9.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
| 1000 EUR | | | |
--------------------------------------------------------------------------------
| Given as security | 8 636 | 5 903 | 5 903 |
--------------------------------------------------------------------------------
| loans with securities as | 4 366 | 3 281 | 3 107 |
| collateral | | | |
--------------------------------------------------------------------------------
| Rental and other commitments | 13 244 | 17 497 | 17 083 |
--------------------------------------------------------------------------------
| Leasing commitments | 2 668 | 2 759 | 3 344 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AVERAGE NUMBER OF EMPLOYEES | 1-9/2007 | 1-9/2006 | 1-12/2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Talentum Group | 639 | 774 | 767 |
--------------------------------------------------------------------------------
| Part-time telemarketing staff | 288 | 274 | 297 |
--------------------------------------------------------------------------------
| Total | 927 | 1 048 | 1 064 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Publishing | 378 | 405 | 405 |
--------------------------------------------------------------------------------
| Direct marketing | 337 | 323 | 346 |
--------------------------------------------------------------------------------
| TV content production | 98 | 95 | 98 |
--------------------------------------------------------------------------------
| Premedia | 100 | 209 | 199 |
--------------------------------------------------------------------------------
| Group administration | 14 | 16 | 16 |
--------------------------------------------------------------------------------
| Total | 927 | 1 048 | 1 064 |
--------------------------------------------------------------------------------
This interim report is unaudited.
TALENTUM OYJ
Juha Blomster
CEO
FURTHER INFORMATION
Juha Blomster, CEO, tel +358 (0)20 442 4444
Kaisa Kokkonen, CFO, tel +358 (0)40 342 4212
www.talentum.com
COPIES TO
OMX Nordic Exchange
Key Media
BRIEFING
A briefing for analysts and the media will be held today, October 26, 2007 at
10.00 a.m. at the Talentum head office in Annankatu 34-36 B, Kamppi, Helsinki.
The interim report will be presented by CEO Juha Blomster and CFO Kaisa
Kokkonen.
This interim report has been published in Finnish and English. In case of doubt,
the Finnish report is authoritative.
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