Talentum Oyj - Financial Statement Release

TALENTUM OYJ'S FINANCIAL STATEMENT RELEASE 2014

Helsinki, Finland, 2015-02-12 07:30 CET (GLOBE NEWSWIRE) -- 

TALENTUM OYJ     FINANCIAL STATEMENT RELEASE     12 February 2015 at 8.30 a.m.

Talentum Oyj's Financial Statement Release for January-December 2014:

FINAL QUARTER TURNED OUT AS WE EXPECTED AND OPERATING INCOME FOR THE ENTIRE
YEAR INCREASED CLEARLY 

October-December 2014 in brief

  -- Talentum Group's net sales totalled EUR 21.7 million (EUR 21.7 million)
  -- Operating income without non-recurring items was EUR 3.2 million (EUR 3.1
     million) and operating income (EBIT) was EUR 3.3 million (EUR 1.6 million)
  -- Final, important quarter for Books and Legal Training segment turned out as
     expected and operating income increased
  -- Operating income without non-recurring items from Magazine Business Sweden
     and the Event Business was at the previous year's level despite the
     decrease in net sales
  -- Circulation revenue from Magazine Business Finland increased, as well as
     Swedish krona-denominated circulation revenue in Sweden

Net sales of business segments:

-Magazine Business Finland: EUR 6.5 million (EUR 6.6 million)
-Magazine Business Sweden: EUR 5.3 million (EUR 5.7 million)
-Event Business: EUR 3.6 million (EUR 4.1 million)
-Books and Legal Training: EUR 4.3 million (EUR 3.3 million)
-Direct Marketing: EUR 2.5 million (EUR 2.8 million)

January-December 2014 in brief

  -- Talentum Group's net sales totalled EUR 72.3 million (EUR 74.5 million)
  -- Operating income without non-recurring items was EUR 4.1 million (EUR 3.1
     million) and operating income (EBIT) was EUR 3.4 million (EUR 1.4 million)
  -- All in all, the year was good for Books and Legal Training segment and the
     B2B business acquired from Sanoma Pro has been integrated successfully into
     the segment's other operations
  -- Operating income from Magazine Business Sweden and the Event Business
     increased
  -- Operating income from Magazine Business Finland decreased due to the
     decrease in media sales. However, circulation revenue increased.
  -- Net interest-bearing liabilities remained at low level EUR 0.7 million (EUR
     0.8 million)
  -- Earnings per share was 0.06 (0.03)

Net sales of business segments:

-Magazine Business Finland: EUR 24.3 million (EUR 25.5 million)
-Magazine Business Sweden: EUR 18.1 million (EUR 19.9 million)
-Event Business: EUR 11.5 million (EUR 12.6 million)
-Books and Legal Training: EUR 10.5 million (EUR 8.1 million)
-Direct Marketing: EUR 10.8 million (EUR 11.6 million)

The Board of Directors proposes that a dividend in the amount of EUR 0.05 to be
distributed for 2014 (for 2013 a dividend in the amount of EUR 0.04 per share
was distributed). 


KEY FINANCIAL FIGURES

EUR million                         10-12 2014  10-12 2013  1-12 2014  1-12 2013
Net sales                                 21.7        21.7       72.3       74.5
Operating income without                   3.2         3.1        4.1        3.1
 non-recurring items                                                            
as % of net sales                         14.6        14.3        5.7        4.1
Operating income                           3.3         1.6        3.4        1.4
as % of net sales                         15.0         7.6        4.8        1.8
Income before taxes                        3.5         2.0        3.8        1.6
Net cash from operating activities                                4.4        3.3
Total assets                                                     51.8       49.8
Investments                                0.3         0.2        4.2        1.5
as % of net sales                          1.4         1.1        5.8        2.0
Return on invested capital % *                                   17.5       10.2
Return on equity %                                               14.7        6.0
Equity ratio, %                                                  47.2       47.4
Gearing ratio, % (net debt to                                     3.8        4.4
 equity)                                                                        
Interest-bearing liabilities                                      5.4        5.1
Net interest-bearing liabilities                                  0.7        0.8
Personnel on average                                              721        750
Earnings per share, EUR                   0.06        0.03       0.06       0.03
Cash flow from operating                                         0.10       0.08
 activities per share, EUR                                                      
Equity per share, EUR                                            0.43       0.43
*) The Group has adjusted accounting practice of Return on invested capital %.  
 The figures for comparative year have been restated accordingly.               

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 Activities. 

Chief Executive Officer Aarne Aktan:
“Group's operating income increased clearly in 2014 compared to previous year.
We focused on digital sales and concidering the circumstances we can be
satisfied with its development. On annual level digital sales increased 24.5%
compared to previous year. In the fourth quarter, digital sales amounted to EUR
2.8 million, of which EUR 1.8 million accumulated from Finland and EUR 0.9
million from Sweden. Digital sales for the entire year amounted to EUR 9.2
million, of which EUR 5.8 million accumulated from Finland and EUR 3.3 million
from Sweden. 

Performance of the Books and Legal Training segment was good. The B2B business
acquired from Sanoma Pro last April has been integrated as planned into the
Books and Legal Training segment's other operations. Thanks to improved
profitability, the segment's product development and operating conditions have
improved and we will launch more new products and solutions in the ongoing year
than previously. 

Enhancing Magazine Business Sweden has begun but measures to enhance the
business will be continued further. In the final quarter, operating income from
Magazine Business Sweden was at the reference period's level despite a decrease
in net sales. We have not yet been able to take advantage of the increase of
the advertising market in Sweden because our product offering is still strongly
dependent on printed products. In the ongoing year, we will especially focus on
developing digital services and solutions in Sweden. Our main objective is to
further improve profitability. 

In the final quarter, operating income from Magazine Business Finland decreased
slightly compared to the reference period. Circulation sales was good in the
final quarter, as well as during the year as a whole. Advertising sales has
suffered from the difficult market conditions, which is reflected in the
segment's net sales and profit development. We expect the strong increase in
the sales of digital services to continue in the ongoing year. 

In the final quarter, operating income from the Event Business remained at the
reference period's level. The primary objective for the segment in 2014,
improving profitability, was achieved partially and operating income increased
compared to the previous year. The changes made during the financial year to
the segment's product offering will also improve operating conditions in the
ongoing year. We focused event offering and reorganized sales functions to
better provide the customer with a continuance regarding the event. 

Operating income from Direct Marketing decreased slightly in the final quarter
and in the year as a whole. 

Group's solid financial position enables making strategic investments in the
future.” 

Talentum prospects for 2015
Talentum estimates that its net sales for 2015 will remain approximately at the
same level as in 2014. Operating income without non-recurring items will be
higher than in 2014. Operating income without non-recurring items was EUR 4.1
million in 2014. 

The Board of Directors' motion concerning distribution of profits
The parent company's distributable profits as of 31 December 2014 comprise
invested non-restricted equity of EUR 52,942,876.08, treasury shares of EUR
-874,133.50 and EUR 2,432,794.12 of retained earnings, of which the profit for
the financial year is EUR 2,445,865.27, totalling EUR 54,501,536.70. 

The Board of Directors proposes that a dividend in the amount of EUR 0.05 to be
distributed for 2014 (for 2013 a dividend in the amount of EUR 0.04 per share
was distributed). 

Annual General Meeting
Talentum Oyj's Annual General Meeting will be held on 27 March 2015 at 2.00
p.m. in Helsinki. 

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. 

Financial information 2015
Talentum is planning to publish the results in 2015 as follows:

January-March result              29 April 2015
January-June result                17 July 2015
January-December result       22 October 2015

Briefing
A briefing will be held for analysts and the media on 12 February 2015 at 11.00
a.m. at Sokos Hotel Vaakuna, Asema-aukio 2, 00100, Helsinki. 


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

Attachments:

TALENTUM OYJ_FINANCIAL STATEMENT RELEASE_Q4_2014.pdf