Talentum Oyj - Interim report (Q1 and Q3)

Talentum Oyj, Interim Report Q1/2014

Helsinki, Finland, 2014-04-24 07:30 CEST (GLOBE NEWSWIRE) -- 

TALENTUM OYJ        INTERIM REPORT        24 April 2014 at 8.30 a.m.

Talentum Oyj's Interim Report for January-March 2014:

GROUP'S OPERATING INCOME WITHOUT NON-RECURRING ITEMS WAS NEARLY AT PREVIOUS
YEAR'S LEVEL - POSITIVE DEVELOPMENT IN MAGAZINE BUSINESS SWEDEN 

January-March 2014 in brief

- Talentum Group's net sales totalled EUR 18.1 million (EUR 19.5 million)
- Operating income without non-recurring items was EUR 0.7 million (EUR 0.8
million) and operating income (EBIT) was EUR 0.4 million (EUR 0.7 million) 
- Operating income without non-recurring items from Magazine Business Sweden
was positive despite the decrease in net sales 
- Operating income from Magazine Business Finland decreased slightly
- Operating income from the Event Business decreased, actions are ongoing to
increase the profit level 
- The amount of advertising revenue in Talentum's media decreased by 13.2%. The
share of advertising revenue in Talentum's net sales was 25.3%. 
-Talentum informed on 21 March 2014 that it will acquire Sanoma Pro's B2B
business to be a part of the Books and Legal Training segment. The acquisition
date will be 30 April 2014. 

Net sales of business functions:

-Magazine Business Finland: EUR 6.3 million (EUR 7.0 million)
-Magazine Business Sweden: EUR 4.7 million (EUR 5.2 million)
-Event Business: EUR 3.0 million (EUR 3.2 million)
-Books and Legal Training: EUR 2.0 million (EUR 2.0 million)
-Direct Marketing: EUR 2.9 million (EUR 3.0 million)


KEY FINANCIAL FIGURES

EUR million                                        1-3 2014  1-3 2013  1-12 2013
Net sales                                              18.1      19.5       74.5
Operating income without non-recurring items            0.7       0.8        3.1
as % of net sales                                       3.7       4.0        4.1
Operating income                                        0.4       0.7        1.4
as % of net sales                                       2.1       3.7        1.8
Income before taxes                                     0.4       0.4        1.6
Net cash from operating activities                      2.0       0.3        3.3
Total assets                                           54.3      56.6       49.8
Investments                                             0.5       0.4        1.5
as % of net sales                                       2.5       2.2        2.0
Return on invested capital %                            1.6       0.3        3.2
Return on equity %                                      2.0       1.5        6.0
Equity ratio, %                                        41.8      45.8       47.4
Gearing ratio, % (net debt to equity)                  -5.1       6.6        4.4
Interest-bearing liabilities                            4.7       3.4        5.1
Net interest-bearing liabilities                       -0.9       1.3        0.8
Personnel on average                                    749       760        750
Earnings per share, EUR                                0.03      0.01       0.03
Cash flow from operating activities per share,         0.05      0.01       0.08
 EUR                                                                            
Equity per share, EUR                                  0.39      0.44       0.43

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 without non-recurring items was nearly at previous
year's level. 

Enhancing performance of Magazine Business Sweden appeared in segment's
operating income which improved compared to previous year despite the decrease
in net sales. Product advertisement sales decreased further in Sweden compared
to the reference period but recruitment advertisement remained nearly at
reference period's level. 

In the first quarter, profitability from Magazine Business Finland decreased
slightly compared to the reference period. Circulation revenue decreased
compared to previous year due to fewer publications of the major magazines
during the comparative period. Product advertisement sales and recruitment
advertisement decreased further in Finland compared to the reference period due
to the development of the advertising market and also partially due to fewer
publications. 

In the first quarter, net sales and profitability from the Event Business
decreased compared to the reference period. We will focus the product range and
at the same time adjust the cost level with target to increase the profit level
in the long run. 

In the first quarter, net sales and profitability from the Books and Legal
Training segment decreased slightly compared to the reference period. Net sales
and profitability from Direct Marketing decreased compared to the reference
period. 

In March, we informed that we acquire Sanoma Pro's B2B business to be a part of
the Books and Legal Training segment. The product portfolio to be transferred,
whose most important products are the digital Fokus service and
Verkkokirjahylly ("Online Bookshelf"), will increase the diversity of
Talentum's offering and our customer base will expand at the same time. The
acquisition date will be 30 April 2014. 

In addition, we informed at the beginning of April, that trademarks
Lakimiesliiton Kustannus and Lakimisliiton Koulutus will transfer to Talentum's
usage as of 1 January 2015. I am very pleased about the credit Lakimiesliitto
has given to Talentum when at the same Talentum's position as market leader in
Finland for legal service and products further strengthens. 

Talentum Summa - Talentum's digital service package - will be published in
Sweden later during the year 2014, and also the contents from the Swedish
magazines will be included in the service. 

Digital sales' share of Group's net sales amounted to EUR 1.9 million of which
EUR 1.0 million accumulated from Finland and EUR 0.8 million from Sweden."

Talentum prospects for 2014

Talentum estimates that its comparable net sales for 2014 will remain
approximately at the same level as in 2013 and that its comparable operating
income without non-recurring items will be higher than in 2013. 

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 2014

Talentum is planning to publish the results in 2014 as follows:

January-June result            17 July 2014
January-September result  23 October 2014

Briefing

A briefing in Finnish will be held for analysts and the media on 24 April 2014
at 11.00 a.m. in Sokos Hotel Vaakuna, Asema-aukio 2, 00100, Helsinki, Finland. 


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_INTERIM REPORT_Q1_2014.pdf