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2014-04-29

Alma Media's Interim Report January-March 2014: The decline in print media revenue reduced operating profit, measures to adjust cost structure are in progress

Alma Media Corporation Interim Report 29 April 2014 at 9:00am
(EEST)

Alma Media's interim report January-March 2014:
THE DECLINE IN PRINT MEDIA REVENUE REDUCED OPERATING PROFIT, MEASURES TO
ADJUST COST STRUCTURE ARE IN PROGRESS

Financial performance January-March 2014:

- Revenue MEUR 72.7 (74.9), down 2.9%.
- Online sales increased by 11.0% to MEUR 23.8 (21.4).
- EBITDA (Earnings before interest, taxes, depreciation and amortisation)
excluding non-recurring items MEUR 6.1 (8.0), down 24.3%.
- EBITDA MEUR 6.8 (8.0), down 14.7%.
- Operating profit excluding non-recurring items MEUR 2.5 (5.5) or 3.4% (7.3%)
of revenue, down 54.8%.
- Operating profit MEUR 3.2 (5.4) or 4.4% (7.2%) of revenue, down 40.7%.
- Profit for the period MEUR 2.2 (4.1), down 47.3%.
- The result for the review period includes a non-recurring item, proceeds of
MEUR 0.7 from the sale of the BNS business.
- Earnings per share EUR 0.02 (0.05).

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|KEY FIGURES 2014 2013 Change 2013 |
|MEUR Q1 Q1 % Q1-Q4 |
|Revenue 72.7 74.9 -2.2 -2.9 300.2 |
|Contents revenue 27.4 29.2 -1.8 -6.3 115.3 |
|Contents revenue, print 26.1 28.2 -2.1 -7.5 111.2 |
|Contents revenue, online 1.3 0.8 0.4 50.2 3.8 |
|Advertising revenue 35.1 36.4 -1.3 -3.5 147.3 |
|Advertising revenue, print 16.9 19.1 -2.1 -11.1 80.0 |
|Advertising revenue, online 18.1 17.1 1.1 6.2 66.5 |
|Service revenue 10.2 9.3 0.9 10.2 37.6 |
|Total expenses excluding non-recurring items 70.4 69.6 0.8 1.1 276.7 |
|EBITDA excluding non-recurring items 6.1 8.0 -1.9 -24.3 37.5 |
|EBITDA 6.8 8.0 -1.2 -14.7 45.3 |
|Operating profit excluding non-recurring items 2.5 5.5 -3.0 -54.8 24.2 |
|% of revenue 3.4 7.3 8.0 |
|Operating profit 3.2 5.4 -2.2 -40.7 27.0 |
|% of revenue 4.4 7.2 9.0 |
|Profit for the period 2.2 4.1 -1.9 -47.3 16.0 |
|Earnings per share, EUR (basic) 0.02 0.05 -0.03 -54.1 0.20 |
|Earnings per share, EUR (diluted) 0.02 0.05 -0.03 -54.1 0.20 |
| |
|Online sales 23.8 21.4 2.4 11.0 84.5 |
|Online sales, % of net sales 32.7 28.6 4.1 28.1 |
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Outlook for 2014:

The revenue and operating profit of Alma Media's print newspaper business,
especially regional media, did not develop as expected during the first
quarter of the year. Therefore, the company lowered its estimate on 15 April
2014 of the development of both revenue and operating profit during the first
half of the year, as announced in the Financial Statements Release on 13
February 2014.

The economic operating environment in Finland has remained weaker than
expected in the beginning of 2014. The advertising market for print media has
declined more than anticipated. In the current economic situation,
forecasting the operating environment and especially advertising sales is
exceptionally difficult.

In its Financial Statements Release on 13 February 2014, Alma Media expected
the revenue of the first half of 2014 to be on a par with, or slightly lower
than the corresponding period in 2013. Operating profit excluding
non-recurring items was estimated to be MEUR 9.0-10.5.

According to the company's new estimate, the revenue for the first half of the
year will be lower than the corresponding period in 2013 and operating profit
excluding non-recurring items will be below the level estimated in the
Financial Statements Release on 13 February 2014.

Revenue for the first half of 2013 was MEUR 151.2 and operating profit
excluding non-recurring items MEUR 10.1.

Kai Telanne, President&CEO:

The advertising and content revenue from Alma Media's online and mobile
channels and the sales of different types of digital services, such as
recruitment services, developed favourably in the first quarter of 2014. We
introduced several mobile applications for news and lifestyle content. The
volume of video publishing and viewing in IL-TV grew by 30% and also
advertising in this new channel increased. The video service sales of Alma360
for its clients' own channels developed well.

Alma Career, a holding company managing Alma Media's recruitment business
operations in all the different countries, started its operation in the
beginning of the year 2014. The company, owned jointly with Monster
Worldwide, Inc., integrates recruitment services in all of Alma Media's nine
operating countries more closely and enables international sales growth
through Monster's global network.

Good sales figures for digital advertising and digital content were not enough
to offset the weak development of print media in the first quarter. The
plummeting of newspaper advertising has its roots primarily in the recession
of Finnish national economy. Retail and specialist trade's sales and
marketing investments, which are especially important for newspaper
advertising, have decreased strongly due to the weak consumer demand,
stemming from the declining consumer purchasing power. Also the
digitalisation of communication has an impact on advertising as businesses
are increasingly shifting their investments to e-commerce and digital
marketing communications channels.

Owing to the market conditions, the revenue and profit of Alma Media's print
newspaper business, in particular the regional media, did not develop as
expected in the first quarter. The company had to lower its revenue and
operating profit estimates for the first half-year from the Financial
Statements release of 13 February 2014.

Due to the performance being weaker than expected, Alma Media will launch
streamlining measures in Alma Regional Media, with the objective of achieving
annual savings of MEUR 1.5. In addition, the Group's financial administration
will be reorganised to increase operational efficiencies.

To ensure the profitability of regional publishing operations and the quality
of its content, Alma Media and five other Finnish newspaper publishers signed
a letter of intent in the beginning of 2014 aiming at significantly wider
journalistic cooperation between the newspapers and the establishment of a
joint company, Lännen Media, during the year 2014.

The declining print media has further accelerated Alma Media's business
development efforts and investments in future digital business. The share of
digital products and services of Group total revenue in the first quarter was
32.7% (28.6%). Online sales increased by 11.0% during the first quarter.

For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10 665 3873

Disclosure procedure:

Alma Media Corporation follows the disclosure procedure enabled by Standard
5.2b published by the Finnish Financial Supervision Authority. This stock
exchange release is a summary of Alma Media Corporation's Interim Report
January - March 2014. The complete report is attached to this release in pdf
format. The Interim Report is also available on Alma Media's website
atwww.almamedia.com/investors/.

Conference, webcast and conference call

A conference for Finnish media, investors and analysts will be held on the
same day at 11.00-12.00 EEST in the Alma House (address: Alvar Aallon katu 3
C, Helsinki). In addition to the presentations held by President&CEO Kai
Telanne and CFO Juha Nuutinen, participants will have an opportunity to
discuss with other members of the company's management. Please note that the
conference will be held in Finnish. The presentation material in English will
be available onwww.almamedia.com/press_room/downloads/presentations/at 11.00
EEST.

To participate in the conference, kindly register beforehand by
e-mail,kutsut@almamedia.fi.

An international conference call and audio webcast concerning the financial
result of January-March 2014 will begin at 13.00 EEST. You can participate in
the conference by calling +44(0)20 3427 1906 (confirmation code: 8523318) or
follow the direct transmission
atwww.almamedia.com/press_room/downloads/presentations/.

Rauno Heinonen
Vice President, Corporate Communications and IR
Alma Media Corporation

DISTRIBUTION: NASDAQ OMX Helsinki, main media

Alma Media in brief

Alma Media is a media company focusing on digital services and publishing. In
addition to news services, the company's products provide useful information
related to lifestyle, career and business development. The services of Alma
Media have expanded from Finland to the Nordic countries, the Baltics and
Central Europe. The company employs 1,965 professionals (excluding
distributors), of whom approximately one third work outside Finland. Alma
Media's revenue in 2013 totalled approximately MEUR 300. Alma Media's share
is listed on NASDAQ OMX Helsinki. Read more atwww.almamedia.com.

Alma Media's Interim Report Q1 2014
http://hugin.info/3000/R/1780804/608983.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alma Media Oyj via Globenewswire

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