Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q3 2011 Earnings Presentation
40 slides from Alma Media Oyj's earnings presentation, Oct 28, 2011
Slide 1: Alma Media Q3 2011
Alma Media Q3 2011 Kai Telanne, President and CEO Tuomas Itkonen, CFO October 28, 2011 1 28.10.2011
Slide 2: Agenda
Agenda • Highlights • Markets • Segment review • Financial review and outlook 2 28.10.2011
Slide 3: Highlights Q3 2011
Highlights Q3 2011 • Revenue was MEUR 75.1 (75.2), down by 0.2%. — Advertising sales grew by 1.5 % and amounted to MEUR 34.3 (33.8). o Online advertising sales grew by 20.6% to MEUR 9.9 (8.2). o Advertising sales in the printed media decreased by 4.9% to MEUR 24.2 (25.5). — Circulation sales increas
Slide 4: Highlights Q1-Q3 2011
Highlights Q1-Q3 2011 • Revenue was MEUR 234.9 (228.3), up by 2.9%. — Advertising sales grew by 7.0 % and amounted to MEUR 114.7 (107.2). o Online advertising sales increased by 23.7% to MEUR 32.0 (25.8). o Advertising sales in the printed media increased by 1.6% to MEUR 82.1 (80.8). — Circulation r
Slide 5: Key figures Q3 2011, MEUR
Key figures Q3 2011, MEUR IFRS Revenue, MEUR EBIT, MEUR 90 16 +5,1% -0,2% 80 14 0,2 -10,3% 83,0 82,7 77,1 0,4 70 75,2 75,1 12 13,4 +2,6% 11,5 12,0 60 10 11,0 50 8 9,3 40 6 30 4 20 2 10 0 -0,3 -0,3 -0,5 0 -2 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Onetime items 5 28.10.2011
Slide 6: Markets
Markets 6 28.10.2011
Slide 7: Advertising sales change Q3/2011
Advertising sales change Q3/2011 Alma Media vs. market Market* Alma Media** Change, % Q3/11 Q3/11 Newspapers total 0,5 -4,9 *** Magazines 0,6 - Television 0,8 - Radio 23,2 - Internet 20,3 18,8 TOTAL 3,7 0,5 * Source: TNS Media Intelligence ** without discontinued operations *** Newspapers segment (e
Slide 8: Advertising by branch Q3/2011
Advertising by branch Q3/2011 Total market; change from Q3/2010 Advertising in Q3/11 MEUR Retail -1,4 % Retail 57 Motor v. 4,0 % Motor vehicles 25 Food & bev. 13,1 % Food & beverages 18 Houses 19,6 % Houses and premises 13 Entert 7,4 % Entertainment 11 Recru 14,9 % Recruiting 11 Tourism 15,3 % Touri
Slide 9: Advertising by branch Q3/2011
Advertising by branch Q3/2011 Newspapers total*; change from Q3/2010 Advertising in Q3/11 MEUR Retail -3,1 % Retail 42 Motor v. 3,1 % Motor vehicles 14 Houses 15,1 % Houses and premises 8 Recru 7,2 % Recruiting 7 Entert 6,1 % Entertainment 5 Tourism 7,8 % Tourism and traffic 4 Tele -0,7 % Telecommun
Slide 10: Advertising change by branch
Advertising change by branch Newspapers total*; change from previous year P7 2011 vs 2010 P8 2011 vs 2010 P9 2011 vs 2010 Retail -7,0 % Retail -1,9 % Retail -0,7 % Motor v. 6,5 % Motor v. 2,1 % Motor v. 2,1 % Houses 20,3 % Houses 10,7 % Houses 15,1 % Recru 51,6 % Recru 1,2 % Recru 4,9 % Entert 5,3 %
Slide 11: Advertising sales change Q1-Q3 / 2011
Advertising sales change Q1-Q3 / 2011 Alma Media vs. market Market* Alma Media** Change, % Q1-Q3 11 Q1-Q3 11 Newspapers total 6,2 1,6 *** Magazines 3,8 - Television 10,3 - Radio 26,9 - Internet 27,5 22,2 TOTAL 9,9 6,3 * Source: TNS Media Intelligence ** without discontinued operations *** Newspapers
Slide 12: Advertising by branch Q1-Q3 / 2011
Advertising by branch Q1-Q3 / 2011 Total market; change from Q1-Q3 2010 Advertising in Q1-Q3 11 MEUR Retail 3,2 % Retail 187 Motor v. 15,9 % Motor vehicles 84 Food & bev. 18,7 % Food & beverages 77 Recru 33,8 % Recruiting 42 Houses 21,7 % Houses and premises 38 Tourism 22,5 % Tourism and traffic 34
Slide 13: Advertising by branch Q1-Q3 / 2011
Advertising by branch Q1-Q3 / 2011 Newspapers total*, change from Q1-Q3 2010 Advertising in Q1-Q3 11 MEUR Retail -0,5 % Retail 137 Motor v. 13,1 % Motor vehicles 46 Recru 28,1 % Recruiting 25 Houses 17,3 % Houses and premises 25 Entert 3,3 % Entertainment 14 Tourism 7,7 % Tourism and traffic 13 Tele
Slide 14: Advertising change by branch
Advertising change by branch Newspapers total*; change from previous year Q1 2011 vs 2010 Q2 2011 vs 2010 Q3 2011 vs 2010 Retail -4,5 % Retail 4,9 % Retail -3,1 % Motor v. 15,3 % Motor v. 21,5 % Motor v. 3,1 % Houses 13,9 % Houses 22,9 % Houses 15,1 % Recru 39,6 % Recru 34,6 % Recru 7,2 % Entert 1,0
Slide 15: Segment review
Segment review 15 28.10.2011
Slide 16: Newspapers Q3
Newspapers Q3 • Revenue decreased by 0.7% to MEUR 53.1 (53.5). — Advertising sales fell by 1.1% (+7.9%) to MEUR 23.6 (23.9). ◦ In printed media, advertising sales declined by 3.6% (+5.5%). ◦ In online media, advertising sales grew by 23.5% (39.9%), particularly positive development in Iltalehti and
Slide 17: Newspapers Q1-Q3
Newspapers Q1-Q3 • Revenue increased by 2.3% to MEUR 164.9 (161.2). — Advertising sales grew by 4.9% (2.8%) to MEUR 76.9 (76.0). ◦ In printed media, advertising sales increased by 2.6% (0.0%). ◦ In online media, advertising sales grew by 25.7% (39.9%). — Circulation revenue remained unchanged at MEU
Slide 18: Kauppalehti Group Q3
Kauppalehti Group Q3 • Revenue declined by 5.4% to MEUR 12.6 (13.3). — Circulation revenue at the level of the comparison period, MEUR 3.8 (3.7). — Advertising sales fell by 12.9% (+18.8%). Online advertising sales declined by 10.7% (+46.7%). — Content and service revenue decreased to MEUR 5.7 (6.0)
Slide 19: Kauppalehti Group Q1-Q3
Kauppalehti Group Q1-Q3 • Revenue declined by 0.7% to MEUR 41.5 (41.8). — Circulation revenue grew to MEUR 11.1 (11.0). — Advertising sales fell by 2.6% (+8.3%) to MEUR 12.0 (12.3). Online advertising sales declined by 0.5% (+34.5%). — Content and service revenue remained at last year’s level, MEUR
Slide 20: Marketplaces Q3
Marketplaces Q3 • Revenue grew by 15.0% and amounted to MEUR 9.0 (7.9). • Growth in revenue was driven by the healthy demand for recruitment and online housing advertising. • Total expenses excl. non-recurring items grew by 5.2% to MEUR 7.4 (7.0). The increase in expenses was due to planned investme
Slide 21: Marketplaces Q1-Q3
Marketplaces Q1-Q3 • Revenue grew by 17.0% to MEUR 27.7 (23.7). • Growth in revenue was driven by the healthy demand for recruitment and online housing advertising. • Total expenses excl. non-recurring items were at last year’s level, MEUR 23.0 (22.9). • Operating profit excl. non-recurring items wa
Slide 22: Other operations Q3
Other operations Q3 • Revenue was MEUR 20.6 (19.6), of which external revenue MEUR 1.4. • Investment to renew the Tampere printing facility proceeds as planned. 22 28.10.2011
Slide 23: Other operations Q1-Q3
Other operations Q1-Q3 • Revenue amounted to MEUR 60.9 (58.2), of which external revenue MEUR 4.1. • Investment to renew the Tampere printing facility proceeds as planned. • The statutory personnel negotiations related with the development and rationalising programme at the printing and distribution
Slide 24: Financial review Q3 2011
Financial review Q3 2011 24 28.10.2011
Slide 25: Key figures Q3 2011, MEUR
Key figures Q3 2011, MEUR IFRS Revenue, MEUR EBIT, MEUR 90 16 +5,1% -0,2% 80 14 0,2 -10,3% 83,0 82,7 77,1 0,4 70 75,2 75,1 12 13,4 +2,6% 11,5 12,0 60 10 11,0 50 8 9,3 40 6 30 4 20 2 10 0 -0,3 -0,3 -0,5 0 -2 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Onetime items 25 28.10.2011
Slide 26: Revenue change by type, MEUR
Revenue change by type, MEUR IFRS Circulation, MEUR Advertising, MEUR 0,8 4,5 +10,8% 4,0 0,6 3,5 +1,2% 0,4 3,0 0,2 2,5 -1,4% 2,0 0,0 1,5 -0,2 1,0 +1,5% -0,4 0,5 -0,6 0,0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 26 28.10.2011
Slide 27: Revenue by segment, MEUR
Revenue by segment, MEUR w/o onetime items Newspapers, MEUR & % Kauppalehti Group, MEUR & % 70,0 18,0 -0,7% 16,0 +3,8% 60,0 +4,5% -5,4% 57,9 14,0 15,0 50,0 53,5 53,1 13,3 12,0 12,6 40,0 10,0 30,0 8,0 6,0 20,0 4,0 10,0 2,0 0,0 0,0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 27 28.10.2
Slide 28: Revenue by segment, MEUR
Revenue by segment, MEUR w/o onetime items Marketplaces, MEUR & % Other, MEUR 12,00 25,0 +5,6% 10,00 +16,1% +15,0% +7,2% 20,0 20,7 20,6 9,5 19,6 9,0 8,00 7,9 15,0 6,00 10,0 4,00 5,0 2,00 0,00 0,0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 28 28.10.2011
Slide 29: EBIT by segment, MEUR
EBIT by segment, MEUR w/o onetime items Newspapers, MEUR & % Kauppalehti Group, MEUR & % 12,0 20 % 3,0 18,2 % 20 % +0,0% -15,1% -21,5% -16,8% 18 % 16,0 % 18 % 10,0 15,8 % 2,5 15,3 % 16 % 16 % 2,4 9,2 13,1 % 13,1 % 14 % 14 % 8,0 2,0 8,2 2,0 12 % 2,0 12 % 7,0 6,0 10 % 1,5 10 % 8% 8% 4,0 1,0 6% 6% 4% 4
Slide 30: EBIT by segment, MEUR
EBIT by segment, MEUR w/o onetime items Marketplaces, MEUR & % Other, MEUR 2,0 20 % 2,5 +95,7% 1,8 +1 364,0% 18,5 % 18 % 2,0 1,6 1,7 16 % 1,9 16,3 % 1,5 1,6 1,4 14 % 1,5 10,9 % 1,0 1,2 12 % 1,0 10 % 0,5 0,8 0,9 8% 0,0 0,6 6% -0,5 0,4 4% -1,0 -1,1 0,2 2% 0,0 0% -1,5 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 1
Slide 31: Cash flow from operating activities
Cash flow from operating activities IFRS 30,0 25,0 20,0 15,0 MEUR 10,0 3,9 4,9 5,0 4,4 0,0 -5,0 -10,0 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Tax return and final withholding tax 31 28.10.2011
Slide 32: Cash flow and investments
Cash flow and investments IFRS 8 5,0 7,4 7 3,9 4,0 6 3,0 4,9 5 4,4 2,0 MEUR MEUR 3,9 4 1,0 3 0,0 0,0 2 -1,0 -0,5 1 -1,4 0 -2,0 Q3 10 Q3 11 Q3 10 Q3 11 From operating activities Gross investments Before financing activities Proceeds from sales of assets 32 28.10.2011
Slide 33: Net debt, MEUR
Net debt, MEUR IFRS 10 5 0 -5 -3,2 -10 -7,9 MEUR -8,5 -15 -12,4 -20 -25 -21,7 -30 -35 -32,4 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 33 28.10.2011
Slide 34: Key ratios in 2011
Key ratios in 2011 IFRS Equity ratio, % Gearing, % 80 0 70 69,4 -5 60 64,6 50 -10 40 -13,3 30 -15 20 -20 -20,7 10 0 -25 Q3 10 Q3 11 Q3 10 Q3 11 34 28.10.2011
Slide 35: Key ratios in 2011
Key ratios in 2011 IFRS ROE% ROI% 80 70 70 60 69,3 61,1 60 50 50 47,6 49,2 40 40 30 30 20 20 10 10 0 0 Q3 10 Q3 11 Q3 10 Q3 11 35 28.10.2011
Slide 36: EPS and shareholders' equity per share
EPS and shareholders' equity per share 0,40 1,6 0,36 1,37 0,35 0,32 1,4 1,20 0,30 1,2 0,25 1,0 0,71 0,50 0,20 0,36 0,8 0,15 0,32 0,6 0,10 0,4 0,05 0,66 0,70 0,2 0,00 -0,01 0,00 -0,05 0,0 Q1-Q3 10 Q1-Q3 11 Q3 10 Q3 11 EPS wo onetime Retained earnings Onetime items Restricted equity 36 28.10.2011
Slide 37: Balance Sheet
Balance Sheet IFRS MEUR Q3 2011 Q3 2010 Intangibles and goodwill 40,5 39,8 Tangibles 24,1 29,0 Associated companies 35,4 33,1 Inventory 1,1 0,9 Receivables 41,9 42,2 Cash 20,9 25,8 Assets 163,8 170,7 Equity 93,1 105,0 Reserves-obligatory 1,0 0,3 Pension liabilities 2,6 2,8 Ib debt 8,5 4,1 Non-Ib deb
Slide 38: Profit and loss Q3 2011 and Q1-Q3 2011
Profit and loss Q3 2011 and Q1-Q3 2011 w/o onetime items MEUR Q3 2011 Q3 2010 Chg Chg % Q1-Q3 2011 Q1-Q3 2010 Chg Chg % Circulation sales 32,5 32,1 0,4 1,2 % 93,4 93,5 0,0 0,0 % Advertising sales 34,3 33,8 0,5 1,5 % 114,7 107,2 7,5 7,0 % Advertising sales, print 24,2 25,5 -1,3 -4,9 % 82,1 80,8 1,3 1
Slide 39: Outlook on October 28, 2011
Outlook on October 28, 2011 • Alma Media expects newspaper and online advertising to grow in 2011 compared with the previous year. Alma Media estimates the single-copy sales of afternoon papers to decline further. The circulation revenue of regional and local papers as well as Kauppalehti is expecte
Slide 40: Thank you!
Thank you! 40 28.10.2011