Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q2 2021 Earnings Presentation
22 slides from Alma Media Oyj's earnings presentation, Jul 21, 2021
Slide 1: Q2 2021: Exceptionally strong quarter
Q2 2021: Exceptionally strong quarter CEO Kai Telanne and CFO Juha Nuutinen, 21 July 2021
Slide 2: Exceptionally strong quarter, recovery faster than expected
Exceptionally strong quarter, recovery faster than expected • Economy regaining strength; all business • Our EBIT margin was at record-high level, 23.2%. segments’ performance was excellent. In Q2, organic growth was 24%. • M&A transactions have changed our financial position, gearing 160% and equit
Slide 3: Digital Businesses Thrived Improving Operational Gearing
Digital Businesses Thrived Improving Operational Gearing Revenue* Q2 2021 (MEUR) Adjusted operating profit* Q2 2021 (MEUR) Q2: 10.8 4.5 -3.0 Q2: +36.1 % 6.5 2.9 +69.2 % 2.3 3.0 52.6 71.6 9.8 16.6 Q2 2020 Alma Alma Alma Q2 2021 Q2 2020 Alma Alma Alma Shared Q2 2021 Career Talent Consumer Career Talen
Slide 4: Digital Business Recovery Continuing – Comparison Period Exceptionally Low
Digital Business Recovery Continuing – Comparison Period Exceptionally Low Share of digital business of Group revenue* Digital business growth* 76% 60 % 57 % 66% 63% 69% 50 61% 59% 58% * 40 53% 51% 46% 30 36% 20 12 % 10 8% 6% 3% 4% 4% 3% 3% 1% 2% 0 -4 % -10 54 75 82 91 100 125 146 160 165 158 99 -20
Slide 5: Development By Business Segments
Development By Business Segments 5
Slide 6: Alma Career: Recruitment Market Activity Picked Up Very Rapidly
Alma Career: Recruitment Market Activity Picked Up Very Rapidly • Revenue +48.1% to MEUR 20.0, Revenue (MEUR) and adjusted Share of segment revenue by country turning to growth in Q2. Customer operating margin (%) 38.6 % (revenue change rates in brackets) invoicing at all-time high level. 35.3 % 35.
Slide 7: Alma Talent: Strong Quarter For Advertising, Digital Services Improving Profitability
Alma Talent: Strong Quarter For Advertising, Digital Services Improving Profitability • Revenue +12.9% to MEUR 25.2. Revenue (MEUR) and adjusted Revenue split by business unit • Comparable advertising revenue operating margin (%) (revenue change rates in brackets) 0% 20% 40% 60% 80% 100% returned to
Slide 8: Alma Consumer: Significant Step-Up Due To Organic Growth and Acquisitions
Alma Consumer: Significant Step-Up Due To Organic Growth and Acquisitions • Revenue +68.8% to MEUR 26.6. Revenue (MEUR) and adjusted Revenue split by vertical operating margin (%) (revenue change rates in brackets) • Strong demand for housing, cars 27.5 % and mobility marketplaces as well 27.5 % 0%
Slide 9: Financial Position
Financial Position 9
Slide 10: Major Transactions - Change in Group’s Financial Position And Increased Leverage
Major Transactions - Change in Group’s Financial Position And Increased Leverage INTEREST-BEARING NET DEBT, MEUR 6/2021 3/2021 IFRS16 -leasing liabilities 35.5 36.7 Loans from financial institutions 220.0 50.0 Commercial papers 0.0 5.0 Cash and cash equivalents 33.8 52.3 Interest-bearing net debt 22
Slide 11: Cash Flow
Cash Flow • Cash flow from operating activities was MEUR 16.1 (3.2). Operating cash flow and capital expenditure Increase came from improved profitability and lower taxes paid. 80 • Cash flow from investment activities was MEUR -173.3 70 (-47.9) due to acquisitions: redemption of minority shares 60
Slide 12: Revenue & Invoicing Recognition In Alma Career
Revenue & Invoicing Recognition In Alma Career 12 000 10 000 8 000 KEUR 6 000 4 000 2 000 - 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 2019 2020 2021 Revenue Invoicing 12
Slide 13: EPS
EPS • Earnings per share from 0.14 Continuing operations were EUR 0.12 0.12 (EUR 0.04). Adjusted items MEUR -3.6 (MEUR -2.9). 0.10 • Improved profitability and 0.08 EUR redemption of minority shares 0.06 0.12 0.12 0.12 in Alma Career and Alma 0.11 0.10 0.09 0.09 Mediapartners increased EPS from 0.04
Slide 14: Long-Term Financial Targets
Long-Term Financial Targets* Financial target Long-term target level Performance H1/2021 Digital business growth, %* >12% 28% ROI, %** >17% 12% Dividend payout ratio >50% * Includes continued and discontinued operations ** Includes adjusted items such as capital gain on the sale of the regional news
Slide 15: Operating Environment
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Slide 16: European Commission: Reopening Fuels Recovery
European Commission: Reopening Fuels Recovery GDP forecasts in Alma’s operating countries 2020–2022E Finland Czech Republic Slovakia Croatia Estonia 5.30% 5.40% 5.90% 4.50% 4.90% 4.90% 3.90% 3.80% 2.70% 2.90% -3.10% -2.90% -5.70% -5.90% -8.90% Latvia Lithuania Sweden Poland 2020 4.00% 5.10% 2021 Eur
Slide 17: Finnish Advertising Market: rebound accelerated
Finnish Advertising Market: rebound accelerated Monthly change in media advertising 6/2020–6/2021 Online advertising by media companies in Finland Source: Kantar TNS 1-6/2021 (1-6/2020)* Source: Kantar TNS 70% A-Lehdet 60% 1 % (1%) Other 50% 16% (7%) 40% 30% Keskisuomalainen Alma Media 20% 3% (2%) 3
Slide 18: Strategy And Outlook
Strategy And Outlook 18
Slide 19: Alma Media Transformational Strategy
Alma Media Transformational Strategy • Accelerate the digitalization of print media TRANSFORM THE CORE • Activate co-operation within group and business units • Divest or discontinue unprofitable / low-profitable businesses • Diversify from media to marketplaces and digital services • Concentrate on
Slide 20: Q2 in brief
Q2 in brief Redemption of minority Service development: new stake in Etua.fi. Monster.fi recruitment Nettix integration process Divestment of Talosofta. platform launched. Nettix employees transferred to Alma. Organisational structure and management model launched. Harmonised operating models and Ka
Slide 21: Outlook For 2021
Outlook For 2021 • Alma Media expects its full-year revenue and adjusted operating profit from continuing operations in 2021 to increase significantly from the 2020 level. • In 2020, the full-year revenue of the Group’s continuing operations was MEUR 230.2 and the adjusted operating profit was MEUR
Slide 22: Thank you! Questions?
Thank you! Questions? Upcoming events in the investor calendar: • Capital Markets Day, 16 September 2021 • Q3 2021, 21 October 2021 22