Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q4 2023 Earnings Presentation
32 slides from Alma Media Oyj's earnings presentation, February 2024
Slide 1: Alma Media's Q4&FY2023 Interim Report
Alma Media’s Q4&FY2023 Interim Report : Profitability improved in Q4, adjusted operating profit of FY 2023 ended up at last year’s record level
Slide 2: Q4&FY2023 Highlights
Q4&FY2023 Adjusted operating profit up by 10%, revenue on par with Highlights the comparison period in Q4 REVENUE (MEUR)* ADJUSTED OPERATING PROFIT (MEUR) (% OF REVENUE) -0.9 % 9.7 % 21.5 % 19.9 % 19.4 % 78 79 78 15.5 15.2 16.7 Q4 2021 Q4 2022 Q4 2023 Q4 2021 Q4 2022 Q4 2023 • Solid performance desp
Slide 3: Efficiency measures improved operational profitability
Efficiency measures improved operational profitability REVENUE Q4 2023 (MEUR) ADJUSTED OPERATING PROFIT Q4 2023 (MEUR) 1.5 -1.7 0.8 -0.4 -1.6 0.9 0.3 0.8 78.7 78.0 15.2 16.7 Q4 2022 Alma Alma Alma Non-allocated Q4 2023 Q4 2022 Alma Alma Alma Shared Q4 2023 Career Consumer Talent and Career Consumer
Slide 4: Share of digital business continued to grow
Share of digital business continued to grow SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 82% 57 % 77% 69% 66% 61% 63% 58% 59% 41 % 51% 53%** 39 % 40 % 16 % 15 % 5% 3% 2% 1% 0% 0% 1% 82 91 100 125 146 160 165 158 212 250 251 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 5: Development by business segments
DEVELOPMENT BY BUSINESS SEGMENTS
Slide 6: Alma Career: Adjusted operating profit increased due to cost savings
Alma Adjusted operating profit increased due to cost savings Career in Q4 REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q4/2023 (REVENUE CHANGE IN BRACKETS) 43.1 % 43.8 % Czech Rep., 54% (-8.0%)* 39.9 % 37.0 % 30.8 % Slovakia, 19% (+34.2%) Croatia, 10% (+14.5%)
Slide 7: Invoicing & revenue recognition in Alma Career
Invoicing & revenue recognition in Alma Career 18,000 16,000 14,000 12,000 KEUR 10,000 8,000 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 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2020 2021 2022 2023 Revenue Invoicing KPIs (monthly averages in thousands) 2023
Slide 8: Alma Consumer: Profitability hit by decline in advertising sales
Alma Profitability was hit by a decline in advertising sales and Consumer investments in product development in Q4 REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q4/2023 ADVERTISING SALES REVENUE OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) (MEUR)* 21.8 % 23.4 % 13.1 12.5 21.2 % M
Slide 9: Alma Talent: Adjusted operating profit up by 15.3% in Q4
Alma Adjusted operating profit up by 15.3% in Q4, driven by yet Talent again, a stellar performance in Talent Services REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q4/2023 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 23.9 % 22.8 % 20.5 % 20.3 % 20.1 % Alma Talent Media 53%
Slide 10: Events after the review period
Events after the review period • In January 2024, Alma Media acquired the share capital of the automotive industry software company Netwheels Oy to strengthen its offering of automotive and mobility services to corporate customers. • Netwheels Oy provides software on a SaaS basis for the automotive
Slide 11: Solid financial position
SOLID FINANCIAL POSITION
Slide 12: Alma Media's long-term financial targets
Alma Media's long-term financial targets* * https://www.almamedia.fi/en/newsroom/ REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO 19.6 23.8 24.1 22.2 2.3 12.1 19.8 19.7 1.6 1.6 0.3 -1.8 -1.2 -0.2 -8 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Rep
Slide 13: Financial position balancing and deleveraging continuing
Financial position balancing and deleveraging continuing NET DEBT (MEUR), GEARING (%) & EQUITY RATIO (%) Q4/2020–Q4/2023 160% 132% 109% 102% 94% 81% 82% 69% 73% 63% 65% 59% 41% 46% 48% 46% 46% 39% 42% 43% 29% 33% 35% 33% 31% -4% 39 222 204 182 157 164 154 143 128 160 151 146 -9 Q4 20 Q1 21 Q2 21 Q3
Slide 14: Solid cash flow
Solid cash flow OPERATING CASH FLOW OPERATING CASH FLOW BRIDGE 2022–2023 79,2 0,4 7,2 4,5 MEUR 4,8 63,0 0,1 15.3 15.4 16.1 19.6 24.5 27.3 17.0 17.3 17.6 20.7 9.8 13.0 19.6 2022 Adjusted Taxes paid Net interest Changes Other 2023 EBITDA paid in working capital Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 2
Slide 15: Good and solid financial position enabling investments totalling MEUR 26
Good and solid financial position enabling investments totalling MEUR 26 CAPEX, LEASES, M&A Q4/20-Q4/23 DEPRECIATIONS Q4/20-Q4/23 ROI* (%) 2020-2023 MEUR 190 35 180 4 22 30 28.6 20 83 2 18 64 25 22.0 16 82 178 14 18.5 19.0 14 63 0 -1 -1 20 18.6 19.0 12 2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 16.3 10 15.1
Slide 16: Earnings per Share and Board's Dividend Proposal
Earnings per Share and Board’s Dividend Proposal EARNINGS PER SHARE DIVIDEND PER SHARE EFFECTIVE DIVIDEND YIELD* 1.13 0.44 0.45 6.3 % 0.40 0.88 0.35 0.35 5.0 % 4.7 % 4.7 % 4.4 % 0.30 4.0 % 0.69 3.3 % 3.4 % 3.2 % 3.2 % 0.24 0.51 0.51 0.53 0.39 0.16 0.12 0.12 0.19 0.20 0.12 *Dividend/share adjusted fo
Slide 17: Operating environment
OPERATING ENVIRONMENT
Slide 18: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Slower growth in operating Digitalisation continues to Digital legislation increases. Geopolitical tensions elevated. countries. High inflation and change consumer beha
Slide 19: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Latest Alma Media operating countries’ updates GDP change (%) Inflation (%) Unemployment (%) 2024 2023 2024 2023 2024 2023 Bosnia & Herz 2.0* 1.5* 3.5* 6.5* n/a 15.3** Croatia 2.6 2.6 2.5 8.4 6.2* 6.5* Czechia 1.1 -0.4 2.9 12.0 2.
Slide 20: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 12/2022–12/2023 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-12/2023 Source: Kantar TNS (1-12/2022)* Source: Kantar TNS 15% A-LEHDET Other 1% (1%) 10% 15% (15%) 5% Keskisuomalainen 0% 3% (3%) ALMA MEDIA 35% (37%) -5% App
Slide 21: The Finnish housing market update 2023
The Finnish housing market update 2023: A challenging year for the housing trade — a turn for the better in Q4. Trade volumes Full year Full year Etuovi.com Q4 2023 Vuokraovi.com Q4 2023 2023 2022 (Housing marketplace) (Rental housing) Used Active listings Active listings 1.7% 18.5% apartments (chan
Slide 22: The Finnish mobility update
The Finnish mobility update: Easening component shortages – registrations still behind the long-term averages Cars & mobility Full year 1-12/ Nettiauto Q4 2023 1-12/ market 2023 2022 2022 New cars Sold cars, total 7.1% -17% 4.9% -10% Used cars Gross Market 4.1% -11% 4.9% -1% value of sales Source: A
Slide 23: Strategy and outlook
STRATEGY AND OUTLOOK
Slide 24: Alma Media changes its segment structure
Alma Media changes its segment structure • Alma Media will renew its organisation and segment structure as of 1 March 2024. • In the future, Alma Media's business segments will be Alma Career, Alma Marketplaces and Alma News Media. • The purpose of the segment structure reform is to accelerate the i
Slide 25: New business segments as of 1 March 2024
New business segments as of 1 March 2024 FY 2023 pro forma ALMA CAREER ALMA NEWS MEDIA ALMA MARKETPLACES Vesa-Pekka Kirsi Juha-Petri Loimovuori Santtu Elsinen Leading Job boards in 11 CEE Leading digital news media in Leading marketplaces in real countries. Recruitment the Finnish market. Pioneer in
Slide 26: Strong market position and leading brands in key areas
Strong market position and leading brands in key areas RECRUITING #1 Czech Republic prace.cz, jobs.cz #1 Slovakia profesia.sk 1 #1 Croatia mojposao.net #3 Finland jobly.fi 1 #1-2 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia
Slide 27: Alma Media strategy
Alma Media strategy TRANSFORM THE CORE 1. • Continue to diversify from media to marketplaces and digital services • Develop marketplaces towards advanced digital platforms • Maximise group synergies through efficient co-operation GROW IN DIGITAL 2. • Diversify and develop new revenue streams in curr
Slide 28: Alma Media Strategy
Alma Media Strategy Synergy creation Alma Media concentrates on recruitment, housing and commercial property, mobility, media and information services with synergies: • By utilising the reach of media platforms, directing user Shared traffic and commercialising the user data for growing high AUDIENC
Slide 29: From classified advertising to transactions
From classified advertising to transactions Entering larger potential market and enabling new revenue sources B U Y E R S SEARCH EVALUATE NEGOTIATE OWNERSHIP & & & Close & PROVIDE MARKET CLOSE CRM S E L L E R S , B 2 B PA R T N E R S ADVERTISING TRANSACTIONS We further develop and We help to streaml
Slide 30: Outlook For 2024
Outlook For 2024 Announced on 16 February 2024 • Alma Media expects its full-year revenue and adjusted operating profit of 2024 to remain at the 2023 level. • The full-year revenue for 2023 was MEUR 304.9 and the adjusted operating profit was MEUR 73.6. • The outlook is based on an estimate that the
Slide 31: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Friday, 15 March 2024: Financial Statements, Report by the Board of Directors, Auditor’s Report, Remuneration Report and Corporate Governance Statement for financial year 2023 • Friday, 5 April 2024: The Annual General Meeting • Fri
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