Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q3 2023 Earnings Presentation
29 slides from Alma Media Oyj's earnings presentation, Oct 19, 2023
Slide 1: Alma Media's Q3 Interim Report January–September 2023
Alma Media’s Q3 Interim Report January–September 2023: Revenue almost at last year’s level in Q3, operating profit improved due to costs savings.
Slide 2: Q3 2023 Highlights
Q3 2023 Adjusted operating profit up by 6.2%, while revenue Highlights decreased 1.5% in Q3 REVENUE (MEUR) ADJUSTED OPERATING PROFIT -1.5 % (MEUR) (% OF REVENUE) 6.2 % 27.9 % 25.9 % 26.3 % 68 75 73 17.8 19.3 20.5 Q3 2021 Q3 2022 Q3 2023 Q3 2021 Q3 2022 Q3 2023 • Solid performance despite strong head
Slide 3: Efficiency measures improving operational profitability
Efficiency measures improving operational profitability REVENUE Q3 2023 (MEUR) ADJUSTED OPERATING PROFIT Q3 2023 (MEUR) 0.1 -0.8 -0.6 0.1 2.0 -1.1 0.3 0.0 74.5 73.4 19.3 20.5 Q3 2022 Alma Alma Alma Non-allocated Q3 2023 Q3 2022 Alma Alma Alma Shared Q3 2023 Career Consumer Talent and Career Consumer
Slide 4: Digital business growth on par with the comparison period
Digital business growth on par with the comparison period SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 83% 77% 57 % 69% 66% 61% 63% 58% 59% 41 % 53% ** 39 % 40 % 51% 16 % 15 % 5% 3% 2% 1% 0% 0% 82 91 100 125 146 160 165 158 212 250 188 2013 2014 2015 2016 2017 2018 2019 2
Slide 5: Development by business segments
DEVELOPMENT BY BUSINESS SEGMENTS
Slide 6: Alma Career: hike on adjusted operating margin boosted profits
Alma Hike on adjusted operating margin boosted segment's Career profits in Q3 REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q3/2023 (REVENUE CHANGE IN BRACKETS) Czech Rep., 57% (-0.2%) 43.1 % 43.8 % 39.9 % Slovakia, 18% (+18.4%) 36.9 % 30.8 % Croatia, 11% (+13.
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 2020 2021 2022 2023 Revenue Invoicing KPIs (monthly averages in thousands) 1-9/2023 2022
Slide 8: Alma Consumer: profitability weighed down by advertising decline
Profitability weighed down in Q3 by the decline of Alma advertising revenue in media and marketplaces. Revenue Consumer increased in comparison services and digital content sales. REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q3/2023 ADVERTISING SALES REVENUE OPERATING MARGIN (%) (REVENUE CH
Slide 9: Alma Talent: adjusted operating profit up 7.2% in Q3
Alma Adjusted operating profit up by 7.2% in Q3, driven by the Talent stellar performance yet again in Talent Services REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q3/2023 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 21.7 % 23.9 % Alma Talent Media 51% (-6.7%) 20.5 % 20.3 %
Slide 10: Solid financial position
SOLID FINANCIAL POSITION
Slide 11: Financial position balancing and deleveraging continuing
Financial position balancing and deleveraging continuing NET DEBT (MEUR) AND GEARING (%) Q3/2020–Q3/2023 EQUITY RATIO Q3/2020–Q3/2023 160.0 % 72.7 % 132.0 % 63.1 % 109.2 % 102.4 % 93.7 % 82.4 % 80.8 % 69.3 % 72.7 % 45.8 % 47.6 % 46.1 % 58.7 % 41.6 % 43.0 % 40.5 % 38.8 % 33.3 % 34.7 % 33.0 % MEUR 31.
Slide 12: Good cash flow enables deleveraging
Good cash flow enables deleveraging Capital expenditure and acquisitions, MEUR OPERATING CASH FLOW 1-9/2023 1–9/2022 2022 86.2 Capex 7.4 10.2 13.2 Acquisitions 5.1 2.4 5.2 66.4 61.0 57.9 Total 12.5 12.6 18.3 MEUR • Cash flow from operating activities in Q3 was MEUR 13.0 (17.3). Cash flow from operat
Slide 13: EPS to 19 cents in Q3
EPS to 19 cents in Q3 0.28 0.23 • Earnings per share were EUR 0.19 (0.20) in Q3 0.19 0.20 0.20 0.19 0.18 EUR and EUR 0.55 (0.68) in Q1-Q3. 0.14 0.14 • Return on equity (annualised) was 34.4% and return on investment (annualised) 19.0% in Q3. Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 In Q
Slide 14: Alma Media's long-term financial targets
* https://www.almamedia.fi/en/newsroom/ Alma Media's long-term financial targets* REVENUE GROWTH (%) ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO** 19.6 2.3 23.8 25.1 22.2 12.1 19.8 19.7 1.7 1.6 0.3 -1.8 -1.4 -0.2 -8.0 2019 2020 2021 2022 1-9 2019 2020 2021 2022 1-9 2019 2020 2021 2022 1-9 20
Slide 15: Operating environment
OPERATING ENVIRONMENT
Slide 16: Challenging operating environment
Challenging operating environment Slowing Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Growth decelerates in all Digitalisation continues to Digital legislation increases. Geopolitical tensions are operating countries. High change consumer behaviour. Grow
Slide 17: 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 (%) 2022 2023 2024 2022 2023 2024 2022 2023 2024 Bos & Her 3.9 1.5 2.3 14.0 7.0 4.0 15.4 14.5 14.0 Croatia 6.2 1.6 2.3 10.7 6.9 2.2 7.0 6.6 6
Slide 18: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 8/2022–8/2023 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-8/2023 Source: Kantar TNS (1-8/2022)* Source: Kantar TNS 15% A-LEHDET Other 1% (1%) 10% 15% (15%) 5% Keskisuomalainen 0% 3% (3%) ALMA MEDIA 36% (38%) -5% Appr. -
Slide 19: The Finnish housing market update
The Finnish housing market update: In Q3, a total of 11,646 apartments sold — 35.1 % under 5-year average. New apartments trade 78.7% under 5-year average. Trade volumes Q3 2023 1-12/ Etuovi.com Q3 1-12/ Vuokraovi.com Q3 2023 2022 (Housing marketplace) 2023 2022 (Rental housing) Used Active listings
Slide 20: The Finnish mobility update
The Finnish mobility update: Easening component shortages – registrations still behind the long-term averages Cars & mobility Q3 1-12/ Nettiauto Q3 2023 1-12/ market 2023 2022 2022 New cars Sold cars, total 11.8% -17% 5.1% -10% Used cars Gross Market 6.4% -11% 4.8% -1% value of sales Source: AKL=Aut
Slide 21: Strategy and outlook
| STRATEGY AND OUTLOOK j
Slide 22: 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 23: 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 24: Alma Media Strategy: synergy creation
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 25: 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 26: Otava Ltd's ownership of Alma Media's shares rose to 31.18%
Otava Ltd’s ownership of Alma Media's shares rose to 31.18% • On 16 June 2023, Alma Media announced it had received information that Otava Ltd’s portion of all shares and voting rights in Alma Media had exceeded 30% as a result of the share transactions made between 14 and 15 June 2023 and that Otav
Slide 27: Outlook for 2023
Outlook For 2023 Announced on 16 February 2023 • Alma Media expects its full-year revenue and adjusted operating profit of 2023 to remain at the 2022 level or to decrease from 2022 level. • The full-year revenue for 2022 was MEUR 308.8 and the adjusted operating profit was MEUR 73.4. 27
Slide 28: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Friday, 16 February 2024: Financial Statement Bulletin for financial year 2023 • Friday, 15 March 2024: Financial Statements, Report by the Board of Directors, Auditor’s Report, Sustainability Report and Corporate Governance Stateme
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