Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2024 Earnings Presentation
37 slides from Alma Media Oyj's earnings presentation, April 2024
Slide 1: Alma Media in the digital frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST Q1 2024 1
Slide 2: Alma Media in numbers
Alma Media in numbers * All figures FY 2023 2
Slide 3: Strong market positions and leading brands in key areas
Strong market positions and leading brands in key areas RECRUITING #1 Czech Republic jobs.cz, prace.cz #1 Slovakia profesia.sk 1 #1 Croatia mojposao.net #3 Finland jobly.fi 1 #1-2 Estonia, Latvia, cvonline.com 1-2 Lithuania #1 Bosnia and kolektiv.ba, Herzegovina, vrabotuvanje.com.mk, Macedonia, Serb
Slide 4: Two decades of digital transformation
Two decades of digital transformation 2023 and beyond 2020−2022 Towards advanced platforms 2015−2020 More balanced 2010−2015 business portfolio Acceleration of 2005−2010 growth utilising the Growth and possibilities of internationalisation digital Online becomes of digital services significant Sale
Slide 5: Continuing the renewal of portfolio – net investments over MEUR 200
Continuing the renewal of portfolio – net investments over MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS Techloop Nettix Alma Mediapartners (35%) Alma Career (17%) AutoJerry Kolektiv Toimitilat.fi Netello (60%) Katsastushinnat.fi DIAS (80%) DOKS
Slide 6: Digital transformation
Digital transformation FY 2023 MEUR MEUR 82 % 400 90% 350 80% 70% 300 11 23 60% 250 17 Services 50% Digital 200 40% Offline 251 150 30% Digital rate 247 100 20% 50 10% 42 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 7: Digital transformation and change in business mix driving operational gearing
Digital transformation and change in business mix driving operational gearing REVENUE ADJUSTED OPERATING PROFIT MEUR MEUR 2023* 350 82.4 % 90% 80 2023* 25.0 % 80% 24.2 % 300 11 70 22 70% 20.0 % 250 60 95 60% 50 15.0 % 200 50% 251 40 150 2014 40% 32.0 30% 30 2014 10.0 % 100 % 7.2 % 20 20% 5.0 % 179 5
Slide 8: Q1 2024 Highlights
Q1 2024 Revenue on par with the comparison period in Q1, Highlights adjusted operating profit fell slightly ADJUSTED OPERATING PROFIT REVENUE (MEUR) (MEUR) (% OF REVENUE) 19.6 1.2% 20 -5.2% 30 76.2 76.2 25.8% 17.0 75.3 16.1 15 22.6% 21.2% 25 20 10 15 10 5 5 0 0 Q1 2022 Q1 2023 Q1 2024 Q1 2022 Q1 202
Slide 9: Turnover improved due to acquisitions
Turnover improved due to acquisitions. Weakened koruna and the market conditions curbed the growth REVENUE Q1 2024 (MEUR) ADJUSTED OPERATING PROFIT Q1 2024 (MEUR) 17.0 -0.8 76.2 +0.3 -0.6 75.3 +2.2 16.1 -0.7 +0.2 -0.7 +0.3 Q1 2023 Alma Career Alma Alma News Non- Q1 2024 Q1 2023 Alma Career Alma Alma
Slide 10: Share of digital business continued to grow
Share of digital business continued to grow SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* REVENUE BY REVENUE CLASSES (MEUR) (REVENUE CHANGE IN BRACKETS)* 300 81% 82% 83% 77% 80 Other 69% 250 251 253 (-0.3, -4.6 %) 250 66% 70 5.6 Classified 63% (-0.5, -1.6 %) 61% Content 58% 59% 212 53%** 60 (+0.1, +0.
Slide 11: Alma Career: turnover on par in local currencies
Alma Career: In local currencies, turnover on par with the comparison period in Q1 REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY REVENUE CLASSES 50 50 (REVENUE CHANGE IN BRACKETS) 43.1% 43.8% 27.7 39.9% 37.0% Other 38.7% 40 40 -0.7 -0.2 26.9
Slide 12: Invoicing & revenue recognition in Alma Career
Invoicing & revenue recognition in Alma Career, rolling 12 months 12,000 10,000 8,000 KEUR 6,000 4,000 2,000 0 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 2021 2022 2023 2024 Revenue Invoicing 1-3/ 1-3/ 1-12/ KPIs (monthly averages in thousands) 2024 2023 2
Slide 13: Alma Marketplaces: turnover increased
Alma Marketplaces: Supported by the acquisitions, turnover increased. The housing market continued to be subdued in Q1 REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY BUSINESS UNIT 35.7% 40 (REVENUE CHANGE IN BRACKETS) 22.9 31.7% 29.9% 35 -0.1
Slide 14: Alma News Media: cost management drove profit increase
Alma News Media: The active cost management measures drove the adjusted operating profit increase REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY BUSINESS UNIT (REVENUE CHANGE IN BRACKETS) 35 35 27.2 30 27.2 27.9 29.1 30 26.4 Other 26.4 -1.1 (+
Slide 15: Solid financial position
SOLID FINANCIAL POSITION
Slide 16: Alma Media's long-term financial targets
Alma Media's long-term financial targets* * https://www.almamedia.fi/en/newsroom/ 25 REVENUE GROWTH (%) 25 ADJUSTED OPERATING MARGIN (%) NET DEBT/EBITDA RATIO** 19.6 20 20 30 30 3.0 3.0 15 15 25 23.8 24.1 25 2.5 2.5 12.1 22.2 2.3 21.2 10 10 20 19.7 20 2.0 2.0 1.6 1.6 1.5 5 515 15 1.5 1.5 1.2 0 010 1
Slide 17: Balanced financial position
Balanced financial position NET DEBT (MEUR), GEARING (%) & EQUITY RATIO (%) Q1/2021–Q1/2024 500 160% 450 132% 150 400 109% 102% 94% 100 350 81% 69% 82% 73% 65% 59% 60% 300 46% 46% 41% 31% 33% 35% 33% 39% 42% 48% 43% 46% 46% 50 250 29% 200 0 150 222 100 204 182 164 160 -50 157 154 143 151 146 138 128
Slide 18: Solid cash flow
Solid cash flow OPERATING CASH FLOW (MEUR) OPERATING CASH FLOW BRIDGE Q1/23-Q1/24 27.3 3.0 24.5 24.2 25 2.5 20.6 3.5 1.8 24.2 19.6 19.6 2.0 17.3 17.6 20 0.7 17.0 15.4 16.1 20.6 3.6 1.5 13.0 15 1.0 1.0 9.8 10 0.5 5 0.0 -0.5 0 Q1/23 Adjusted Taxes paid Net interest Changes Other Q1/24 Q1/21 Q2/21 Q3/2
Slide 19: Sound financial position enabled investments totalling MEUR 16
Sound financial position enabled investments totalling MEUR 16 CAPEX, LEASES, M&A Q1/21-Q1/24 DEPRECIATIONS Q1/21-Q1/24 MEUR 4 180 180 30 178 2 25 64 20 63 16 0 -1 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 14 -1 15 10 2 -2 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -2 10 7 11 5 5 14 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2
Slide 20: Earnings per share and dividends
Earnings per share and dividends ROE & ROI (%) Q1/21-Q1/24* EARNINGS PER SHARE Q1/21-Q1/24 80 0.28 70 0.23 60 46.6 0.20 0.20 0.19 0.19 50 0.18 40 0.14 0.14 0.13 0.13 0.12 30 21.0 23.9 0.09 18.5 20.5 20 15.1 13.9 12.9 10 0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 21: Operating environment
OPERATING ENVIRONMENT
Slide 22: 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 cha nge (%) Infla t ion (%) Unemployment (%) 2024 2023 2024 2023 2024 2023 Bosnia & Her z 2.0* 1.5* 3.5* 6.5* n/a 15.3** Cr oa t ia 2.6 2.6 2.5 8.4 6.2* 6.5* Czechia 1.1 -0.4 2.9
Slide 23: Challenging operating environment
Challenging operating environment Lagging Changing Increasing Geopolitical economic growth consumer behaviour regulation turbulence Subdued growth in many Digitalisation continues to Digital legislation increasing. Geopolitical tensions elevated. operating countries. High change consumer behaviour.
Slide 24: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 2/2023–2/2024 Source: Kantar TNS 15% 10% 5% 0% -5% -10% -15% -20% -25% P2 23 P5 23 P8 23 P11 23 P2 24 Advertising sales total, chg % Newspaper advertising, chg % Online advertising, chg % 24
Slide 25: Housing & mobility market update + Marketplaces' KPIs
Housing & mobility market update + Marketplaces’ KPIs HOUSING MARKET UPDATE (SOLD APARTMENTS) MOBILITY MARKET UPDATE* (SOLD CARS) +1.4% 18 504 150 382 151 371 153 420 -14.2% 11 797 10 122 16 503 128 978 130 669 135 271 11 252 9 760 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/22 Q2/22 Q3
Slide 26: Ukrainian crisis
Ukrainian crisis • Russia’s aggressive invasion to Ukraine, brought severe economic and business consequences: • Significantly higher energy prices and inflation • Lower economic growth in Europe • Increased volatility and insecurity • Disruptions in financial markets and supply chains due to sancti
Slide 27: Sustainability as an integral part of our strategy
Sustainability as an integral part of our strategy Alma Media has gained international recognisition by its ambitious work for climate and responsible business. ENVIRONMENTAL Alma Media has significantly cut down its carbon footprint in the - Minimising CO2 emissions in own last few years operations
Slide 28: Strategy and outlook
STRATEGY AND OUTLOOK
Slide 29: New business segments
New business segments Q1 2024 ALMA CAREER ALMA MARKETPLACES ALMA NEWS MEDIA Vesa-Pekka Kirsi Santtu Elsinen Juha-Petri Loimovuori Leading Job boards in 11 Leading marketplaces in real Leading digital news media in CEE countries. Recruitment estate, mobility and business the Finnish market. Pioneer a
Slide 30: 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 31: 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 Shared user traffic and commercialising the user data for AUDIENCES growing hi
Slide 32: 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 SELLERS, B2B PARTNERS ADVERTISING TRANSACTIONS We further develop and We help to streamline our We deve
Slide 33: Outlook for 2024
Outlook For 2024 Background for the Announced on 16 February 2024 outlook Alma Media expects its full-year The outlook is based on an estimate that there will be no material changes to the prevailing situation in revenue and adjusted operating the company's main market areas. In our operating countr
Slide 34: 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. Background for the outlook (updated 19 April 2
Slide 35: Closing remarks
Closing remarks • Digital transformation has led to a well- balanced and synergistic business mix and to market leadership in chosen areas • The digital journey continues towards advanced platforms • Leveraging the best of current Alma Career products by expanding into new markets: building one unif
Slide 36: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Thursday, 18 July 2024: Interim report for January–June 2024 • Friday, 18 October 2024: Interim report for January–September 2024 36
Slide 37: Slide 37