Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Carnegie Digitalization Seminar (December 2019)
35 slides from Alma Media Oyj's conference presentation, Dec 17, 2019
Slide 1: Digital Transformation In Media
17.12.2019 Digital Transformation In Media Santtu Elsinen, SVP & Chief Digital Officer
Slide 2: Digital Transformation In Media
Digital Transformation In Media 17.12.2019 2
Slide 3: Alma Media key figures
355 M 1 913 professionals revenue 57 M 100+ adjusted EBIT websites and apps 10 9,5 M Profiled browsers in countries in Europe network (Finland) Digital Transformation In Media 17/12/2019 3
Slide 4: Business Segments
Business Segments Revenue Adj. operating profit Revenue Adj. operating profit Revenue Adj. operating profit 96,4 M€ 34,4 M€ 151,7 M€ 14,4 M€ 108,9 M€ 15,5 M€ Operating margin Digital Operating margin Digital Operating margin Digital 36 % 100 % 10 % 24 % 14 % 36 % All figures from FY 2018 Digital Tra
Slide 5: Strong Local Market Position Creates Competitive Advantage
Strong Local Market Position Creates Competitive Advantage Recruiting #1 Czech Republic prace.cz, jobs.cz #1 Slovakia profesia.sk #1 Croatia mojposao.net #1/2 Finland monster.fi #1 Estonia, Latvia, Lithuania cvonline.com #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, Macedonia kolektiv.ba,
Slide 6: 20 Years Of Journey Towards Digital Company
20 Years Of Journey Towards Digital Company 2015- 2010-2015 Acceleration of growth utilising the possibilities of digital 2005-2010 Growth and internationalisation -2005 Online becomes of digital services significant Culture and Strategy and competence management Birth of new Alma Customer Experienc
Slide 7: Digital Transformation Well Underway
Digital Transformation Well Underway (yet only halfway) Q3/19 52.9% M€ MEUR 400 Share of 50% digital revenue 350 36 32 Services 300 40% 23 250 17 170 176 Digital 30% 200 150 20% 247 100 149 10% Print 138 50 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* *Rolling 12
Slide 8: Alma Media Today
Alma Media Today Digital: REVENUE ADJ. EBITDA Tech in Alma Media 53 % 75 % • 12 % of revenue into technology • 15 % of personnel working with tech • Ample room1 for investments in • Top-tier data, advertising, and digital technology and M&A activation as well as publishing • Growing dividend due to
Slide 9: Digital Transformation And Business Mix Driving Operational Gearing
Digital Transformation And Business Mix Driving Operational Gearing M€ 70 20% 18,1 % 18% 60 16,2 % 16% 13,9 % 50 14% 12% 40 10,0 % 10% 8,1 % 8,0 % Adjusted EBIT 30 62,5 7,2 % 57,3 8% Profit margin % 51,1 20 6% 35,2 4% 24,3 21,4 23,4 10 2% 0 0% 2013 2014 2015 2016 2017 2018 2019 * *Rolling 12 months
Slide 10: Operating Environment
OPERATING ENVIRONMENT Digital Transformation In Media 17.12.2019 10
Slide 11: Drivers Of Change In Operating Environment
ECONOMIC TRENDS IN OPERATING COUNTRIES • Finland and Eastern Central Europe • Urbanisation COMPETITION MEDIA CONSUMPTION • Global technology giants • Mobile • Finnish media • Social Media • Paid digital content DRIVERS • Print OF CHANGE IN OPERATING ENVIRONMENT MARKETING AND ADVERTISING TECHNOLOGY A
Slide 12: Strategy
STRATEGY Digital Transformation In Media 17.12.2019 12
Slide 13: Expanding our offering from media to related digital services
Expanding our offering from media to related digital services. Fulfilling the needs of our users’ everyday life as consumers and as professionals in business. Digital Transformation In Media 17.12.2019 13
Slide 14: Building A Top-Tier European Digital Media And Service Company
Building A Top-Tier European Digital Media And Service Company 1 2 3 Enabling higher profit Strengthening market Securing per user and driving positions in key areas transformation with operational gearing financial solidity Ongoing monetization of digital marketplaces, content and services Leveragi
Slide 15: Strong Collaboration – Value Through Synergies
Strong Collaboration – Value Through Synergies ALMA MEDIA DIGITAL ALMA DIGITAL DATA SOLUTIONS SUBSCRIPTIONS THEMES AUDIENCES Digital Transformation In Media 17/12/2019 15
Slide 16: No Need For Digital Strategy
No Need For Digital Strategy PURPOSE & VISION ACCELERATOR OF SUSTAINABLE GROWTH THE MOST EXCITING PROVIDER OF INFORMATION, SERVICE AND EXPERIENCES. SETS THE STAGE FOR THE FUTURE OF MEDIA. FINANCIAL OBJECTIVES REVENUE GROWTH PROFITABILITY GROWTH DIGITAL BUSINESS GROWTH RETURN ON INVESTMENT PORTFOLIO
Slide 17: … As Strategy is Digital
… As Strategy is Digital PURPOSE & VISION ACCELERATOR OF SUSTAINABLE GROWTH THE MOST EXCITING PROVIDER OF INFORMATION, SERVICE AND EXPERIENCES. SETS THE STAGE FOR THE FUTURE OF MEDIA. FINANCIAL OBJECTIVES REVENUE GROWTH PROFITABILITY GROWTH DIGITAL BUSINESS GROWTH RETURN ON INVESTMENT PORTFOLIO • Ex
Slide 18: Majority Of Advertising Digital, Tipping Point In 2018
ALMA MEDIA SOLUTIONS Majority Of Advertising Digital, Tipping Point In 2018 M€ 140 120 100 59 48 43 80 97 65 80 73 66 Advertising sales in Finland 60 Advertising revenue, print Advertising revenue, digital 40 63 64 58 49 20 37 39 35 35 0 2012 2013 2014 2015 2016 2017 2018 2019 * *Rolling 12 months Q
Slide 19: Competition In Digital Advertising Is Fierce Due To International Rivals
ALMA MEDIA SOLUTIONS Competition In Digital Advertising Is Fierce Due To International Rivals Alma Media 13 % 99 M€ Advertising in social media 24 % Sanoma + Search engine 228 17 % advertising 33 % M€ Other Finnish media companies 13 % Source: Kantar TNS, IAB Finland, Q1-Q3/2019 Digital Transformati
Slide 20: Norway And Sweden Lead The Way In Paid News Content
DIGITAL SUBSCRIPTIONS Source: Reuters Institute Digital News Report 2019 News Content 0% 20% 10% 30% 5% 25% 15% 35% Norway Turkey Sweden Brasil Digital Transformation In Media Hong Kong Poland USA Mexico South-Africa Singapore Malesia Finland Denmark Australia Taiwan Ireland Holland Belgium Switzerl
Slide 21: Digital Content Sales Increase As The Key Success Factor
DIGITAL SUBSCRIPTIONS Digital Content Sales Increase As The Key Success Factor Content revenue split 1-9/2019 in Finland1 Alma Media has over 0.5 million print and digital subscribers 6% B2C digital-only Digital-only subscriber base enjoys high growth2: 11,1 • Alma Talent brands +90 % 84 % 16 % 4% B
Slide 22: All Media Brands Generate Digital Subscription Revenue
DIGITAL SUBSCRIPTIONS All Media Brands Generate Digital Subscription Revenue October 2019 1 : Alma Media digital content sales 2013–2019 (number of B2C digital-only subscriptions) • +50 000 B2C digital-only subs • 60 000 company subscribers (Alma Talent) • +320 000 subscribers paying for digital (in
Slide 23: Converting High Reach To Higher ARPU
ALMA THEMES DIGITAL AUDIENCES Converting High Reach To Higher ARPU HIGH ARPU HIGH REACH Digital Transformation In Media 17/12/2019 23
Slide 24: From Job Boards To Recruiting Services
Moving along the value chain From Job Boards To Recruiting Services Manage Develop Develop Find a job Find an employee employment process employer image employees • Job Board • CV database • Applicant tracking • Employer reviews • HR seminars • Mobile job board • Sourcing service system (ATS) • Care
Slide 25: M&A Taps Into New Digital Revenue Pools
M&A Taps Into New Digital Revenue Pools ACQUISITIONS ● LMC ● Profesia ● Jobote ● AutoJerry ● Kotikokki ● MojPosao ● Autosofta ● Nettikoti ● Urakka- ● Katsastus- ● Suomen ● Tyrvään ● Cvonline ● Monster ● Talentum ● Rantapallo maailma.fi hinnat.fi Tukkuautot Sanomat ● E-kontakti.fi ● Alkali ● JMTieto
Slide 26: Value Creation From Data
VALUE CREATION FROM DATA Digital Transformation In Media 17.12.2019 26
Slide 27: Data Drives Monetization In Strategic Initiatives
Data Drives Monetization In Strategic Initiaves ALMA MEDIA DIGITAL ALMA DIGITAL SOLUTIONS SUBSCRIPTIONS DATA DATA THEMES AUDIENCES Better conversion and Targeting in digital More traffic to higher Personalized services churn prevention in Direct data sales ad sales ARPU services for digital audience
Slide 28: Audience-Based Monetisation Model
Audience-Based Monetisation Model Alma network visitors, consumed content and data layer events per month 192M visits Traffic 530M Data 32M visitors AUDIENCE data layer events & Loyalty 19M hours CONTENT 865M page views Engagement 4,4 page views / visit Monetisation Media and content sales; services
Slide 29: Data Drives Programmatic & Direct Ad Sales Growth
Data Drives Programmatic & Direct Ad Sales Growth Programmatic sales Q1/2014 – Q3/2019 Data products and services for advertisers Audience Tailored Models segments segments Sociodemographic Special / niche Target group segments modelling for Interest areas advertisers Combining Purchase intent audie
Slide 30: Data Architecture
Data Architecture Customer Data Management Platform Subscriptions, demographics Customer segments and modelled data Behaviours, locations and seed data for modelling Ad Server Logs Websites and apps Sammio Marketing Automation Profiles Targeting & segmentation Raw and Subscriptions, users IDs combin
Slide 31: Data Architecture
Data Architecture Customer Data Websites and apps Other sources Management Platform Subscriptions, demographics Page view data and modelled data Customer segments Behaviours, locations and seed data for Device data modelling Data from CRM and Ad Server Semantic data in articles Logs subscription sys
Slide 32: Supervised Learning In Predicting Subscriber Churn
Supervised Learning In Predicting Subscriber Churn Relative importance of Prediction accuracy variables in prediction (ROC curves) in test sample Digital Transformation In Media 17/12/2019 32
Slide 33: EdIT: Predicting Demand Of Content
EdIT: Predicting Demand Of Content 400 000 articles Classification models Language Model 1 000 000 articles Classification models 600 000 articles Digital Transformation In Media 17/12/2019 33
Slide 34: Data Literacy
Data Literacy What do we need to answer? How Value to derive value from the results? V What kind of analytical What data is available? tools or methods are Where is it? required for processing? Information I A Analytics Digital Transformation In Media 17/12/2019 34
Slide 35: Lots of companies don't succeed over time
‘‘ Lots of companies don’t succeed over time. What do they fundamentally do wrong? They usually miss the future. Larry Page, Google Digital Transformation 17.12.2019 In Media 35
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