Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q2 2012 Earnings Presentation
27 slides from Alma Media Oyj's earnings presentation, Jul 20, 2012
Slide 1: Alma Media Q2 2012
Alma Media Q2 2012 Kai Telanne, President and CEO Tuomas Itkonen, CFO July 20, 2012 1 July 20, 2012
Slide 2: Agenda
Agenda • Q2 2012 in a nutshell • Key strategic projects • Market development in Finland • Financial development and outlook 2 July 20, 2012
Slide 3: Q2 in a nutshell
Q2 in a nutshell • Advertising market declined by 7.1%. — Advertising in newspapers and citypapers decreased by 11.3%. — Advertising in online media continued to grow, up 4.2% from the comparison period. • Changes in the competitive situation of the home sales online advertising – customers mainly r
Slide 4: Decrease in advertising volumes pushed down revenue and operating profit
Decrease in advertising volumes pushed down revenue and operating profit Revenue, MEUR EBIT, MEUR IFRS IFRS -0,2% -2,0% -9,1% -33,5% 90 14 0,4 80 82,7 12 81,3 81,1 81,0 12,0 70 75,1 11,5 10 10,1 60 8 8,5 50 7,7 6 40 4 30 2 20 0 10 -0,5 -0,5 -2 0 -2,5 -2,9 -4 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11
Slide 5: Share of the digital business in revenue grew
Share of the digital business in revenue grew % 25,0 23,4 20,0 18,0 15,7 15,0 13,1 12,9 10,9 10,0 8,8 5,8 5,0 0,0 2005 2006 2007 2008 2009 2010 2011 Q2 12 Digitaalisten tuotteiden Digital products ja palveluiden & services osuus liikevaihdosta – share of revenue 5 July 20, 2012
Slide 6: Key strategic projects
Key strategic projects • Several actions taken or initiated to rationalise operations: • Reorganisation and stronger cooperation of the papers within Alma Regional Media, impact -100 full-time work years. • Other change initiatives implemented in the first half of the year (Rovaniemi printing operat
Slide 7: Market development in Finland
Market development in Finland 7 July 20, 2012
Slide 8: Advertising sales change Q2 / 2012
Advertising sales change Q2 / 2012 Cumulative development (Change-% versus previous year) Q2 15 Change, % 2012 10 Newspapers -11,3 total 5 Magazines -5,9 0 Television -3,4 Change % -5 Radio -6,2 -10 Internet 4,2 -15 JAN FEB MARCH APRIL MAY JUNE JULY AUG SEP OCT NOV DEC TOTAL -7,1 2011 2012 Source: T
Slide 9: Advertising by branch Q2/2012
Advertising by branch Q2/2012 Total market; change from Q2/2011 Advertising in Q2/12 MEUR Retail -4,2 % Retail 70 Food & bev. -2,4 % Food & beverages 33 Motor v. -6,7 % Motor vehicles 26 Houses 0,6 % Houses and premises 13 Entert 0,5 % Entertainment 12 Recru -19,4 % Recruiting 12 Tourism -13,0 % Tou
Slide 10: Advertising by branch Q2/2012
Advertising by branch Q2/2012 Newspapers total*; change from Q2/2011 Advertising in Q2/12 MEUR Retail -7,6 % Retail 50 Motor v. -10,9 % Motor vehicles 14 Houses 7,3 % Houses and premises 9 Recru -22,3 % Recruiting 7 Entert 1,5 % Entertainment 5 Tourism -11,9 % Tourism and traffic 4 Food & bev. -9,6
Slide 11: Financial development and outlook
Financial development and outlook 11 July 20, 2012
Slide 12: Revenue and operating profit decreased
Revenue and operating profit decreased Revenue, MEUR EBIT, MEUR IFRS IFRS -0,2% -2,0% -9,1% -33,5% 90 14 0,4 80 82,7 12 81,3 81,1 81,0 12,0 70 75,1 11,5 10 10,1 60 8 8,5 50 7,7 6 40 4 30 2 20 0 10 -0,5 -0,5 -2 0 -2,5 -2,9 -4 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Onetime items 1
Slide 13: Circulation revenue in line with expectations
Circulation revenue in line with expectations IFRS Circulation revenue, change MEUR & % Advertising revenue, change MEUR & % 0,6 5,0 +9,0% -2,9% 0,4 4,0 -0,5% -2,0% 0,2 3,0 0,0 2,0 -0,2 1,0 -0,4 0,0 -0,6 -1,0 -0,8 -2,0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 13 July 20, 2012
Slide 14: Newspapers Q2
Newspapers Q2 Newspapers, revenue and EBIT • Advertising sales declined by 10.5% MEUR & % (+8.5%) to MEUR 26.1 (29.1). Excl. non-recurring items • Advertising sales in print media fell -2,1% -6,9% by 13.2% (+8.8%). 65,0 30 % • Online advertising sales grew faster 55,0 57,1 25 % than market, 17.3% (1
Slide 15: Kauppalehti Group Q2
Kauppalehti Group Q2 Kauppalehti Group, • Advertising sales decreased by revenue and EBIT, MEUR & % Excl. non-recurring items 17.9% (+5.0%) to MEUR 3.9 (4.7). -3,8% • Online advertising declined by 17,0 +3,0% 30 % 6.1% (+6.9%). 15,0 15,0 25 % 14,3 14,4 • Circulation revenue remained at 13,0 comparis
Slide 16: Digital Consumer Services Q2
Digital Consumer Services Q2 Digital Consumer Services, • Growth in revenue was attributable revenue and EBIT, MEUR & % to the business operations acquired Excl. non-recurring items in the review period. +43,5% +27,0% 16,0 30 % • Advertising sales for home sales 14,9 decreased in the review period.
Slide 17: Other Operations Q2
Other Operations Q2 • Revenue grew to MEUR 21.0, share Other Operations, revenue and EBIT, MEUR & % of external revenue MEUR 1.5 (1.3). Excl. non-recurring items • Total expenses excl. non-recurring +4,3% items were MEUR 22.8 (21.4). 25,0 +10,1% • Alma Manu initiated cooperation 20,0 21,0 21,0 negot
Slide 18: Cash flow from operating activities
Cash flow from operating activities IFRS 30,0 25,0 20,0 0,3 15,0 24,3 MEUR 10,0 20,3 -1,5 6,5 12,3 12,0 5,0 0,3 0,0 -5,0 -10,0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Tax return and final withholding tax 18 July 20, 2012
Slide 19: Cash flow and investments
Cash flow and investments IFRS 1,0 4,0 0,8 0,5 3,0 3,4 0,3 2,0 0,0 1,0 -0,5 0,3 MEUR MEUR 0,0 -0,9 -1,0 -1,0 -1,5 -1,5 -2,0 -2,0 -2,9 -2,0 -3,0 -2,5 -4,0 Q2 11 Q2 12 Q2 11 Q2 12 From operating activities Gross Grossinvestments investments Before financing activities Proceeds Proceedsfrom fromsales s
Slide 20: Net debt
Net debt IFRS 50 40 42,2 42,9 30 20 MEUR 10 0 -8,5 -10 -12,4 -14,5 -20 -30 -32,3 -40 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 20 July 20, 2012
Slide 21: Key ratios
Key ratios IFRS Equity ratio, % Gearing, % 60 70 56,6 60 50 58,4 50 40 40 36,8 30 30 20 20 10 0 10 -10,6 -10 0 -20 Q2 11 Q2 12 Q2 11 Q2 12 21 July 20, 2012
Slide 22: Key ratios
Key ratios IFRS ROE, % ROI, % 60 50 45 55,8 45,7 50 40 35 40 30 30 25 27,2 20 20 15 15,5 10 10 5 0 0 Q2 2011 Q2 2012 Q2 2011 Q2 2012 22 July 20, 2012
Slide 23: EPS and shareholders’ equity per share
EPS and shareholders’ equity per share IFRS 0,25 1,2 0,20 1,04 0,95 0,20 0,09 1,0 0,15 0,34 0,8 0,24 0,10 0,21 0,16 0,6 0,05 0,4 0,00 0,70 0,70 -0,01 -0,07 0,2 -0,05 -0,10 0,0 Q2 11 YTD Q2 12 YTD Q2 11 Q2 12 Retained earnings EPS wo onetime Onetime items Restricted equity 23 July 20, 2012
Slide 24: Balance sheet
Balance sheet IFRS MEUR Q2 2012 Q2 2011 Intangibles and goodwill 88,7 40,9 Tangibles 38,9 25,2 Associated companies 34,0 33,9 Inventory 0,6 1,1 Receivables 41,1 41,7 Cash 20,3 23,2 Assets 223,6 166,1 Equity 73,5 80,8 Reserves-obligatory 0,8 1,2 Pension liabilities 2,5 2,6 Ib debt 63,2 14,7 Non-Ib de
Slide 25: Key figures
Key figures MEUR 2012 2011 Change 2012 2011 Change 2011 4-6 4-6 % 1-6 1-6 % 1-12 Revenue 81,0 82,7 -2,0 162,2 159,8 1,5 316,2 Total expenses excluding non-recurring items 73,4 71,2 3,1 146,2 139,0 5,1 273,6 Ebitda excluding non-recurring items 10,8 13,8 -21,5 22,4 25,4 -11,7 51,9 Operating profit ex
Slide 26: Outlook for 2012
Outlook for 2012 July 20, 2012 Due to the uncertainty prevailing in the macroeconomic conditions of the Group’s main markets, it is exceptionally complicated to estimate the development of circulation and advertising revenues. Digital services are expected to further increase their share of the medi
Slide 27: Thank you!
Thank you! Webcast and conference call today at 13:00 EEST. Welcome! 27 July 20, 2012