Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2023 Earnings Presentation
30 slides from Alma Media Oyj's earnings presentation, Apr 21, 2023
Slide 1: Q1 2023 Interim Report Info
Q1 2023 INTERIM REPORT INFO 21 APRIL 2023 BUILDING ON TOMORROW’S SUCCESS DESPITE TURBULENCE
Slide 2: Q1 2023 Highlights
Q1 2023 Revenue decreased slightly year-on-year, digital revenue Highlights continued to grow. Operating profit decreased from the comparative period. REVENUE (MEUR)* ADJUSTED OPERATING PROFIT* (MEUR) (% OF REVENUE) -1.3 % -13.3 % 25.8 % 22.6 % 19.1 % 58 76 75 11.1 19.6 17.0 Q1 2021 Q1 2022 Q1 2023
Slide 3: No major changes in revenue in Q1; operational profitability decreased
No major changes in revenue in Q1. Operational profitability decreased in all business segments. REVENUE Q1 2023 (MEUR) ADJUSTED OPERATING PROFIT Q1 2023 (MEUR) 1.0 -0.6 -1.4 -1.2 -1.0 -0.6 0.3 76.2 75.2 19.6 17.0 Q1 2022 Alma Alma Alma Q1 2023 Q1 2022 Alma Alma Alma Shared Q1 2023 Career Consumer T
Slide 4: Digital business growth continued for the tenth consecutive quarter
Digital business growth continued for the tenth consecutive quarter SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* DIGITAL BUSINESS GROWTH* 81% 82% 77% 69% 57 % 66% 61% 63% 58% 59% 53% ** 41 % 51% 39 % 40 % 16 % 15 % 3% 3% 5% 2% 1% -4 % 82 91 100 125 146 160 165 158 212 250 62 -17 % 2013 2014 2015 2016
Slide 5: Development by Business Segments
DEVELOPMENT BY BUSINESS SEGMENTS
Slide 6: Alma Career
Alma Career Revenue continued to grow, but increased costs reduced profitability REVENUE (MEUR) AND ADJUSTED SHARE OF SEGMENT REVENUE BY COUNTRY OPERATING MARGIN (%) Q1/2023 (REVENUE CHANGE IN BRACKETS) 46.0 % 39.9 % Czech Rep., 57% (+6.4%) 41.5 % 36.9 % Slovakia, 15% (+3.6%) 30.8 % Baltics, 10% (-1
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 2020 2021 2022 2023 Revenue Invoicing KPIs (monthly averages in 1-3/2023 2022 2021 2020 2019 thousan
Slide 8: Alma Consumer
Profitability under pressure due to the decrease of Alma advertising and increased costs in product development, Consumer printing and distribution REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY VERTICAL Q1/2023 ADVERTISING SALES REVENUE OPERATING MARGIN (%) (REVENUE CHANGE RATES IN (MEUR, incl. Netti
Slide 9: Alma Talent
Comparable revenue at the previous year's level, but Alma Talent profitability decreased – adj. operating profit increased by 19 per cent in Talent Services REVENUE (MEUR) AND ADJUSTED REVENUE SPLIT BY BUSINESS UNIT Q1/2023 OPERATING MARGIN (%) (REVENUE CHANGE RATES IN BRACKETS*) 21.7 % 21.7 % 20.5
Slide 10: Solid Financial Position
SOLID FINANCIAL POSITION
Slide 11: Financial position balancing and deleveraging ongoing
Financial position balancing and deleveraging ongoing NET DEBT (MEUR) AND GEARING (%) Q1/2020–Q1/2023 EQUITY RATIO Q1/2020–Q1/2023 160.0 % 71.0 % 72.7 % 132.0 % 63.1 % 109.2 % 56.0 % 102.4 % 93.7 % 80.8 % 69.3 % 45.8 % 47.6 % 58.7 % 40.5 % 41.6 % 38.8 % 33.3 % 34.7 % 33.0 % MEUR 29.4 % 31.2 % 1.1 0.
Slide 12: Good cash flow enables deleveraging
Good cash flow enables deleveraging Capital expenditure and acquisitions, MEUR OPERATING CASH FLOW 1-3/2023 1–3/2022 2022 87.6 Capex 2.6 1.4 13.2 72.6 Acquisitions 2.8 0.0 5.2 57.0 Total 5.4 1.4 18.3 MEUR 44.4 • Toimitilat.fi acquisition came into effect from the start of 2023. Alma Media sold its s
Slide 13: EPS declined to 14 cents in Q1
EPS declined to 14 cents in Q1 0.28 • Earnings per share were EUR 0.14 (0.19) in Q1. Decrease 0.18 0.19 0.20 0.20 EUR came from lower profitability (EBIT) and higher financing 0.14 0.14 costs. 0.12 0.09 • Return on equity (annualised) was 23.9 (46.6%) and return on investment (annualised) 13.9% (18.
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 22.6 22.2 12.1 19.8 19.7 1.6 1.5 0.3 -1.8 -1.3 -0.2 -8.0 2019 2020 2021 2022 1-3 2019 2020 2021 2022 1-3 2019 2020 2021 2022 1-3 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 Regulatory environment Russian aggression in Ukraine operating countries. High change consumer behaviour. complexe
Slide 17: European Commission financial forecast for Alma's operating countries
European Commission financial forecast for Alma's operating countries Forecasts given on 13 February, 2023 GDP change (%) Inflation (%) Unemployment (%) 2022 2023 2022 2023 2022 2023 Croatia 6.3 1.3 10.7 6.5 6.3 6.3 Czechia 2.5 0.1 14.8 9.3 2.7 3.3 Estonia -0.3 0.1 19.4 6.2 6.1 6.6 Finland 2.0 0.2 7
Slide 18: Finnish advertising market
Finnish advertising market MONTHLY CHANGE IN MEDIA ADVERTISING 2/2022–2/2023 ONLINE ADVERTISING BY MEDIA COMPANIES IN FINLAND 1-2/2023 Source: Kantar TNS (1-2/2022)* Source: Kantar TNS A-LEHDET 15% 1% (1%) Other 16% (17%) 10% 5% Keskisuomalainen ALMA MEDIA 0% 3% (3%) 36% (38%) -5% Appr. -10% 235 MEU
Slide 19: The Finnish housing market update
The Finnish housing market update Housing Q1 1-12/ Etuovi.com Q1 1-12/ market/sales 2023 2022 2023 2022 Used apartments -33.4% -17.5% Supply/ listings 9.7% -0.5% New apartments -73.9% -46.7% Demand/ searches -14.0% -17.6% Source: KvKL= Real Estate Industry Confederation • KVKL: In Q1, a total of 11,
Slide 20: The Finnish mobility update
The Finnish mobility update Cars & mobility Q1 1-12/ Nettiauto Q1 2023 1-12/ market 2023 2022 2022 New cars Sold cars, total -3.5% -17% 2% -10% Used cars Gross Market 1.2% -11% 3% -1% value of sales Source: AKL=Automotive information Centre • AKL: Rapid reverses in the economy and energy on top of c
Slide 21: Strategy and Outlook
STRATEGY AND OUTLOOK
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 Estonia, Latvia, cvonline.com 1 Lithuania #1 Serbia, Bosnia and Poslovi.infostud.com, Herzegovina, kolektiv.ba, Macedonia v
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 NEGOATIATE 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 stream
Slide 26: 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 halved its carbon footprint Scope 1&2 in 2016–2022 - Minimising CO2 emissions in own operations and in subcontract
Slide 27: Q1 in brief
Q1 in brief OviPro launched Rantapallo (79%) divested Asuntoneuvos with - a seamless digital service for to minority owner TukTuk Media Vuokramaksuturva launched professionals in housing. Oy. - a new service to digitalise the rental process in Vuokraovi.com Acquisition of majority stake in and to se
Slide 28: 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. • The outlook
Slide 29: Thank You!
Thank You! Questions? • Upcoming events in the investor calendar: • Interim report for January–June 2023 on Wednesday, 19 July 2023 • Interim report for January–September 2023 on Thursday, 19 October 2023 29
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