Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q2 2008 Earnings Presentation
26 slides from Alma Media Oyj's earnings presentation, Jul 23, 2008
Slide 1: Alma Media Q2 2008
Alma Media Q2 2008 July 23, 2008 Kai Telanne, CEO Teemu Kangas-Kärki, CFO
Slide 2: Highlights
Kai Telanne, CEO: Highlights Markets Segment Reviews Teemu Kangas-Kärki, CFO: Financial Review Outlook
Slide 3: Highlights Q2 2008
Highlights Q2 2008 • Record-level group sales and operating profit excluding one-time items • Advertising sales growth exceeded 9 % • Best-ever quarter for Aamulehti boosted the Picture size Newspapers segment despite Iltalehti’s weakness 63 x 132mm 100dpi • Kauppalehti was very succesful in both pr
Slide 4: Highlights Q2 2008
Highlights Q2 2008 Net sales, MEUR EBIT, MEUR 100 89,3 25 90 84,0 85,5 84,0 77,5 20,6 80 20 70 60 14,4 15,0 15 13,4 50 11,6 40 10 30 20 5 10 0 0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Alma Media Q2/2008 July 23, 2008 4
Slide 5: Media markets in Finland Q2 2008
Media markets in Finland Q2 2008
Slide 6: Advertising sales growth Q2 2008
Advertising sales growth Q2 2008 Alma Media vs. market Market Alma Media Change, % Q2 08 * Q2 08 ** Newspapers 2.4 7.0 Magazines 6.0 - Television 5.4 - Radio 8.1 - Internet 26.3 24.4 TOTAL 5.1 9.1 Alma Media Q2/2008 July 23, 2008 6 * Source: TNS Media Intelligence ** Newspapers segment (excl. online
Slide 7: Advertising by branch Q2 2008
Advertising by branch Q2 2008 Change from Q2 2007 Advertising in Q2 2008 MEUR Retail 14,8 % Retail 78 Motor v. 1,4 % Motor vehicles 31 Food & bev 6,5 % Food & beverages 30 Tele -1,7 % Telecommunications 11 Houses 6,5 % Houses and premises 18 Entert. 0,1 % Entertainment 13 Tourism -1,6 % Tourism and
Slide 8: Newspaper advertising by branch Q2 2008
Newspaper advertising by branch Q2 2008 Change from Q2 2007 Advertising in Q2 2008 MEUR Retail 11,9 % Retail 61 Motor v. -4,2 % Motor vehicles 18 Food & beverages 2 Food & bev. -19,2 % Telecommunications 4 Telecomm. -10,9 % Houses and premises 14 Houses 0,9 % Entert. -8,0 % Entertainment 6 Tourism 0
Slide 9: Circulation trends 2007 – 2008
* Circulation trends 2007 – 2008 Business daily Regional and Afternoon local newspapers tabloid * Number of print copies, Finland Alma Media Q2/2008 9
Slide 10: Segments in Q2 2008
Segments in Q2 2008
Slide 11: Newspapers Q2 2008
Newspapers Q2 2008 • Net sales grew 3.9% to 61.2 MEUR (58.9 MEUR) – Advertising sales grew 7 % • Strong sales growth in Aamulehti and Lapin Kansa • Iltalehti’s advertising sales grew as Iltalehti.fi and Telkku.com were successful – Circulation sales up 1.7 % • Aamulehti’s good circulation sales grow
Slide 12: Kauppalehti group Q2 2008
Kauppalehti group Q2 2008 • Kauppalehti Group net sales grew 9.5 % to 19.6 MEUR (17.9 MEUR) – Kauppalehti was in strong growth – Customer magazine business was flat Picture size • Kauppalehti’s circulation sales up 9.5 % 63 x 132mm 100dpi – Growth was 13 % excluding the discontinued Presso • Adverti
Slide 13: Marketplaces Q2 2008
Marketplaces Q2 2008 • Net sales grew 18.2 % to 9.4 MEUR • Domestic sales growth 18.6 % – Etuovi.com online and Autotalli.com grew well, Monster.fi had a slower growth in June Picture size • International operations up 16.7 % 63 x 132mm – Real estate market was flat in Estonia, where City24 net 100d
Slide 14: Financial Review Q2 2008
Financial Review Q2 2008 Teemu Kangas-Kärki, CFO
Slide 15: Sales breakdown Q2 2008
Sales breakdown Q2 2008 Total Sales 89.3 MEUR Others Marketplaces 0.5% Printing sales Other sales 0.3% 10.3% 11.8% Kauppalehti group 21.9% Advertising Sales by Sales by sales segment type 50.7% Circulation sales 37.2% Newspapers 67.3% Alma Media Q2/2008 July 23, 2008 15
Slide 16: Key figures Q2 2008, MEUR
Extraordinary items Key figures Q2 2008, MEUR Net sales EBIT 100 25 +6.3% 80 20 60 15 40 10 20 5 0 0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Excl. Online Online sales Alma Media Q2/2008 July 23, 2008 16
Slide 17: Net sales change by type, MEUR
Net sales change by type, MEUR Circulation Advertising 6,0 4,5 4,0 +9.1% 5,0 3,5 4,0 3,0 2,5 3,0 2,0 2,0 1,5 1,0 1,0 +1.8% 0,5 0,0 0,0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Alma Media Q2/2008 July 23, 2008 17
Slide 18: Net Sales Q2 2008 by business area, MEUR
Net Sales Q2 2008 by business area, MEUR 70 58,9 61,2 60 50 40 30 17,8 19,5 20 7,9 9,4 10 0 Newspapers Kauppalehti group Marketplaces NS Chg % 3.9 9.5 18.2 Circ Chg % 1.7 1.9 - Advert Chg% 7.0 8.7 18.8 Net sales Q2 2007 Net sales Q2 2008 Alma Media Q2/2008 July 23, 2008 18
Slide 19: EBIT by segment, MEUR
EBIT by segment, MEUR Newspapers Kauppalehti Group 14 3,5 +32.7% +2.1% 12 3,0 10 2,5 8 2,0 6 1,5 4 1,0 2 0,5 0 0,0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Alma Media Q2/2008 July 23, 2008 19
Slide 20: EBIT by segment, MEUR
EBIT by segment, MEUR Marketplaces Others 2,0 10 1,6 8 6 1,2 -31.3% 4 0,8 2 0,4 0 0,0 -2 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Alma Media Q2/2008 July 23, 2008 20
Slide 21: Key ratios in Q2 2008
Key ratios in Q2 2008 Equity ratio, % Gearing, % ROE % ROI % 80 40 80 70 33,2 71,0 62,1 69,8 70 70 60 56,0 30 60 60 51,4 50 48,5 20 50 50 40 40 10 40 30 30 30 0 20 20 20 -10 10 10 10 -15,2 0 -20 0 0 Q4/07 Q2/08 Q4/07 Q2/08 Q2/07 Q2/08 Q2/07 Q2/08 Alma Media Q2/2008 July 23, 2008 21
Slide 22: Cash flow and investments, MEUR
Cash flow and investments, MEUR 12 2 10,7 10 1 0 8 -1 5,7 6 -2 4 -3 -3,0 2 -4 -4,2 0 -5 Q2 2007 Q2 2008 Q2 2007 Q2 2008 from operating activities gross investments before financing activities proceeds from sales of assets Alma Media Q2/2008 July 23, 2008 22
Slide 23: EPS and shareholders' equity per share (EUR)
EPS and shareholders’ equity per share (EUR) 0,20 2,0 0,16 1,6 0,01 0,12 1,2 0,94 0,08 0,8 0,32 0,15 0,15 0,04 0,4 0,64 0,64 0,00 0,0 Q2 2007 Q2 2008 Dec 2007 Jun 2008 EPS One time items Retained earnings Restricted equity Alma Media Q2/2008 July 23, 2008 23
Slide 24: Outlook for 2008
Outlook for2008 r
Slide 25: Outlook for 2008
Outlook for 2008 • Alma Media expects its net sales to increase from the previous year. The media market is expected to grow in 2008, but uncertainty will increase. • Developments in the media advertising and daily tabloid markets will be the major factors that may affect the company’s result. • The
Slide 26: Thank You!
Thank You! Teleconference at 1.30 PM Finnish time tel. + 44 20 7162 0125 The photographs in this presentation were taken by Alma Media’s news photographers, originally published in the company’s newspapers.