Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q3 2024 Earnings Presentation
45 slides from Alma Media Oyj's earnings presentation, October 2024
Slide 1: Alma Media: In the Digital Frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST Q3 2024 ų
Slide 2: Alma in figures (FY 2023)
Alma in figures (FY 2023) Revenue Digital business Adj. operating Adj. Operating profit profit % 305 >82% 74 24% 40/60 MEUR MEUR abroad / in Finland % of employees ROE ROI Equity ratio Dividend of Alma’s media reach about >26% >16% 46% 0.45 89% euros per share of Finns weekly TSR 380% 1 700 (2014–20
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 #1 Slovakia profesia.sk #1 Croatia mojposao.net #3 Finland jobly.fi 1 1 #1-2 Estonia, Latvia, cvonline.com Lithuania #1 Bosnia and Herzegovina, mojposao.ba, Macedonia, Serbia vrabotuvanje.com.mk,
Slide 4: Alma Media's transformational journey
Alma Media’s transformational journey Exploiting paradigm changes in technology and consumer behaviour Integrating Platforms Media 2020 > and Services • Expanding our role in value chains. • Streamlining customer processes by 2000-2020 integrating services to platforms. Media • Acceleration of digit
Slide 5: Continuing the renewal of portfolio
Continuing the renewal of portfolio – net investments over MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS AutoJerry Suomen Tukkuautot Alma Mediapartners (35%) Techloop Netello (40%) Toimitilat.fi Netwheels Katsastushinnat.fi Etua.fi (40%) Kolekti
Slide 6: Digital transformation
Digital transformation 2024 LTM 83% 400 90% 350 80% 70% 300 12 23 40 60% 250 Other 50% 200 Offline 40% 150 247 30% Digital 256 100 Digital rate 20% 50 10% 0 17 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 LTM LTM figures from H2/2023–H1/2024,
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 10.0 % 30% 2014 100 20 7.2 % 20% 5.0 % 179 5
Slide 8: Q3 2024 Highlights
Q3 2024 Revenue grew by 2.4%, adjusted operating profit up by Highlights 6.7% ADJUSTED OPERATING PROFIT REVENUE (MEUR) (MEUR) (% OF REVENUE) +6.7% 2.4% 29.1% 24 27.9% 30 25.9% 74.5 73.4 75.2 21.9 25 22 20.5 20 20 19.3 15 10 18 5 16 0 Q3 2022 Q3 2023 Q3 2024 Q3 2022 Q3 2023 Q3 2024 • Solid performanc
Slide 9: Revenue bolstered by acquisitions
Revenue bolstered by acquisitions. Weakened koruna and the market conditions curbing the growth REVENUE Q3 2024 (MEUR) ADJUSTED OPERATING PROFIT Q3 2024 (MEUR) 21.9 -0.5 75.2 +0.3 0.0 +0.6 73.4 +3.5 20.5 +1.2 -1.1 -0.7 Q3 2023 Alma Career Alma Alma News Non- Q3 2024 Q3 2023 Alma Career Alma Alma New
Slide 10: Share of digital business continued to grow to new records
Share of digital business continued to grow to new records SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* REVENUE BY REVENUE CLASSES (MEUR) (REVENUE CHANGE IN BRACKETS) 84% 300 81% 82% 77% 80 Other 69% 259 (-0.2, -4.0 %) 250 251 250 66% 70 4.7 Classified 63% Content (0.3, 0.8 %) 61% 212 58% 59% (-0.3,
Slide 11: Alma Career: revenue down in local currencies in Q3
Alma Career: In local currencies, revenue down by 1.6% in Q3. The development of common platform continued REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY REVENUE CLASSES 50 50 (REVENUE CHANGE IN BRACKETS) 43.8% 43.2% 27.4 38.6% 40.2% -0.5 Othe
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 4 5 6 7 8 9 2021 2022 2023 2024 Revenue Invoicing KPIs (monthly averages in 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
Slide 13: Alma Marketplaces: Revenue and adjusted operating profit rose
Alma Marketplaces: Revenue and adjusted operating profit rose both organically and due to acquisitions REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY REVENUE CLASSES 35.7% 35.3% 40 (REVENUE CHANGE IN BRACKETS) 24.5 Other 35 -0.1 -0.1 (-0.2, -1
Slide 14: Alma News Media: Adjusted operating profit hiked
Alma News Media: Adjusted operating profit hiked due to the rigorous cost management and drop of print-based costs REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY REVENUE CLASSES (MEUR) SEGMENT REVENUE BY DIGITAL/PRINT (REVENUE CHANGE IN BRACKETS) 50 35 25.0 Other 30 -0.2 (+0.0, +0.3
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/ REVENUE GROWTH (%) ADJUSTED OPERATING PROFIT (%) NET DEBT/EBITDA RATIO** 23.8 24.1 24.8 19.6 22.2 2.3 19.7 12.1 1.7 1.6 1.6 2.0 -1.2 -8.0 2020 2021 2022 2023 1-9 -0.2 2020 2021 2022 2023 1-9 2024 2024 2020 2021 2022 20
Slide 17: Balanced financial position
Balanced financial position NET DEBT (MEUR), GEARING (%) & EQUITY RATIO (%) Q3/2021–Q3/2024 500 450 132% 150 400 109% 102% 94% 100 350 81% 69% 82% 73% 81% 70% 65% 59% 60% 300 46% 48% 46% 46% 46% 46% 33% 35% 33% 39% 42% 43% 44% 50 250 200 0 150 100 204 182 164 160 169 -50 157 154 143 151 146 138 155
Slide 18: Solid cash flow
Solid cash flow OPERATING CASH FLOW (MEUR) OPERATING CASH FLOW BRIDGE Q3/23-Q3/24 27.3 3.0 24.5 24.2 25 -1.2 2.5 20.6 17.5 19.6 19.6 4.0 2.0 17.3 17.6 17.5 20 17.0 0.4 -0.1 1.5 13.0 15 13.0 1.4 1.0 9.8 10.9 10 0.5 5 0.0 -0.5 0 Q3/23 Adjusted Taxes paid Net interest Changes in Other Q3/24 Q2/22 Q1/22
Slide 19: Investments
Investments CAPEX, LEASES, M&A Q3/21-Q4/24 DEPRECIATIONS Q3/21-Q3/24 16 16 4 1 14 13 2 12 10 0 10 -1.8 -1.8 -1.8 -1.8 -1.7 -1.7 -1.6 -1.7 -1.7 -1.7 -1.6 -1.6 -1.6 8 4 7 11 -2 -0.7 -0.7 -0.7 -0.6 -0.7 -0.8 -0.9 -0.9 -0.9 -1.0 -1.1 -1.2 -1.2 14 1 6 5 5 5 -1.8 -2.1 -1.9 -1.8 -1.8 -1.8 -1.7 -1.8 -1.7 -1
Slide 20: Earnings per share and dividends
Earnings per share and dividends ROE & ROI (%) Q3/21-Q3/24* EARNINGS PER SHARE Q3/21-Q3/24 80 0.28 70 0.23 60 0.20 0.20 0.19 0.19 50 46.3 0.18 0.18 0.18 40.7 40 34.4 0.14 0.14 0.13 0.13 31.1 30 18.6 19.0 20 16.3 17.9 10 0 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24
Slide 21: Total Shareholder Return 2014 - 2024
Total Shareholder Return 2014 - 2024 1.9.2014–30.8.2024 TSR, % (dividends included) Alma Media’s TSR +431 % Helsinki Stock Exchange Index +104 % (including dividends) Alma Media Oyj 431 % OMXHGI 104 % 14-08-29 2015-08-29 2016-08-29 2017-08-29 2018-08-29 2019-08-29 2020-08-29 2021-08-29 2022-08-29 20
Slide 22: Operating environment
OPERATING ENVIRONMENT
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 operating countries. Inflation change consumer behaviour. Growi
Slide 24: 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 Change % Inflation (%) Unemployment (%) 2024 2025 2024 2025 2024 2025 0.0 1.4 1.4 2.1 7.4 7.2 Finland 1.2 2.8 2.5 2.2 2.8 2.9 Czechia 2.2 2.9 3.1 3.6 5.4 5.2 Slovakia 3.3 2.9 3.
Slide 25: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 8/2023–8/2024 Source: Kantar TNS 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% P8 23 P9 23 P10 23 P11 23 P12 23 P1 24 P2 24 P3 24 P4 24 P5 24 P6 24 P7 24 P8 24 Advertising sales total, chg % Newspaper advertising, chg % Onl
Slide 26: Housing market & marketplaces update
Housing market & marketplaces update HOUSING MARKET UPDATE (SOLD APARTMENTS) +8.8% 4 968 5 060 4 839 4 603 4 231 4 345 4 288 4 355 4 207 3 757 3 834 3 443 2 922 4,776 4,887 4,697 4,137 4,253 4,468 4,033 4,044 4,173 3,628 3,683 3,311 2,821 P09 23 P10 23 P11 23 P12 23 P01 24 P02 24 P03 24 P04 24 P05 2
Slide 27: Mobility market & marketplaces update
Mobility market & marketplaces update -3.6% 63 406 63 915 60 810 61 565 61 833 58 626 55 532 56 762 53 342 52 834 50 973 49 613 43 077 53,428 55,256 55,855 57,526 49,998 56,800 46,750 49,525 54,072 44,482 46,450 44,339 37,327 P09 23 P10 23 P11 23 P12 23 P01 24 P02 24 P03 24 P04 24 P05 24 P06 24 P07
Slide 28: 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 29: 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 last • Minimising CO2 emissions in own few years operations
Slide 30: Strategy and outlook
STRATEGY AND OUTLOOK
Slide 31: New business segments
New business segments Q3 2024 ALMA CAREER ALMA MARKETPLACES ALMA NEWS MEDIA Vesa-Pekka Kirsi Santtu Elsinen Juha-Petri Loimovuori Leading Job boards in 10 CEE Leading marketplaces in real Leading digital news media in countries. Recruitment estate, mobility and business the Finnish market. Pioneer i
Slide 32: Versatile revenue sources, business cyclicity varies
Versatile revenue sources, business cyclicity varies Revenue source Share of revenue Highest cyclicity Advertising 20% Classifieds 39% Other 7% Digital services 18% Content sales 16% Lowest cyclicity Q2 2024 H1 2024 32
Slide 33: Alma Media strategy summary
Alma Media strategy summary TRANSFORM 1. • Streamline customer processes by integrating services to platforms • Systematically improve all products and processes with AI • Increase operational agility to speed up time-to-market GROW 2. • Diversify and build new products and revenue streams • Develop
Slide 34: Synergy creation within strategic business areas
Synergy creation within strategic business areas • Alma Media concentrates on recruitment, real estate, mobility, media and insights. • Group synergy is based on co-operation between and within businesses: Shared AUDIENCES • Growth of average revenue per user (ARPU) through DATA audience reach and d
Slide 35: 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 36: AI and product development at the core of successful business
AI and product development at the core of successful business AI as a part of customer AI as part of digital products AI as part of effective commitment and services internal processes Improving customer service Competitive advantage Efficiency in operations and customer experience and business from
Slide 37: Outlook for 2024
Outlook For 2024 Announced on 16 February 2024 (unchanged) Background for the outlook The outlook is based on an estimate that there will be Alma Media expects its full-year no material changes to the prevailing situation in the company's main market areas. In our operating revenue and adjusted oper
Slide 38: 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 integrating platforms • Leveraging the best of current Alma Career products by expanding into new markets: building one u
Slide 39: Thank You! Questions?
Thank You! Questions? Upcoming events in the investor calendar: • Friday, 18 October 2024: Interim report for January– September 2024 18.10.2024 ŵǼ
Slide 40: Slide 40
Slide 41: Two decades of digital transformation
Two decades of digital transformation 2022– 2020–2022 Towards advanced platforms 2015–2020 More balanced business portfolio 2010–2015 Acceleration of growth utilising the possibilities of 2005–2010 Growth and digital internationalisation of digital services Online becomes significant Sale of MTV3 Ac
Slide 42: 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 change (%) Inflation (%) Unemployment (%) 2024 2025 2024 2025 2024 2025 Bosnia & Herz 2.3 2.6 2.8 2.4 12.8 12.2 Croatia 3.3 2.9 3.5 2.2 5.8 5.6 Czechia 1.2 2.8 2.5 2.2 2.8 2.9 Es
Slide 43: 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 44: 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 traffic and commercialising the Shared user data for growing high ARPU/AR
Slide 45: 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