Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q1 2020 Earnings Presentation
21 slides from Alma Media Oyj's earnings presentation, 2020
Slide 1: Q1 2020: Revenue and adjusted operating profit stable, coronavirus outbreak to cause significant uncertainty
Q1 2020: Revenue and adjusted operating profit stable, coronavirus outbreak to cause significant uncertainty CEO Kai Telanne and CFO Juha Nuutinen
Slide 2: Highlights of Alma Media Q1/2020
Highlights of Alma Media Q1/2020 • Revenue and earnings development in continuing operations stable. • A good start to the year in January–February and as expected, but March burdened by COVID-19. • Solid financial position: net-debt free balance sheet and good liquidity. -0.4% -2.7% 11.5 11.2 62.1
Slide 3: Revenue and adjusted operating profit on previous year's level
Revenue and adjusted operating profit on previous year’s level -0.2 -0.6 0.7 Revenue (MEUR) Q1 62.1 61.9 Q1 2019 Alma Markets Alma Talent Alma Consumer Q1 2020 0.0 -0.1 -0.3 0.2 Adjusted operating 11.5 11.2 profit (MEUR) Q1 Q1 2019 Alma Markets Alma Talent Alma Group Q1 2020 Consumer Activities 3
Slide 4: Digital business growth
Digital business growth In continuing operations, digital business accounted for 68.1% of revenue (+3.1 %). Share of digital business of Group revenue Digital business growth 54.2 % 25 % 51.6 % 48.0 % 42.6 % 19.7 % 20 18.6 % 37.8 % 35.8 % 15.9 % 15.6 % 32.0 % 15 28.1 % 12.7 % % 24.3 % 177 18.0 % 170
Slide 5: Development by business segments
DEVELOPMENT BY BUSINESS SEGMENTS
Slide 6: Alma Markets Q1/2020: Sales and Profitability Stable
Alma Markets Q1/2020: Sales and Profitability Stable • Revenue on previous year’s level at Revenue MEUR and adjusted Share of segment revenue by country MEUR 24.7. operating margin % in Q1/2020 (revenue growth rates in brackets) • In recruitment a good start to the year 42.7 % in Jan-Feb, in March a
Slide 7: Alma Talent Q1/2020: Digital Transformation Continues as Digital Ratio Rises to 42 %
Alma Talent Q1/2020: Digital Transformation Continues as Digital Ratio Rises to 42 % • Revenue -2.1 % to MEUR 25.6. Revenue MEUR and adjusted Share of segment revenue by country Impact of media sales decline and operating margin % in Q1/2020 (revenue growth rates in divestment in Sweden. brackets) 1
Slide 8: Alma Consumer Q1/2020: Revenue Up On Digital
Alma Consumer Q1/2020: Revenue Up On Digital • Revenue +6.2% to MEUR 11.6. Impact of good digital advertising and acquisition of loan comparison service Etua.fi. Revenue MEUR and adjusted • Content sales on previous year’s level, operating margin % supported by VAT change, decline of single- copy sa
Slide 9: Discontinued Operations Q1/2020: Print Advertising Revenue Continued to Decrease
Discontinued Operations Q1/2020: Print Advertising Revenue Continued to Decrease • Revenue -10.1% to MEUR 22.0 Revenue MEUR and adjusted mainly due to decreasing print operating margin %* advertising. Impacted also by outsourcing of delivery operations 12.7 % and printing sales. 9.8 % • COVID-19 out
Slide 10: Financial position
FINANCIAL POSITION
Slide 11: Strong Financial Position - A Balance Sheet Nearly Net Debt Free and Good Liquidity
Strong Financial Position - A Balance Sheet Nearly Net Debt Free and Good Liquidity • At the end of March gearing ratio was 0.8 % and net debt stood at MEUR 1.1. • Interest-bearing liabilities totalled MEUR 88.3, consisting entirely of lease liabilities. • Equity ratio 56.0 % Net debt, MEUR and gear
Slide 12: Strong Cash Flow
Strong Cash Flow • Cash flow from operating Operating cash flow and capital expenditure activities in Q1/2020 was MEUR 26.9 (30.3). 80 70 • Cash flow from investment 60 Net cash provided by operat. activities activities was MEUR -4.8 50 (-0.4) in Q1/2020. MEUR 40 30 Net cash provided by • COVID-19 a
Slide 13: EPS
EPS • Earnings per share from 0.25 Continuing operations in 0.21 Q1/20202 were EUR 0.10 (EUR 0.20 0.09). Adjusted items in Q1/2020 MEUR 1.0 (FY/2019: MEUR 0.1). 0.15 0.14 0.14 0.10 0.15 0.12 0.12 0.12 0.12 • EUR Earnings per share from 0.11 discontinued operations in 0.10 Q1/2020 were EUR 0.11 (EUR
Slide 14: Long-Term Financial Targets
Long-Term Financial Targets* Financial target Long-term target level Performance Q1/2020 Digital business growth, % >12% 4% ROI, %** >17% 29% Dividend payout ratio >50% Digital business growth Return on investment Dividend payout ratio (%) (%) ROI (%) 30% 35% 100% 25% 30% 80% 25% 20% 60% 20% 15% 15%
Slide 15: Strategy and outlook
__ STRATEGY AND OUTLOOK
Slide 16: Q1/2020 in brief
Q1/2020 in brief • Alma Media became the whole owner of Muuttomaailma, a full moving service marketplace (previously a 25 % stake). • Alma Media announced the sale of Alma Media Kustannus Oy and Alma Manu Oy to Sanoma Media Finland. • In March, The Finnish Consumer and Competition Authority gave its
Slide 17: Corona virus outbreak
Corona virus outbreak • Measures taken to secure the health and well-being of employees and customers • predominantly remote work and promoting virtual meetings. • Ensuring continued functionality of services • Digital marketplace services, media content and support services in all operating countri
Slide 18: Mitigating actions by business segment
Mitigating actions by business segment Business segment Impact of the COVID-19 outbreak Actions during Q2/2020 Alma Markets • Demand for recruitment advertising significantly • Cuts on marketing investments and external service down purchasing • Recruitment events postponed • Temporary layoffs, fixe
Slide 19: Outlook For 2020
Outlook For 2020 • The coronavirus epidemic and the related restrictive measures have resulted in a sudden change in Alma Media’s operating environment, and uncertainty has increased to a significant degree. • In the current exceptional circumstances, Alma Media considers visibility to be weak and t
Slide 20: Sharpening strategic focus on digital
Sharpening strategic focus on digital Developing national Growing Leveraging multi-channel marketplace professional media consumer media and business and b2b-services services in Finland and internationally
Slide 21: Thank you! Questions?
THANK YOU! QUESTIONS? Upcoming events in the investor calendar: • AGM 29 April 2020 • Interim report for January–June 2020 on Friday, 17 July 2020 • Interim report for January–September 2020 on Thursday, 22 October 2020 21