Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — Q3 2021 Earnings Presentation
22 slides from Alma Media Oyj's earnings presentation, Oct 21, 2021
Slide 1: Q3 2021: Strong growth in all business segments − profitability at record high level
Q3 2021: Strong growth in all business segments − profitability at record high level CEO Kai Telanne and CFO Juha Nuutinen, 21 October 2021
Slide 2: Strong performance continued – EBIT margin at record-high level
Strong performance continued – EBIT margin at record-high level • All business segments’ performance was • Our EBIT margin was at record-high level, 26.3 %. excellent. In Q3, organic growth was 14.4 %. • M&A transactions have changed our financial position. • Revenue and operating profit boosted als
Slide 3: Surging digital businesses improved operational profitability
Surging digital businesses improved operational profitability Revenue* Q3 2021 (MEUR) Adjusted operating profit* Q3 2021 (MEUR) Q3: 1.9 -1.7 Q3: 6.6 +25.9 % 1.7 0.9 +35.2 % 6.4 3.5 53.8 67.8 13.2 17.8 Q3 2020 Alma Alma Alma Q3 2021 Q3 2020 Alma Alma Alma Shared Q3 2021 Career Talent Consumer Career
Slide 4: Substantial digital business growth continued – comparison period modest
Substantial digital business growth continued – comparison period modest Share of digital business of Group revenue* Digital business growth* 70 % 77% 60 57 % 66% 63% 69% 59% 50 61% 58% 39 % * 40 53% 51% 46% 30 36% 20 8% 6% 10 4% 4% 3% 3% 2% 3% 1% 0 -10 -4 % -20 -17 % 54 75 82 91 100 125 146 160 165
Slide 5: Development By Business Segments
Development By Business Segments 5
Slide 6: Alma Career: Revenue and profit to all time high – boosted by the strong demand for labour
Alma Career: Revenue and profit to all time high – boosted by the strong demand for labour • Revenue +41.2% to MEUR 21.9 in Q3. Revenue (MEUR) and adjusted Share of segment revenue by country 41.2 % Strong customer invoicing. operating margin (%) 38.6 % (revenue change rates in brackets) • Adjusted
Slide 7: Alma Talent: Solid quarter for advertising − digital services enhancing profitability
Alma Talent: Solid quarter for advertising − digital services enhancing profitability • Revenue +8.4% to MEUR 22.4. Digital Revenue (MEUR) and adjusted Revenue split by business unit business share of revenue 57.2% operating margin (%) (revenue change rates in brackets) 0% 20% 40% 60% 80% 100% • Adj
Slide 8: Alma Consumer: High performance driven by organic growth, acquisitions and marketplaces
Alma Consumer: High performance driven by organic growth, acquisitions and marketplaces • Revenue +39.3% to MEUR 23.6. The Revenue (MEUR) and adjusted Revenue split by vertical organic growth was 8.3%. operating margin (%) (revenue change rates in brackets) 27.8 % • Adjusted operating profit up by 2
Slide 9: Financial Position
Financial Position 9
Slide 10: Major transactions completed – financial position balancing and deleveraging initiated
Major transactions completed – financial position balancing and deleveraging initiated INTEREST-BEARING NET DEBT, MEUR 9/2021 6/2021 IFRS16 -leasing liabilities 33.6 35.5 Alma Media will convert the Loans from financial institutions 200.0 220.0 current bridge facility into long- Cash and cash equiva
Slide 11: Strong cash flow enables deleveraging
Strong cash flow enables deleveraging • Cash flow from operating activities was MEUR 18.6 (10.5) Operating cash flow in Q3 and MEUR 50.1 (40.6) in January-September. Cash flow from operating activities improved year-on-year − 80 attributable to the improved operating profit. 70 • In Q3 there were no
Slide 12: Record-breaking invoicing & revenue recognition in Alma Career
Record-breaking invoicing & revenue recognition in Alma Career 12 000 10 000 8 000 KEUR 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 2019 2020 2021 Revenue Invoicing 12
Slide 13: EPS picked up to 18 cents
EPS picked up to 18 cents 0.20 • In Q3 Earnings per share from continuing operations were EUR 0.18 (EUR 0.12). Adjusted items MEUR -0.4 (MEUR 0.0). 0.15 • Improved profitability and EUR redemption of minority shares 0.10 in Alma Career and Alma 0.18 Mediapartners increased EPS from 0.12 0.12 0.12 th
Slide 14: Updated long-term financial targets
Updated long-term financial targets* * https://www.almamedia.fi/en/newsroom/ Financial target Long-term target level Performance 1-9/2021 Revenue growth, % >5% 17% Adjusted operating margin, % >20% 23% Net Debt/EBITDA ratio <2,5 2,6 Revenue growth (%) Adjusted operating margin (%) Net Debt/EBITDA ra
Slide 15: Operating Environment
Operating Environment 15
Slide 16: European Commission: reopening fuels recovery
European Commission: reopening fuels recovery GDP forecasts in Alma’s operating countries 2020–2022E Finland Czech Republic Slovakia Croatia Estonia 5.30% 5.40% 5.90% 4.50% 4.90% 4.90% 3.90% 3.80% 2.70% 2.90% -3.10% -2.90% -5.70% -5.90% -8.90% Latvia Lithuania Sweden Poland 2020 4.00% 5.10% 2021 Eur
Slide 17: Finnish advertising market: Alma gained market share
Finnish advertising market: Alma gained market share Monthly change in media advertising 8/2020–8/2021 Online advertising by media companies in Finland Source: Kantar TNS 1-8/2021 (1-8/2020)* Source: Kantar TNS 70% A-Lehdet 60% 1% (1%) Other 50% 16% (8%) 40% 30% Keskisuomalainen Alma Media 20% 3% (2
Slide 18: Strategy And Outlook
Strategy And Outlook 18
Slide 19: Alma Media transformational strategy
Alma Media transformational strategy • Accelerate the digitalisation of print media TRANSFORM THE CORE • Activate co-operation within group and business units • Divest or discontinue unprofitable / low-profitable businesses • Diversify from media to marketplaces and digital services • Concentrate on
Slide 20: Q3 in brief
Q3 in brief 79% Netello integration of Alma’s revenues from proceeding well, smooth digital business Nettix integration process cooperation and high performance along the - The first phase is consolidation process implemented with successful cutovers - Harmonised operating models and company culture
Slide 21: Outlook For 2021
Outlook For 2021 • Alma Media expects its full-year revenue and adjusted operating profit from continuing operations in 2021 to increase significantly from the 2020 level. • In 2020, the full-year revenue of the Group’s continuing operations was MEUR 230.2 and the adjusted operating profit was MEUR
Slide 22: Thank you! Questions?
Thank you! Questions? Upcoming events in the investor calendar: • Financial Statement Bulletin for financial year 2021 on Wednesday, 16 February 2022 • Interim report for January–March 2022 on Friday, 22 April 2022 • Interim report for January–June 2022 on Wednesday, 20 July 2022 • Interim report fo