Alma Media Oyj · OMXHEX:ALMA
Alma Media Oyj — H1 2024 Earnings Presentation
37 slides from Alma Media Oyj's earnings presentation, Jul 18, 2024
Slide 1: Alma Media in the Digital Frontline
ALMA MEDIA IN THE DIGITAL FRONTLINE INVESTOR PRESENTATION POST H1 2024 1
Slide 2: Alma Media in numbers
Alma Media in numbers Revenue Digital business Adj. operating profit Adj. operating profit, % MEUR MEUR Equity ratio Dividend per share EUR * All figures FY 2023 2
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, Lithuania cvonline.com #1 Bosnia and Herzegovina, kolektiv.ba, Macedonia, Serbia vrabotuvanje.com.mk,
Slide 4: Two decades of digital transformation
Two decades of digital transformation 2023 and beyond 2020−2022 Towards advanced platforms 2015−2020 More balanced 2010−2015 business portfolio Acceleration of 2005−2010 growth utilising the Growth and possibilities of internationalisation digital Online becomes of digital services significant Sale
Slide 5: Continuing the renewal of portfolio – net investments over MEUR 200
Continuing the renewal of portfolio – net investments over MEUR 200 to digital transformation and growth INVESTMENTS OF WITH A STRONG FOCUS ON DIGITAL BUSINESS Techloop Alma Mediapartners (35%) Nettix AutoJerry Kolektiv Alma Career (17%) Toimitilat.fi Katsastushinnat.fi DIAS (80%) Netello (60%) DOKS
Slide 6: Digital transformation
Digital transformation FY 2023 MEUR MEUR 82 % 400 90% 350 80% 70% 300 11 23 60% 250 17 Services 50% Digital 200 40% Offline 251 150 30% Digital rate 247 100 20% 50 10% 42 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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% 30 2014 10.0 % 100 % 7.2 % 20 20% 5.0 % 179 5
Slide 8: Q2 2024 Highlights
Q2 2024 Revenue grew by 2.4%, adjusted operating profit on par Highlights with the comparison period ADJUSTED OPERATING PROFIT REVENUE (MEUR) (MEUR) (% OF REVENUE) 0.0% 2.4% 19.4 19.4 19.5 19.2 30 79.3 80.1 24.8% 78.2 19.0 24.2% 24.2% 25 18.5 20 18.0 15 17.5 17.0 10 16.5 5 16.0 0 Q2 2022 Q2 2023 Q2
Slide 9: Revenue improved due to acquisitions; weakened koruna curbed growth
Revenue improved due to acquisitions. Weakened koruna and the market conditions curbed the growth REVENUE Q2 2024 (MEUR) ADJUSTED OPERATING PROFIT Q2 2024 (MEUR) 19.4 19.4 -0.6 80.1 -0.2 +0.5 +3.4 -1.1 0.0 78.2 +0.6 -0.7 Q2 2023 Alma Career Alma Alma News Non- Q2 2024 Q2 2023 Alma Career Alma Alma N
Slide 10: Share of digital business continued to grow
Share of digital business continued to grow SHARE OF DIGITAL BUSINESS OF GROUP REVENUE* REVENUE BY REVENUE CLASSES (MEUR) (REVENUE CHANGE IN BRACKETS) 84% 300 81% 82% 77% 80 Other 69% 250 251 256 (0.1, 2.4 %) 250 66% 70 5.8 Classified 63% (-0.2, -0.5 %) 61% 212 Content 58% 59% 53%** 60 (-0.2, -1.2 %
Slide 11: Alma Career: In local currencies, revenue on par in Q2
Alma Career: In local currencies, revenue on par with the comparison period in Q2 REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY REVENUE CLASSES 50 50 (REVENUE CHANGE IN BRACKETS) 43.1% 43.8% 28.4 38.6% 40.2% -0.5 Other 27.7 40 37.0% 40 -0.6 +
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 2021 2022 2023 2024 Revenue Invoicing KPIs (monthly averages in 4-6/ 4-6/ 1-6/ 1-6/ 1-12/2023 th
Slide 13: Alma Marketplaces: revenue increased by 15.3%
Alma Marketplaces: Supported by acquisitions, revenue increased by 15.3%. The housing market still subdued in Q2 REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY BUSINESS UNIT (MEUR) SEGMENT REVENUE BY REVENUE CLASSES 35.7% 40 (REVENUE CHANGE IN BRACKETS) 25.1 Other 29.9% 35 -0.1 +0.2
Slide 14: Alma News Media: Revenue and profits close to comparison period
Alma News Media: Revenue and profits close to the comparison period in Q2 REVENUE AND ADJUSTED OPERATING PROFIT SEGMENT REVENUE CHANGE BY REVENUE CLASSES (MEUR) SEGMENT REVENUE BY DIGITAL/PRINT (REVENUE CHANGE IN BRACKETS) 35 35 27.9 Other 30 27.9 29.1 27.2 30 -0.5 (+0.1, +6.7 %) 26.4 2.0 25.0 27.2
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/ 25 REVENUE GROWTH (%) 25 ADJUSTED OPERATING PROFIT (%) NET DEBT/EBITDA RATIO** 19.6 20 2030 30 3.0 3.0 15 1525 23.8 24.1 25 2.5 2.5 12.1 22.2 22.7 2.3 10 1020 19.7 20 2.0 1.9 2.0 1.6 1.6 5 5 15 15 1.5 1.5 1.8 0 0 10 10
Slide 17: Balanced financial position
Balanced financial position NET DEBT (MEUR), GEARING (%) & EQUITY RATIO (%) Q2/2021–Q2/2024 500 160% 450 132% 150 109% 400 102% 94% 82% 100 350 81% 69% 73% 81% 65% 59% 60% 300 46% 46% 46% 29% 33% 35% 33% 39% 42% 43% 48% 46% 50 250 200 0 150 222 100 204 182 157 164 160 169 -50 154 143 151 146 138 128
Slide 18: Solid cash flow
Solid cash flow OPERATING CASH FLOW (MEUR) OPERATING CASH FLOW BRIDGE Q2/23-Q2/24 27.3 3.0 24.5 24.2 25 -0.4 2.5 20.6 -0.2 10.9 19.6 19.6 -0.3 2.0 17.3 17.6 20 2.2 17.0 16.1 9.8 1.5 13.0 15 -0.2 10.9 1.0 9.8 10 0.5 5 0.0 -0.5 0 Q2/22 Q1/22 Q3/22 Q4/22 Q2/23 Q1/23 Q3/23 Q4/23 Q2/24 Q2/21 Q1/24 Q3/21
Slide 19: Investments totalling MEUR 3
Investments totalling MEUR 3 CAPEX, LEASES, M&A Q2/21-Q2/24 DEPRECIATIONS Q2/21-Q2/24 4 MEUR 180 2 0 -1.9 -1.8 -1.8 -1.8 -1.8 -1.7 -1.7 -1.6 -1.7 -1.7 -1.7 -1.6 -1.6 -2 -0.8 -0.7 -0.7 -0.7 -0.6 -0.7 -0.8 -0.9 -0.9 -0.9 -1.0 -1.1 -1.2 -1.6 -1.8 -2.1 -1.9 -1.8 -1.8 -1.8 -1.7 -1.8 -1.7 -1.6 -1.4 -1.4 1
Slide 20: Earnings per share and dividends
Earnings per share and dividends ROE & ROI (%) Q2/21-Q2/24* EARNINGS PER SHARE Q2/21-Q2/24 80 0.28 70.5 70 0.23 60 0.20 0.20 0.19 0.19 50 0.18 0.18 40.7 40.5 40 32.3 0.14 0.14 0.13 0.13 29.4 0.12 28.6 30 22.0 20 13.9 17.3 10 0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q
Slide 21: Operating Environment
OPERATING ENVIRONMENT
Slide 22: 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 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 elevated. operating countries. Inflation and change consumer be
Slide 24: The Finnish advertising market update
The Finnish advertising market update MONTHLY CHANGE IN MEDIA ADVERTISING 6/2023–6/2024 Source: Kantar TNS 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% P6 23 P9 23 P12 23 P3 24 P6 24 Advertising sales total, chg % Newspaper advertising, chg % Online advertising, chg % 24
Slide 25: Housing market & marketplaces update
Housing market & marketplaces update HOUSING MARKET UPDATE (SOLD APARTMENTS) -13.5% COMMENTS: 4 968 5 060 4 503 • The figures below include the housing market services: Etuovi and Vuokraovi 4 433 4 345 4 288 4 231 4 207 3 822 3 837 3 757 Market highlights 3 443 2 922 • Trade in second-hand dwellings
Slide 26: Mobility market & marketplaces update 2024
Mobility market & marketplaces update 2024 -1.9% 65 026 63 406 COMMENTS: 61 565 57 883 56 762 55 532 49 613 • The marketplaces' figures below include the mobility market services: Autotalli and 43 077 Nettiauto 57 360 Market highlights 48 914 55 256 49 525 49 998 44 339 • New first registrations of
Slide 27: 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 28: 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 - Minimising CO2 emissions in own last few years operations
Slide 29: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 30: New business segments
New business segments Q2 2024 ALMA CAREER ALMA MARKETPLACES ALMA NEWS MEDIA Vesa-Pekka Kirsi Santtu Elsinen Juha-Petri Loimovuori Leading Job boards in 11 CEE Leading marketplaces in real Leading digital news media in countries. Recruitment estate, mobility and business the Finnish market. Pioneer i
Slide 31: 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 32: 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 user data for Shared growing high ARPU/AR
Slide 33: 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 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 streaml
Slide 34: 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 no material changes to the prevailing situation in the company's main market areas. In our operating countries, forecasts for national economies were revised d
Slide 35: 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 advanced platforms • Leveraging the best of current Alma Career products by expanding into new markets: building one unif
Slide 36: Thank You! Questions?
Thank You! Questions? Upcoming events in the investor calendar: • Friday, 18 October 2024: Interim report for January– September 2024 18.7.2024 36
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