Sanoma transformation process proceeding: Savings and new operating models sought for magazines and free sheets

9/4/2012 5:35 AM EST

Sanoma transformation process proceeding: Savings and new operating models
sought for magazines and free sheets

Sanoma Corporation, Press Release, 4 September 2012 at 12:35 CET+1

Sanoma Magazines Finland and Sanoma Kaupunkilehdet have today initiated
separate co-operation procedures to reorganise their operations and streamline
cost structures. The moves are a part of a process for the entire Sanoma Group
which aims to accelerate the internal transformation in a rapidly changing
operating environment. 

Sanoma Magazines Finland, the leading Finnish magazine publisher, is planning
to reorganise its operations. The co-operation negotiations concern the entire
personnel of Sanoma Magazines Finland Oy and Sanoma Tekniikkajulkaisut Oy. The
need for reduction is estimated to be at most 95 persons. The total number of
personnel affected by the negotiations is 811. 

“The change in our operating environment is challenging the traditional income
streams of magazines, and hence our current operating models. We are now
looking for a new, stable foundation for Sanoma Magazines, one that continues
to be based on high-quality content, strong knowledge of target groups and
well-known media brands, but also on increasingly multi-channel products and
services,” says Clarisse Berggårdh, Managing Director of Sanoma Magazines
Finland. 

For Sanoma Kaupunkilehdet, changes are being considered in the product range
and organisational structure.  The planned actions include the discontinuation
of the Helsinki metropolitan area edition of the Vartti free sheet at the end
of the year. The co-operation procedures initiated today concern 69 persons at
Sanoma Kaupunkilehdet in the Helsinki region. The need for reduction is
estimated to be at most 45 persons. 

“Regrettably, the Helsinki region’s Vartti edition has not lived up to
expectations. We will increasingly focus on developing the Metro free sheet and
the local online service for the Helsinki metropolitan area,” says Pekka Soini,
CEO of Sanoma News. 

Previously, Sanoma News’ structural savings programme has been announced in the
context of the overall Sanoma Group transformation process. Similar programmes
are also in progress in other Sanoma units and countries. Our target is to be
in the forefront of the market development and secure our good performance and
profitability in a changing and digitalising operating environment, said
Harri-Pekka Kaukonen, President and CEO of Sanoma, in a release on 16 August
2012. 

Additional information:

Sanoma Magazines Finland:
Anu Nissinen, CEO, Sanoma Media Finland, tel. +358 10 707 1111
Clarisse Berggårdh, CEO, Sanoma Magazines Finland, tel. +358 9 120 5020

Sanoma Kaupunkilehdet:
Pekka Soini, CEO, Sanoma News, tel. +358 9 122 2000
Titta Halme, Business Director, Sanoma Kaupunkilehdet, tel. +358 9 122 4380

Sanoma inspires, informs and connects. Sanoma is a leading European group with
a focus on consumer media and learning. We bring information, experiences,
education and entertainment to millions of people every day. We employ nearly
11,000 professionals in some 20 countries. In 2011, the Group’s restated net
sales totalled EUR 2.4 billion. Sanoma shares are listed on the NASDAQ OMX
Helsinki.