Alma Media issues positive profit warning due to stronger-than-anticipated development in the early part of the year
Alma Media Corporation Inside information 8 July 2022
ALMA MEDIA ISSUES POSITIVE PROFIT WARNING DUE TO STRONGER-THAN-ANTICIPATED DEVELOPMENT IN THE EARLY PART OF THE YEAR
Alma Media is raising its guidance regarding the development of revenue and adjusted operating profit in 2022. Alma Media’s financial performance is improved particularly by the stronger operational development of the recruitment business in the early part of the year.
New outlook
Alma Media expects its full-year revenue and adjusted operating profit from continuing operations in 2022 to increase significantly from the 2021 level. In 2021, the full-year revenue of the Group’s continuing operations was MEUR 275.4 and the adjusted operating profit was MEUR 61.1.
In the previous guidance issued in connection with the Financial Statements Bulletin 2021 of 16 February, Alma Media expected its full-year revenue and adjusted operating profit for continuing operations in 2022 to increase compared to 2021.
Guidance upgrade rationale
The revenue and operating profit performance have developed more favourably than anticipated due to the stronger-than-expected growth in the Alma Career segment's recruitment business.
The adjusted operating profits of the other two segments, Alma Consumer and Alma Talent, will decrease in the second quarter from the comparison period, but the improvement in Alma Career's result will exceed the decline of the two other segments.
The second half of 2022 is now subject to an exceptionally high level of uncertainty in the operating environment. The war in Ukraine, rising interest rates and rising inflation have led to a rapid decline in consumer confidence, with a particular impact on the purchase of consumer durables. The decrease in the volumes of the automotive trade and housing transactions will have a decreasing impact on the revenue of both marketplaces and media businesses.
We estimate that the Alma Career segment will also be able to increase its revenue and adjusted operating profit in the second half of the year compared to the comparison period. In the case of Alma Consumer and Alma Talent, however, this may prove challenging due to the aforementioned changes in the operating environment.
Alma Media will publish its interim report for April–June on 20 July 2022 at 8:00 a.m.
More information:
Juha Nuutinen, CFO, telephone +358 (0)10 665 3873
Distribution: NASDAQ Helsinki, main media, www.almamedia.fi
Alma Media in brief
Alma Media is a digital service business and media company with a strong capacity for renewal. We are building sustainable growth from media to services, providing content and services that benefit users in their everyday lives, work and leisure time. In Finland, our best-known brands include Kauppalehti, Talouselämä, Iltalehti, Etuovi.com, Nettiauto and Nettimoto. Our recruitment services include prace.cz and jobs.cz in the Czech Republic, Profesia.sk in Slovakia and mojposao.net in Croatia.
In Finland, our business operations include leading housing and automotive marketplaces, financial and professional media, national consumer media and content and data services for businesses and professionals. Alma Media’s international business in Eastern Central Europe, Sweden and the Baltic countries consists of recruitment services, an online marketplace for commercial properties and direct marketing services.
Alma Media operates in 11 countries in Europe and employs approximately 1,500 professionals. Alma Media’s revenue from continuing operations was EUR 275.4 million in 2021 of which the share of digital business was 76.9%. Alma Media’s share is listed on NASDAQ Helsinki. Read more at www.almamedia.fi/en/.