Alma Media’s Financial Statement Release 2014:
Digital business grew significantly in 2014. Revenue nearly on last year's level, operating profit decreased as expected.
Alma Media Corporation Financial Statement Release 13 February 2015 at 9:00 a.m. (EET)
Alma Media’s Financial Statement Release 2014:
DIGITAL BUSINESS GREW SIGNIFICANTLY IN 2014. REVENUE NEARLY ON LAST YEAR’S LEVEL, OPERATING PROFIT DECREASED AS EXPECTED.
Financial performance October–December 2014:
– Revenue was MEUR 76.6 (77.3), down 0.9%.
– Online sales were MEUR 24.7 (21.9), up 13.0%.
– EBITDA (Earnings before interest, taxes, depreciation and amortisation) excluding non-recurring items was MEUR 8.9 (10.1), down 11.7%.
– EBITDA was MEUR 10.1 (9.9), up 1.9%.
– Operating profit excluding non-recurring items was MEUR 5.6 (6.4), or 7.3% (8.2%) of revenue, down 11.6%.
– Operating profit was MEUR 4.8 (4.3), or 6.3% (5.6%) of revenue, up 12.1%.
– The operating profit for October–December includes non-recurring items of MEUR -0.8 (-2.0).
– Profit for the period was MEUR 4.0 (-2.0), up 306.8%.
– Earnings per share were EUR 0.05 (-0.03).
Financial performance full year 2014:
– Revenue was MEUR 295.4 (300.2), down 1.6%.
– Online sales were MEUR 94.5 (84.5), up 11.9%.
– EBITDA excluding non-recurring items was MEUR 35.1 (37.5), down 6.4%.
– EBITDA was MEUR 36.4 (45.3), down 19.7%.
– Operating profit excluding non-recurring items was MEUR 21.4 (24.2), or 7.2% (8.0%) of revenue, down 11.5%.
– Operating profit was MEUR 20.7 (27.0), or 7.0% (9.0%) of revenue, down 23.5%.
– The operating profit for January–December includes non-recurring items of MEUR -0.7 (2.8).
– Profit for the period was MEUR 15.7 (16.0), down 1.7%.
– Earnings per share were EUR 0.19 (0.20).
| KEY FIGURES | 2014 | 2013 | Change | 2014 | 2013 | Change | ||
| MEUR | Q4 | Q4 | % | Q1–Q4 | Q1–Q4 | % | ||
| Revenue | 76.6 | 77.3 | -0.7 | -0.9 | 295.4 | 300.2 | -4.8 | -1.6 |
| Content revenue | 27.7 | 28.7 | -1.0 | -3.5 | 110.1 | 115.3 | -5.1 | -4.5 |
| Content revenue, print | 26.2 | 27.7 | -1.5 | -5.6 | 104.6 | 111.2 | -6.7 | -6.0 |
| Content revenue, online | 1.5 | 1.1 | 0.4 | 40.2 | 5.6 | 3.8 | 1.7 | 45.8 |
| Advertising revenue | 38.6 | 38.4 | 0.2 | 0.6 | 146.4 | 147.3 | -0.9 | -0.6 |
| Advertising revenue, print | 19.8 | 21.1 | -1.3 | -6.0 | 73.7 | 80.0 | -6.3 | -7.8 |
| Advertising revenue, online | 19.0 | 17.1 | 1.9 | 11.3 | 72.7 | 66.5 | 6.2 | 9.4 |
| Service revenue | 10.2 | 10.2 | 0.1 | 0.8 | 38.8 | 37.6 | 1.2 | 3.2 |
| Total expenses excluding non-recurring items | 71.2 | 71.1 | 0.2 | 0.2 | 274.6 | 276.7 | -2.1 | -0.8 |
| EBITDA excluding non-recurring items | 8.9 | 10.1 | -1.2 | -11.7 | 35.1 | 37.5 | -2.4 | -6.4 |
| EBITDA | 10.1 | 9.9 | 0.2 | 1.9 | 36.4 | 45.3 | -8.9 | -19.7 |
| Operating profit excluding non-recurring items | 5.6 | 6.4 | -0.7 | -11.6 | 21.4 | 24.2 | -2.8 | -11.5 |
| % of revenue | 7.3 | 8.2 | 7.2 | 8.0 | ||||
| Operating profit (loss) | 4.8 | 4.3 | 0.5 | 12.1 | 20.7 | 27.0 | -6.3 | -23.5 |
| % of revenue | 6.3 | 5.6 | 7.0 | 9.0 | ||||
| Profit for the period | 4.0 | -2.0 | 6.0 | 306.8 | 15.7 | 16.0 | -0.3 | -1.7 |
| Earnings per share, EUR (basic) | 0.05 | -0.03 | 0.08 | 297.9 | 0.19 | 0.20 | -0.01 | -5.6 |
| Earnings per share, EUR (diluted) | 0.05 | -0.03 | 0.08 | 297.9 | 0.19 | 0.20 | -0.01 | -5.6 |
| Online sales | 24.7 | 21.9 | 2.8 | 13.0 | 94.5 | 84.5 | 10.0 | 11.9 |
| Online sales, % of revenue | 32.3 | 28.3 | 32.0 | 28.1 | ||||
Dividend proposal to the Annual General Meeting:
On 31 December 2014, the Group’s parent company had distributable funds totalling EUR 179,932,379 (23,905,611). No essential changes in the company’s financial standing have taken place after the end of the financial year. Alma Media’s Board of Directors proposes to the Annual General Meeting that a capital repayment of EUR 0.12 (2013: EUR 0.10) per share be paid from the reserve for invested non-restricted equity for the financial year 2014. Based on the number of shares on the closing date 31 December 2014, the capital repayment totals EUR 9,058,422 (2013: EUR 7,548,685).
Outlook for 2015:
Low interest rates, a weaker euro and lower oil price improve the chances for growth in the long run. However, in 2015, economic growth is still expected to remain weak in Europe and, in particular, in Finland. The weak overall economic growth has an impact on advertising volume, which is not expected to increase in Finland in 2015.
In the first half of 2015, Alma Media expects its revenue and operating profit excluding non-recurring items to decrease from the 2014 level. The revenue for the first half of 2014 was MEUR 148.4, and operating profit excluding non-recurring items MEUR 8.8.
Kai Telanne, President and CEO:
In 2014, media companies had another challenging year. Print media continued to decline, as media users increasingly switched to digital channels, mobile services in particular. With increasing unemployment rates and the declining trade between Finland and Russia, the long-awaited upswing in the Finnish national economy did not take place. According to TNS Media Intelligence, media advertising volume, which is linked to GDP growth, decreased in Finland in 2014 by 3.5% year-on-year. According to a recent advertising barometer, this trend will continue in the beginning of 2015.
Alma Media’s revenue remained almost on last year’s level. Operating profit excluding non-recurring items decreased to MEUR 21.4. As the economy in Finland continued to be weak, the development of the company’s business in Finland in 2014 was also weak in print media. However, Alma Media’s digital recruitment service business in Eastern Central Europe grew vigorously throughout the year, and its profitability remained excellent. In the final quarter of 2014, recruitment business outside Finland grew by over 25%.
Alma Media’s investment in digital development paid off in 2014. The Group’s revenue from digital products and services increased by 12%. Digital advertising sales nearly reached the level of print media advertising sales. Digital products and services accounted for 32.0% (28.4%) of Group revenue.
Towards the end of 2014, Alma Media decided to divest City24, a housing portal in the Baltic countries. Outside Finland, Alma Media will now focus on strengthening its digital recruitment services.
Regardless of economic cycles, Alma Media has a solid position in the diversifying media field, due to its digital expertise and strong brands. The company is making investments in developing multichannel content, creating new mobile solutions, increasing digital services, using data in multiple ways and developing successful advertising solutions.
Alma Media’s financing standing strenghtened significantly during last year and the gearing ratio increased to over 42%. The company continues to invest in growth and internationalisation, whenever opportunities that are in line with the company strategy arise.
For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10 665 3873
Disclosure procedure:
Alma Media Corporation follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Alma Media Corporation's Financial Statement Release 2014. The complete report is attached to this release in pdf format. The Financial Statement Release is also available on Alma Media's website at www.almamedia.com/investors/.
Conference, webcast and conference call:
A conference for Finnish media, investors and analysts will be held on the same day at 11.00-12.00 EET in the Alma House (address: Alvar Aallon katu 3 C, Helsinki). In addition to the presentations held by President & CEO Kai Telanne and CFO Juha Nuutinen, participants will have an opportunity to discuss with other members of the company's management. Please note that the conference will be held in Finnish.
The presentation material in English will be available on www.almamedia.com/press_room/downloads/presentations/at 11.00 EET.
To participate in the conference, kindly register beforehand by e-mail, kutsut@almamedia.fi.
An international conference call and audio webcast concerning the financial result 2014 will begin at 13.00 EET. You can participate in the conference by calling +44(0)20 3427 1910 (confirmation code: 2257767) or follow the direct transmission at www.almamedia.com/press_room/downloads/presentations/.
ALMA MEDIA CORPORATION
Rauno Heinonen
Vice President, Corporate Communications and IR
Distribution: NASDAQ OMX Helsinki, main media
Alma Media in brief
Alma Media is a media company focusing on digital services and publishing. In addition to news services, the company's products provide useful information related to lifestyle, career and business development. The services of Alma Media have expanded from Finland to the Nordic countries, the Baltics and Central Europe. In 2014, the company employed on average 1,830 professionals (excluding deliverers), of whom approximately one fourth worked outside Finland. Alma Media's revenue in 2014 totalled approximately MEUR 295. Alma Media's share is listed on NASDAQ OMX Helsinki. Read more at www.almamedia.com.