Alma Media Corp. Stock Exchange Release 3 May 2007, 9.00am
Alma Media Group's net sales rose 14.8 % to MEUR 81.9 (MEUR 71.3).
The consolidated operating profit was MEUR 16.0 (MEUR 10.0). Earnings
per share were EUR 0.17 (EUR 0.10). Full-year net sales and operating
profit are expected to increase compared to the previous year.
- The first-quarter consolidated operating profit includes a capital
gain of MEUR 1.9, booked as a one-time item, following the disposal
on 1 February 2007 of a property in Rovaniemi used by the Lapin Kansa
newspaper.
- The consolidated profit before taxes was MEUR 17.2 (MEUR 10.3).
- Net sales from the Newspapers segment increased 9.3 % to MEUR 57.5
(MEUR 52.6) and its operating profit rose 39.7 % to MEUR 11.5 (MEUR
8.2). Advertising revenues in the Newspapers segment grew 12.9 %,
driven largely by parliamentary elections in March. Iltalehti showed
further strong success.
- Net sales from the Kauppalehti group increased 25.9 % to MEUR 17.7
(MEUR 14.1) and its operating profit was 20.1 % higher, standing at
MEUR 1.5 (MEUR 1.2). Net sales were boosted by the new units
Kauppalehti 121 and Suomen Business Viestintä. Comparable net sales
increased by 2.9 %. The comparable operating profit remained
unchanged.
- Net sales from the Marketplaces segment grew 42.3 % to MEUR 7.4
(MEUR 5.2). The operating profit more than tripled to MEUR 1.6.
- The company raises its full-year forecast in the light of its
strong first-quarter result. Assuming growth in the media market
continues similar to 2006 for the rest of the year, the Group expects
its net sales and operating profit excluding one-time items to grow
compared to last year.
President and CEO Kai Telanne:
A STRONG FIRST QUARTER FOR ALMA MEDIA
All Alma Media's segments raised both net sales and operating profit
during the first quarter. In March, Alma Media's net sales and
operating profit excluding capital gains were among the best in the
company's history for a single month. The Group's strong growth in
media sales was driven largely by better than expected election
advertising sales (MEUR 1.5), coupled with a surge in recruitment
advertising.
The Newspapers segment developed positively even without the election
advertising. Iltalehti and Aamulehti in particular raised both their
net sales and operating profits.
The Marketplaces segment showed further strong growth and reported an
excellent result. The operating profit tripled, due especially to
Monster and Etuovi.com in Finland and to City24 in Estonia. The
company is continuing to pursue investments in international
expansion and believes that marketplaces will continue to grow
strongly throughout the year. Marketplaces will show improved
profitability compared to last year despite an increase in
investments in foreign marketplaces towards the end of the year.
The personnel negotiations at Kauppalehti were completed in February
and the organization that supports editing in a multimedia
environment accelerates the good development. Kauppalehti's
circulation grew during 2006 and during the period a record was
reached for the number of visitors to the Kauppalehti Online website.
Alma Media's new Helsinki Desk began operating in March,
concentrating on producing political and social news for the
company's various newspapers. The company will further increase this
form of co-operation in all its operations.
ALMA MEDIA CORPORATION
Board of Directors
Further information:
Kai Telanne, President and CEO, tel. +358 10 665 3500 or
Teemu Kangas-Kärki, CFO, tel. +358 10 665 2244.
The company will hold a conference for analysts and the media
starting at 11 am on 3 May in the Carl Cabinet of the Scandic Marski
hotel, Mannerheimintie 10, Helsinki. The results will be presented by
CEO Kai Telanne and CFO Teemu Kangas-Kärki with other members of the
Group Executive Team present.
The presentation material in English will be available from 11 am at
www.almamedia.fi.
A webcast will begin at 1.00 pm and last about 20 minutes. The
webcast can be followed at http://www.almamedia.fi. A Conference Call
will begin at 1.30 pm. To participate in the Conference Call, please
call +44 207 162 0125.
Alma Media is a profitably growing, innovative and internationally
expanding company that believes in the future of newspapers and the
online media. Its best known products are Aamulehti, Iltalehti,
Kauppalehti and Etuovi.com.
Net sales in 2006 totalled EUR 302 million and the operating margin
was 16 %. The company's share is listed in the Mid Cap segment of the
OMX Nordic Exchange's Nordic List, trading code ALN1V. More
information at www.almamedia.fi
DISTRIBUTION: Helsinki Stock Exchange, principal media
ALMA MEDIA GROUP'S INTERIM REPORT JANUARY - MARCH 2007
The descriptive part of this interim report concentrates on the
Group's performance between January and March. Figures in brackets
refer to the first quarter of 2006 unless otherwise stated. The
figures in the tables are independently rounded.
CHANGES IN GROUP STRUCTURE COMPARED TO 2006
In January 2007 Marketplaces established a new company, OOO City24,
in Russia that will begin operating the City24 housing portal in
Moscow during the summer.
On 1 July 2006 Kauppalehti increased its holding in TietoEnator 121
from 49 % to 100 %. This company was renamed Kauppalehti 121 Oy and
it has annual net sales totalling roughly MEUR 9.
Alma Media Lehdentekijät, part of the Kauppalehti group, acquired
Suomen Business Viestintä Oy on 1 July 2006. This company's annual
net sales totals about MEUR 2.5.
On 1 July 2006 two new companies, Bovision AB and Objektvision AB
with aggregate annual net sales of around MEUR 1.7, were acquired for
the Marketplaces segment.
GROUP NET SALES AND RESULT JANUARY-MARCH 2007
The Group's net sales amounted to MEUR 81.9 (MEUR 71.3). The growth
was particularly attributable to an increase in media sales by
Aamulehti, Iltalehti and Marketplaces. Media sales also rose in the
Kauppalehti group, although there was no apparent improvement in the
media sales of business papers.
The Group recorded an operating profit of MEUR 16.0 (MEUR 10.0). A
capital gain of MEUR 1.9 was recorded during the first quarter of
2007 on the disposal on 1 February 2007 of a property in Rovaniemi
used by the Lapin Kansa newspaper.
FULL-YEAR PROSPECTS
The company raises its full-year forecast in the light of its strong
first-quarter result. Assuming growth in the media market continues
similar to 2006 for the rest of the year, the Group expects its net
sales and operating profit excluding one-time items to grow compared
to last year.
MARKET CONDITIONS
Research institutions forecast that growth in the Finnish economy
will remain lively. GDP is expected to rise to three per cent for the
whole year. Private consumption continues to be vigorous and retail
growth, for example, brisker than for a long time. Unemployment
continues to fall and inflation is forecast to remain the same during
2007. As 2008 approaches there will be signs of a mild slowdown.
KEY FIGURES 2007 2006 2006
MEUR 1-3 1-3 1-12
Net sales 81.9 71.3 301.9
Operating profit 16.0 10.0 49.1
% of net sales 19.6 14.0 16.3
Net financial expenses 0.0 0.2 0.5
Net financial expenses, % of net sales 0.0 0.3 0.2
Share of associated companies' results 1.1 0.5 1.2
Balance sheet total 186.9 257.4 199.7
Gross capital expenditure 1.8 2.3 19.6
Gross capital expenditure, % of net sales 2.1 3.2 6.5
Equity ratio 49.5 54.1 61.3
Gearing, % 16.4 -20.4 -5.6
Interest-bearing net debt 13.1 -25.6 -6.5
Interest-bearing liabilities 23.6 56.0 21.7
Non-interest-bearing liabilities 83.4 76.1 62.7
Average no. of personnel, calculated as 1 942 1 787 1 901
full-time employees, excl. delivery staff
Average no. of delivery staff 931 820 857
Earnings/share, EUR 0.17 0.10 0.50
(basic)
Earnings/share, EUR 0.17 0.10 0.50
(diluted)
Cash flow from operating activities, 0.37 0.32 0.63
EUR
Shareholders' equity/share, EUR 1.07 1.67 1.54
Market capitalization 690.2 593.9 690.2
Average no. of shares (1,000 shares)
- basic 74 613 74 613 74 613
- diluted 74 616 74 613 74 614
No. of shares at end of period 74 613 74 613 74 613
(1,000 shares)
2007 2006 2006
NET SALES BY SEGMENT, MEUR 1-3 1-3 1-12
Newspapers 57.5 52.6 217.9
Kauppalehti group 17.7 14.1 62.6
Marketplaces 7.4 5.2 23.1
Other operations and eliminations -0.7 -0.6 -1.7
Total 81.9 71.3 301.9
OPERATING PROFIT/LOSS BY 2007 2006 2006
SEGMENT, MEUR 1-3 1-3 1-12
Newspapers 11.5 8.2 38.4
Kauppalehti group 1.5 1.2 4.8
Marketplaces 1.6 0.5 2.8
Other operations and eliminations 1.5 0.1 3.1
Total 16.0 10.0 49.1
NEWSPAPERS
Newspapers, key figures (MEUR) 2007 2006 2006
1-3 1-3 1-12
Net sales 57.5 52.6 217.9
Circulation sales 26.4 24.6 101.8
Media advertising sales 28.2 25.0 104.5
Printing sales 1.6 1.6 6.2
Other sales 1.3 1.5 5.4
Operating profit 11.5 8.2 38.4
Operating margin, % 20.0 15.7 17.6
Gross capital expenditure 1.0 1.3 4.1
Average no. of personnel calculated as full-time 1 186 1 173 1 220
employees, excl. delivery staff
Average no. of delivery staff 931 820 857
The Newspapers unit reports the publishing activities of 34
newspapers. The largest of these are the regional paper Aamulehti and
the daily tabloid Iltalehti.
The national advertising expenditure grew e.g. in the retail trade,
houses and premises and recruiting sectors and decreased e.g. in the
telecommunications sector. Alma Media's Newspapers segment saw an
increase in advertising revenue of 12.9 %, which was stronger than
the market average. Media sales were up in all the newspapers with
particularly significant growth in Aamulehti and Iltalehti.
Circulation income from the newspapers rose 7.3 %. Iltalehti's market
share increased by about one percentage point to 42 % while the daily
tabloid market as a whole declined. Operating profit for the
Newspapers segment grew 39.7 % to MEUR 11.5 (MEUR 8.2), owing in
particular to Aamulehti's and Iltalehti's successful activity.
Iltalehti.fi became the first online paper in Finland to reach one
million readers per week. According to TNS Gallup's survey, Iltalehti
attracted 1,005,307 different readers during week 12.
KAUPPALEHTI GROUP
Kauppalehti group, key figures (MEUR) 2007 2006 2006
1-3 1-3 1-12
Net sales 17.7 14.1 62.6
Circulation sales 6.0 6.0 23.7
Media advertising sales 5.4 5.1 22.1
Other sales 6.3 3.0 16.7
Operating profit 1.5 1.2 4.8
Operating margin, % 8.2 8.6 7.7
Gross capital expenditure 0.4 0.3 6.4
Average no. of personnel calculated as full- 540 447 496
time employees
The Kauppalehti group specializes in producing business and financial
information. Its best known title is the Kauppalehti business daily.
The group also includes Alma Media Lehdentekijät (contract
publishing) and Kauppalehti 121 (direct marketing).
The Kauppalehti group's net sales rose 25.9 % to MEUR 17.7 (MEUR
14.1), boosted especially by the new units Kauppalehti 121 and Suomen
Business Viestintä. Comparable net sales increased by 2.9 % during
the first quarter. Media sales grew in Kauppalehti's Online and
Presso publications.
Kauppalehti group's operating profit rose 20.1 % to MEUR 1.5 (MEUR
1.2). Excluding the impact of the new units the operating profit
remained unchanged.
Kauppalehti's circulation developed positively. Kauppalehti Online
also reached a record number of visitors during the period, 208,000
different visitors in one week.
Personnel negotiations were conducted in the Kauppalehti group during
the first quarter with the result that 22 employees were made
redundant. A further 11 employees left the company during the
negotiation process. The cost reduction effect of the personnel
reductions is roughly MEUR 1.9.
MARKETPLACES
Marketplaces, key figures (MEUR) 2007 2006 2006
1-3 1-3 1-12
Net sales 7.4 5.2 23.1
Operations in Finland 6.1 4.9 19.7
Operations outside Finland 1.3 0.2 3.3
Operating profit 1.6 0.5 2.8
Operating margin, % 21.6 9.0 12.3
Gross capital expenditure 0.1 0.5 7.3
Average no. of personnel calculated as full- 146 94 111
time employees
The Marketplaces segment reports Alma Media's classified services,
which are produced on the internet and supported by printed products.
Net sales for Marketplaces rose 42.3 % to MEUR 7.4 (MEUR 5.2). Net
sales from operations in Finland increased 30 % and from operations
outside Finland 165 %. Net sales for the largest units, Monster and
Etuovi.com, grew substantially. Of the units outside Finland, the
largest growth was recorded by City24 in Estonia. Marketplaces'
operating profit was MEUR 1.6 (MEUR 0.5). Business activity regarding
recruiting and home-buying looks likely to remain positive.
Marketplaces will continue expanding into new markets. A subsidiary,
OOO City24, has been established in Moscow and this will begin
operating the City24 home-buying portal during the coming summer.
ASSOCIATED COMPANIES
Share of results of associated companies 2007 2006 2006
(MEUR) 1-3 1-3 1-12
Newspapers 0.0 0.0 0.0
Kauppalehti group
Talentum Oyj 0.9 0.5 0.7
Other associated companies 0.0 0.2 0.3
Marketplaces 0.0 0.0 0.0
Other operations
Acta Print Oy 0.1 -0.2 -0.4
Other associated companies 0.2 0.1 0.6
Total 1.1 0.5 1.2
The Group holds a 29.9 % stake in Talentum Oyj, which is reported
under the Kauppalehti group, and 36.0 % of Acta Print Oy, reported
under Other Operations.
Alma Media aims at divesting its entire shareholding of Acta Print.
When realised, the divestment is estimated to have no significant
effect on Alma Media's financial position.
BALANCE SHEET AND FINANCIAL POSITION
The Group's balance sheet totalled MEUR 186.9 at the end of March
2007 (MEUR 199.7 on 31 December 2006). The equity ratio at the end of
March was 49.5 % (61.3 % on 31 December 2006) and equity per share
stood at EUR 1.07 (EUR 1.54 on 31 December 2006).
The Annual General Meeting decided to distribute a dividend of EUR
0.65 per share. The record date was 13 March 2007 and the dividend
payment date was 20 March 2007. The dividend paid by the company to
its shareholders in March totalled MEUR 48.5.
Cash flow from operations was good during the first quarter. Cash
flow before financing activities was MEUR 30.1 (MEUR 22.3). Cash flow
used in investing activities was boosted by the sale of the property
used by Lapin Kansa in February.
The Group's interest-bearing debt is denominated in euros and
therefore does not require hedging against exchange rate differences.
Alma Media hedges the most significant purchasing agreements based in
foreign currency.
The Group's net debt at the end of March amounted to MEUR 13.1 (MEUR
-6.5 on 31 December 2006).
CAPITAL EXPENDITURE
Gross capital expenditure totalled MEUR 1.8 (MEUR 2.3). Expenditure
comprised normal operating and replacement investments.
RISKS AND RISK MANAGEMENT
The most important strategic risks contingent on Alma Media's
business operations are a significant drop in the readerships of its
newspapers and a critical decline in retail advertising. The major
operational risks are disturbances in information technology systems
and telecommunication, and an interruption of printing operations.
Alma Media's risk management process identifies the risks, develops
appropriate risk management methods and regularly reports on risk
issues to the risk management function.
ADMINISTRATION
Alma Media Corporation held its Annual General Meeting on 8 March
2007. The Meeting re-elected Lauri Helve, Matti Häkkinen, Matti
Kavetvuo, Kai Seikku, Kari Stadigh and Harri Suutari to the Board,
and elected Ahti Vilppula as a new member. The Board appointed Kari
Stadigh as its chairman and Matti Kavetvuo as its deputy chairman.
Ernst&Young Oy were appointed as the company's auditors.
The Meeting decided to amend the company's Articles of Association,
bringing them into line with the new Finnish Companies Act which came
into force on 1 September 2006.
Rauno Heinonen was appointed Vice President, Corporate Communications
and IR, on 30 March 2007.
THE ALMA MEDIA SHARE
Trading in the company's share totalled MEUR 27.5 during the first
quarter, corresponding to 37 % of the total number of shares.
The closing price of the share at the end of March was EUR 9.25. The
lowest quotation during the period was EUR 8.93 and the highest was
EUR 10.60.
Alma Media's market capitalization at the close of the period was
MEUR 690.2 (MEUR 690.2 on 31 December 2006).
The company had 4,647 shareholders at the end of March.
Nominee-registered holdings fell from 15 % at the end of December
2006 to 12.7 % at the end of March 2007.
The company does not own any of its own shares and it has no
authorizations to purchase its own shares.
Option rights
The annual general meeting on 8 March 2006 approved a three-stage
option programme (option rights 2006A, 2006B and 2006C), disapplying
the pre-emptive subscription right of the shareholders, under which
stock options would be granted to the managements of Alma Media
Corporation and its subsidiaries as a scheme for ensuring personnel's
motivation and long-term commitment to the company. Altogether
1,920,000 stock options may be granted in three lots of 640,000 each,
and these may be exercised to subscribe for at most 1,920,000 Alma
Media shares.
So far 515,000 of the 2006A options have been issued to Group
management. Altogether 65,000 of the 2006A options have been returned
to the company owing to the termination of employment contracts. In
March 2007 the Board of Directors decided to issue 510,000 options
under the 2006B scheme to Group management.
The share subscription periods and prices under the scheme are:
2006A: 1 April 2008 - 30 April 2010, average trade-weighted price 1
April - 31 May 2006
2006B: 1 April 2009 - 30 April 2011, average trade-weighted price 1
April - 31 May 2007
2006C: 1 April 2010 - 30 April 2012, average trade-weighted price 1
April - 31 May 2008
The subscription price of shares that may be subscribed under these
stock option rights will be reduced by the amount of dividends and
capital repayments decided after the start of the period determining
the subscription price and before the subscription of shares, on the
settlement date for each dividend payment or capital repayment. The
subscription price of the 2006A option was EUR 6.48 per share.
The Board of Directors has no other current authorizations to raise
convertible loans and/or to raise the share capital through a rights
issue.
Alma Media Corporation's Board of Directors decided at its meeting on
8 March 2007 to annul the 190,000 Alma Media 2006A option rights in
its possession. The diluting effect of the option schemes will be
reduced correspondingly from 2.5 % to 2.3 %.
Market liquidity guarantee
Alma Media Corporation and eQ Pankki Oy have made a liquidity
providing contract under which eQ Pankki Oy guarantees bid and ask
prices for the shares with a maximum spread of 3% during 85% of the
exchange's trading hours. The contract applies to a minimum of 2,000
shares.
Flagging notices
20 February 2007: Nordea group raised its holding to 7.67 % on 16
February 2007 but its holding fell below the 1/20th limit on 20
February owing to a share loan.
21 February 2007: Evli Pankki Oyj made a share loan agreement on 16
February 2007 under which it borrowed shares representing 5.97 % of
Alma Media's share capital and votes on 20 February 2007. The loan
period was open-ended. Evli group's holding will rise to 6.74 %.
2 March 2007: Evli group's holding falls to 0.80 % owing to the sale
of shares and the return of its borrowed shares
2 March 2007: Nordea Bank Finland's holding rose to 6.54 % owing to
the return on share loans. Nordea group's total holding is 7.52 %.
8 March 2007: Skandinaviska Enskilda Banken AB's holding falls below
the 1/20th limit. Following the transaction Skandinaviska Enskilda
Banken owns no Alma Media shares.
9 March 2007: Nordea group's total holding rose to 14.94 % as a
result of forward contracts.
12 March 2007: Herttaässä's total holding increased to above 1/10th
on 8 March 2007 and fell below 1/10th on 9 March 2007. In a forward
contract signed on 8 March 2007 Herttaässä closed its forward
contract due on 15 June 2007 and purchased the underlying shares, as
a result of which Herttaässä's shareholding rose to 12.495 % on 8
March 2007. On 9 March 2007 Herttaässä made a forward contract
maturing on 20 March 2008 as a result of which Herttaässä's direct
shareholding decreasd to 6.527 %. Herttaässä's holding following the
maturity of the forward contract on 20 March 2007 corresponds to
12.495 %.
2007 2006 2006
INCOME STATEMENT, MEUR 1-3 1-3 1-12
NET SALES 81.9 71.3 301.9
Other operating income 2.1 0.3 5.5
Materials and services -24.2 -21.9 -92.0
Costs arising from employment benefits -28.0 -24.9 -105.7
Depreciation and writedowns -2.3 -2.5 -10.1
Operating expenses -13.4 -12.2 -50.4
OPERATING PROFIT 16.0 10.0 49.1
Financial income 0.4 0.5 2.1
Financial expenses -0.4 -0.7 -2.6
Share of associated companies' results 1.1 0.5 1.2
PROFIT BEFORE TAX 17.2 10.3 49.9
Income tax -4.1 -2.5 -12.5
PROFIT FOR THE PERIOD 13.1 7.7 37.3
Distribution:
To the parent company shareholders 12.9 7.6 37.0
Minority interest 0.2 0.1 0.3
Earnings/share, EUR 0.17 0.10 0.50
Earnings/share (diluted) EUR 0.17 0.10 0.50
BALANCE SHEET, MEUR 31.3.2007 31.3.2006 31.12.2006
ASSETS
NON-CURRENT ASSETS
Goodwill 30.0 18.9 30.2
Intangible assets 9.5 7.5 9.7
Tangible assets 51.0 59.5 51.7
Investment properties 0.0 2.5 0.0
Investments in associated companies 33.3 41.1 32.1
Other long-term investments 3.9 4.0 3.9
Deferred tax assets 3.9 4.3 4.1
Other receivables 0.2 5.1 4.8
CURRENT ASSETS
Inventories 1.7 1.5 1.8
Tax receivables 0.7 1.3 0.7
Accounts receivable and other 35.1 28.3 28.8
receivables
Other short-term investments 2.4 1.8 2.4
Cash and cash equivalents 10.5 81.6 28.2
ASSETS AVAILABLE FOR SALE 4.7 1.2
TOTAL ASSETS 186.9 257.4 199.7
BALANCE SHEET, MEUR 31.3.2007 31.3.2006 31.12.2006
SHAREHOLDERS' EQUITY AND
LIABILITIES
Share capital 44.8 44.8 44.8
Share premium fund 2.8 42.4 2.8
Cumulative translation adjustment 0.1 0.0 0.1
Retained earnings 31.9 37.7 67.2
Parent company shareholders' equity 79.6 124.9 114.9
Minority interest 0.2 0.4 0.4
TOTAL SHAREHOLDERS' EQUITY 79.8 125.2 115.3
LIABILITIES
Non-current liabilities
Interest-bearing liabilities 18.8 19.9 19.1
Deferred tax liabilities 1.6 1.2 1.8
Pension obligations 3.7 3.8 3.6
Provisions 0.1 0.2 0.1
Other long-term liabilities 7.1 7.1 7.2
Current liabilities
Interest-bearing liabilities 4.8 36.1 2.6
Advances received 25.6 26.1 11.6
Tax liabilities 3.9 1.4 2.2
Provisions 2.0 0.7 2.3
Accounts payable and other 36.7
liabilities 39.6 33.9
TOTAL LIABILITIES 107.1 132.2 84.4
TOTAL EQUITY AND LIABILITIES 186.9 257.4 199.7
RECONCILIATION OF SHAREHOLDERS' EQUITY 1 JAN. - 31 MAR. 2007
Share Parent
Share premium Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 Jan.
2007 44.8 2.8 67.3 114.9 0.4 115.3
Translation
differences 0.0 0.0 0.0
Share of items
recognized
directly in
associated
company's equity 0.2 0.2 0.2
Income recognized
directly in equity 0.2 0.2 0.2
Profit for the
period 12.9 12.9 0.2 13.1
Net income for the
period 13.1 13.1 0.2 13.3
Share-based
payments 0.1 0.1 0.1
Dividend paid by
parent company -48.5 -48.5 -48.5
Dividends paid by -0.4 -0.4
subsidiaries
Equity, 31 March 44.8 2.8 31.9 79.6 0.2 79.8
2007
RECONCILATION OF SHAREHOLDERS' EQUITY 1 JAN. - 31 MAR. 2006
Share Parent
Share premium Retained company, Minority Equity,
MEUR capital fund earnings total interest total
Equity, 1 Jan.
2006 44.8 42.4 39.0 126.2 0.5 126.7
Translation
differences 0.0 0.0 0.0
Share of items
recognized
directly in
associated
company's
equity 0.0 0.0 0.0
Income
recognized
directly in
equity 0.0 0.0 0.0
Profit for the
period 7.6 7.6 0.1 7.7
Net income for
the period 7.6 7.6 0.1 7.7
Share-based
payments 0.0 0.0 0.0 0.0
Dividend paid
by parent
company -9.0 -9.0 -9.0
Dividends paid -0.2 -0.2
by subsidiaries
Translation 0.0 0.0
differences
Equity, 31 44.8 42.4 37.7 124.9 0.4 125.2
March 2006
2007 2006 2006
CASH FLOW STATEMENT, MEUR 1-3 1-3 1-12
Cash flow from operating activities
Profit for the period 13.1 7.7 37.3
Adjustments 3.1 4.5 18.2
Change in working capital 14.0 13.5 -3.8
Dividend income received 0.0 0.0 6.4
Interest income received 0.4 0.5 1.9
Interest expenses paid -0.3 -0.3 -3.1
Taxes paid -2.3 -2.0 -10.3
Net cash provided by operating activities 27.9 23.9 46.7
Cash flow from investing activities
Investments in tangible and intangible assets -0.9 -1.8 -5.4
Proceeds from disposal of tangible and intangible
assets 0.0 0.1 3.8
Other investments 0.0 0.0 0.0
Proceeds from disposal of other investments 3.2 0.1 9.1
Subsidiary shares purchased -0.2 -0.1 -9.0
Associated company shares purchased 0.0 0.0 0.0
Net cash used in investing activities 2.1 -1.6 -1.5
Cash flow before financing activities 30.1 22.3 45.2
Cash flow from financing activities
Long-term loan repayments 0.0 0.0 -33.6
Short-term loans raised 2.0 0.0 0.0
Short-term loans repaid -0.8 -0.9 -3.5
Change in interest-bearing receivables -0.2 0.0 -0.6
Dividends paid and capital repayment -48.8 -9.2 -48.8
-47.8 -10.2 -86.5
Change in cash funds (increase + / decrease -) -17.7 12.1 -41.4
Cash and cash equivalents at start of period 28.2 69.6 69.6
Cash and cash equivalents at end of period 10.5 81.6 28.2
BUSINESS ACQUISITIONS 1-3/2007
The Group did not acquire any new business operations during the
first quarter of 2007.
In January 2007 Marketplaces established a new company, OOO City24,
in Russia that will begin operating the City24 housing portal in
Moscow during the summer.
INFORMATION BY SEGMENT
Alma Media's reporting segments in this interim report are
Newspapers, Kauppalehti group and Marketplaces. Other Operations
comprises the Group's parent company and the operations of the
Group's financial management service centre.
The descriptive section of this report presents the net sales and
operating profits of the segments and the allocation of the
associated companies' results to the reporting segments. Financial
items and income taxes are not allocated to the segments. The
following table presents the assets and liabilities of the segments
as well as the non-allocated asset and liability items.
ASSETS BY SEGMENT, MEUR 31.3.2007 31.3.2006 31.12.2006
Newspapers 69.5 70.3 66.7
Kauppalehti group 59.6 55.0 56.1
Marketplaces 14.3 8.2 13.9
Other operations and eliminations 28.5 33.8 29.3
Non-allocated assets 15.0 90.1 33.8
Total 186.9 257.4 199.7
LIABILITIES BY SEGMENT, MEUR 31.3.2007 31.3.2006 31.12.2006
Continuing operations:
Newspapers 43.6 43.3 29.9
Kauppalehti group 16.6 12.5 12.2
Marketplaces 3.6 2.2 3.5
Other operations and eliminations 14.2 16.1 9.4
Non-allocated liabilities 29.1 58.1 29.4
Total 107.1 132.2 84.4
2007 2006 2006
GROUP INVESMENTS, MEUR 1-3 1-3 1-12
Gross capital expenditure 1.8 2.3 19.6
PROVISIONS
The company's provisions at the end of March totalled MEUR 2.1, the
most important of which was a MEUR 1.0 provision to cover the
restructuring measures in Kauppalehti Oy. MEUR 0.1 of this provision
has been reversed corresponding to actual costs in the period
1-3/2007. It has not been necessary to change the estimates made when
the provision was entered.
COMMITMENTS AND CONTINGENCIES, MEUR 31.3.2007 31.3.2006 31.12.2006
Collateral on own behalf
Chattel mortgages 0.0 0.0 0.0
Collateral for others
Guarantees 0.0 2.2 0.0
Other commitments
Commitments based on agreements 0.1 0.2 0.1
Minimum rents payable based on other
lease agreements:
Within one year 6.3 5.2 6.1
Within 1-5 years 14.4 13.9 14.6
After five years 12.8 11.3 13.0
Total 33.5 30.4 33.8
The Group also has purchase agreements
based on IFRIC 4 which include a lease 6.1 8.2 7.7
component per IAS 17. Minimum payments
based on these agreements:
GROUP DERIVATIVE CONTRACTS, MEUR 31.3.2007 31.3.2006 31.12.2006
Raw material derivatives
Fair value * 0.0
Amount, tonnes 5 000
Nominal value 2.6
Share options
Fair value * 0.0
Nominal value 0.0
* The fair value represents the return that would have arisen if the
derivative positions had been cleared on the balance sheet date.
The Group had no open derivative positions on 31 March 2007.
CONTINGENT LIABILITIES
The Group has contingent liabilities totalling MEUR 7.8. The tax
authorities have issued a claim to correct the company's income tax
for 2003. The tax authorities consider that the loss arising from
Alma Media's disposal of the shares of its associated company
Talentum to Kauppalehti Oy at the market price should not have been
tax-deductible. At the end of 2006 (20 December 2006) the company was
informed of a ruling by the Adjustments Board of the Corporate
Taxation Centre to the effect that the Adjustments Board rejected the
claim by the tax authorities. The tax authorities have appealed the
Adjustments Board's ruling to the Helsinki Administrative Court. The
company continues to believe that it is improbable that the claim
will lead to additional tax consequences since the transaction was
carried out at market prices for commercial reasons.
RELATED PARTIES
Alma Media Group's related parties are its associated companies and
the companies they own. The following table summarizes the operations
undertaken between Alma Media and its associated companies and the
status regarding their receivables and liabilities:
RELATED PARTY ACTIVITIES 1.1-31.3.2007 (3kk) 1.1-31.12.2006 (12 kk)
WITH ASSOCIATED
COMPANIES, MEUR
Sales of goods and
services 0.0 0.4
Purchases of goods and
services 1.3 4.4
Accounts receivable, loan
and other receivables at
the
balance sheet date 4.8 4.6
Accounts payable at the
balance sheet date 0.4 0.1
Related parties also include the company's senior management (Board
of Directors, presidents and the Group Executive Team). The section
Option Rights of this interim report presents information on changes
to the current option scheme intended to motivate and secure the
long-term commitment of the Group's senior management.
MAIN ACCOUNTING PRINCIPALS (IFRS)
This interim report has been prepared applying the recognition and
measurement principles of IAS 34 (Interim Financial Reporting).
The interim report applies the same accounting principles and
calculation methods as in the previous annual accounts dated 31
December 2006. However, the interim report does not contain all the
information or notes to the accounts included in the annual report.
This interim report should therefore be read in conjunction with the
company's annual report for 2006.
On 1 January 2007 the Group adopted the following new accounting
standards and interpretations:
IFRS 7 Financial Instruments: Disclosures
IAS 1 Presentation of Financial Statements: Capital Disclosures
IFRIC 8 Scope of IFRS 2
IFRIC 9 Re-assessment of Embedded Derivatives
IFRIC 10 Interim Financial Reporting and Impairment
The aforementioned new standards and interpretations have only a very
minor effect on the Group's income statement and balance sheet. Their
application mainly affects the notes to the accounts.
The figures in this interim report are unaudited.
SEASONALITY
The Group recognizes its circulation revenues as paid. For this
reason circulation revenues accrue in the income statement fairly
evenly during the four quarters of the year. The bulk of circulation
invoicing takes place at the beginning of the year and therefore cash
flow from operating activities is strongest early in the year. This
also affects the company's balance sheet position in different
quarters.
USE OF ESTIMATES
This bulletin contains certain statements that are estimates based on
management's best knowledge at the time they were made. For this
reason they
contain risks and uncertainty. The estimates could change in the
event of
significant changes in business conditions.
NEXT INTERIM REPORT
Alma Media publishes its results for the first six months of the year
at 9.00 am (EET) on 20 July 2007.
ALMA MEDIA CORPORATION
Board of Directors
Alma Media Corporation's Q1 Interim Report/resent to OMX information
system
Alma Media Corporation s Q1 Interim Report: Clear growth in net sales and operating profit
| Source: Alma Media