The Group's net sales increased by 8.4%, totalling EUR 663.7 (612.5)
million. Operating profit rose to EUR 54.0 (45.6) million when Sanoma
Magazines and Sanoma improved their results. The Group's earnings per
share for the first quarter was EUR 0.22 (0.21).
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change,% 1-12/2006
Net sales 663.7 612.5 8.4 2,742.1
Operating profit 54.0 45.6 18.4 292.5
% of net sales 8.1 7.4 10.7
Operating profit excluding 52.8 43.9 20.1 288.2
major non-recurring capital
gains
% of net sales 8.0 7.2 10.5
Balance sheet total 3,172.6 2,985.2 6.3 3,132.2
Capital expenditure 15.1 15.3 -1.1 81.9
% of net sales 2.3 2.5 3.0
Equity ratio, % 46.1 42.6 45.0
Gearing, % 58.3 71.8 59.2
Interest-bearing liabilities 865.3 920.5 -6.0 863.9
Net debt 792.6 851.6 -6.9 782.4
Personnel under employment 18,941 17,613 7.5 18,434
contract, average
Personnel, average (full-time 16,335 15,124 8.0 15,732
equivalents)
Earnings/share, EUR 0.22 0.21 4.1 1.32
Earnings/share, diluted, EUR 0.21 0.21 4.1 1.31
Cash flow from 0.13 -0.02 1.63
operations/share, EUR
Equity/share, EUR * 8.15 7.48 9.0 7.92
Market capitalisation 3,663.8 3,519.1 4.1 3,521.8
* Excluding minority interest
Hannu Syrjänen, President and CEO:
"The year 2007 has started very well. The first quarter even exceeded
our targets. SanomaWSOY has had several new launches, such as the
magazine launches in Russia and Central Eastern Europe, and a new
television channel and two new radio channels in Finland. Digital
business grew through acquisitions in, for example, the Netherlands
and Bulgaria, and in Finland we established Sanoma Digital, the task
of which is to develop consumer products and services.
For quite some time, it has been our goal to develop distribution in
Russia. In March, Rautakirja established a joint venture kiosk company
with the Russian Partner Service Group. Rautakirja holds a 70% share
in this R-Kiosk company, which opens its first five kiosks in Moscow
in May.
After the review period, Finnkino has expanded both its movie theatre
and movie rental business in the Baltic countries. Educational
publishing completed its summer 2006 acquisition by purchasing the
remaining shareholdings in the Hungarian Láng group.
In order to improve our operational efficiency, we renewed our
management model at the beginning of April. The Executive Management
Group of SanomaWSOY will now focus more clearly on strategic questions
related to businesses. At the same time we strengthen the Corporate
Center that supports our divisions.
The first quarter is typically our smallest in terms of both sales and
profits. This year we improved our performance significantly compared
with last year. The good results of Sanoma Magazines and Sanoma
indicate that we can improve our profitability while still developing
our operations.
The market situation was good in most of our markets. We expect the
favourable conditions to continue for this year. We will continue to
expand our magazine, educational publishing, and press distribution
operations internationally, and develop our digital business and
improve our efficiency. We'll also put emphasis on our newspapers and
electronic media. We will achieve success also this year."
Operating environment
In early 2007, media advertising developed well in most of
SanomaWSOY's countries of operation. In January-March, advertising in
Finland grew by 11% according to TNS Gallup Adex. Without election
advertising, sales were up by 7%. Advertising in newspapers increased
by 11% and in free sheets by 1%. Job advertising increased by 27%,
while magazine advertising grew by 9% and television advertising by
12%. ZenithOptimedia estimates that magazine advertising sales in the
Netherlands and Belgium will increase by 2% in 2007. In Hungary, the
growth rate is expected to be 6% and in the Czech Republic 11%.
Expenditure on print media advertising in Russia is expected to
increase by 16%. In all of these countries, online advertising is
expected to grow considerably faster than other media advertising.
According to the Finnish Grocery Trade Association, Finnish sales of
daily consumer goods grew by 1% in January-February.
Net sales
SanomaWSOY's net sales for January-March increased by 8.4%, totalling
EUR 663.7 (612.5) million. Net sales increased markedly across all
divisions. Net sales adjusted for changes in the Group structure
increased by 5.7%.
Advertising sales accounted for 25% (24%) of the Group's total net
sales. In geographical terms, Finland accounted for 52% (54%) of net
sales with other EU countries accounting for 43% (41%), and other
EU countries for 5% (5%).
Result
The Group's operating profit rose to EUR 54.0 (45.6) million or 8.1%
(7.4%) of net sales. The operating profit included major non-recurring
capital gains of EUR 1.2 (1.7) million. Excluding these gains,
operating profit was EUR 52.8 (43.9) million. The result was improved
by the positive development of Sanoma Magazines and Sanoma. In
addition to the growth of sales, the increase in operating profit was
driven by moderate cost development. Timing differences in the numbers
of issues and marketing investments of the magazines affected the
result somewhat as well.
SanomaWSOY's net financial items totalled EUR -7.1 (-6.2) million.
Financial income consisted primarily of interest income and amounted
to EUR 4.8 (3.4) million. Financial expenses amounted to EUR 11.9
(9.7) million and comprised primarily interest costs of EUR 8.7 (6.9)
million on interest-bearing liabilities.
The result before taxes was EUR 48.6 (41.3) million and earnings per
share was EUR 0.22 (0.21).
Balance sheet and financial position
The consolidated balance sheet increased slightly, amounting to EUR
3,172.6 (2,985.2) million at the end of March. Cash flow from
operations was EUR 21.3 (-2.5) million and cash flow per share was EUR
0.13 (-0.02). Cash flow from operations improved since comparable
period's press distribution problems in Belgium have been solved.
SanomaWSOY's equity ratio improved to 46.1% (42.6%) at the end of
March, while gearing was reduced to 58.3% (71.8%). Equity increased to
EUR 1,344.9 (1,174.1) million. The conversion of stock options and
convertible capital notes into shares has served to increase
shareholders' equity and the equity ratio. Interest-bearing
liabilities decreased to EUR 865.3 (920.5) million and net debt to EUR
792.6 (851.6) million. At the end of March, the Group's cash and cash
equivalents totalled EUR 72.7 (68.9) million.
Investments and acquisitions
In January-March, SanomaWSOY's investments in tangible and intangible
assets totalled EUR 15.1 (15.3) million, and were focused on e.g. IT
systems and replacement of existing assets. R&D expenditure was
recorded at EUR 2.2 (2.6) million.
There were no major acquisitions during the period under review or the
comparable period.
Management
After the review period, the Annual General Meeting of April 4, 2007
confirmed the number of SanomaWSOY's Board members at ten and re-
elected those who had reached the end of their term of office. The
Board of Directors of SanomaWSOY consists of: Jaakko Rauramo,
Chairman, Sari Baldauf, Vice Chairman, and Robert Castrén, Jane Erkko,
Paavo Hohti, Sirkka Hämäläinen-Lindfors, Seppo Kievari, Robin
Langenskiöld, Hannu Syrjänen, and Sakari Tamminen as members.
The Annual General Meeting re-appointed Pekka Pajamo, APA, and Sixten
Nyman, APA, as his deputy, and chartered accountant KPMG Oy Ab with
Kai Salli, APA, as Auditor in Charge, as the auditors of the Company.
SanomaWSOY's management model was renewed after the review period.
Since April 5,2007, the Executive Management Group consists of
SanomaWSOY's President and CEO Hannu Syrjänen, and the directors of
each division: Eija Ailasmaa, President and CEO of Sanoma Magazines;
Mikael Pentikäinen, President of Sanoma; Jacques Eijkens, CEO of
SanomaWSOY Education and Books; Tapio Kallioja, President of SWelcom;
and Erkki Järvinen, President and CEO of Rautakirja. The
authorisations and responsibilities of the Executive Management Group
remained unchanged.
In connection with this change in management model, SanomaWSOY's Board
of Directors appointed deputies for SanomaWSOY's upper management. The
deputy to Hannu Syrjänen, President and CEO of SanomaWSOY, is Eija
Ailasmaa, President and CEO of Sanoma Magazines; deputy to Mikael
Pentikäinen, President of Sanoma Corporation, is Pekka Soini,
President of Helsingin Sanomat; deputy to Jacques Eijkens, CEO of
SanomaWSOY Education, is Veli-Pekka Elonen, President of WSOY; deputy
to Tapio Kallioja, President of SWelcom, continues to be Pekka
Jaakola, Senior Vice President, Technology; and deputy to Erkki
Järvinen, President and CEO of Rautakirja, is Hellevi Kekäläinen, CFO
of Rautakirja.
At the same time, SanomaWSOY established the Corporate Center to
support the Group's divisions. The Corporate Center consists of the
following main functions: Group Strategic Development, Group Legal
Affairs, Group Financial Management, Group Human Resources, and Group
Communications. The Corporate Center's functions will continue to be
headed by the following persons: Nils Ittonen, responsible for Group
Treasury, Real Estate and Risk Management; Kerstin Rinne, responsible
for Legal Affairs; and Matti Salmi, responsible for Group Financial
Management. The areas of responsibility will be clarified and
directors for the other functions will be appointed later. Directors
of the Corporate Center will report to SanomaWSOY's President and CEO.
Board authorisations
The authorisation to increase the share capital of the Company granted
to the Board by the Annual General Meeting in 2006 and valid for the
review period, expired at the AGM of April 4, 2007. Authorisation was
not exercised during the period under review.
The AGM of April 4, 2007 authorised the Board of SanomaWSOY to decide
on the purchase of the Company's shares and an increase in share
capital.
Under this authorisation, the Board may decide on the purchase of the
Company's shares with distributable profits until the AGM of 2008. A
maximum of 8,200,000 may be purchased. These shares will not be
purchased in relation to the share holdings of the existing
shareholders. They will be purchased with the Company's un-restricted
equity at the market price of the purchasing moment. However, the
minimum purchasing price of a share is the lowest market price in the
public trading and the maximum purchasing price is the highest price
noted on the public trade during the authorisation period.
The AGM also authorised the Board to decide, until the AGM of 2010, on
the issue of new shares, the disposal of treasury shares, and the
granting of special rights entitling to shares. The authorisation does
not exclude the right of the Board of Directors to decide on a
directed share issue. With this authorisation, and as a result of the
use of special rights, the Board is authorised to decide on an
issuance of a maximum of 82,000,000 new shares and disposal of a
maximum of 5,000,000 treasury shares. In a directed share issue, a
maximum of 41,000,000 shares can be issued or disposed of. With this
authorisation, the Board is authorised to issue a maximum of 5,000,000
stock options as part of an incentive programme of the Company.
Shares and holdings
In January-March, trading with SanomaWSOY shares accounted for 12% of
the average number of shares in issue during the period, or about 20.1
million shares. SanomaWSOY's total stock exchange turnover was EUR
439.6 (425.2) million.
At the end of the review period, SanomaWSOY's market capitalisation
was EUR 3,663.8 (3,519.1) million. The closing price for the period
was EUR 22.21 (21.97) per share. The share price averaged EUR 21.89
over the period with a low of EUR 20.56 and a high of EUR 22.97. At
the end of the period, the Company had a total of 16,644 shareholders.
Foreign holdings accounted for 11.4% (9.2%) of the shares and votes.
The Company did not hold any of its own shares (treasury shares) at
the end of March.
There were no major changes in share ownership during the review
period and SanomaWSOY did not issue any flagging announcements. At the
end of March, SanomaWSOY's registered share capital was EUR
70,933,145.29 and the number of shares on the market was 164,960,803.
After the review period, SanomaWSOY's share capital increased as 76
convertible capital notes were converted into 47,760 new shares. After
full exercise, SanomaWSOY's share capital was EUR 70,953,682.09 and
the number of shares on the market was 165,008,563. The increase in
SanomaWSOY's share capital was entered into the Trade Register on
April 19, 2007, and trading with the new shares commenced on April 20,
2007.
Dividend
In accordance with the AGM's decision, SanomaWSOY paid out a per-share
dividend of EUR 0.95 (0.90) for 2006. The record date for dividend
payment was April 11, 2007 and the dividend payment date was April 18,
2007. SanomaWSOY conducts an active dividend policy and primarily
distributes over half of the Group result after taxes in dividends.
Seasonal fluctuation
Developments in media advertising have an impact on the net sales and
results of Sanoma Magazines, Sanoma, and SWelcom. Advertising sales
are influenced, e.g., by the number of newspaper and magazine issues
published during each quarter, which varies yearly. Television
advertising in Finland is usually strongest in the second and fourth
quarters.
A major portion of the net sales and results in publishing and retail,
for example, is generated in the last quarter, particularly from
Christmas sales, while educational publishing accrues most of its net
sales and results during the second and third quarters.
Seasonal business fluctuations influence the Group' net sales and
operating profit with the first quarter traditionally being the
smallest.
Outlook for 2007
In 2007, SanomaWSOY's net sales are projected to grow more than last
year, and operating profit, excluding major non-recurring capital
gains, is expected to improve. In 2006, SanomaWSOY's net sales grew by
4.6% and operating profit excluding capital gains totalled EUR 288.2
million.
The forecast of the development of SanomaWSOY's net sales and
operating profit in 2007 is based on both organic growth and growth
based on minor acquisitions. During 2007, SanomaWSOY will continue its
strong focus on investing in digital media and strengthening its
market positions. In addition to the Group's own business activities
and development projects, the growth of net sales and operating profit
are also affected by growth in media markets and private consumption
in the Group's operating countries. Short-term risks and uncertainties
are related to market development.
European economies are projected to grow in 2007, albeit at a slower
rate than in 2006. Research firms predict that GDP will grow by 2.4%
in the Netherlands, 2.1% in Belgium, and 3.0% in Finland. The growth
rate is expected to be 2.6% in Hungary, 4.9% in the Czech Republic,
and 6.0% in Russia. According to ZenithOptimedia estimates, media
advertising in SanomaWSOY's primary market areas in 2007 will grow at
a rate faster than that of GDP. In 2007, private consumption is
estimated to increase by 2.5% in Finland, 2.2% in the Netherlands,
2.0% in Belgium, 4.0% in the Czech Republic, and 10.6% in Russia. In
Hungary, private consumption is expected to decrease by 0.5%.
Sanoma Magazines
Sanoma Magazines is one of Europe's largest consumer magazine
publishers, operating in 13 countries. In addition to publishing its
strong portfolio of magazine brands for various reader communities,
Sanoma Magazines is expanding its business to other media platforms,
with a strong focus on interactivity.
- Strong magazine brands interest readers.
- Significant growth of online advertising, in total the Division's
online sales were up by 42%.
- Investments in magazine launches and developing online operations
continued.
- Net sales and operating profit grew markedly.
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change,% 1-12/2006
Net sales 287.1 264.1 8.7 1,155.9
Operating profit 32.1 23.3 37.9 128.8
% of net sales 11.2 8.8 11.1
Operating profit excluding 30.9 23.3 32.8 126.2
major non-recurring capital
gains
% of net sales 10.8 8.8 10.9
Balance sheet total 1,894.8 1,692.6 11.9 1,910.0
Capital expenditure 3.4 4.1 -17.2 16.5
Personnel under employment 5,485 5,093 7.7 5,302
contract, average
Personnel, average (full-time 5,037 4,650 8.3 4,848
equivalents)
OPERATIONAL INDICATORS * 1-3/2007 1-3/2006
Number of magazines published 305 232
Magazine copies sold, thousands 108,128 107,328
Number of advertising pages 13,549 12,082
sold
* Including joint ventures
Sanoma Magazines' net sales in January-March grew by 8.7%, totalling
EUR 287.1 (264.1) million. Most growth came from Sanoma Magazines
International, Sanoma Magazines Belgium, and from online operations.
Adjusted for changes in the Group structure, the Division's net sales
grew by 6.2%. Of the Division's net sales, 17% (17%) came from
Finland. The Dutch press distribution company Aldipress has been
transferred to Rautakirja as of January 1, 2007 and figures for the
comparable year have been adjusted accordingly.
The Division's advertising sales increased by 16% in the first quarter
and represented 29% (27%) of net sales. With all businesses developing
favourably, most advertising growth came from online advertising sales
in the Netherlands and from Sanoma Magazines International.
Circulation sales grew also, by 5%, and represented 59% (61%) of
Sanoma Magazines' net sales. The increase was partly due to improved
single copy sales in Belgium and growth of subscription sales in
Finland and Belgium.
Net sales in Sanoma Magazines Netherlands amounted to EUR 119.8
(116.7) million. Advertising sales increased, mainly due to the
positive development of online advertising sales. In January-March,
online advertising grew by 44%. Particularly strong brands like Donald
Duck and the recently restyled Libelle and Margriet were favoured by
the readers market, but total circulation sales remained slightly
below the comparable period. Sanoma Magazines Netherlands strengthened
its online operations by acquiring a finance portal, Belegger.nl, in
March.
Sanoma Magazines International's net sales in the first quarter
increased to EUR 65.8 (58.1) million. Growth came from increased
advertising sales in most of the operating countries, especially in
Russia, Ukraine, and Hungary where online advertising is developing
positively. Circulation sales remained at the previous' year level. In
January-March, Sanoma Magazines International made several launches
and online acquisitions. It also developed its magazine portfolio: two
titles were launched and six divested or discontinued.
Net sales in Sanoma Magazines Belgium grew to EUR 52.5 (44.7) million,
partly due to new niche publishing operations acquired in September
2006. Both advertising and circulation sales increased. Single copy
sales in particular grew significantly. In the comparable period, net
sales were down as a result of single copy distribution problems. In
January, Sanoma Magazines Belgium launched Milo, a 40+ magazine.
Sanoma Magazines Finland's net sales increased to EUR 50.1 (45.8)
million. Both advertising and circulation sales grew. Single copy
sales increased slightly and subscription sales strongly. Sanoma
Magazines Finland's titles have succeeded in continuously increasing
their circulation. Due to seasonality, some titles had more issues
published than in the comparable period.
Sanoma Magazines' operating profit improved significantly and totalled
EUR 32.1 (23.3) million. The result included EUR 1.2 (0.0) million of
major non-recurring capital gains related to selling of titles. In the
comparable period an adjustment of EUR 2.0 million related to the
acquisition in 2001 and the terms and conditions of the agreement
improved the result.
In January-March, Sanoma Magazines Netherlands' operating profit
improved mainly due to moderate cost development and the timing of
expenses. Sanoma Magazines International's results increased given
strong sales development and the different timing of launch costs than
in the comparable period. Sanoma Magazines Belgium's result improved
significantly due to growth in single copy sales. In the comparable
period, single copy distribution problems decreased the result. Sanoma
Magazines Finland's operating profit grew due to good sales
development.
Sanoma Magazines continues to develop its online businesses and invest
in growth, which is expected to be most rapid in Russia and the CEE
countries. Intense competition both in advertising and readers markets
in the Netherlands is expected to continue, with development being
strongest in the online market, where Sanoma Magazines already has a
strong position.
In 2007, Sanoma Magazines' net sales are estimated to grow, and
operating profit excluding major non-recurring capital gains is
expected to improve.
Sanoma
Sanoma is the leading newspaper publisher in Finland. In addition to
Helsingin Sanomat, the largest daily in the Nordic region, the
Division publishes national and regional daily newspapers, local
papers, and free sheets, and provides digital services.
- Operational result improved significantly.
- Advertising sales grew faster than the market, with Helsingin
Sanomat, Sanoma Kaupunkilehdet, and Sanoma Lehtimedia in particular
delivering solid growth.
- Growth in online advertising sales continued to be strong.
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change,% 1-12/2006
Net sales 122.4 112.6 8.7 457.1
Operating profit 19.6 16.1 21.5 62.7
% of net sales 16.0 14.3 13.7
Operating profit excluding 19.6 14.5 35.3 61.0
major non-recurring capital
gains
% of net sales 16.0 12.8 13.3
Balance sheet total 502.3 489.5 2.6 526.6
Capital expenditure 2.9 4.0 -25.7 16.5
Personnel under employment 2,624 2,598 1.0 2,672
contract, average
Personnel, average (full-time 2,326 2,298 1.2 2,378
equivalents)
OPERATIONAL INDICATORS 1-3/2007 1-3/2006
ADVERTISING VOLUME, COLUMN KM
Helsingin Sanomat 11.2 10.4
Ilta-Sanomat 1.6 1.7
Free sheets 9.7 7.6
Distribution, free sheets, 29.8 25.3
million copies
AUDITED CIRCULATION, COPIES 1-12/2006 1-12/2005
Helsingin Sanomat 426,117 430,785
Ilta-Sanomat 186,462 195,673
ONLINE SERVICES, UNIQUE 1-3/2007 1-3/2006
VISITORS, WEEKLY
Iltasanomat.fi 916,501 793,402
HS.fi 727,736 569,222
Huuto.net 403,568 376,447
Oikotie.fi 293,888 222,656
Taloussanomat.fi 176,955 68,724
Keltainenpörssi.fi 112,819 70,925
In the first quarter of 2007, Sanoma's net sales increased by 8.7%
totalling EUR 122.4 (112.6) million. The net sales were particularly
strengthened by the significant increase in the advertising sales of
Helsingin Sanomat, Sanoma Kaupunkilehdet, Sanoma Lehtimedia, and
online business. Net sales adjusted for changes in the Group structure
increased by 7.4%.
In January-March, the Division reported a 15% overall improvement in
advertising sales, which accounted for 55% (52%) of net sales.
Circulation sales increased by 3% and accounted for 39% (41%) of
Sanoma's net sales.
Sanoma's reporting structure has been modified to better reflect the
focus of operations. The comparable figures for 2006 have been
adjusted accordingly. With effect from 2007, Sanoma's reported
businesses include Helsingin Sanomat, Ilta-Sanomat, other publishing,
and other operations. Other publishing includes Sanoma Lehtimedia,
publishers of regional and local newspapers; Sanoma Kaupunkilehdet, a
publisher of free sheets; Sanoma Business Services business unit
(Taloussanomat, Lehtikuva, Esmerk), which provides business-to-
business services; and Sanoma Digital. Other operations include
Sanoma's IT and printing operations.
The Helsingin Sanomat business unit increased its net sales to EUR
72.3 (66.8) million in January-March. The advertising sales of
Helsingin Sanomat increased significantly. The biggest risers were job
advertising, 29%, and online advertising, 28%. Also the circulation
sales of Helsingin Sanomat increased despite a slight decrease in
circulation. After the review period, Helsingin Sanomat increased its
holding in Skillnet, a supplier of online recruitment systems, to 51%.
The deal will further strengthen Helsingin Sanomat and Oikotie.fi's
market leadership in job advertising.
The Ilta-Sanomat business unit increased its net sales to EUR 23.6
(22.3) million. Advertising sales were up slightly, but the growth
came primarily from increased newsstand sales. Newsstand sales
increased driven by the cover price increase implemented in the autumn
of 2006. Ilta-Sanomat commanded a 58.2% (59.3%) share of the tabloid
market. Ilta-Sanomat, which is celebrating its 75th Anniversary,
revised its weekend supplement and online presence in March, and the
website visitor numbers have shown a steady increase.
The net sales from other publishing increased to EUR 24.3 (20.8)
million. Most of the growth came from the Sanoma Kaupunkilehdet
business unit, which substantially increased its advertising sales.
The number of newspapers increased from the comparable period with the
acquisition of the Finnish operations of the Metro newspaper in
September 2006. Sanoma also continued to develop its free sheet
portfolio with e.g. brand reforms. Sanoma Lehtimedia and Sanoma
Business Services business units also increased their net sales. The
development of the online version of the financial newspaper
Taloussanomat continued, and its visitor numbers have increased
strongly.
Net sales from other operations amounted to EUR 38.5 (37.5) million,
most of which came from internal sales.
Sanoma's operating profit increased clearly to EUR 19.6 (16.1)
million. The operating profit for the comparable period included EUR
1.7 million in major non-recurring capital gains from the sale of Aina
Group Oyj shares divested by Sanoma Lehtimedia in February 2006.
Helsingin Sanomat increased its operating profit considerably in
January-March due to the growth of advertising sales. Ilta-Sanomat
increased its operating profits, primarily due to increased newsstand
sales. Also other publishing increased its operating profits,
excluding capital gains, with all units improving their earnings.
Earnings from other operations were down slightly.
Sanoma Digital, a new company that focuses on online business was
launched on January 1, 2007. The company is jointly owned by Sanoma,
Sanoma Magazines Finland, and SWelcom. The majority of the shares are
owned by Sanoma.
Sanoma is seeking growth in, for example, new businesses. The positive
development of media advertising and the growth of newsstand sales are
also expected to continue during the current fiscal year.
In 2007, Sanoma's net sales are estimated to increase and operating
profit excluding major non-recurring capital gains is expected to
improve.
SanomaWSOY education and Books
SanomaWSOY Education and Books is a significant European educational
publisher with operations in the Netherlands, Finland, Hungary,
Belgium, and Poland. The Division is also Finland's leading book
publisher and is active in business information and services.
- Educational publishing acquisitions in 2006 increased the exposure
to seasonal fluctuations.
- Finnish fiction sales were strong in first quarter.
- WSOYpro's language services progressing well.
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change % 1-12/2006
Net sales 52.2 45.4 15.1 309.2
Operating profit -6.5 -4.3 50.6 48.0
% of net sales -12.4 -9.5 15.5
Operating profit excluding -6.5 -4.3 50.6 48.0
major non-recurring capital
gains
% of net sales -12.4 -9.5 15.5
Balance sheet total 595.3 484.4 22.9 598.2
Capital expenditure 1.2 1.7 -31.9 8.9
Personnel under employment 2,723 2,039 33.6 2,455
contract, average
Personnel, average (full-time 2,293 1,854 23.7 2,106
equivalents)
OPERATIONAL INDICATORS 1-3/2007 1-3/2006
EDUCATIONAL PUBLISHING
Number of new titles published, 300 177
books
Number of new titles published, 55 39
electronic products
PUBLISHING
Number of new titles published, 142 151
books
Number of new titles published, 10 50
electronic products
Number of copies sold, 2.1 1.4
published books, million copies
In January-March, SanomaWSOY Education and Books' net sales grew by
15.1% totalling EUR 52.2 (45.4) million. Growth came mainly from
educational publishing as well as language services acquired in
February 2006. A total of 45% (44%) of the Division's net sales came
from outside Finland. Net sales adjusted for changes in the Group
structure increased by 1.5%.
Educational publishing recorded net sales of EUR 20.0 (15.3) million.
Net sales increased in the Netherlands and Belgium, with additional
growth coming from the Hungarian operations acquired in June 2006.
Sales decreased from the comparable period in Poland due to seasonal
fluctuations. After the review period, the Hungarian educational
publisher Láng became fully owned by SanomaWSOY Education.
In publishing, net sales amounted to EUR 26.3 (24.2) million in the
first quarter. The general literature sales were slightly better than
in the comparable period due to strong sales of domestic fiction in
particular. WSOYpro, which focuses on business information and
services, also performed well, with growth coming mainly from language
service provider AAC Global acquired in February 2006. In March 2007,
language services were expanded with AAC Global's acquisition of
Translation Services Noodi in Finland.
Net sales from other operations, mainly printing, totalled EUR 12.0
(10.3) million. Net sales of other operations are partly affected by
the seasonality of both publishing and educational publishing.
The Division's operating profit in January-March was EUR -6.5 (-4.3)
million. The decrease was mainly attributable to the seasonality of
educational publishing. Growing educational publishing operations
increases the seasonality of the Division since most of the
educational materials are sold in the second and third quarters. The
operating profit in publishing remained at the previous year's level
but was slightly behind the previous year's level in other operations.
SanomaWSOY Education and Books continues to develop its three main
businesses with focus on internationalising the educational
publishing, maintaining Finnish market leadership in general
literature publishing, and expanding business information and
services, especially in the language services market.
In 2007, net sales of SanomaWSOY Education and Books are estimated to
increase, and operating profit excluding major non-recurring capital
gains is expected to improve.
SWelcom
Television channel Nelonen, part of SWelcom, the electronic media
division of the SanomaWSOY Group, is Finland's third largest medium in
terms of advertising sales, while Welho is the country's largest cable
television company and a major provider of broadband services.
- Radio Rock and Radio Aalto were successfully launched with Radio
Rock exceeding its projected listening figures.
- TV channel JIM drew strong male demographics right from the start.
- Welho boosted its broadband offering by introducing higher speeds
at the same prices.
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change % 1-12/2006
Net sales 35.2 33.3 5.7 131.8
Operating profit 2.9 3.2 -9.9 12.5
% of net sales 8.3 9.7 9.5
Operating profit excluding 2.9 3.2 -9.9 12.5
major non-recurring capital
gains
% of net sales 8.3 9.7 9.5
Balance sheet total 163.0 150.4 8.4 158.6
Capital expenditure 2.7 1.4 92.7 15.2
Personnel under employment 465 435 6.9 437
contract, average
Personnel, average (full-time 431 393 9.5 398
equivalents)
OPERATIONAL INDICATORS 1-3/2007 1-3/2006
Nelonen's and JIM's share of 29.3% 32.0%
Finnish TV advertising
Nelonen's and JIM's daily reach 44% 45%
Nelonen's and JIM's national 21.8% 23.6%
commercial viewing share
Nelonen's and JIM's national 10.6% 10.8%
viewing share
Number of connected households, 308 295
thousands (31.3)
Number of pay TV subscriptions, 69 46
thousands (31.3)
Number of broadband internet 90 72
connections, thousands (31.3)
In January-March, SWelcom's net sales increased by 5.7% totalling EUR
35.2 (33.3) million. This increase was primarily due to the growth of
Welho's net sales. Net sales adjusted for changes in the Group
structure increased by 9.9%. Advertising sales represented 56% (58%)
of SWelcom's net sales.
The company's TV and radio operations include the commercial
television stations Nelonen and JIM, along with radio stations Radio
Rock and Radio Aalto. Largely due to the new operations, the broadcast
business unit increased its net sales to EUR 19.9 (19.2) million in
January-March. The TV channels' combined share of all TV advertising
was 29.3% (32.0%). Nelonen's viewing shares in the different age
groups lagged behind the comparable period last year, whereas JIM, the
new TV channel launched in February, has successfully reached its
target demographic.
The launch of the radio networks was also successful. In March, Radio
Rock's weekly reach was 781,000 listeners, while Radio Aalto reached
336,000 weekly listeners. Radio Rock's channel share of all commercial
radio listening in Finland was 10%, and Radio Aalto's channel share
was 2%. Radio Rock is the most listened to channel among males aged 20-
44.
Welho's net sales increased strongly as a result of the rapid growth
in pay TV, broadband subscriptions, and the sale of digital set-top
boxes. Welho has also upgraded its broadband services, and now offers
higher connection speeds at the same prices. Welho has signed an
agreement with the City of Helsinki Department of Education on a PCTV
service, which will make free-to-air digital terrestrial television
channels available to schools so that television programmes can be
viewed on any network-connected computer without a separate set-top-
box.
In January-March, SWelcom's operating profit was EUR 2.9 (3.2)
million. Operating profit was negatively impacted by the investments
required by the television and radio channels launched in early 2007.
SWelcom continues the development of its digital content and media
solutions business, as well as its online community services. In
autumn 2007, SWelcom will launch a nationwide pay TV channel with a
focus on television series and movies.
SWelcom's net sales are estimated to increase further in 2007.
Operating profit excluding major non-recurring capital gains is
expected to increase slightly despite substantial development
investments.
Rautakirja
Rautakirja is the market leader in kiosk operations, press
distribution, and movie theatres in Finland and the Baltic countries,
and press distribution in Romania. Additionally, it leads the Finnish
and Estonian markets for bookstores, and, from the beginning of 2007,
also the Dutch market for press distribution. Its press distribution
business and kiosk operations have also expanded into the Russian
market.
- Net sales increased in all businesses, except bookshops, with
overall growth being 6.5%.
- Kiosk operations are expanding in Russia.
- The entertainment business is strengthening its position in the
Baltic countries.
KEY INDICATORS, EUR million 1-3/2007 1-3/2006 Change % 1-12/2006
Net sales 192.4 180.7 6.5 799.9
Operating profit 9.0 10.4 -13.5 54.7
% of net sales 4.7 5.7 6.8
Operating profit excluding 9.0 10.4 -13.5 54.7
major non-recurring capital
gains
% of net sales 4.7 5.7 6.8
Balance sheet total 544.5 501.2 8.6 586.9
Capital expenditure 4.5 4.1 9.8 23.1
Personnel under employment 7,568 7,377 2.6 7,496
contract, average
Personnel, average (full-time 6,177 5,859 5.4 5,932
equivalents)
OPERATIONAL INDICATORS 1-3/2007 1-3/2006
Customer volume in kiosk 50,889 48,379
operations, thousands
Customer volume in bookstores, 1,747 1,696
thousands
Customer volume in movie 2,321 2,041
theatres, thousands
Number of copies sold (press 94,834 92,395
distribution), thousands
Rautakirja's net sales for January-March increased by 6.5% totalling
EUR 192.4 (180.7) million, with all countries and business segments
improving their sales with the exception of bookstores. Net sales
adjusted for changes in the Group structure increased by 4.6%. About
33% (32%) of Rautakirja's net sales came from outside Finland. The
Dutch press distribution company Aldipress was combined with
Rautakirja on January 1, 2007. The comparable figures have been
adjusted to reflect the inclusion of Aldipress.
Net sales from kiosk operations increased in all countries of
operation, rising to EUR 86.9 (82.3) million. The net sales for the
comparable period include the net sales of the Pizza Hut restaurant
chain divested in June 2006. In Finnish R-kiosks, traditional kiosk
products and mobile communications products generated the most
positive results. Customer numbers increased in all markets. In March,
Rautakirja expanded its kiosk operations to Russia by establishing a
joint venture with the Russian Partner Service Group. Rautakirja will
hold a 70% majority share in the new company. The company will launch
its modern kiosk concept in Moscow with the aim of setting up 50
kiosks during the first year. Later the company intends to expand its
business to other major Russian cities.
Press distribution increased its net sales to EUR 56.2 (50.7) million
in January-March. Net sales grew in the Baltic countries, Romania,
Finland, and Russia, but decreased slightly in the Netherlands, where
the newsstand market has been challenging for quite some time. The
distribution volumes of Aldipress decreased slightly from the
comparable period. In Finland, press distribution sales were bolstered
by the weekday cover price increase by quality tabloids and the
positive development of magazine sales in the first quarter. The
operations of the Finnish Lehtipiste were complemented through the
acquisition of Printcenter, a company specialised in point-of-sale
(POS) marketing products and services, in February.
The net sales of the bookstores were EUR 29.6 (30.2) million in
January-March. Sales in Finnish bookstores increased, but subscription
sales decreased. Subscription sales decreased primarily as a result of
the divestment of the library business in autumn 2006. Net sales
increased in Estonia.
The entertainment business comprises movie theatres in Finland and the
Baltic countries, and a multi-purpose arena in Hamburg. Net sales from
the entertainment business increased in all countries of operation,
reaching EUR 23.5 (20.1) million. Net sales were boosted e.g. by the
expansion of movie theatre operations primarily in Finland during the
second half of 2006 through acquisitions and by the opening of new
multiplexes. Movie audiences grew particularly in Latvia and
Lithuania. After the review period, Rautakirja has strengthened its
position in the Baltic countries by opening a new movie theatre
multiplex in Kaunas, Lithuania, and expanding the Forum Cinemas Home
Entertainment chain in Latvia.
Rautakirja's operating profit for January-March was EUR 9.0 (10.4)
million. Results in kiosk operations and bookstores lagged slightly
behind last year. The operating profit of press distribution remained
at the previous year's level. In Aldipress, the result of the
comparable period included a purchase price adjustment of EUR 0.4
million related to acquisition in 2001 and the terms and conditions of
the agreement. The entertainment business unit improved its operating
profit.
Rautakirja will continue to ensure its expansion and success through
continuous development, internationalisation, and acquisitions, with
Russia and the emerging Central Eastern European economies serving as
the target countries for expansion.
In 2007, Rautakirja's net sales are estimated to grow and operating
profit excluding major non-recurring capital gains is expected to be
at the previous year's level.
This Interim Report is unaudited.
Helsinki
Board of Directors
SanomaWSOY Corporation
CONSOLIDATED INCOME STATEMENT
EUR million 1-3/2007 1-3/2006 Change,% 1-12/2006
NET SALES 663.7 612.5 8.4 2,742.1
Other operating income 13.3 15.4 -13.9 57.2
Materials and services 294.9 280.9 5.0 1,243.3
Personnel expenses 158.4 145.6 8.8 595.5
Other operating expenses 135.0 124.8 8.2 532.2
Depreciation and impairment 34.6 30.9 12.0 135.8
losses
OPERATING PROFIT 54.0 45.6 18.4 292.5
Share of result of associated 1.8 1.9 -8.1 8.4
companies
Financial items -7.1 -6.2 13.9 -24.5
RESULT BEFORE TAXES 48.6 41.3 17.8 276.3
Income taxes -13.7 -12.4 11.1 -68.0
RESULT FOR THE PERIOD 34.9 28.9 20.7 208.4
Attributable to:
Equity holders of the Parent 35.5 32.5 9.5 209.5
Company
Minority interest -0.6 -3.6 -1.1
Earnings per share for result
attributable to the equity holders of the
Parent Company:
Earnings per share, EUR 0.22 0.21 4.1 1.32
Diluted earnings per share, EUR 0.21 0.21 4.1 1.31
CONSOLIDATED BALANCE SHEET
EUR million 31.3.2007 31.3.2006 Change,% 31.12.2006
ASSETS
NON-CURRENT ASSETS
Tangible assets 565.6 562.2 0.6 572.3
Investment property 10.0 10.9 -8.6 10.0
Goodwill 1,401.2 1,335.0 5.0 1,392.7
Other intangible assets 365.8 312.6 17.0 368.1
Interest in associated 70.3 62.5 12.4 68.2
companies
Available-for-sale financial 16.4 16.6 -1.2 16.4
assets
Deferred tax receivables 46.3 53.9 -14.0 45.2
Other receivables 36.4 35.1 3.6 38.4
NON-CURRENT ASSETS, TOTAL 2,512.0 2,388.8 5.2 2,511.3
CURRENT ASSETS
Inventories 159.3 145.8 9.3 150.1
Receivables 428.6 381.7 12.3 389.3
Available-for-sale financial 0.0
assets
Cash and cash equivalents 72.7 68.9 5.5 81.5
CURRENT ASSETS, TOTAL 660.6 596.4 10.8 620.9
ASSETS, TOTAL 3,172.6 2,985.2 6.3 3,132.2
EQUITY AND LIABILITIES
EQUITY
Equity attributable to the
equity holders of the Parent
Company
Share capital 71.0 67.5 5.1 70.9
Other equity 1,273.9 1,106.6 15.1 1,234.8
1,344.9 1,174.1 14.5 1,305.7
Minority interest 14.8 12.3 20.2 17.0
EQUITY, TOTAL 1,359.6 1,186.4 14.6 1,322.7
NON-CURRENT LIABILITIES
Deferred tax liabilities 95.6 90.4 5.8 96.2
Pension obligations 57.1 64.8 -12.0 57.6
Provisions 7.8 10.9 -28.6 7.8
Interest-bearing liabilities 43.7 129.6 -66.3 44.2
Other liabilities 34.7 26.3 31.7 36.0
CURRENT LIABILITIES
Provisions 7.4 10.4 -29.0 7.9
Interest-bearing liabilities 821.6 790.9 3.9 819.7
Other liabilities 745.2 675.5 10.3 740.1
LIABILITIES, TOTAL 1,812.9 1,798.8 0.8 1,809.5
EQUITY AND LIABILITIES, TOTAL 3,172.6 2,985.2 6.3 3,132.2
CHANGES IN CONSOLIDATED EQUITY
EUR million Equity attributable
to the equity
holders of the
Parent Company
Share Other Minority Equity,
capital equity interest total
EQUITY AT DEC. 31, 2005 67.5 1,074.0 16.3 1,157.7
Change in translation -1.5 0.0 -1.5
differences
Other items -0.2 -0.2
Items recognised directly in -1.7 0.0 -1.8
equity, total
Profit for the period 32.5 -3.6 28.9
TOTAL RECOGNISED INCOME AND 30.7 -3.6 27.1
EXPENSES
Conversion of capital notes
Usage of share options 0.0 0.6 0.6
Expense recognition of granted 1.3 1.3
options
Dividends paid -0.6 -0.6
Change in minority interests 0.2 0.2
EQUITY AT MARCH 31, 2006 67.5 1,106.6 12.3 1,186.4
EQUITY AT JAN. 1, 2007 70.9 1,234.8 17.0 1,322.7
Change in translation 1.1 0.0 1.1
differences
Other items 0.3 0.3
Items recognised directly in 1.4 0.0 1.4
equity, total
Profit for the period 35.5 -0.6 34.9
TOTAL RECOGNISED INCOME AND 36.9 -0.6 36.3
EXPENSES
Conversion of capital notes 0.0 0.7 0.8
Usage of share options 0.0 0.0 0.0
Expense recognition of granted 1.4 1.4
options
Dividends paid -1.1 -1.1
Change in minority interests -0.4 -0.4
EQUITY AT MARCH 31, 2007 71.0 1,273.9 14.8 1,359.6
CONSOLIDATED CASH FLOW STATEMENT
EUR million 1-3/2007 1-3/2006 Change,% 1-12/2006
Result for the period 34.9 28.9 20.7 208.4
Adjustments 43.5 36.0 20.8 158.1
Change in working capital -34.3 -50.3 -31.9 4.9
Financial items and taxes -22.8 -17.1 33.3 -111.5
CASH FLOW FROM OPERATIONS 21.3 -2.5 259.9
Cash flow from investments -30.0 -3.8 688.7 -132.9
CASH FLOW BEFORE FINANCING -8.6 -6.3 37.7 127.0
Cash flow from financing -17.4 -15.0 15.9 -136.0
CHANGE IN CASH AND CASH -26.0 -21.3 22.3 -8.9
EQUIVALENTS ACCORDING TO THE
CASH FLOW STATEMENT
Exchange rate differences under 0.2 -1.2 1.1
cash and cash equivalents
NET CHANGE IN CASH AND CASH -25.8 -22.5 14.7 -7.8
EQUIVALENTS
Cash and cash equivalents at 77.1 84.9 -9.2 84.9
Jan. 1
Cash and cash equivalents at 51.2 62.4 -17.9 77.1
March 31 / Dec. 31
ACCOUNTING POLICIES
SanomaWSOY has prepared its Interim Report in accordance with IAS 34
standard while adhering to related standards and interpretations.
SanomaWSOY applies all the standards, amendments to standards, and
interpretations, that took effect at January 1, 2007. These have no
material effect on consolidated financial statements.
NET SALES BY BUSINESS
EUR million 1-3 1-3 4-6 7-9 10-12 1-12
2007 2006 2006 2006 2006 2006
SANOMA MAGAZINES
Sanoma Magazines 119.8 116.7 138.7 127.4 148.3 531.2
Netherlands
Sanoma Magazines 65.8 58.1 59.7 57.9 71.9 247.6
International
Sanoma Magazines Belgium 52.5 44.7 48.2 43.8 51.9 188.6
Sanoma Magazines Finland 50.1 45.8 47.1 47.3 53.1 193.2
Eliminations -1.2 -1.2 -1.3 -1.2 -0.9 -4.7
TOTAL 287.1 264.1 292.3 275.2 324.3 1,155.9
SANOMA
Helsingin Sanomat 72.3 66.8 66.2 62.9 71.4 267.3
Ilta-Sanomat 23.6 22.3 23.4 22.8 23.7 92.2
Other publishing 24.3 20.8 21.4 20.2 24.8 87.3
Others 38.5 37.5 36.5 34.9 36.8 145.6
Eliminations -36.3 -34.8 -33.6 -32.5 -34.2 -135.2
TOTAL 122.4 112.6 113.8 108.2 122.4 457.1
SANOMAWSOY EDUCATION AND
BOOKS
Educational publishing 20.0 15.3 69.7 77.3 25.4 187.7
Publishing 26.3 24.2 22.1 19.0 30.7 96.0
Others 12.0 10.3 9.7 11.3 12.0 43.3
Eliminations -6.0 -4.5 -4.3 -4.3 -4.7 -17.8
TOTAL 52.2 45.4 97.2 103.3 63.4 309.2
SWELCOM
TV and radio 19.9 19.2 21.0 13.4 22.8 76.5
Others 15.6 14.3 13.2 14.0 14.6 56.0
Eliminations -0.3 -0.2 -0.1 -0.2 -0.1 -0.6
TOTAL 35.2 33.3 34.1 27.2 37.2 131.8
RAUTAKIRJA
Kiosk operations 86.9 82.3 94.4 91.4 101.0 369.1
Press distribution 56.2 50.7 57.5 56.6 58.7 223.6
Bookstores 29.6 30.2 22.5 37.2 49.0 138.9
Entertainment 23.5 20.1 15.7 18.0 28.0 81.7
Eliminations -3.9 -2.6 -3.2 -3.6 -3.9 -13.4
TOTAL 192.4 180.7 186.8 199.6 232.9 799.9
Other companies and -25.6 -23.6 -25.1 -25.3 -37.9 -111.9
eliminations
TOTAL 663.7 612.5 699.2 688.2 742.2 2,742.1
OPERATING PROFIT BY DIVISION
EUR million 1-3 1-3 4-6 7-9 10-12 1-12
2007 2006 2006 2006 2006 2006
Sanoma Magazines 32.1 23.3 35.3 28.2 41.9 128.8
Sanoma 19.6 16.1 15.0 15.0 16.5 62.7
SanomaWSOY Education and -6.5 -4.3 33.8 25.6 -7.1 48.0
Books
SWelcom 2.9 3.2 4.0 0.4 4.8 12.5
Rautakirja 9.0 10.4 8.1 13.7 22.5 54.7
Other companies and -3.1 -3.1 -3.4 -2.9 -4.7 -14.1
eliminations
TOTAL 54.0 45.6 92.8 80.1 73.9 292.5
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 31.3.2007 31.3.2006 Change,% 31.12.2006
Carrying amount at Jan. 1 572.3 566.5 1.0 566.5
Increases 11.3 10.4 8.5 59.4
Acquisition of operations 0.4 1.2 -66.2 15.5
Decreases -0.8 -0.3 -5.3
Disposals of operations -0.8 0.0 -2.3
Depreciation for the period -16.2 -15.4 5.0 -62.9
Impairment losses for the 0.0 0.0 -0.2
period
Exchange rate differences -0.6 0.0 1.6
and other changes
Carrying amount at March 31 565.6 562.2 0.6 572.3
/ Dec. 31
The commitments for acquisitions of tangible assets were EUR 6.3
million (2006: EUR 7.8 million).
CONTINGENT LIABILITIES
EUR million 31.3.2007 31.3.2006 Change,% 31.12.2006
CONTINGENCIES FOR OWN
COMMITMENTS
Mortgages 8.8 9.7 -9.3 10.5
Pledges 18.7 10.8 72.7 18.4
Other items 0.4 1.0 -55.2 0.4
TOTAL 28.0 21.5 29.9 29.4
CONTINGENCIES GIVEN ON
BEHALF OF ASSOCIATED
COMPANIES
Guarantees 7.9 7.9 0.0 7.9
TOTAL 7.9 7.9 0.0 7.9
CONTINGENCIES GIVEN ON
BEHALF OF OTHER COMPANIES
Guarantees 0.1 0.2 -15.5 0.1
TOTAL 0.1 0.2 -15.5 0.1
CONTINGENCIES GIVEN ON
BEHALF OF OTHER COMPANIES
Operating lease liabilities 251.7 234.0 7.6 249.1
Royalties 24.9 20.3 22.7 15.9
Other 44.4 43.7 1.7 47.2
TOTAL 321.1 298.0 7.7 312.2
CONTINGENT LIABILITIES, 357.1 327.6 9.0 349.6
TOTAL
DERIVATIVE INSTRUMENTS
NOMINAL VALUES, EUR million 31.3.2007 31.3.2006 Change,% 31.12.2006
INTEREST RATE DERIVATIVES
Options
Purchased 100.0
Written 54.8
TOTAL 154.8
FAIR VALUES, EUR MILLION 31.3.2007 31.3.2006 Change,% 31.12.2006
INTEREST RATE DERIVATIVES
Options
Written -0.1
TOTAL -0.1
CONSOLIDATED INCOME STATEMENT BY QUARTER
EUR million 1-3 1-3 4-6 7-9 10-12 1-12
2007 2006 2006 2006 2006 2006
NET SALES 663.7 612.5 699.2 688.2 742.2 2,742.1
Other operating income 13.3 15.4 12.8 13.8 15.2 57.2
Materials and services 294.9 280.9 306.6 322.0 333.8 1,243.3
Personnel expenses 158.4 145.6 148.7 142.0 159.1 595.5
Other operating expenses 135.0 124.8 129.8 124.3 153.3 532.2
Depreciation and 34.6 30.9 34.0 33.5 37.3 135.8
impairment losses
OPERATING PROFIT 54.0 45.6 92.8 80.1 73.9 292.5
Share of result of 1.8 1.9 2.3 3.4 0.8 8.4
associated companies
Financial items -7.1 -6.2 -7.5 -6.1 -4.7 -24.5
RESULT BEFORE TAXES 48.6 41.3 87.6 77.4 70.1 276.3
Income taxes -13.7 -12.4 -25.3 -18.2 -12.1 -68.0
RESULT FOR THE PERIOD 34.9 28.9 62.3 59.2 58.0 208.4
Attributable to:
Equity holders of the 35.5 32.5 62.2 57.2 57.6 209.5
Parent Company
Minority interest -0.6 -3.6 0.1 2.0 0.4 -1.1
Press Conference
Press and analyst meeting in Finnish will be held by Mr Hannu
Syrjänen, President and CEO of SanomaWSOY on May 3, 2007 at 1 pm
(Finnish time) at Sanomatalo, Töölönlahdenkatu 2, Helsinki.
The conference call in English for analysts and investors will be
arranged at 3 pm (Finnish time). Mr Hannu Syrjänen will present the
result. To join the conference, please dial +44 20 3003 2666
(Europe) or +1 866 966 5335 (US). The code for the call is
SanomaWSOY. The event can also be viewed on web at www.sanomawsoy.fi
either live or later on as on demand.
The presentation material of the press and analyst meeting as well
as the slides used in the conference call will be available on
SanomaWSOY's website after the press and analyst meeting has
started.
SANOMAWSOY CORPORATION
Matti Salmi
Senior Vice President
Finance and Administration
Further information: SanomaWSOY's IR & Group Communications, tel.
+358 105 19 5062 or ir@sanomawsoy.fi
SanomaWSOY is the leading media group in the Nordic region operating
in versatile fields of media in over 20 European countries. The
Group has five divisions: Sanoma Magazines, Sanoma, SanomaWSOY
Education and Books, SWelcom, and Rautakirja. In 2006, the Group
employed over 18,000 people and its net sales were some EUR 2.7
billion.
