Tallinn, Estonia, 2011-08-02 16:16 CEST (GLOBE NEWSWIRE) --
In the Group’s Consolidated Interim Report for the II quarter and first half year of 2011, published on 1 August 2011, there was a mistake in the Management Report’s periodicals segment table (page 15) – the EBITDA of Eesti Ajalehed AS in the second quarter of 2010 was incorrect, as well as the sum of intersegment eliminations in the second quarter of 2010.
The EBITDA of Eesti Ajalehed AS in the second quarter of 2010 should have been EUR 266 thousand and the sum of intersegment eliminations in the second quarter of 2010 should have been EUR -2 thousand .
The mistakes have been corrected in the attached interim reports.
The full corrected release follows:
The following report presents the consolidated financial information of Ekspress Group, the related market developments and management decisions. The financial indicators and ratios show the outcome of the Group’s continuing operations, i.e. they express the consolidated operating results of online media, periodicals and printing services segments.
Key financial indicators
| Financial indicators (EUR thousand) | Q2 2011 | Q2 2010 | Change% |
| For the reporting period | |||
| Sales | 14 963 | 13 454 | 11% |
| Gross profit | 3 388 | 3 368 | 1% |
| EBITDA | 2 024 | 2 179 | -7% |
| EBITDA (excl. profit from business combinations) | 2 024 | 2 179 | -7% |
| Operating profit | 1 134 | 1 349 | -16% |
| Operating profit (excl. profit from business combinations) | 1 134 | 1 349 | -16% |
| Net profit(loss) from continuing operations | 394 | 669 | -41% |
| Net profit/(loss) for the period | 394 | 669 | -41% |
| Financial indicators (EUR thousand) | Half year 2011 | Half year 2010 | Change% |
| For the reporting period | |||
| Sales | 28 109 | 25 112 | 12% |
| Gross profit | 6 005 | 5 433 | 11% |
| EBITDA | 4 958 | 2 912 | 70% |
| EBITDA (excl. profit from business combinations) | 3 418 | 2 912 | 17% |
| Operating profit | 3 230 | 1 249 | 159% |
| Operating profit (excl. profit from business combinations) | 1 690 | 1 249 | 35% |
| Net profit(loss) from continuing operations | 1 780 | (460) | 487% |
| Net profit/(loss) for the period | 1 780 | (97) | 1935% |
Financial ratios
| Profitability ratios (%) | Q2 2011 | Q2 2010 |
| Sales growth (%) | 11% | -4% |
| Gross margin (%) | 23% | 25% |
| EBITDA margin (%) | 14% | 16% |
| Operating margin (%) | 8% | 10% |
| Net margin (%) | 3% | 5% |
| ROA (%) | 0% | 1% |
| ROE (%) | 1% | 2% |
| Earnings per share EUR | 0.01 | 0.03 |
| Profitability ratios (%) | Half year 2011 | Half year 2010 |
| Sales growth (%) | 12% | -8% |
| Gross margin (%) | 21% | 22% |
| EBITDA margin (%) | 12% | 12% |
| Operating margin (%) | 6% | 5% |
| Net margin (%) | 6% | 0% |
| ROA (%) | 2% | 0% |
| ROE (%) | 6% | 0% |
| Earnings per share EUR | 0.06 | (0.00) |
Formulas used to calculate the financial indicators:
| Sales growth (%) | (sales Q2 2011 – sales Q2 2010) / sales Q2 2010*100 | ||||
| Gross margin (%) | gross profit/sales*100 | ||||
| Net margin (%) | net profit/sales*100 | ||||
| EBITDA margin (%) | EBITDA (excl. profit from business combinations) / sales*100 | ||||
| Operating margin (%) | operating profit (excl. profit from business combinations)/sales*100 | ||||
| Earnings per share | net profit/average number of shares | ||||
| ROA (%) | net profit/average assets *100 | ||||
| ROE (%) |
net profit/average equity *100 |
||||
| Financial position ratios (%) | 30.06.2011 | 31.12.2010 | |||
| Equity ratio (%) | 45% | 42% | |||
| Liquidity ratio | 0.7 | 0.8 | |||
| Debt to equity ratio (%) | 95% | 107% | |||
| Debt to capital ratio (%) | 45% | 47% | |||
Formulas used to calculate the financial indicators:
| Equity ratio (%) | equity / (liabilities + equity)* 100 |
| Liquidity ratio | current assets/current liabilities |
| Debt to equity ratio (%) | interest bearing liabilities /equity*100 |
| Debt to capital ratio (%) |
interest-bearing borrowings-cash and bank accounts (net debt)/ (net debt + equity)*100 |
The key event for the Group in the 2nd quarter was the reorganisation process implemented after the acquisition of Eesti Päevalehe AS which concerned both the product as well as represented an organisational reform involving several entities.
In the 2nd quarter, the net profit of Ekspress Grupp totalled EUR 394 thousand. In the first half year, the Group’s net profit totalled EUR 1.78 million. The results of the both the 2nd quarter as well as the first half year were impacted by several extraordinary activities, with both positive and negative effects on the financial performance. The change in goodwill that was related to the acquisition of the shares of Eesti Päevalehe AS in the amount of EUR 1.54 million had a positive effect on the Group’s net profit. However, in the second quarter, the profit was reduced by the restructuring costs, accrual for a potential claim related to a court case and a full ownership of the currently unprofitable Eesti Päevalehe AS instead of the former 50% ownership as compared to last year.
In the 2nd quarter, the EBITDA totalled EUR 2.024 million, which is 7% lower than a year ago. After normalising the results with extraordinary one-off expenses in the amount of EUR 162 thousand, the normalised EBITDA was 2.186 million which is at the same level as in the same period of last year.
The Group’s EBITDA without profit from business combinations in the first half year totalled EUR 3.418 million which was 17% higher than last year.
The one-off expenses in the 2nd quarter were
- accrual for a potential claim in the amount of a EUR 60 thousand that was related to the action filed against AS Eesti Ajalehed and AS Delfi and that was lost in the court of first instance. Group entities have decided to appeal the judgement of the court of first instance.
- redundancy costs in the amount of EUR 100 thousand related to the reorganisation expenses at Eesti Päevalehe AS after the acquisition of ownership interest from the co-shareholder.
- extraordinary relocation expenses in the amount of EUR 32 thousand related to the relocation of various units of AS Eesti Ajalehed and AS Delfi in conjunction with the reorganisation of the entities.
Most of the expenses related to the reorganisation have been incurred and the steps have been taken, but some expenses can still be incurred in the second half of the year.
It is also important to note that considering the loss of Eesti Päevalehe AS and the gross profit of AS Printall from the printing of Eesti Päevaleht, the Group incurred a loss of ca EUR 30 thousand from the publishing of Eesti Päevaleht in the first half year. The Management Board expects the publishing of Eesti Päevaleht to become profitable for the Group on the consolidated basis.
During the organisational reform, the editorial offices of the newspapers Eesti Ekspress, Eesti Päevaleht and Maaleht as well as that of the portal Delfi were relocated to premises in the former office space of Eesti Päevaleht. The support functions and administrative offices of the entities were relocated to the premises of Eesti Ekspress and Maaleht. During the aforementioned organisational reform, various duplicate positions were made redundant and the lease agreement at the former premises of AS Delfi was terminated. With the relocation of the editorial office into the same premises, the exchange of information between various publications and collaboration relating to the coverage of major events have significantly improved, leading to both cost savings as well as additional value in terms of content.
In addition to the relocation of editorial and administrative offices, the first step involved setting up a book publishing unit as a separate department of AS Eesti Ajalehed, which includes all book publishing operations of the Group’s wholly-owned publishing entities and the next step of which involves setting up a new book publishing entity in the autumn of the current year. A financial services unit was set up at the parent company, which will provide services to the Group’s subsidiaries operating in media business. The objective of both steps is to increase efficiency through cost optimisation and in case of the book publisher, also to increase its competitive advantage. As a structural reform, a separate E-media department was created at AS Eesti Ajalehed with the goal of coordinating digital publishing operations of all publishing entities.
The cost effects achieved during the reorganisation will be evident in the 3rd quarter, but the reorganisation process will likely last until the end of the year.
The newspaper Eesti Päevaleht underwent an important product upgrade in the 2nd quarter. Under the management of the new editor-in-chief Vallo Toomet who had previously been in charge of the editorial team of economic news, a renewed Eesti Päevaleht was developed and launched in a more magazine-like format. The first issue was printed on 4 July. The editor-in-chief of Eesti Ekspress was replaced, the former editor-in-chief of Kuku Raadio Janek Luts became its new editor-in-chief.
In the 2nd quarter, the joint campaign of digital newspapers of Eesti Päevaleht and Eesti Ekspress was launched. As the first step of the campaign, the subscribers of the digital versions of the two newspapers were offered an opportunity to purchase Apple iPad tablet PCs. The success of the campaign was significantly hindered by the availability of tablet PCs, as a result of which we decided to continue with the campaign after resolving the manufacturer’s supply issues. As the second step, the marketing of digital publications of Eesti Päevaleht and Eesti Ekspress for regular PCs was launched. For creation of a digital publication for PCs, AS Eesti Ajalehed has in collaboration with its IT partner developed a software solution which enables to use the product published in iPad also in regular desktop and laptop PCs. AS Eesti Ajalehed plans to market the same software solution to the publishing entities in other countries who use similar newspaper and magazine publishing platform for iPad and the first contacts have already been made.
With regard to the online media segment, the development at Delfi Ukraine is worthwhile mentioning. After the product reform that was conducted at the beginning of the year, during which Delfi Ukraine abandoned its former conservative information portal strategy and launched a concept of more entertaining, mostly tabloidish style social news, the readership of the portal has started to grow steadily and reached new highs in terms of user numbers and pageviews. The sale of advertisements has also been activating, which in the best month of May exceeded EUR 7 thousand. The current trends have made the Group’s Management Board hopeful in terms of continuing improvement of the financial results of Delfi Ukraine. Our objective is to become profitable on monhtly basis by next spring. The agreement between Delfi and the international company Deal24 offering discount deals is also worth mentioning, on the basis of which Delfi will offer vouchers under the trademark of Delfi Deal in all Baltic States in autumn. Delfi also launched an aggregation environment for vouchers in other countries, where advertisements to other companies offering vouchers are sold.
In the 2nd quarter, as a major product development upgrade, Delfi launched the environments for collection and displaying of entertaining pictures, videos and jokes by users (in Estonia, under the trademark of Vimka.ee). The integration of Delfi with the environment of Facebook is also worth mentioning, whereby from June, it is possible to read the news posted by the company parallel with the news comments posted by one’s Facebook friends without leaving Delfi.
With regard to organisational restructuring, AS Ekspress Grupp and AS Eesti Meedia decided to transfer jointly published AS Linnaleht into the ownership and under the management of the joint venture AS SL Õhtuleht. This step should lead to modest cost savings, but also improve the marketing capability.
In June, the joint venture AS Ajakirjade Kirjastus acquired a 49% minority interest in Uniservice OÜ. This should help the integration of the portal toidumaailm.ee and the magazine Oma Maitse as well as lead to cost optimisation.
The sales process of AS Express Post to AS Eesti Post is still underway, the concerned parties have submitted the required information to the Estonian Competition Authority which is expected to make a decision during the 3rd quarter.
In conformity with the injunction of the Estonian Competition Authority, the Group has also submitted a concentration application in respect of the acquisition of the shares of Eesti Päevalehe AS. The concentration application was not submitted earlier because AS Ekspress Grupp did not acquire control over the other entity during a regular purchase and sales transaction, but through various financing decisions to prevent the Group’s insolvency in a situation in which the co-shareholders did not wish to continue providing financing.
In the next quarter, the Group’s focus will be on the completion of the organisational reform, and development and marketing of digital versions of published newspapers. The Group’s wide product range will provide us an excellent opportunity to offer our customers packages with miscellaneous products, both on paper and in a digital form. We also plan to renew the offer of tablet PCs in a package with the Group’s digital products and actively market the digital newspaper versions developed for PCs.
Overview of the segments
Key financial data of the segments Q2 2010/2011
| (EUR thousand) | Sales | ||
| Q2 2011 | Q2 2010 | Change% | |
| online-media | 2 505 | 2 235 | 12.1% |
| periodicals | 6 356 | 6 002 | 5.9% |
| printing services | 6 998 | 5 934 | 17.9% |
| corporate functions | 48 | 33 | 45.5% |
| intersegment eliminations | (944) | (750) | -25.9% |
| TOTAL | 14 963 | 13 454 | 11.2% |
| (EUR thousand) | EBITDA | ||
| Q2 2011 | Q2 2010 | Change% | |
| online-media | 534 | 467 | 14.3% |
| periodicals | 157 | 509 | -69.2% |
| printing services | 1 551 | 1 356 | 14.4% |
| corporate functions | (221) | (152) | -45.4% |
| intersegment eliminations | 3 | (1) | 400.0% |
| TOTAL | 2 024 | 2 179 | -7.1% |
Key financial data of the segments for the first half year of 2010/2011
| (EUR thousand) | Sales | ||
| Half year 2011 | Half year 2010 | Change% | |
| online-media | 4 358 | 3 776 | 15.4% |
| periodicals | 11 918 | 11 316 | 5.3% |
| printing services | 13 467 | 11 485 | 17.3% |
| corporate functions | 74 | 69 | 7.2% |
| intersegment eliminations | (1 708) | (1 534) | -11.3% |
| TOTAL | 28 109 | 25 112 | 11.9% |
| (EUR thousand) | EBITDA | ||
| Half year 2011 | Half year 2010 | Change% | |
| online-media | 497 | 383 | 29.8% |
| periodicals | 301 | 402 | -25.1% |
| printing services | 3 047 | 2 569 | 18.6% |
| corporate functions | 1 105 | (439) | 351.7% |
| intersegment eliminations | 8 | (3) | 366.7% |
| TOTAL | 4 958 | 2 912 | 70.3% |
| EBITDA margin | Q2 2011 | Q2 2010 |
| online-media | 21.3% | 20.9% |
| periodicals | 2.5% | 8.5% |
| printing services | 22.2% | 22.9% |
| EBITDA margin | Half year 2011 | Half year 2010 |
| online-media | 11.4% | 10.1% |
| periodicals | 2.5% | 3.6% |
| printing services | 22.6% | 22.4% |
Online-media segment
The online media includes Delfi operations in Estonia, Latvia, Lithuania and Ukraine.
| (EUR thousand) | Sales | ||
| Q2 2011 | Q2 2010 | Change% | |
| Delfi Estonia | 875 | 743 | 17.8% |
| Delfi Latvia | 533 | 435 | 22.5% |
| Delfi Lithuania | 1 085 | 1 035 | 4.8% |
| Delfi Ukraine | 16 | 10 | 60.0% |
| other Delfi companies | 0 | 15 | -100.0% |
| intersegment eliminations | (4) | (3) | -33.3% |
| TOTAL | 2 505 | 2 235 | 12.1% |
| (EUR thousand) | EBITDA | ||
| Q2 2011 | Q2 2010 | Change% | |
| Delfi Estonia | 56 | 139 | -59.7% |
| Delfi Latvia | 38 | (30) | 226.7% |
| Delfi Lithuania | 306 | 385 | -20.5% |
| Delfi Ukraine | (57) | (141) | 59.6% |
| other Delfi companies | 191 | 127 | 50.4% |
| intersegment eliminations | 1 | (12) | 108.3% |
| TOTAL | 534 | 467 | 14.3% |
| (EUR thousand) | Sales | ||
| Half year 2011 | Half year 2010 | Change% | |
| Delfi Estonia | 1 576 | 1 328 | 18.7% |
| Delfi Latvia | 955 | 788 | 21.2% |
| Delfi Lithuania | 1 804 | 1 656 | 8.9% |
| Delfi Ukraine | 23 | 11 | 109.1% |
| other Delfi companies | 0 | 31 | -100.0% |
| intersegment eliminations | 0 | (38) | 100.0% |
| TOTAL | 4 358 | 3 776 | 15.4% |
| (EUR thousand) | EBITDA | ||
| Half year 2011 | Half year 2010 | Change% | |
| Delfi Estonia | 56 | 178 | -68.5% |
| Delfi Latvia | 45 | (82) | 154.9% |
| Delfi Lithuania | 270 | 326 | -17.2% |
| Delfi Ukraine | (142) | (247) | 42.5% |
| other Delfi companies | 269 | 211 | 27.5% |
| intersegment eliminations | 0 | (2) | - |
| TOTAL | 497 | 383 | 29.8% |
In the online media segment, the profitability increased primarily due to the sales growth as compared to last year, whereas the key growth drivers were Delfi Estonia and Delfi Latvia. The Latvian advertising market has clearly turned around and Delfi has nicely benefited from this growth. The sales growth of Delfi Lithuania was modest in the 2nd quarter as compared to last year, the profitability of Delfi Lithuania was reduced by the tax law amendments at the beginning of the year, leading to higher labour costs at the company. Despite lower profitability, Delfi Lithuania still has the highest EBITDA margin among Delfi entities in the Baltic States. In the 2nd quarter, Delfi Estonia laid emphasis on the integration of the local news portal Eesti Elu and the launch of hyperlocal advertising sales, as well as the sale of advertisements via mobile phones and video advertisements before the videos shown in the portal. We hope to grow our advertising sales in all three areas over the following years.
News portals owned by the Group
| Owner | Portal | Owner | Portal |
| Delfi Estonia | www.delfi.ee | Eesti Ajalehed AS | www.ekspress.ee |
| rus.delfi.ee | www.maaleht.ee | ||
| Delfi Latvia | www.delfi.lv | AS SL Õhtuleht | www.ohtuleht.ee |
| rus.delfi.lv | Eesti Päevalehe AS | www.epl.ee | |
| Delfi Lithuania | www.delfi.lt | ||
| www.klubas.lt | |||
| ru.delfi.lt | |||
| Delfi Ukraine | www.delfi.ua |
In the online segment, the content production capability of Delfi is also worthwhile mentioning, a good measure of which is its comparison with the largest UK portals.
In the 2nd quarter of 2011, there were no major changes in terms of the profile and number of readers of online publications. Characteristic of the period at the beginning of the summer, the readership in online environments is in a downward trend, but it is still ten percentage points higher on average than in the same period last year.
Delfi Group is no longer the only media publication with operations in all Baltic States. In the 2nd quarter of 2011, Eesti Meedia AS acquired the Latvian portal tvnet.lv and now owns portals in all Baltic States.
Estonian online readership 2009-2011
In the 2nd quarter, the number of readers of Delfi Estonia increased by ca. 11% as compared to the same period last year.
Latvian online readership 2009-2011
Delfi Latvia continues to be the most visited news portal. Of the competitors, tvnet.lv and apollo.lv have almost a third fewer visitors than Delfi.lt and this difference has prevailed also in the 2nd quarter of 2011.
Lithuanian online readership 2009-2011
The number of visitors of Lithuanian internet portals has declined the most in the Baltic markets.
In the 2nd quarter of 2011, Delfi Lithuania continued to be the most popular Internet environment in Lithuania and despite the general decline, there were more visitors than in the 2nd quarter of 2010.
Ukrainian online readership 2009-2011
The number of readers of Delfi Ukraine has started to increase again and in the 2nd quarter, there were several weeks with excellent visitor numbers. However, the number of visitors fluctuates significantly more than in the Baltic States, which could lead to much higher readership numbers once the visitors to Delfi sites have been turned into loyal customers.
Periodicals segment
The periodicals segment includes publishers of newspapers and magazines, the operations of which also include publishing of books. This segment also includes AS Express Post, engaged in home delivery of periodicals.
| (EUR thousand) | Sales | ||
| Q2 2011 | Q2 2010 | Change% | |
| Eesti Ajalehed AS | 2 031 | 2 002 | 1.4% |
| Eesti Päevalehe AS** | 1 272 | 1 894 | -32.8% |
| SL Õhtuleht AS* | 864 | 886 | -2.5% |
| AS Ajakirjade Kirjastus* | 1 074 | 1 120 | -4.1% |
| UAB Ekspress Leidyba | 773 | 745 | 3.8% |
| AS Express Post* | 607 | 592 | 2.5% |
| OÜ Uniservice* | 5 | 4 | 25.0% |
| intersegment eliminations | (270) | (1 241) | 78.2% |
| TOTAL | 6 356 | 6 002 | 5.9% |
*Proportionate share of joint ventures
** for the purpose of comparability, the information for both years is shown as 100%.
| (EUR thousand) | EBITDA | ||
| Q2 2011 | Q2 2010 | Change% | |
| Eesti Ajalehed AS | 129 | 266 | -51.5% |
| Eesti Päevalehe AS** | (332) | 5 | -6740.0% |
| SL Õhtuleht AS* | 63 | 102 | -38.2% |
| AS Ajakirjade Kirjastus* | 78 | 47 | 66.0% |
| UAB Ekspress Leidyba | 44 | 18 | 144.4% |
| AS Express Post* | 78 | 73 | 6.8% |
| OÜ Uniservice* | 0 | 0 | - |
| intersegment eliminations | 97 | (2) | - |
| TOTAL | 157 | 509 | -69.1% |
*Proportionate share of joint ventures
** for the purpose of comparability, the information for both years is shown as 100%.
| (EUR thousand) | Sales | ||
| Half year 2011 | Half year 2010 | Change% | |
| Eesti Ajalehed AS | 3 826 | 3 789 | 1.0% |
| Eesti Päevalehe AS** | 2 720 | 3 329 | -18.3% |
| SL Õhtuleht AS* | 1 701 | 1 734 | -1.9% |
| AS Ajakirjade Kirjastus* | 2 035 | 2 136 | -4.7% |
| UAB Ekspress Leidyba | 1 428 | 1 398 | 2.1% |
| AS Express Post* | 1 209 | 1 204 | 0.4% |
| OÜ Uniservice* | 8 | 6 | 33.3% |
| intersegment eliminations | (1 009) | (2 280) | 55.7% |
| TOTAL | 11 918 | 11 316 | 5.3% |
*Proportionate share of joint ventures
** for the purpose of comparability, the information for both years is shown as 100%.
| (EUR thousand) | EBITDA | ||
| Half year 2011 | Half year 2010 | Change% | |
| Eesti Ajalehed AS | 306 | 303 | 1.0% |
| Eesti Päevalehe AS** | (461) | (373) | -23.6% |
| SL Õhtuleht AS* | 113 | 151 | -25.2% |
| AS Ajakirjade Kirjastus* | 60 | 55 | 9.1% |
| UAB Ekspress Leidyba | 2 | (72) | 102.8% |
| AS Express Post* | 149 | 155 | -3.9% |
| OÜ Uniservice* | -3 | -3 | 0.0% |
| intersegment eliminations | 135 | 186 | - |
| TOTAL | 301 | 402 | -25.0% |
*Proportionate share of joint ventures
** for the purpose of comparability, the information for both years is shown as 100%.
In the 2nd quarter, in addition to the reorganisation of Eesti Päevalehe AS, the results of periodicals were also impacted by higher paper prices, leading to lower profitability of periodicals. For this reason, the results of both AS SL Õhtuleht as well as those of AS Eesti Ajalehed were below last year’s level. Magazine publishers in Estonia and Lithuania have significantly improved their EBITDA as compared to the previous year. The license of the international magazine Cosmopolitan obtained last spring has helped the magazine publisher in Lithuania to significantly increase its market share and profit. In the 2nd quarter, the results of Eesti Päevalehe AS were significantly impacted by one-off write-down of previously published books in the amount of EUR 96 thousand. As the write-down concerned the books in the balance sheet of Eesti Päevalehe AS as of 28.02.2011, which had been used for preparation of the purchase price allocation of the 100% ownership interest at the beginning of March, the purchase price allocation and goodwill were adjusted by the same amount and write-down had no impact on EBITDA. It is important to note, that after the disappearance of election-related advertisements and relatively weak beginning of the quarter, the advertising sales in 2nd quarter remained at the same level as last year, hence, sales are expected to pick up in the second half of the year as compared to last year.
Estonian newspaper circulation 2009-2010
The circulation numbers of Estonian daily newspapers show slight signs of stabilisation and in the 2nd quarter, there were no significant changes in circulation numbers.
Estonian newspaper readership 2009-2011
In the 2nd quarter of 2011, Õhtuleht has noticeably increased its readership. It is a considerable event in the market of newspaper because of the fact that any publication has not managed to increase its readership two quarters sequentially in previous years.
Ekspress Group Lithuanian magazine readership 2010-2011
The readership of Lithuanian magazines of AS Ekspress Grupp has increased by 6,4% as compared to last period. The readership of all magazines has increased by 7% according to data provided by TNS. Thus the readership of Ekspress Leidyba has increased in the same rate as the readership of all magazines.
Although the readership of Panele has decreased by 16 000, it is still the most readed publication in its segment. Moteris and Tavo Vaikas have the biggest increase in their readership, respectively +17 000 and +4 000.
Printing services segment
All printing services of Ekspress Group are provided by AS Printall which is one of the largest printing company in Estonia. Printall is able to print both newspapers (coldset) and magazines (heatset).
| (EUR thousand) | Sales | ||
| Q2 2011 | Q2 2010 | Change% | |
| AS Printall | 6 998 | 5 934 | 17.9% |
| (EUR thousand) | EBITDA | ||
| Q2 2011 | Q2 2010 | Change% | |
| AS Printall | 1 551 | 1 356 | 14.4% |
| (EUR thousand) | Sales | ||
|
Half year 2011 |
Half year 2010 | Change% | |
| AS Printall | 13 467 | 11 485 | 17.3% |
| (EUR thousand) | EBITDA | ||
| Half year 2011 | Half year 2010 | Change% | |
| AS Printall | 3 047 | 2 569 | 18.6% |
In the printing services segment, the printing company Printall managed to increase its sales by 18% and its profit by 14% as compared to last year. This was achieved through increasing exports to Scandinavia. The share of exports in total sales increased from 64% to 67% in a year. The company has reached its production capacity and the company’s Management Board is preparing an investment plan for adding new production capacity.
Geographical break-down of printing services
| Q2 2011 | Q2 2010 | Change% | |
| Exports | 67% | 63% | 24% |
| Finland | 8% | 8% | 11% |
| Sweden | 19% | 19% | 16% |
| Russia | 11% | 13% | -2% |
| Norway | 15% | 12% | 49% |
| Denmark | 3% | 4% | -10% |
| Lithuania | 3% | 2% | 31% |
| Other exports | 9% | 5% | 105% |
| Estonia | 33% | 37% | 7% |
| Total sales | 100% | 100% | 18% |
| Incl. group sales | 15% | 18% | 2% |
| Incl. non-group sales | 85% | 82% | 21% |
| Half year 2011 | Half year 2010 | Change% | |
| Exports | 67% | 63% | 24% |
| Finland | 7% | 8% | 2% |
| Sweden | 19% | 19% | 19% |
| Russia | 11% | 13% | -3% |
| Norway | 16% | 12% | 53% |
| Denmark | 3% | 4% | 2% |
| Lithuania | 3% | 3% | 27% |
| Other exports | 8% | 5% | 99% |
| Estonia | 33% | 37% | 5% |
| Total sales | 100% | 100% | 17% |
| Incl. group sales | 15% | 18% | -2% |
| Incl. non-group sales | 85% | 82% | 21% |
Consolidated statement of financial position (unaudited)
| (EUR thousand) | 30.06.2011 | 31.12.2010 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 1 607 | 2 767 |
| Trade and other receivables | 6 522 | 6 943 |
| Inventories | 2 804 | 2 961 |
| Total | 10 933 | 12 671 |
| Non-current assets held for sale | 60 | 60 |
| Total current assets | 10 993 | 12 731 |
| Non-current assets | ||
| Term deposit | 3 021 | 3 009 |
| Trade and other receivables | 153 | 161 |
| Investments in associates | 8 | 8 |
| Property, plant and equipment | 17 762 | 19 137 |
| Intangible assets | 53 357 | 50 936 |
| Total non-current assets | 74 301 | 73 251 |
| TOTAL ASSETS | 85 294 | 85 982 |
| LIABILITIES AND EQUITY | ||
| Liabilities | ||
| Current liabilities | ||
| Borrowings | 6 252 | 5 233 |
| Trade and other payables | 9 870 | 10 785 |
| Total current liabilities | 16 122 | 16 018 |
| Non-current liabilities | ||
| Long-term borrowings | 30 376 | 33 053 |
| Other long-term liabilities | 0 | 2 |
| Derivative instruments | 281 | 610 |
| Total non-current liabilities | 30 657 | 33 665 |
| Total liabilities | 46 779 | 49 683 |
| Equity | ||
| Share capital | 17 878 | 19 044 |
| Share premium | 14 277 | 14 277 |
| Reserves | 375 | 46 |
| Retained earnings | 5 846 | 2 900 |
| Currency translation reserve | 139 | 32 |
| Total equity | 38 515 | 36 299 |
| TOTAL LIABILITIES AND EQUITY | 85 294 | 85 982 |
Consolidated statement of comprehensive income (unaudited)
| (EUR thousand) | Q2 2011 | Q2 2010 | Half year 2011 | Half year 2010 |
| Sales | 14 963 | 13 454 | 28 109 | 25 112 |
| Cost of sales | 11 575 | 10 086 | 22 104 | 19 679 |
| Gross profit | 3 388 | 3 368 | 6 005 | 5 433 |
| Marketing expenses | 509 | 572 | 950 | 1 113 |
| Administrative expenses | 1 773 | 1 510 | 3 412 | 3 199 |
| Other income | 128 | 122 | 1 742 | 201 |
| incl. profit from business combinations | 0 | 0 | 1 540 | 0 |
| Other expenses | 100 | 59 | 155 | 73 |
| Operating profit | 1 134 | 1 349 | 3 230 | 1 249 |
| Interest income | 10 | 4 | 20 | 15 |
| Interest expense | 576 | 694 | 1 135 | 1 318 |
| Foreign exchange gains (losses) | (31) | 61 | (102) | 90 |
| Other finance costs | 35 | 36 | 72 | 101 |
| Net finance cost | (632) | (665) | (1 289) | (1 314) |
| Profit/(loss) from investments in associates | (10) | (15) | (11) | (25) |
| Profit (loss) before income tax | 492 | 669 | 1 930 | (90) |
| Income tax expense | 98 | 0 | 150 | 370 |
| Profit (loss) from continuing operations for the year | 394 | 669 | 1 780 | (460) |
| Loss from discontinued operations for the year | 0 | 0 | 0 | 363 |
| Profit (loss) for the period | 394 | 669 | 1 780 | (97) |
| Other comprehensive income (expense) | ||||
| Currency translation differences | 36 | (37) | 107 | (150) |
| Hedging reserve change | 93 | 0 | 329 | 0 |
| Total other comprehensive income (expense) for the period | 129 | (37) | 436 | (150) |
| Comprehensive income for the reporting period | 523 | 632 | 2 216 | (247) |
| Basic and diluted earnings per share | 0,01 | 0,03 | 0,06 | (0,00) |
Consolidated cash flow statement (unaudited)
| (EUR thousand) | Half year 2011 | Half year 2010 |
| Cash flows from operating activities from continuing operations | ||
| Operating profit (loss) for the period | 3 230 | 1 249 |
| Adjustments for: | ||
| Depreciation, amortisation and impairment | 1 728 | 1 661 |
| Profit (-) loss(+) from business combinations | (1 540) | 0 |
| Profit (loss) on sale and write-downs of property, plant and equipment | (7) | (3) |
| Changes in working capital: | ||
| Trade and other receivables | (425) | (2 525) |
| Inventories | 157 | 764 |
| Trade and other payables | (991) | (1 406) |
| Cash generated from operations | 2 125 | (260) |
| Income tax paid | (98) | (370) |
| Interest paid | (1 246) | (1 386) |
| Net cash generated from operating activities from continuing operations | 781 | (2 016) |
| Net cash used in operating activities from discontinued operations | 0 | (160) |
| Cash flows from investing activities | ||
| Investments in subsidiaries and joint ventures | (26) | 0 |
| Proceeds from sale of shares in subsidiaries | 0 | 3 980 |
| Interest received | 20 | 15 |
| Purchase of property, plant and equipment | (400) | (288) |
| Proceeds from sale of property, plant and equipment | 25 | 18 |
| Loans granted | (16) | (4) |
| Loan repayments received | 127 | 610 |
| Net cash used in investing activities from continuing operations | (270) | 4 332 |
| Net cash generated from investing activities from discontinued operations | 0 | 0 |
| Cash flows from financing activities from continuing operations | ||
| Issue of shares | 0 | 5 248 |
| Finance lease payments made | (611) | (678) |
| Change in overdraft used | 583 | (2 504) |
| Proceeds from borrowings | 28 | 116 |
| Repayments of borrowings | (1 671) | (4 972) |
| Net cash used in financing activities from continuing operations | (1 671) | (2 790) |
| Net cash used in financing activities from discontinued operations | 0 | (5) |
| NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | (1 160) | (640) |
| Cash and cash equivalents at the beginning of the period | 2 767 | 2 553 |
| Cash and cash equivalents at the end of the period | 1 607 | 1 914 |
Additional information:
Gunnar Kobin
Chairman of the Management Board
GSM: +372 5188111
e-mail: gunnar@egrupp.ee
