Helsinki, Finland, 2014-07-17 07:30 CEST (GLOBE NEWSWIRE) --
TALENTUM OYJ INTERIM REPORT 17 July 2014 at 8.30 a.m.
Talentum Oyj’s Interim Report for January-June 2014:
OPERATING INCOME INCREASED IN THE SECOND QUARTER
April-June 2014 in brief
- Talentum Group's net sales totalled EUR 18.7 million (EUR 19.3 million)
- Operating income without non-recurring items was EUR 0.7 million (EUR 0.2 million) and operating income (EBIT) was EUR 0.2 million (EUR -0.0 million)
- Operating income without non-recurring items from Magazine Business Sweden increased and Swedish krona-denominated advertising revenue increased slightly
- Operating income from Magazine Business Finland increased slightly
- Operating income from the Event Business improved, measures to improve profitability will continue
- Talentum acquired the B2B business from Sanoma Pro as part of its Books and Legal Training segment on 30 April 2014. The integration has proceeded as expected.
- Talentum informed on 1 April 2014 that Lakimiesliiton Kustannus and Lakimiesliiton Koulutus trademarks will transfer to Talentum’s usage as of 1 January 2015
Net sales of business segments:
-Magazine Business Finland: EUR 6.8 million (EUR 6.8 million)
-Magazine Business Sweden: EUR 5.2 million (EUR 5.5 million)
-Event Business: EUR 2.8 million (EUR 3.2 million)
-Books and Legal Training: EUR 2.1 million (EUR 1.7 million)
-Direct Marketing: EUR 2.7 million (EUR 2.9 million)
January-June 2014 in brief
- Talentum Group's net sales totalled EUR 36.9 million (EUR 38.8 million)
- Operating income without non-recurring items was EUR 1.4 million (EUR 1.0 million) and operating income (EBIT) was EUR 0.5 million (EUR 0.7 million)
- Operating income from Magazine Business Sweden increased
- Operating incomes from Magazine Business Finland and the Event Business weakened
Net sales of business segments:
-Magazine Business Finland: EUR 13.1 million (EUR 13.8 million)
-Magazine Business Sweden: EUR 9.9 million (EUR 10.7 million)
-Event Business: EUR 5.8 million (EUR 6.3 million)
-Books and Legal Training: EUR 4.0 million (EUR 3.7 million)
-Direct Marketing: EUR 5.6 million (EUR 5.9 million)
KEY FINANCIAL FIGURES
| EUR million | 4-6 2014 | 4-6 2013 | 1-6 2014 | 1-6 2013 | 1-12 2013 |
| Net sales | 18.7 | 19.3 | 36.9 | 38.8 | 74.5 |
| Operating income without non-recurring items | 0.7 | 0.2 | 1.4 | 1.0 | 3.1 |
| as % of net sales | 3.8 | 1.1 | 3.8 | 2.6 | 4.1 |
| Operating income | 0.2 | -0.0 | 0.5 | 0.7 | 1.4 |
| as % of net sales | 0.8 | -0.1 | 1.4 | 1.8 | 1.8 |
| Income before taxes | 0.4 | 0.4 | 0.8 | 0.9 | 1.6 |
| Net cash from operating activities | 2.0 | 0.9 | 3.3 | ||
| Total assets | 51.3 | 51.0 | 49.8 | ||
| Investments | 3.3 | 0.5 | 3.8 | 0.9 | 1.5 |
| as % of net sales | 17.8 | 2.7 | 10.3 | 2.4 | 2.0 |
| Return on invested capital % | 3.9 | 1.7 | 3.2 | ||
| Return on equity % | 3.3 | 3.7 | 6.0 | ||
| Equity ratio, % | 43.7 | 47.5 | 47.4 | ||
| Gearing ratio, % (net debt to equity) | 14.5 | 14.0 | 4.4 | ||
| Interest-bearing liabilities | 5.8 | 4.4 | 5.1 | ||
| Net interest-bearing liabilities | 2.5 | 2.6 | 0.8 | ||
| Personnel on average | 730 | 758 | 750 | ||
| Earnings per share, EUR | 0.01 | 0.01 | 0.01 | 0.02 | 0.03 |
| Cash flow from operating activities per share, EUR | 0.05 | 0.02 | 0.08 | ||
| Equity per share, EUR | 0.39 | 0.42 | 0.43 |
Talentum’s business operations are divided into six segments: Magazine Business Finland, Magazine Business Sweden, Event Business, Books and Legal Training, Direct Marketing and Other Activities.
Chief Executive Officer Aarne Aktan:
“Group’s operating income increased in the second quarter compared to last year. All in all, the quarterly result was at the level we expected.
Net sales from Magazine Business Sweden continued to decrease in the second quarter. However, operating income without non-recurring items increased due to enhancing performance and good advertisement sales. In Swedish krona terms, advertisement revenue even increased slightly in the second quarter.
Magazine Business Finland developed relatively well in the second quarter. Net sales remained at previous year's level and operating income increased slightly. Circulation revenue increased slightly and advertisement revenue decreased slightly. We merged Talentum’s Tivi and Tietokone magazines in June into one leading periodical in the ICT field. Tivi addresses topical themes and business for the ICT sector and is directed to ICT professionals and people who utilize informatics in their work. Tivi’s first issue came out on 12 June and has been received well.
Net sales from the Event Business decreased in the second quarter. However, profitability improved compared to previous year. The measures to improve segment profitability will be continued.
Net sales from the Books and Legal Training increased in the second quarter due to the B2B business acquired from Sanoma Pro as part of the segment on 30 April 2014. The impact of the B2B business acquired from Sanoma Pro on net sales for 2014 will be EUR 2 ̶ 3 million. The integration of the transaction has proceeded as expected and the new products are now part of Talentum's product offering. The acquisition increased significantly the diversity of our offering and strengthened our market position. The online services received with the acquisition will improve chances on developing new digital services and to grow in digital market. Segment’s operating income without non-recurring items improved compared to previous year.
Net sales from Direct Marketing decreased in the second quarter and operating income without non-recurring items remained at previous year's level.
A new version of Summa – Talentum’s digital service package – was published in May and development continues further systematically as planned. Summa will be published in Sweden during the third quarter, and also contents from the Swedish magazines will be included in the service.
In the second quarter, the share of digital sales in Group’s net sales was EUR 2.4 million, of which EUR 1.5 million accumulated from Finland and EUR 0.9 million from Sweden."
Talentum prospects for 2014, specified
Talentum specifies its prospects for 2014 to read as follows: “Talentum estimates that its net sales for 2014 including the B2B business acquired from Sanoma Pro will remain approximately at the same level as in 2013. Comparable operating income without non-recurring items will be higher than in 2013.”
The impact of the B2B business acquired from Sanoma Pro on net sales for 2014 will be EUR 2 ̶ 3 million. Due to the acquired business reporting of comparable net sales has become more difficult.
Talentum estimated earlier in its financial statements for 2013 that its comparable net sales for 2014 will remain approximately at the same level as in 2013 and that its comparable operating income without non-recurring items will be higher than in 2013.
General statement
The forecasts and estimates presented here are based on the management’s current view of economic development, and the actual results may differ substantially from what is now expected of the company.
Financial information 2014
Talentum is planning to publish the results in 2014 as follows:
January-September result 23 October 2014
Briefing
A briefing will be held for analysts and the media on 17 July 2014 at 11.00 a.m. in Sokos Hotel Vaakuna, Asema-aukio 2, 00100, Helsinki, Finland.
TALENTUM OYJ
Board of Directors
ADDITIONAL INFORMATION
CEO Aarne Aktan, tel. +358 40 342 4440 and CFO Niclas Köhler, tel. +358 40 342 4420
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.talentum.com
