Alma Media Corporation       Interim Report       28 October 2016 at 9:00 a.m.

Alma Media’s Interim Report January–September 2016:


Financial performance July–September 2016:

  ·  Revenue MEUR 80.9 (68.0), up 18.9%.
  ·  Adjusted operating profit MEUR 9.1 (7.6), or 11.2% (11.1%) of revenue, up
  ·  Operating profit MEUR 8.9 (6.0), or 11.0% (8.8%) of revenue, up 48.1%.
  ·  Earnings per share EUR 0.07 (0.04).
  ·  Alma Markets: Strong growth continued internationally as well as in
  ·  Alma Talent: Profitability was unchanged year-on-year, in line with
  ·  Alma News & Life: Online advertising grew, particularly due to an increase
in programmatic buying.
  ·  Alma Regions: Profitability declined year-on-year.

Financial performance January–September 2016:

  ·  Revenue MEUR 259.6 (212.9), up 21.9%.
  ·  Adjusted operating profit MEUR 24.5 (16.3), or 9.4% (7.6%) of revenue, up
  ·  Operating profit MEUR 20.5 (16.8), or 7.9% (7.9%) of revenue, up 22.2%.
  ·  Earnings per share EUR 0.15 (0.13).
  ·  At the end of the period, the gearing ratio was 51.0% and the equity ratio

KEY FIGURES       2016   2015   Change   2016    2015    Change   2015
MEUR              Q3     Q3     %        Q1–Q3   Q1–Q3   %        Q1–Q4
Revenue           80.9   68.0   18.9     259.6   212.9   21.9     291.5
Content revenue   30.1   25.3   18.8     95.1    75.4    26.0     104.1
 Content revenue, 26.4   23.8   10.9     84.3    70.8    19.1     97.0
 Content revenue, 3.7    1.6    139.4    10.8    4.7     128.5    7.1
revenue           38.8   33.4   15.9     125.1   107.3   16.5     148.2
      Advertising 14.8   14.0   5.5      50.6    48.6    4.3      66.2
revenue, print
      Advertising 24.0   19.4   23.7     74.6    58.8    26.9     82.0
revenue, online
Service revenue   12.1   9.3    30.2     39.5    30.2    30.8     39.2
Adjusted total    72.0   60.6   18.8     235.6   197.0   19.6     268.7
Adjusted EBITDA   13.6   11.0   23.8     38.0    26.6    42.9     37.4
EBITDA            13.4   10.8   23.7     33.9    28.4    19.3     34.5
operating profit  9.1    7.6    20.1     24.5    16.3    50.6     23.4
% of revenue      11.2   11.1            9.4     7.6              8.0
Operating profit  8.9    6.0    48.1     20.5    16.8    22.2     17.7
% of revenue      11.0   8.8             7.9     7.9              6.1
Profit for the
period            6.5    3.7    77.9     15.0    11.8    27.1     12.1
Earnings per
share,            0.07   0.04   62.9     0.15    0.13    9.2      0.13
EUR (undiluted and

Online sales      32.3   24.5   31.7     97.7    74.8    30.6     104.2
Online sales, % of40.0   36.1            37.6    35.1             35.7

Outlook for 2016

Alma Media revised its outlook for 2016 in a release published on 14 September
2016. In 2016, the company expects its full-year revenue and adjusted operating
profit to increase clearly from the 2015 level. Outlook for 2016 according to
the release published on 14 September 2016:

The Finnish economy is expected to show zero growth or only slight growth in
2016. Alma Media’s main operating countries in Eastern Central Europe, such as
the Czech Republic and Slovakia, are expected to see continued economic growth,
but at a lower rate than in 2015.

Macroeconomic development affects both consumer demand and advertising volume.
The structural transformation of advertising will continue in 2016; online
advertising will grow, while print media advertising will decline.

The Talentum acquisition completed in late 2015 will increase Alma Media’s
revenue and operating profit in 2016.

In 2016, Alma Media expects its full-year revenue and adjusted operating profit
to increase clearly from the 2015 level. The full-year revenue for 2015 was MEUR
291.5, and the adjusted operating profit was MEUR 23.4.

Kai Telanne, President and CEO:

The positive development of Alma Media’s business continued in the third
quarter. The Group’s revenue grew by 19 per cent in July–September and totalled
MEUR 80.9. As in the preceding quarters, the improved operating profit was
attributable to the strong growth of Alma Markets and Alma News & Life. Adjusted
operating profit grew by 20 per cent to MEUR 9.1.

Continued favourable economic growth in Alma Media’s operating countries in
Central Europe supported the positive development of Alma Markets’ recruitment
business. The segment’s revenue also grew in Finland in housing, automotive and
recruitment services. Alma Markets’ third quarter revenue grew by 17 per cent
and operating profit improved by 28 per cent.

Alma Talent’s profitability was unchanged year-on-year, as expected. Revenue
development reflected the seasonality of the businesses acquired in the Talentum
acquisition. The process of building the new business entity progressed as
planned and the cost synergies achieved from integration were in line with
expectations. In September, Alma Talent’s diverse media portfolio was
complemented by the acquisition of Uusi Suomi.

The continued strong growth of online advertising and the shift to programmatic
buying in digital advertising were clearly reflected in the performance of the
Alma News & Life segment. The segment’s digital advertising sales grew by nearly
40 per cent. The unit’s adjusted operating profit tripled year-on-year and
amounted to MEUR 1.8.

For Alma Regions, the third quarter was a difficult one in terms of both content
revenue and advertising sales, which saw the segment’s revenue and profitability
decline year-on-year. Measures to promote customers’ shift to digital are

Digital business now accounts for 40 per cent of the Group’s revenue and two
thirds of its operating profit. The shift from analog to digital has accelerated
further this year, with customer needs and the user experience guiding
development. Examples of Alma Media’s digital development during the reporting
period include a comprehensive renewal of the digital advertising distribution
system and our key role in establishing the Automated Guaranteed digital
advertising marketplace for Finnish media companies.

From the perspective of commercial media, the Finnish Ministry of Transport and
Communications’ plan for reforming the Postal Act are problematic in many ways.
The planned reform does not serve the interests of the individual consumer, the
end customer. The legislative proposal is, in our view, also contrary to the EU
Postal Services Directive. Posti shifting to making deliveries on three days per
week would have a negative impact on the delivery of subscription-based
magazines, national newspapers, regional newspapers and local papers. Daily
postal delivery can be seen as being part of the basic services for citizens,
and reducing this service level would affect the citizen’s constitutional right
of access to information. In Alma Media’s view, delivery operations in
accordance with the service obligation must be produced more efficiently through
measures such as combining delivery networks and outsourcing delivery

Finnish enterprises need world-class marketing expertise to achieve success in
highly competitive and increasingly international markets. Marketing is one of
the engines of growth. Together with many other industry operators, Alma has
distributed information on the effectiveness of marketing and its significance
in achieving financial success. The Advertising Barometer published in September
predicts that marketing investments will increase after several subdued years.
It will be interesting to see whether businesses have the courage to turn their
intentions into concrete actions. Increasing marketing investments would be an
important means to increase the competitiveness of Finnish enterprises and the
country as a whole.

For more information, please contact:
Kai Telanne, President and CEO, telephone +358 10 665 3500
Juha Nuutinen, CFO, telephone +358 10 665 3873

Conference, webcast and conference call:

A conference for Finnish media, investors and analysts will be held on the same
day at 11.00–12.00 EEST in the Alma House (address: Alvar Aallon katu 3 C,
Helsinki). In addition to the presentations held by President & CEO Kai Telanne
and CFO Juha Nuutinen, participants will have an opportunity to discuss with
other members of the company's management. Please note that the conference will
be held in Finnish. The presentation material in English will be available on at 11.00

To participate in the conference, kindly register beforehand by e-mail,

An international conference call and audio webcast concerning the financial
result of January-September 2016 will begin at 13.00 EEST. You can participate
in the conference by calling +44(0)20 7136 2050 (confirmation code: 2070711) or
follow it at

Alma Media’s financial calendar 2017

Alma Media will publish financial reports in 2017 as follows:

– Financial Statement Bulletin for financial year 2016 on Friday, 10 February at
approximately 9:00 EET

– Interim report for January–March 2017 on Friday, 28 April at approximately
9:00 EEST

– Interim report for January–June 2017 on Friday, 21 July at approximately 9:00

– Interim report for January–September 2017 on Friday, 27 October at
approximately 9:00 EEST

Board of Directors

Distribution: NASDAQ Helsinki, main media,

Alma Media in brief

Alma Media is a media company focusing on the service business and journalistic
content. The company’s best-known brands are Kauppalehti, Talouselämä,
Affärsvärlden, Uusi Suomi, Iltalehti, Aamulehti, and Monster. Alma
Media builds sustainable growth for its customers by utilising the opportunities
of digitality, including information services, system and expert services and
advertising solutions. Alma Media’s operations have expanded from Finland to the
Nordic countries, the Baltics and Central Europe. Alma Media employs
approximately 2,500 professionals (excluding delivery personnel), of whom
approximately 30% work outside Finland. Alma Media’s revenue in 2015 was EUR
291.5 million. Alma Media’s share is listed on NASDAQ Helsinki. Read more at