9 March 2010
Company Announcement no. 02-10
Søndagsavisen a-s realises profit and significant performance improvement in
2009.
Expectation of additional earnings improvement in 2010.
Today, the Board of Directors of Søndagsavisen a-s considered and adopted the
company's Annual Report for 2009. The Group managed to strengthen its market
position and earnings platform in markets affected by stagnation and slowdown.
This was done through significant efficiency improvements and tight cost
control. The financial statements have the following key points:
• In 2009, Søndagsavisen a-s realised an operating profit of DKK 19.5 million
before special items. The result, which is in accordance with the expectations
most recently announced and much better than anticipated at the beginning of
the year, is a significant improvement compared to 2008 despite lower
revenue.
• The operating profit of the Group's Print activities amounted to DKK 71.7
million in 2009, up DKK 71.0 million on 2008.
• In 2009, the Online activities returned an operating loss of DKK 41.6 million
against a loss of DKK 28.8 million in 2008.
• The continuing activities of Helsingør Dagblad recorded an operating loss of
DKK 0.7 million, which is a significant improvement compared to a loss of DKK
19.9 million last year.
• After a dividend payment of DKK 50.1 million in 2009, the Group's cash funds
amounted to more than DKK 150 million at year-end 2009. Thus, the Group has a
solid financial basis at the beginning of 2010.
• For 2010 the Group's activities and performance are expected to improve. The
revenue of continuing activities is expected to be in the region of DKK
1,050-1,100 million and the operating profit of continuing activities is
expected to be in the region of DKK 55 - 65 million.
The Group's CEO Mads Dahl Andersen states:
”In 2009, Søndagsavisen a-s achieved a solid profit and significant performance
improvement under very difficult market conditions. The Print business in
particular developed very satisfactorily. Growing efficiency and a continued
high quality level in the distribution business combined with an impressing 30%
increase in the Søndagsavisen readership provided the basis for a significant
improvement of earnings despite declining advertisement markets. The Online
business was also hit by slowdown in the recruitment advertisement market in
particular, but here it was not possible to reduce costs at the same rate as
the decline in revenue. However, we were very satisfied to see that, after the
closing down of the printing activities, the continuing activities of Helsingør
Dagblad returned a significantly improved result in 2009,” Mads Dahl Andersen
says, and continues:
”2010 will be an exciting and challenging year for Søndagsavisen a-s. We expect
the efficiency improvements introduced in recent years to result in growing
market shares and improved operating results. However, uncertainty remains high
in the advertisement market, and despite incipient signs of improvement, it
will take time for the market to stabilise at a normalised level. Therefore, I
am satisfied with our Group level expectations of improvement in both revenue
and operating profit in 2010”.
For additional information, please contact Mads Dahl Andersen, CEO, tel. +45 39
57 75 00:
Yours faithfully
Søndagsavisen a-s
Mads Dahl Andersen
CEO
