TALENTUM OYJ INTERIM REPORT 28 OCTOBER 2008 AT 8.30 AM
TALENTUM INTERIM REPORT JANUARY-SEPTEMBER 2008
Q3 OPERATING PROFIT BEFORE NON-RECURRING ITEMS OVER PREVIOUS YEAR
July-September 2008 in brief
- Net sales EUR 18.9 million (EUR 18.7 million)
- Publishing's net sales up by 9.0%
- Operating profit before non-recurring items EUR 2.0 million (EUR 1.7 million)
- Publishing operations as expected in Finland, in Sweden satisfactory in spite
of integration expenses of EUR 0.4 million
- Operating profit (EBIT) EUR -1.1 million (EUR 1.7 million)
- Impairment loss on Premedia goodwill and restructuring expenses total EUR 3.1
million
- Net sales of the online business up by 124% from EUR 1.1 million to EUR 2.4
million, expenses EUR 0.4 million higher than in previous year
- Earnings per share EUR -0.02 (EUR 0.02)
- Group's financial position is good
January-September 2008 in brief
- Net sales EUR 72.7 million (EUR 70.6 million)
- Operating profit before non-recurring items EUR 8.3 million (EUR 8.4 million)
- Operating profit (EBIT) EUR 5.3 million (EUR 6.7 million)
- Net sales of online operations up by 111% from EUR 3.9 million to EUR 8.3
million, expenses EUR 1.4 million higher than in previous year
- Online operations account for 13% of Publishing's net sales
- Earnings per share EUR 0.07 (EUR 0.09)
KEY INDICATORS, CONTINUING OPERATIONS *)
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| EUR million | 7-9/ | 7-9/ | Chang | 1-9/ | 1-9/ | Change | 1-12/ |
| | 2008 | 2007 | e % | 2008 | 2007 | % | 2007 |
--------------------------------------------------------------------------------
| Net sales | 18.9 | 18.7 | 1.0 | 72.7 | 70.6 | 3.0 | 101.2 |
--------------------------------------------------------------------------------
| Operating profit | -1.1 | 1.7 | -161, | 5.3 | 6.7 | -20.7 | 12.7 |
| | | | 3 | | | | |
--------------------------------------------------------------------------------
| as % of net sales | -5.6 | 9.2 | | 7.3 | 9.4 | | 12.6 |
--------------------------------------------------------------------------------
| Operating profit | 2.0 | 1.7 | 16.4 | 8.3 | 8.4 | -0.6 | 13.8 |
| before | | | | | | | |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| as % of net sales | 9.6 | 9.2 | | 11.2 | 11.9 | | 13.6 |
--------------------------------------------------------------------------------
| Total assets | | | | 57.5 | 89.5 | -35.8 | 89.0 |
--------------------------------------------------------------------------------
| Investments | 0.8 | 0.1 | 482.3 | 2.0 | 4.9 | -59.7 | 10.8 |
--------------------------------------------------------------------------------
| as % of net sales | 4.1 | 0.7 | | 2.7 | 7.0 | | 10.7 |
--------------------------------------------------------------------------------
| Equity ratio % | | | | 39.4 | 32.4 | | 36.7 |
--------------------------------------------------------------------------------
| Gearing ratio, % | | | | 7.0 | 41.2 | | 16.7 |
| (net debt to | | | | | | | |
| equity) | | | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | | | | 6.0 | 29.3 | -79.6 | 19.2 |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Net interest- | | | | 1.6 | 11.7 | -86.5 | 5.3 |
| bearing | | | | | | | |
| liabilities | | | | | | | |
--------------------------------------------------------------------------------
| Personnel on | | | | 844 | 829 | 1.8 | 896 |
| average | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | -0.02 | 0.02 | -248. | 0.07 | 0.09 | -22.7 | 0.19 |
| share, EUR | | | 3 | | | | |
--------------------------------------------------------------------------------
| Cash flow from | -0.06 | -0.0 | 14.5 | 0.06 | 0.14 | -57.3 | 0.30 |
| operating | | 8 | | | | | |
| activities per | | | | | | | |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per share, | | | | 0.52 | 0.61 | -15.4 | 0.69 |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Market | | | | 110.5 | 155.0 | -28.8 | 121.1 |
| capitalization on | | | | | | | |
| closing rate at | | | | | | | |
| period end | | | | | | | |
--------------------------------------------------------------------------------
*) These figures do not include TV Content Production, which was sold in the
first quarter.
CEO JUHA BLOMSTER:
“Talentum's consolidated net sales from its publishing business grew by 9 per
cent to EUR 16.7 million in July-September. The operating profit of publishing
was EUR 1.7 million, which in this market situation can be considered to be a
good achievement.
Excluding the considerable investment in the online business and the development
and integration expenses for the new operations acquired in Sweden, the
financial performance for January-September was also much better than in the
previous year.
Advertising sales in magazines have increased by 2 per cent in Finland and 5 per
cent in Sweden in the present year. Circulation revenue has increased by 5 per
cent in Finland and 4 per cent in Sweden.
Net sales in the online business went up in the third quarter, as in the
previous quarters, by more than 100 per cent. We are still investing in it in
many different ways, as can be seen in the wide range of services for customers.
In the present year we have relaunched 8 brands' websites, which has brought
additional readers to the online magazines. The integration of the Talentum
Fakta service, which was acquired in Sweden, is in the final straight and we are
expecting it to develop positively next year.
In Finland the content and appearance of the magazine Energia were revamped, and
it has reached many new readers and advertisers. The beginning of October saw
the 70th anniversary of the founding of the business magazine Talouselämä.
Talentum Legal Training and Talentum Training, following a name change, expanded
their range of services. The changes have met with a favourable reaction by the
market: the amount of training that we organize has risen and the number of
participants has increased.
Talentum's strategic objective is to diversify the income structure and to make
content production and information services account for a greater share of the
net sales. The net sales of the book, training and information services business
operations increased by 13 per cent in January-September. We are doing well in
this development.”
Operating environment and seasonal variations
The general economic situation has clearly deteriorated as the effects of the
financial crisis extend to many other sectors. The uncertain economic situation
in Finland and Sweden will darken prospects for the end of the year.
According to TNS Gallup, media advertising in Finland grew by 3.9% (excluding
election campaigns) in January-September. The figure for Sweden is not
available, but the growth estimate for media advertising in Sweden for the
entire year is 3.1% (Institutet för Reklam- och Mediestatistik). Job advertising
continued to increase in January-September in Finland.
According to the Finnish Audit Bureau of Circulations, the circulation of every
other magazine that it examined in the spring increased slightly or remained
stable. The advent of new magazines onto the market and investment by old
magazines in marketing their circulation were characteristic of the period
examined. Growth in the circulation of special-interest magazines was also
typical.
Talentum's sector, the media and media service markets, are subject to seasonal
variations. In the spring, the Easter break falls in the first or second
quarter, and this has an effect on the financial performance of these two
periods. During the summer holidays, magazines and books do not generally come
out, and for this reason the third quarter is the lowest in terms of sales.
Business is at its liveliest during the final quarter of the year.
Consolidated net sales and financial performance July-September
The consolidated net sales recorded by Talentum's continuing operations in
July-September amounted to EUR 18.9 million (EUR 18.7 million). Publishing's net
sales went up by 9.0% to EUR 16.7 million (EUR 15.3 million). Publishing's
business operations acquired in Sweden in 2007 accounted for EUR 1.7 million of
the growth in net sales. Premedia's net sales fell as a result of corporate
restructuring.
The consolidated operating profit of the continuing operations in July-September
was EUR -1.1 million (EUR 1.7 million), i.e. -5.6% of the net sales (9.2%). The
operating profit before non-recurring items was 2.0 million (EUR 1.7 million).
Publishing's operating profit was EUR 1.7 million (EUR 1.6 million).
Publishing's financial performance was adversely affected by the integration
expenses of the business operations acquired in Sweden in 2007 and the
establishment of a new magazine, which totalled EUR 0.4 million.
An impairment loss of EUR 2.9 million on Premedia goodwill was recognized, and
the financial performance is also burdened by expenses of EUR 0.2 million caused
by restructuring of the business operations.
Net financial expenses amounted to EUR -0.1 million (EUR -0.8 million). The
financial expenses in the comparative period included a loss on the sale of an
associated company of EUR 0.5 million. Associated companies accounted for EUR
-0.2 million (EUR 0.0 million) of the financial performance.
The profit of continuing operations before taxes was EUR -1.3 million (EUR 1.0
million).
Consolidated net sales and financial performance January-September
The consolidated net sales recorded by Talentum's continuing operations in
January-September amounted to EUR 72.7 million (EUR 70.6 million). Publishing's
net sales went up by 13.1% to EUR 64.2 million (EUR 56.8 million). The business
operations acquired in Sweden in 2007 accounted for EUR 6.2 million of the
growth in Publishing's net sales. Premedia's net sales fell by EUR 5.7 million
as a result of company sales.
The consolidated operating profit of the continuing operations in
January-September amounted to EUR 5.3 million (EUR 6.7 million), i.e. 7.3% of
the net sales (9.4%). The operating profit before non-recurring items was EUR
8.3 million (EUR 8.4 million). Publishing's operating profit was EUR 8.4 million
(EUR 8.5 million). Publishing's financial performance was adversely affected by
the integration expenses of the business operations acquired in Sweden in 2007
and the establishment of a new magazines, which totalled EUR 1.3 million.
TV Content Production, which was divested in the first quarter, was classified
as a discontinued operation in January. The impact of TV Content Production on
the financial performance is given in full under Discontinued operations in the
income statement. The sale of the bulk of TV Content Production resulted in a
sales profit of EUR 0.8 million, while the sale of Oy Filmiteollisuus Fin Ab
caused a sales loss of EUR 0.4 million.
Net financial expenses amounted to EUR -0.3 million (EUR -1.0 million). A loss
of EUR 0.5 million on the sale of an associated company is included in financial
expenses in the comparative period. Associated companies contributed EUR -0.4
million (EUR -0.1 million) towards the financial performance, an amount that
includes not only the performance in the period under review but also EUR 0.3
million from an associated company's losses that were incurred in the previous
financial period but detected after the balance sheet date.
The profit of continuing operations before taxes was EUR 4.5 million (EUR 5.6
million).
Talentum's prospects for 2008
Talentum expects the net sales of the core business to increase in 2008 compared
with the previous year. In the current general economic situation it is
exceptionally difficult to estimate the operating profit of the remaining year,
however, Talentum expects the full year operating profit of the core business to
be on the level of the previous year.
Risks to business operations in the near future
The biggest risk to the Group's business operations is associated with product
and job advertising, which is sensitive to economic trends. About 40% of the
consolidated net sales are tied to advertising at the annual level. We endeavour
to control this market risk by increasing revenue from circulation sales and
content sales.
Cash flow, financial position and balance sheet
The cash flow from business operations in January-September was EUR 2.5 million
(EUR 5.9 million). The change in working capital was EUR -4.6 million (EUR -2.5
million).
The consolidated balance sheet total was reduced considerably as a result of the
sale of TV Content Production at the beginning of the year and at the end of
September stood at EUR 57.5 million (EUR 89.0 million on 31 December 2007).
Interest-bearing net liabilities were EUR 1.6 million (EUR 5.3 million on 31
December 2007). The Group's liquid assets, EUR 4.4 million (EUR 13.8 million on
31 December 2007), have been invested mostly in financial instruments. The
consolidated loans and borrowing amounted to EUR 6.0 million (EUR 19.2 million
on 31 December 2007), of which commercial papers outstanding to the value of EUR
3.5 million (EUR 14.0 million on 31 December 2007).
In order to strengthen the Group's financial position, Talentum Oyj agreed on a
current account credit facility of EUR 12.0 million for the Group for three
years in February and a financial credit facility of EUR 20.0 million. Of the
financial credit facilities, loans can be withdrawn or paid back within the
framework of the rules during a credit facility's maturity time of three years.
The credit facilities had not been used as at 30 September 2008.
The equity ratio was 39.4% at the end of September 2008(36.7% on 31 December
2007). The Group's equity per share was EUR 0.52 (EUR 0.69 on 31 December 2007).
Investment
Gross investment in tangible and intangible assets in continuing operations in
January-September totalled EUR 2.0 million (EUR 4.9 million), i.e. 2.7% (7.0%)
of net sales. Investment in the comparable period includes the acquisition of
Dagens Media.
Of the investment, EUR 1.3 million was spent on developing online business
recognized as an asset. The rest comprised normal replacement and maintenance
investment, such as procuring equipment, software and fixtures.
Group restructuring
On 22 January 2008, Talentum Oyj and CapMan Plc agreed that a company
established by the CapMan Buyout VIII Fund, which is managed by CapMan Plc,
would purchase the major part of Varesvuo Partners Oy, which focuses on TV
content production. The transaction was concluded on 20 February 2008. The
sub-group Oy Filmiteollisuus Fine Ab was sold on 28 March 2008 to Yellow Film &
TV Oy, which is owned by members of the executive management of Oy
Filmiteollisuus Ab. TV Content Production's net sales in 2007 amounted to EUR
22.9 million, and it employed 95 people.
The operating result of TV Content Production, apart from the Oy Filmiteollisuus
Fine Ab sub-group, is not included in the Group's financial performance for
January-September 2008. The sales profit created by the transactions and the
financial performance of TV Content Production are shown under Discontinued
operations in the income statement for January-September 2008 and for 2007.
Most of the Premedia functions were divested in accordance with the strategy. In
February, the Talentum Group sold the entire shareholding of DH Tools Oy and in
April it sold the entire shareholding of Sata-Flexo Oy and Marvaco Oy.
Personnel
During January-September, the Talentum Group' continuing operations employed an
average of 844 (829) people. Geographically, the personnel were divided as
follows: Finland 477 people (513), Sweden 186 (138), Latvia 76 (73), Lithuania
29 (21), Estonia 68 (75) and Russia 8 (9). In Sweden the increase in the number
of personnel stems from corporate acquisitions.
BUSINESS AREAS
Publishing
--------------------------------------------------------------------------------
| EUR million | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Advertising net | 7.2 | 7.7 | 30.7 | 29.8 | 42.6 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Circulation net | 5.6 | 5.4 | 18.4 | 17.5 | 24.3 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Other content net | 4.0 | 2.2 | 15.1 | 9.5 | 16.9 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Total | 16.7 | 15.3 | 64.2 | 56.8 | 83.8 |
--------------------------------------------------------------------------------
* ‘Other content net sales' includes books, training and information services.
July-September
Publishing's net sales in July-September amounted to EUR 16.7 million (EUR 15.3
million), an increase of 9.0% over the previous year. The business operations
acquired in Sweden during 2007 brought net sales of EUR 1.7 million.
Advertising revenue fell by 6% from the previous year in Finland and by 6% in
Sweden. Recruitment advertising is still at a good level although that, too,
went down from the level of the previous year in the printed media. Advertising
in the electronic media increased again. Circulation revenue from Talentum's
magazines grew in Finland by 5% and went down in Sweden by 4%. The net sales of
other content sales were increased in particular by Talentum Fakta, which was
acquired in November 2007.
The online business showed a growth in net sales of 124% in the third quarter,
which constituted 14% of Publishing's net sales at EUR 2.4 million (EUR 1.1
million).
Publishing's operating profit (EBIT) was EUR 1.7 million (EUR 1.6 million). In
Finland, Publishing performed as expected. In Sweden the financial performance
was weakened by the integration costs of Talentum Fakta and the establishment
costs of a new magazine, about EUR 0.4 million. Planned investment in online
operations in Finland and Sweden resulted in costs about EUR 0.4 million higher
than a year earlier, and also EUR 0.5 million in development costs were
recognized as assets during the period under review. Investment in the growth of
circulation sales was continued; the investment that has now been made will
translate into revenue in the future.
January-September
Publishing's net sales in January-September amounted to EUR 64.2 million (EUR
56.8 million), an increase of 13% over the previous year. The business
operations acquired in Sweden during 2007 brought net sales of EUR 6.6 million.
The circulation revenue from Talentum's magazines grew by 5% in Finland and 4%
in Sweden. Advertising revenue rose by 2% in Finland and 5% in Sweden.
Online business showed a growth in net sales of 111%, totalling 13% of
Publishing's net sales at EUR 8.3 million (EUR 3.9 million).
Publishing's operating profit (EBIT) was EUR 8.4 million (EUR 8.5 million). The
financial performance of the business operations acquired in Sweden during 2007
did not attain the goals set. In Sweden the financial performance was weakened
by the integration costs of Talentum Fakta and the establishment costs of a new
magazine, about EUR 1.3 million. Publishing invested in the online business,
incurring expenses that were about EUR 1.4 million higher than one year
previously, and EUR 1.3 million in development costs were recognized as assets
during the period under review.
Publishing's net sales and operating profit by country
--------------------------------------------------------------------------------
| EUR million | 7-9/2008 | 7-9/2007 | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| Net sales | | | | | |
--------------------------------------------------------------------------------
| Finland | 10.4 | 10.5 | 38.6 | 37.5 | 53.9 |
--------------------------------------------------------------------------------
| Sweden and | 6.3 | 4.8 | 25.6 | 19.3 | 29.9 |
| other | | | | | |
--------------------------------------------------------------------------------
| Total | 16.7 | 15.3 | 64.2 | 56.8 | 83.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | | | | | |
| profit | | | | | |
--------------------------------------------------------------------------------
| Finland | 1.6 | 1.4 | 6.5 | 6.1 | 10.6 |
--------------------------------------------------------------------------------
| Sweden and | 0.1 | 0.2 | 1.9 | 2.4 | 4.2 |
| other | | | | | |
--------------------------------------------------------------------------------
| Total | 1.7 | 1.6 | 8.4 | 8.5 | 14.8 |
--------------------------------------------------------------------------------
Direct Marketing
July-September
Direct Marketing's net sales in July-September amounted to EUR 2.3 million (EUR
2.2 million), and the operating profit (EBIT) was EUR 0.3 million (EUR 0.3
million).
January-September
Direct Marketing's net sales in January-September amounted to EUR 7.5 million
(EUR 7.1 million), and the operating profit (EBIT) was EUR 0.9 million (EUR 1.0
million). Net sales grew as expected. Expansion in Finland and the Baltic states
pushed expenses up but will increase revenue in the future.
Premedia
July-September
The net sales of the Premedia business area in July-September amounted to EUR
0.8 million (EUR 2.2 million), and the operating profit (EBIT) was EUR -2.8
million (EUR 0.2 million). An impairment loss of EUR 2.9 million on Premedia's
goodwill was recognized. Increasing competition and the expiry of a major
cooperation agreement will reduce Premedia's net sales and operating profit
considerably from the beginning of 2009. In order to respond to the decreasing
workload, restructuring measures have been started and the expenses arising from
them, about EUR 0.2 million, have been taken into account in Premedia's
financial performance in September.
January-September
The net sales of the Premedia business area in January-September amounted to EUR
4.6 million (EUR 10.1 million), and the operating profit (EBIT) was
EUR -2.2 million (EUR -1.0 million).
AGM, Board and auditor
Talentum's Annual General Meeting was held on 27 March 2008. The meeting
approved the financial statements for 1 January - 31 December 2007 and granted
the company's Board of Directors and CEO exemption from liability.
The AGM re-elected Manne Airaksinen, Harri Kainulainen, Eero Lehti, Kai Mäkelä,
Atte Palomäki and Tuomo Saarinen members of the Board of Directors. Tuomo
Saarinen was re-elected Chairman of the Board of Directors, and Manne Airaksinen
was re-elected Deputy Chairman.
Authorized Public Accountants PricewaterhouseCoopers Oy with APA Juha Wahlroos
as the principal auditor were re-elected auditors.
The AGM on 27 March 2008 decided, on a motion by the Board of Directors, to pay
out a dividend of EUR 0.20 per share. The payment date was 8 April 2008, and the
record date was 1 April 2008.
Shares and share capital
At the end of the period under review, Talentum Oyj's share capital totalled EUR
18,593,518.79, comprising 44,295,787 fully paid-up shares. The shares are listed
on the NASDAQ OMX Helsinki Oy.
At the end of the period under review, the company held 681,000 of its own
shares, representing about 1.5% of Talentum's total shares and votes.
A total of 8.922.300 shares were traded during the period under review, 20.1% of
the total average number of shares during the period under review.
Shareholdings of the Board of Directors and CEO
On 30 September 2008, the number of Talentum Oyj shares and options owned by
members of the Board of Directors and the CEO personally and through companies
in which they have a controlling interest was 4,785,921 representing 10.8% of
the company's total shares and votes.
Board of Directors' authorizations
Authorization of the Board of Directors to decide on a share issue including the
conveyance of own shares and issue of special rights
The Annual General Meeting on 27 March 2008 authorized the Board of Directors to
decide on a share issue which may be either liable to charge and/or free of
charge, including the issuing of new shares and the conveyance of own shares
possibly in the company's possession.
The Board of Directors has the right, by virtue of the authorization, to decide
on an issue of option rights and other special rights that grant entitlement,
against payment, to receive new shares or shares possibly in the company's
possession.
By virtue of the authorizations applying to a share issue and/or special rights,
new shares may be issued and/or shares in the company's possession may be
conveyed, in one or more lots, to a maximum total of 3,500,000 shares,
representing approximately 8% of the issued shares of the company.
The authorizations will remain in force until 30 June 2009.
The Board of Directors is otherwise authorized to decide on all the terms and
conditions for a share issue and the issuing of special rights, including the
right to decide on a directed share issue and issue of special rights.
Shareholders' pre-emptive subscription rights can be deviated from providing
that there is a significant financial reason for the company to do so.
Authorization of the Board of Directors to decide on acquisition of own shares
The Annual General Meeting on 27 March 2008 authorized the Board of Directors to
decide on the acquisition of the company's own shares. The shares can be
acquired for the value that is decided by the Board of Directors and is based on
the fair value formed for the shares in public trading at the time of the
acquisition. Own shares may be acquired only with unrestricted equity.
By virtue of the authorization, a maximum of 3,500,000 own shares, representing
approximately 8% of the issued shares of the company, can be acquired, in one or
several lots.
The authorization will remain in force until 30 June 2009.
The Board of Directors is otherwise authorized to decide on all the terms and
conditions regarding the acquisition of own shares, including the manner of
acquisition of the shares. The authorization does not exclude the right of the
Board of Directors to also decide on a directed acquisition of own shares
providing that there is a significant financial reason for the company to do so.
Directed issue free of charge
The Talentum Board of Directors decided on 8 March 2007 to set up a share-based
incentive plan for the Group management. The Annual General Meeting on 27 March
2007 gave the Board authorization to decide on a share issue that would be
liable to charge and/or free of charge. The Board has decided to issue to the
people coming under the share-based incentive plan rewards in shares specified
according to the terms and conditions of the plan in question in the form of a
directed share issue free of charge, incorporating in total 74,970 new shares.
The shares were registered with the Trade Register on 20 March 2008.
Acquisition of own shares
The Board of Directors of Talentum Oyj decided on 26 February 2008, by virtue of
an authorization given by the Annual General Meeting on 27 March 2007, to
acquire a maximum of 500,000 of the company's own shares, which corresponds to
about 1.13% of all the company's shares. The shares will be acquired with the
company's distributable funds, and the acquisition of the shares will reduce the
company's distributable unrestricted equity. The shares will be acquired in
public trading on the OMX Nordic Exchange Helsinki at the price on the day of
purchase as provided by the law on the public trading of shares. The own shares
will be acquired for use as consideration in possible corporate acquisitions and
other arrangements when the company acquires assets relevant to its operations,
and for developing the company's capital structure, including the possible
further conveying and cancellation of shares. There will, therefore, be a
significant financial reason for acquiring the shares.
By 30 September 2008, the company had acquired, by virtue of the authorization
500,000 shares, and had in its possession a total of 681,000 of the company's
own shares.
Reducing the share premium
The Annual General Meeting on 27 March 2008 decided that the share premium as
shown in the balance sheet as at 31 December 2007 will be reduced by EUR
89,593,601.28. The reduced amount will be transferred to the invested
unrestricted equity fund. After the reduction, the amount of the share premium
in the balance sheet will be zero.
The reduction of the share premium requires public notice to creditors and
registration procedure in accordance with chapter 14 sections 3-5 of the Limited
Liability Companies Act, and the decision was put into effect on 31 August 2008.
Management share-based incentive plan
The Group management of Talentum Oyj has a share-based incentive plan. The plan
includes three earning periods, which last for at least one financial year and
not more than three financial years. The first earning period was the 2007
financial year and the second is the 2008 financial year. The total length of
the plan is five years. The rewards will be paid partly in the Company's shares
and partly in cash after the end of each earning period. The proportion to be
paid in cash will cover taxes and tax-related costs arising from the reward.
Transferring the shares earned from the earning period 2007 within two years
from the end of the earning period is prohibited. After this, the CEO of the
company must, however, own 50% of the shares earned on the basis of the plan as
long as the service of the CEO continues and one year after the end of the
service. The Board of Directors will later decide on the following earning
periods and transfer restrictions concerning shares earned on the basis of those
earning periods. The target group in the plan for the 2008 earning period
comprises 10 people.
Notifications
The Ilmarinen Mutual Pension Insurance Company declared on 3 June 2008 that
through a share transaction concluded on 2 June 2008 the percentage of votes and
share capital in Talentum Oyj represented by the Talentum shares in its
possession had exceeded one twentieth (1/20), at 5.26%.
Shareholder agreements
The company is not aware of any mutual shareholder agreements between its
shareholders relating to the operations or ownership of the company.
Liquidity providing agreement
An agreement with Nordea Securities Oyj on liquidity providing for Talentum Oyj
shares became effective on 21 June 2004. Under the agreement, Nordea Securities
will submit a purchase and sale offer so that the maximum permitted differential
between them is 3% of the purchase offer. The offers will include a minimum of
2,500 shares.
TABLES
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| CONTINUING OPERATIONS | | | | | |
--------------------------------------------------------------------------------
| Net sales | 18.9 | 18.7 | 72.7 | 70.6 | 101.2 |
--------------------------------------------------------------------------------
| Other operating income | 0.1 | 0.1 | 0.4 | 0.4 | 0.6 |
--------------------------------------------------------------------------------
| Material and services | -3.0 | -2.8 | -11.8 | -11.4 | -16.3 |
--------------------------------------------------------------------------------
| Employee benefit expenses | -8.9 | -8.8 | -33.5 | -32.8 | -45.1 |
--------------------------------------------------------------------------------
| Depreciation and | -3.3 | -0.5 | -4.3 | -1.7 | -2.3 |
| amortization | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -4.8 | -5.0 | -18.3 | -18.4 | -25.4 |
--------------------------------------------------------------------------------
| Operating profit | -1.1 | 1.7 | 5.3 | 6.7 | 12.7 |
--------------------------------------------------------------------------------
| Financial income | 0.1 | 0.1 | 0.3 | 0.5 | 0.7 |
--------------------------------------------------------------------------------
| Financial expenses | -0.2 | -0.9 | -0.7 | -1.5 | -1.8 |
--------------------------------------------------------------------------------
| Share of results of | -0.2 | 0.0 | -0.4 | -0.1 | -0.1 |
| associates companies | | | | | |
--------------------------------------------------------------------------------
| Profit before taxes | -1.3 | 1.0 | 4.5 | 5.6 | 11.5 |
--------------------------------------------------------------------------------
| Taxes | 0.3 | -0.2 | -1.5 | -1.6 | -3.1 |
--------------------------------------------------------------------------------
| Profit for the period, | -1.0 | 0.8 | 3.0 | 4.0 | 8.4 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DISCONTINUED OPERATIONS | | | | | |
--------------------------------------------------------------------------------
| Profit for the period, | 0.0 | 0.2 | 0.4 | 0.6 | 0.8 |
| discontinued operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period | -1.0 | 1.0 | 3.4 | 4.6 | 9.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | -1.0 | 0.8 | 3.4 | 4.4 | 8.8 |
| company | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.1 | 0.0 | 0.2 | 0.4 |
--------------------------------------------------------------------------------
| Basic and diluted * | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.02 | 0.02 | 0.08 | 0.10 | 0.20 |
--------------------------------------------------------------------------------
| Earnings per share, | -0.02 | 0.02 | 0.07 | 0.09 | 0.19 |
| continuing operations, EUR | | | | | |
--------------------------------------------------------------------------------
*) Earnings per share are calculated on the profit attributed to the
shareholders of the parent company.
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR million | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1.8 | 6.7 | 6.6 |
--------------------------------------------------------------------------------
| Goodwill | 22.4 | 27.5 | 32.5 |
--------------------------------------------------------------------------------
| Other intangible assets | 12.3 | 11.6 | 11.8 |
--------------------------------------------------------------------------------
| Investments in associates | 0.3 | 2.2 | 2.1 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 0.1 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Deferred tax assets | 0.8 | 2.6 | 1.0 |
--------------------------------------------------------------------------------
| Receivables | 1.5 | 0.6 | 0.7 |
--------------------------------------------------------------------------------
| Total non-current assets | 39.2 | 51.4 | 54.9 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 1.4 | 4.4 | 4.4 |
--------------------------------------------------------------------------------
| Trade and other receivables | 12.5 | 16.1 | 15.8 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4.4 | 17.5 | 13.8 |
--------------------------------------------------------------------------------
| Total current assets | 18.3 | 38.1 | 34.1 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 57.5 | 89.5 | 89.0 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Equity attributable to shareholders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Share capital | 18.6 | 18.6 | 18.6 |
--------------------------------------------------------------------------------
| Share premium reserve | 0.0 | 5.9 | 5.9 |
--------------------------------------------------------------------------------
| Treasury shares | -2.8 | -1.3 | -1.3 |
--------------------------------------------------------------------------------
| Translation differences | -0.9 | 0.2 | -0.2 |
--------------------------------------------------------------------------------
| Reserve for non-restricted equity | 5.9 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings | 1.7 | 3.5 | 7.4 |
--------------------------------------------------------------------------------
| Total | 22.5 | 26.9 | 30.3 |
--------------------------------------------------------------------------------
| Minority interest | 0.1 | 1.6 | 1.6 |
--------------------------------------------------------------------------------
| Total equity | 22.6 | 28.4 | 31.9 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 3.0 | 3.1 | 3.1 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 1.7 | 4.1 | 3.8 |
--------------------------------------------------------------------------------
| Pension obligations | | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 0.5 | | |
--------------------------------------------------------------------------------
| Provisions | 0.8 | 1.7 | 1.4 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 6.0 | 9.0 | 8.3 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 4.3 | 25.2 | 15.4 |
--------------------------------------------------------------------------------
| Trade and other payables | 24.2 | 26.5 | 33.1 |
--------------------------------------------------------------------------------
| Provisions | 0.4 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Total current liabilities | 28.9 | 52.0 | 48.8 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 57.5 | 89.5 | 89.0 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR million | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| Cash flows from operating activities, | | | |
| continuing operations | | | |
--------------------------------------------------------------------------------
| Operating profit | 5.3 | 6.7 | 12.7 |
--------------------------------------------------------------------------------
| Adjustments to operating profit | 3.1 | 2.7 | 3.6 |
--------------------------------------------------------------------------------
| Change in working capital | -4.6 | -2.5 | -2.2 |
--------------------------------------------------------------------------------
| Financial items and taxes | -1.3 | -0.9 | -0.8 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 2.5 | 5.9 | 13.3 |
--------------------------------------------------------------------------------
| Cash flows from investing activities, | | | |
| continuing operations | | | |
--------------------------------------------------------------------------------
| Acquisitions of subsidiaries and | 0.0 | -3.3 | -6.4 |
| associates, net of cash | | | |
--------------------------------------------------------------------------------
| Disposal of subsidiaries and | 3.2 | 0.6 | 1.0 |
| associates, net of cash | | | |
--------------------------------------------------------------------------------
| Acquisition of property, plant and | -2.0 | -1.0 | -0.9 |
| equipment and intangible assets | | | |
--------------------------------------------------------------------------------
| Other items | 0.0 | 0.3 | 0.2 |
--------------------------------------------------------------------------------
| Net cash from investing activities | 1.3 | -3.5 | -6.0 |
--------------------------------------------------------------------------------
| Cash flow from financing activities, | | | |
| continuing operations | | | |
--------------------------------------------------------------------------------
| Change in current loans | -10.6 | 3.4 | -6.4 |
--------------------------------------------------------------------------------
| Proceeds from non-current loans | 0.0 | 0.5 | 1.4 |
--------------------------------------------------------------------------------
| Repayment of non-current loans | -1.2 | -0.4 | -1.1 |
--------------------------------------------------------------------------------
| Dividends paid | -8.8 | -7.9 | -8.0 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | -1.5 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other items | 0.0 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Net cash before financing activities | -22.2 | -4.4 | -14.1 |
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
| Net cash from operating activities | 0.0 | 0.1 | 1.4 |
--------------------------------------------------------------------------------
| Net cash from investing activities | 9.2 | -0.6 | -0.8 |
--------------------------------------------------------------------------------
| Net cash before financing activities | 0.0 | -0.4 | -0.4 |
--------------------------------------------------------------------------------
| Cash flow from discontinued | 9.2 | -0.9 | 0.2 |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -9.2 | -2.8 | -6.6 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at 31 | 13.8 | 20.4 | 20.4 |
| December | | | |
--------------------------------------------------------------------------------
| Foreign exchange adjustment | -0.3 | -0.1 | 0.0 |
--------------------------------------------------------------------------------
| Net change in cash and cash | -9.2 | -2.8 | -6.6 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at 30 June | 4.4 | 17.5 | 13.8 |
--------------------------------------------------------------------------------
CALCULATION OF CHANGE IN GROUP EQUITY
--------------------------------------------------------------------------------
| EUR | Share | Shar | Trea | Tran | Reser | Retain | Befor | Mino | Total |
| million | capit | e | sury | slat | ve | ed | e | rity | equit |
| | al | pre | shar | ion | for | earnin | minor | inte | y |
| | | mium | es | diff | non-r | gs | ity | rest | |
| | | re | | eren | e | | | | |
| | | serv | | ces | stric | | | | |
| | | e | | | ted | | | | |
| | | | | | equit | | | | |
| | | | | | y | | | | |
--------------------------------------------------------------------------------
| Equity | 18.6 | 5.9 | -1.3 | -0.2 | 0.0 | 7.4 | 30.3 | 1.6 | 31.9 |
| at 1 | | | | | | | | | |
| January | | | | | | | | | |
| 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | -5.9 | | | 5.9 | | | | 0.0 |
| premium | | | | | | | | | |
| reducti | | | | | | | | | |
| on and | | | | | | | | | |
| transfe | | | | | | | | | |
| r | | | | | | | | | |
--------------------------------------------------------------------------------
| Change | | | | -0.6 | | -0.2 | -0.8 | | -0.8 |
| in | | | | | | | | | |
| transla | | | | | | | | | |
| tion | | | | | | | | | |
| differe | | | | | | | | | |
| nces | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | -0.1 | -0.1 | -0.1 | -0.2 |
| items | | | | | | | | | |
--------------------------------------------------------------------------------
| Divestm | | | | | | | | -1.3 | -1.3 |
| ent of | | | | | | | | | |
| compani | | | | | | | | | |
| es | | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | | 3.4 | 3.4 | | 3.4 |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | 0.0 | | -0.6 | 5.9 | 3.1 | 2.5 | -1.4 | -1.1 |
| recogni | | | | | | | | | |
| zed | | | | | | | | | |
| income | | | | | | | | | |
| and | | | | | | | | | |
| expense | | | | | | | | | |
| s for | | | | | | | | | |
| the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividen | | | | | | -8.8 | -8.8 | | -8.8 |
| ds paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchas | | | -1.5 | | | | -1.5 | | -1.5 |
| e of | | | | | | | | | |
| treasur | | | | | | | | | |
| y | | | | | | | | | |
| shares | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-b | | | | | | | | | |
| ased | | | | | | | | | |
| payment | | | | | | | | | |
| s | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 18.6 | 0.0 | -2.8 | -0.9 | 5.9 | 1.7 | 22.5 | 0.1 | 22.6 |
| at 30 | | | | | | | | | |
| Septemb | | | | | | | | | |
| er 2008 | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 18.6 | 5.9 | -1.3 | 0.5 | 0.0 | 6.7 | 30.5 | 1.7 | 32.2 |
| at 1 | | | | | | | | | |
| January | | | | | | | | | |
| 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
| Change | | | | -0.3 | | | -0.3 | | -0.3 |
| in | | | | | | | | | |
| transla | | | | | | | | | |
| tion | | | | | | | | | |
| differe | | | | | | | | | |
| nces | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | | |
| items | | | | | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | | 4.4 | 4.4 | 0.2 | 4.6 |
| for the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -0.3 | | 4.4 | 4.4 | 0.2 | 4.3 |
| recogni | | | | | | | | | |
| zed | | | | | | | | | |
| income | | | | | | | | | |
| and | | | | | | | | | |
| expense | | | | | | | | | |
| s for | | | | | | | | | |
| the | | | | | | | | | |
| period | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividen | | | | | | -7.9 | -7.9 | -0.3 | -8.2 |
| ds paid | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-b | | | | | | 0.2 | 0.2 | | 0.2 |
| ased | | | | | | | | | |
| payment | | | | | | | | | |
| s | | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 18.6 | 5.9 | -1.3 | 0.2 | 0.0 | 3.5 | 26.9 | 1.6 | 28.4 |
| at 30 | | | | | | | | | |
| Septemb | | | | | | | | | |
| er 2007 | | | | | | | | | |
--------------------------------------------------------------------------------
The change in the number of shares is detailed in the notes to the financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
This interim report has been drawn up according to the IFRS recognition and
valuation principles, but not all the requirements in the IAS 34 Interim
Financial Reporting standard have been observed. In drawing up this interim
report, Talentum has applied the same accounting principles as in the financial
statements for 2007 apart from the additions described in the following
paragraph.
In drawing up the interim report, the Group has recognized as an asset the costs
of developing the online business operations under intangible assets in
progress. The costs of project research have been recognized as an expense in
the income statement when they have materialized. Development expenditure has
been recognized as an asset when the asset has been considered to be technically
feasible and commercially exploitable, and it is expected to produce future
financial benefit. The economic useful life of intangible assets created from
development activities is two years. However, the economic useful life of
intangible assets created in the information business is three years. The main
item in the development costs is outsourcing.
As of 1 January 2008, Talentum has adopted the following new IFRIC
interpretations: IFRIC 11 Group and Treasury Share Transactions and IFRIC 14,
IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction. The adoption of the interpretations has had no effect on
Talentum's interim report. Other new interpretations are not relevant to the
Group.
All the figures in this report have been rounded up or down, so the sum of the
figures may be different from the totals shown.
TALENTUM GROUP BY BUSINESS AREA, CONTINUING OPERATIONS
--------------------------------------------------------------------------------
| EUR million | 7-9/ | 7-9/ | 1-9/ | 1-9/ | 1-12/ | 12 | 12 |
| | 2008 | 2007 | 2008 | 2007 | 2007 | months | months |
| | | | | | | rolling | rolling |
| | | | | | | 10/07-9/ | 10/06-9 |
| | | | | | | 08 | /07 |
--------------------------------------------------------------------------------
| Net sales | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 16.7 | 15.3 | 64.2 | 56.8 | 83.8 | 91.2 | 80.3 |
--------------------------------------------------------------------------------
| Direct | 2.3 | 2.2 | 7.5 | 7.1 | 9.5 | 10.0 | 9.1 |
| marketing | | | | | | | |
--------------------------------------------------------------------------------
| Premedia | 0.8 | 2.2 | 4.6 | 10.1 | 12.5 | 7.0 | 14.6 |
--------------------------------------------------------------------------------
| Adjustments | -1.0 | -1.1 | -3.6 | -3.5 | -4.7 | -4.9 | -4.6 |
| and | | | | | | | |
| eliminations | | | | | | | |
--------------------------------------------------------------------------------
| Total | 18.9 | 18.7 | 72.7 | 70.6 | 101.2 | 103.3 | 99.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | | | | | | | |
| profit | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | 1.7 | 1.6 | 8.4 | 8.5 | 14.8 | 14.8 | 11.3 |
--------------------------------------------------------------------------------
| Direct | 0.3 | 0.3 | 0.9 | 1.0 | 1.3 | 1.3 | 1.2 |
| marketing | | | | | | | |
--------------------------------------------------------------------------------
| Premedia | -2.8 | 0.2 | -2.2 | -1.0 | -0.9 | -2.1 | -2.8 |
--------------------------------------------------------------------------------
| Adjustments | -0.2 | -0.4 | -1.9 | -1.7 | -2.5 | -2.7 | -2.2 |
| and | | | | | | | |
| eliminations | | | | | | | |
--------------------------------------------------------------------------------
| Total | -1.1 | 1.7 | 5.3 | 6.7 | 12.7 | 11.3 | 7.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2.0 | 1.7 | 8.3 | 8.4 | 13.8 | 13.8 | 12.6 |
| profit before | | | | | | | |
| non-recurring | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
| Publishing | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring | | | | | | | -1.4 |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Reduction of | | | | | 0.6 | 0.6 | |
| Swedish | | | | | | | |
| advertisement | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Premedia | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring | -0.2 | | -0.2 | -1.7 | -1.7 | -0.2 | -3.6 |
| costs | | | | | | | |
--------------------------------------------------------------------------------
| Goodwill | -2.9 | | -2.9 | | | -2.9 | |
| impairment | | | | | | | |
| loss | | | | | | | |
--------------------------------------------------------------------------------
| Group Items | | | | | | | |
--------------------------------------------------------------------------------
| Restructuring | | | | | | | -0.2 |
| costs | | | | | | | |
--------------------------------------------------------------------------------
GROUP COMPANIES SOLD IN THE PERIOD UNDER REVIEW
In February, the Group sold the Varesvuo Partners sub-group, which focused on TV
content production, except for the Group's shares in Oy Filmiteollisuus Fine Ab
and companies which it owns, which were sold in March. The Varesvuo Partners
sub-group has not been included in Talentum's consolidated figures for
January-March, except for Oy Filmiteollisuus Fine Ab's result of EUR 0.00
million. The Varesvuo Partners sub-group was classed overall as discontinued
operations in January.
The main areas of activity of the Varesvuo Partners companies are TV programme
production and advertising film production. The customers are TV channels and
advertising agencies. Talentum focuses on publishing targeted at professionals,
and TV programme production and advertising films are no longer seen to have any
synergy with the core operations.
Financial performance of discontinued operations
--------------------------------------------------------------------------------
| EUR million | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| Revenue | 1.1 | 17.9 | 24.1 |
--------------------------------------------------------------------------------
| Costs | -0.6 | -17.1 | -22.7 |
--------------------------------------------------------------------------------
| Taxes | -0.0 | -0.3 | -0.6 |
--------------------------------------------------------------------------------
| Profit after taxes | 0.4 | 0.6 | 0.8 |
--------------------------------------------------------------------------------
| Earnings per share, | 0.01 | 0.01 | 0.01 |
| discontinued operations | | | |
--------------------------------------------------------------------------------
The revenue in the period January-September 2008 includes the profit of EUR 0.8
million on the sale of the Varesvuo Partners sub-group and the loss of EUR 0.4
million caused by the sale of Oy Filmiteollisuus Fine Ab, which was separated
from the sub-group and sold separately in March.
Effect of sale of discontinued operations on the Group's financial position
--------------------------------------------------------------------------------
| EUR million | 30.9.2008 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 3.5 |
--------------------------------------------------------------------------------
| Goodwill | 4.1 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.1 |
--------------------------------------------------------------------------------
| Investments in associates | 1.6 |
--------------------------------------------------------------------------------
| Inventories | 3.0 |
--------------------------------------------------------------------------------
| Current receivables | 3.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1.7 |
--------------------------------------------------------------------------------
| Minority interest | -1.3 |
--------------------------------------------------------------------------------
| Non-current liabilities | -0.3 |
--------------------------------------------------------------------------------
| Current liabilities | -5.3 |
--------------------------------------------------------------------------------
| Total assets and liabilities | 10.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total consideration | 11.1 |
--------------------------------------------------------------------------------
| Consideration received in cash | 11.1 |
--------------------------------------------------------------------------------
| Cash disposed of | 1.7 |
--------------------------------------------------------------------------------
| Net cash inflow | 9.2 |
--------------------------------------------------------------------------------
Effect of sale of shareholding in DH Tools Oy, Sata-Flexo Oy and Marvaco Oy on
the Group's financial position
In February, the Group also sold its entire shareholding in DH Tools Oy, which
was part of Premedia and focused on digital data management. DH Tools Oy's main
area of activity is supplying companies with digital systems for marketing. At
the time of sale it was employing 16 people. In April, the Group sold its entire
shareholding in Sata-Flexo Oy and Marvaco Oy, which belonged to the package
printing material function of the Premedia business area. These companies
employed about 40 people at the time. The sales were part of the Group
withdrawal from operations unrelated to the core operations. The sales have not
had a material effect on the Group's financial performance.
--------------------------------------------------------------------------------
| EUR million | 30.9.2008 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 0.7 |
--------------------------------------------------------------------------------
| Goodwill | 2.5 |
--------------------------------------------------------------------------------
| Other intangible assets | 0.1 |
--------------------------------------------------------------------------------
| Inventories | 0.2 |
--------------------------------------------------------------------------------
| Current receivables | 1.0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0.0 |
--------------------------------------------------------------------------------
| Current liabilities | -1.5 |
--------------------------------------------------------------------------------
| Total assets and liabilities | 3.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consideration received in cash | 3.1 |
--------------------------------------------------------------------------------
| Cash disposed of | 0.0 |
--------------------------------------------------------------------------------
| Net cash inflow | 3.1 |
--------------------------------------------------------------------------------
CHANGE IN NUMBER OF SHARES
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
| 1,000 | | | |
--------------------------------------------------------------------------------
| Shares outstanding at | 44,040 | 44,040 | 44,040 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Share issue | 75 | - | - |
--------------------------------------------------------------------------------
| Acquisition of own shares | -500 | - | - |
--------------------------------------------------------------------------------
| Number of shares outstanding | 43,615 | 44,040 | 44,040 |
| at end of period | | | |
--------------------------------------------------------------------------------
The free-of-charge, directed share issue consists of the shares granted to the
company's management on the basis of Talentum Oyj's share-based incentive plan.
By virtue of the authorization granted, a total of 500,000 of its own shares
were acquired for the company by 30 September 2008 for use as consideration in
possible corporate acquisitions and other arrangements, including the possible
cancellation of shares. At the end of the period under review, the Group had in
its possession a total of 681,000 own shares.
The weighted average of the number of shares that was used for calculating the
earnings per share during the period under review is 43,829,743 (44,039,817 in
January-September 2007 and January-December 2007).
AVERAGE NUMBER OF STAFF, CONTINUING OPERATIONS
--------------------------------------------------------------------------------
| | 1-9/2008 | 1-9/2007 | 1-12/2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Publishing | 419 | 378 | 384 |
--------------------------------------------------------------------------------
| Direct marketing *) | 352 | 337 | 365 |
--------------------------------------------------------------------------------
| Premedia | 59 | 100 | 133 |
--------------------------------------------------------------------------------
| Group Administration | 14 | 14 | 14 |
--------------------------------------------------------------------------------
| Total | 844 | 829 | 896 |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES AND OTHER COMMITMENTS
--------------------------------------------------------------------------------
| EUR million | 30.9.2008 | 30.9.2007 | 31.12.2007 |
--------------------------------------------------------------------------------
| Guarantees posted for own | | | |
| commitments | | | |
--------------------------------------------------------------------------------
| Financial institution loans | 0.6 | 4.9 | 3.7 |
--------------------------------------------------------------------------------
| Book value of shares pledged | 2.6 | 8.6 | 8.7 |
--------------------------------------------------------------------------------
| Mortgaged real estates | 0.4 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
Calculation of key indicators
Earnings per share = Profit for the period attributable to parent company
shareholders / Adjusted average number of shares at the end of the period
Equity per share = Equity attributable to the parent company shareholders /
Adjusted average number of shares at the end of the period
Equity ratio, % = Total equity / Balance sheet total - advances received x 100
Gearing, % = Interest-bearing liabilities - cash and cash equivalents / Total
equity x 100
Market capitalization = Number of shares at the end of the period x trading
price at the end of the period
The figures in this release are unaudited.
The forecasts and estimates presented here are based on the management's view of
developments in the economy at this present moment, and the actual results may
differ substantially from what the company now expects.
TALENTUM OYJ
Juha Blomster
CEO
FURTHER INFORMATION
Juha Blomster, CEO, tel +358 40 342 4444
Kaisa Kokkonen, CFO, tel +358 40 342 4212
www.talentum.fi
COPIES TO
NASDAQ OMX Helsinki
Key media
BRIEFING
A briefing will be held for analysts and the media today, 28 October 2008 at
10.00 at the Talentum head office, Annankatu 34-36 B, Kamppi, Helsinki. The
financial performance will be presented by CEO Juha Blomster and CFO Kaisa
Kokkonen.
Talentum Oyj
Annankatu 34 - 36 B
00100 Helsinki
Telephone +358 20 442 40
www.talentum.com
