TALENTUM OYJ FINANCIAL STATEMENT RELEASE 13 February 2013 at 08:30
TALENTUM´S FINANCIAL STATEMENT RELEASE 2012
October-December 2012 in brief, continuing operations:
- Talentum Group´s net sales came to EUR 22.5 million (EUR 24.6 million), a decrease of 8.7 %
- Talentum Group´s comparable net sales without Talentum HR AB came to EUR 22.5 million (EUR 23.4 million), a decrease of 3.9 %
- Operating income without non-recurring items was EUR 2.4 million (EUR 1.9 million)
- Operating income (EBIT) was EUR 2.6 million (EUR -1.1 million)
- The amount of media advertising in Talentum´s media decreased by 14.5 % but circulation revenue remained at the same level
Net sales of business functions:
- Magazine Business Finland: EUR 7.2 million (EUR 7.9 million)
- Magazine Business Sweden: EUR 6.6 million (EUR 6.9 million)
- Events: EUR 3.1 million (EUR 2.7 million)
- Books and Legal Training: EUR 3.5 million (EUR 4.2 million)
- Direct marketing: EUR 3.0 million (EUR 2.5 million)
January-December 2012 in brief, continuing operations:
- Talentum Group´s net sales came to EUR 77.2 million (EUR 83.5 million), a decrease of 7.5 %
- Talentum Group´s comparable net sales without Talentum HR AB came to EUR 77,2 million (EUR 79.0 million), a decrease of 2.2 %
- Operating income without non-recurring items was EUR 2.4 million (EUR 2.6 million)
- Operating income (EBIT) was EUR -0.5 million (EUR -0.4 million)
- The amount of media advertising in Talentum´s media decreased by 16.0 % but circulation revenue remained at the same level
- Net liabilities were EUR 1.1 million(31.12.2011 EUR -1.5 million).
Net sales of business functions:
- Magazine Business Finland: EUR 27.3 million (EUR 30.2 million)
- Magazine Business Sweden: EUR 23.1 million (EUR 25.0 million)
- Events: EUR 11.0 million (EUR 8.9 million)
- Books and Legal Training: EUR 8.4 million (EUR 9.1 million)
- Direct Marketing: EUR 11.2 million (EUR 9.1 million)
The Board of Directors proposes that no dividend should be distributed for
2012, and that funds should be distributed from the invested non-restricted equity reserve of EUR 0.03 per share (EUR 0.06 per share).
KEY FINANCIAL FIGURES, CONTINUING OPERATIONS *)
| EUR million | 10-12/ 2012 | 10-12/ 2011 | 1-12/ 2012 | 1-12/ 2011 |
| Net sales | 22.5 | 24.6 | 77.2 | 83.5 |
| Operating income without non-recurring items | 2.4 | 1.9 | 2.4 | 2.6 |
| Operating income | 2.6 | -1.1 | -0.5 | -0.4 |
| as % of net sales | 11.4 | -4.6 | -0.7 | -0.5 |
| Net cash from operating activities | 1.0 | 4.6 | ||
| Total assets | 55.0 | 57.3 | ||
| Investments | 0.3 | 0.7 | 1.6 | 1.4 |
| as % of net sales | 1.2 | 2.8 | 2.1 | 1.7 |
| Equity ratio % | 48.2 | 54.1 | ||
| Gearing ratio % (net debt to equity) | 5.5 | -6.7 | ||
| Interest bearing liabilities | 4.6 | 1.2 | ||
| Net interest-bearing liabilities | 1.1 | -1.5 | ||
| Personnel on average | 754 | 754 | ||
| Earnings per share, EUR | 0.06 | -0.05 | -0.01 | -0.04 |
| Cash flow from operating activities per share, EUR | 0.02 | 0.11 | ||
| Equity per share, EUR |
0.46 |
0.50 |
*) The figures for the comparative year do not include the construction information business sold in August 2011, which is presented as a discontinued business. The figures for the comparative year include Talentum HR AB, which was sold in December 2011.
In the comparative year, Talentum HR AB’s net sales for October-December were EUR 1.2 million, operating income was EUR -2.8 million and operating income without non-recurring items was EUR 0.1 million. In the comparative year, Talentum HR AB’s net sales for January-December amounted to EUR 4.5 million, operating income was EUR -3.6 million and operating income without non-recurring items was EUR -0.5 million.
Reporting
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.
A separate stock exchange release on the change in reporting segments was issued on 17 April 2012.
AARNE AKTAN, CEO:
“Overall, the last quarter of the year went relatively well in challenging market situation.
The strong, negative development in the general advertising market in Sweden, which began in September, continued throughout the last quarter, and the advertising market for professional journals decreased by 11.9 per cent in last quarter. General advertising markets decreased by 9.4 per cent. Also Finnish periodicals’s advertising market decreased in last quarter by 14.3 per cent and general advertising market decreased by 5.3 per cent compared to previous year. The market situation had a negative impact on Talentum’s advertising sales revenue.
Our circulation revenue in both Finland and Sweden remained at the previous year’s level in the last quarter, which was a good achievement.
Our event business continued to grow well. However, we cannot be satisfied with its profitability. Direct Marketing continued its good, steady growth and improved its profitability during the last quarter.
The net sales of the Books and Legal Training segment decreased compared to the period of comparison, but its profitability remained at the same level.
All in all, 2012 was a diverse year for Talentum. The advertising sales market was weak throughout the year in both Finland and Sweden. However, at the same time, we performed surprisingly well in circulation sales. Our net sales grew in Events and Direct Marketing but decreased clearly in the other segments.
As a result of the turbulence of the media sector, we have developed our offering and we are going to launch an online service by next summer to make it possible to order or purchase the magazines and books of our company in digital format. Easy-to-use and versatile products and services allow us to serve our customers even better.”
Operating environment and seasonal variation
Year 2012 was a restructuring year for Talentum and in the beginning of the year Talentum’s business was divided into six segments. The segments are Magazine Business Finland, Magazine Business Sweden, Events, Books and Legal Training, Direct Marketing and Other Activities. At the same time a new Management Team was formed consisting mainly of segment leaders. In 2012 the company carried out negotiations with personnel representatives to reduce personnel in Finland and Sweden. Therefore the income for year 2012 was weakened by non-recurring items. The objective of the negotiations is an annual cost reduction of approximately EUR 4.5 million as of 2013. In 2012 savings of approximately EUR 2 million was reached.
According to TNS Media Intelligence, the Finnish advertising market decreased by 4.1% and in Sweden by 2.4 per cent(Sveriges Mediebyråer). Advertising decreased by 7.8% in Finnish periodicals during the year and in Swedish professional journals decreased by 9.5%. Changes in macro economy weakened in general especially recruitment advertising. Due to unstable situation in advertising market the advertising income in Magazine Businesses in Finland and Sweden decreased but Talentum’s circulation revue remained at the same level as in 2011.
The media and advertising markets are subject to seasonal variations. Talentum’s magazines and books do not generally come out during the summer holiday season, which is why the third quarter is the weakest in terms of sales. Income for the third period is almost always negative. Operations are generally at their busiest in the final quarter.
Talentum’s prospects for 2013
Talentum estimates that its comparable net sales for 2013 will remain approximately at the same level as in 2012 and that its operating income without non-recurring items will be higher than in 2012.
Motion of the Board of Directors concerning distribution of profits
The parent company’s distributable profits as of 31 December 2012 comprise invested non-restricted equity of EUR 70,009,802.36, treasury shares of EUR
-2,642,432.30 and EUR -14,778,121.07 of retained earnings, of which the profit for the financial period is EUR -15,757,098.14, totalling EUR 52,589,248.99.
Income for the financial year of the parent company was reduced by the impairment of shares of Talentum Media Oy, amounting EUR 15.0 million.
The Board of Directors proposes that no dividend should be distributed for
2012, and that funds should be distributed from the invested non-restricted equity reserve of EUR 0.03 per share (EUR 0.06 per share).
Annual General Meeting
The Annual General Meeting will be held in Helsinki on March 22, 2013 at 14:00.
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 reporting in 2013
Financial reports will be published as follows:
January-March 2013 on April 25, 2013
January-June 2013 on July 17, 2013
January-September 2013 on October 22, 2013
Analyst and press briefing
A briefing for Q4 and financial statements for will be held for analysts and press on February 13 at 11:00 am at the Talentum head office, Annankatu 34-36 B, Kamppi, 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
Talentum Oyj
Annankatu 34-36 B
FI-00100 Helsinki
Telephone +358 20 44 240
www.talentum.com
