TALENTUM OYJ INTERIM REPORT 20 July 2012 at 8:30
April–June 2012 in brief, continuing operations:
- Talentum Group’s net sales came to EUR 19.9 million (EUR 21.8 million), a decrease of 8.6%.
- Talentum Group’s comparable net sales without Talentum HR AB came to EUR 19.9 million (EUR 20.7 million), a decrease of 3.7%.
- Operating income without non-recurring items was EUR 0.7 million (EUR 0.6 million).
- Operating income (EBIT) was EUR 0.6 million (EUR 0.4 million).
- The amount of media advertising in Talentum’s media decreased by 16.5%, but circulation revenue remained at the same level
- The savings measures of the first quarter are improving the result despite the decrease in sales.
Net sales of business functions:
- Magazine Business Finland: EUR 7.5 million (EUR 8.8 million)
- Magazine Business Sweden: EUR 6.3 million (EUR 6.7 million)
- Events: EUR 2.5 million (EUR 2.0 million)
- Books and Legal Training: EUR 1.7 million (EUR 1.6 million)
- Direct Marketing: EUR 2.7 million (EUR 2.3 million)
January–June 2012 in brief, continuing operations:
- Talentum Group’s net sales came to EUR 40.4 million (EUR 43.3 million), a decrease of 6.5%.
- Talentum Group’s comparable net sales without Talentum HR AB came to EUR 40.4 million (EUR 41.1 million), a decrease of 1.6%.
- Operating income without non-recurring items was EUR 1.0 million (EUR 1.6 million).
- Operating income (EBIT) was EUR -2.0 million (EUR 1.4 million).
- The amount of media advertising in Talentum’s media decreased by 14.9%, but circulation revenue remained at the same level.
- Net liabilities were EUR 1.8 million (EUR -1.5 million on 31 December 2011).
Net sales of business functions:
- Magazine Business Finland: EUR 15.0 million (EUR 16.3 million)
- Magazine Business Sweden: EUR 12.5 million (EUR 13.7 million)
- Events: EUR 5.7 million (EUR 4.5 million)
- Books and Legal Training: EUR 3.8 million (EUR 3.8 million)
- Direct Marketing: EUR 5.4 million (EUR 4.4 million)
KEY FINANCIAL FIGURES, CONTINUING OPERATIONS *)
| EUR million | 4-6/ 2012 | 4-6/ 2011 | 1-6/ 2012 | 1-6/ 2011 | 1-12/ 2011 |
| Net sales | 19.9 | 21.8 | 40.4 | 43.3 | 83.5 |
| Operating income without non-recurring items | 0.7 | 0.6 | 1.0 | 1.6 | 2.4 |
| Operating income | 0.6 | 0.4 | -2.0 | 1.4 | -0.7 |
| as % of net sales | 3.0 | 1.8 | -5.0 | 3.3 | -0.8 |
| Net cash from operating activities | 0.0 | 3.3 | 4.6 | ||
| Total assets | 55.8 | 63.7 | 57.3 | ||
| Investments | 0.7 | 0.3 | 0.9 | 0.5 | 1.4 |
| as % of net sales | 3.8 | 1.2 | 2.3 | 1.1 | 1.7 |
| Equity ratio % | 45.7 | 34.9 | 54.1 | ||
| Gearing ratio % (net debt to equity) | 10.2 | 58.0 | -6.7 | ||
| Interest-bearing liabilities | 3.8 | 13.0 | 1.2 | ||
| Net interest-bearing liabilities | 1.8 | 10.0 | -1.5 | ||
| Personnel on average | 746 | 743 | 754 | ||
| Earnings per share, EUR | 0.01 | 0.01 | -0.04 | 0.02 | -0.04 |
| Cash flow from operating activities per share, EUR | 0.00 | 0.08 | 0.11 | ||
| Equity per share, EUR | 0.41 |
0.39 |
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 April–June amounted to EUR 1.1 million, and operating income was EUR -0.3 million. In the comparative year, Talentum HR AB’s net sales for January–June amounted to EUR 2.2 million, and operating income was EUR -0.7 million. In the comparative year, Talentum HR AB’s net sales for January–December amounted to EUR 4.5 million, and operating income was EUR -3.6 million and operating income excluding 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 Operations.
A separate stock exchange release on the change in reporting segments was issued on 17 April 2012.
CEO AARNE AKTAN:
“Talentum Group’s comparable net sales for April–June amounted to EUR 19.9 million, decrease of 3.7%. Our operating income without non-recurring items was 0.7%, growth of 24.4%. The markets are affected by economic uncertainty, but our cost savings measures improved our operating income compared with the first quarter of the year.
Of the business segments, Events and Direct Marketing grew steadily in the second quarter compared with the corresponding quarter of the previous year. Books and Legal training showed modest growth. Both Magazine Business Finland and Magazine Business Sweden remained below the operating income compared with the corresponding quarter.
The market situation in the Magazine Businesses segments has further weakened during the second quarter. The Swedish advertising market is decreasing and, in particular, the advertising sales for professional journals decreased by nearly 8.8% during April-May.
During the second quarter the Swedish media sales decreased more strongly than the advertising market in general. During the second quarter the Finnish periodicals advertising market decreased by 5.9% compared to 2011. In April-June, the Finnish online advertising market grew by 4.2% compared to last year. Recruitment advertising continued to decrease in Finland, which is why Talentum’s printed magazines advertising sales performed worse than the market.
We will actively focus on developing new products and services with the help our newly established Development Team to further strengthen our competitiveness. Our cost savings and reorganisation measures form a solid foundation for achieving results in 2012.”
Operating environment and seasonal variation
Talentum estimates that moderate economic growth in the main market areas, Finland and Sweden, will decrease the volume of advertising in 2012.
However, in the second quarter, general economic uncertainty has increased in both Finland and Sweden, which may already have a weakening effect on the operating environment in the near future.
According to TNS Media Intelligence, the Finnish advertising market decreased by 3.1% in January–June. Advertising decreased by 3.8% in periodicals and increased by 4.9% in professional and business journals. Online media advertising increased by 8.7%. In Sweden, total media advertising rose by 0.3% in January–June, while in professional journals it decreased by 8.8% (Sveriges Mediebyråer).
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. Profit for the third period is almost always negative. Operations are generally at their busiest in the final quarter.
Talentum's prospects for 2012
Talentum estimates that its comparable net sales in 2012 (2011: about EUR 79.0 million without Talentum HR AB, which was sold at the end of the year) will remain at the same level and that operating income without non-recurring items will increase compared to 2011.
This interim report is unaudited.
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.
Next interim report
Talentum will publish its interim report for the third quarter of 2012 on 24 October 2012. A briefing will be held for analysts on the same day 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. Talentum will not hold an analyst briefing on July 20, 2012.
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
