Sanoma's Interim Report 1 Jan-30 June 2009: Efficiency Improvements
to Continue
(Thomson Reuters ONE) - Interim Report 6/8/2009 8:30- Sanoma Group's net sales decreased 8.2% in the first six months,totalling EUR 1,333.2 (1,452.8) million. Net sales in the secondquarter were down 9.4%, being EUR 697.2 (769.8) million.- Operating profit excluding non-recurring items was EUR 95.8 (146.2)million. Non-recurring items totalled EUR -9.7 (25.0) million. Thesecond quarter EBIT excluding non-recurring items was EUR 72.5 (97.0)million.- Earnings per share were EUR 0.32 (0.74) in January-June. The secondquarter EPS amounted to EUR 0.27 (0.40).- Sanoma's outlook for 2009 is unchanged.KEY INDICATORS 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 697.2 769.8 -9.4 1,333.2 1,452.8 -8.2 3,030.1Operating profit 72.5 97.0 -25.2 95.8 146.2 -34.5 295.7excludingnon-recurring items % of net sales 10.4 12.6 7.2 10.1 9.8Operating profit 65.1 98.5 -33.9 86.1 171.2 -49.7 236.3Result for the 43.7 65.3 -33.2 51.3 119.7 -57.1 120.8periodCapital expenditure 41.8 49.4 -15.3 109.9 % of net sales 3.1 3.4 3.6Equity ratio, % 37.3 40.8 40.0Net gearing, % 103.0 81.6 78.5Average number of employees(full-time equivalents) 17,725 17,693 0.2 18,168Earnings/share, EUR 0.27 0.40 -32.8 0.32 0.74 -56.4 0.72Cash flow from 0.10 -0.06 278.6 0.05 0.23 -79.9 1.56operations/share,EURHannu Syrjänen, President and CEO"Sanoma's second quarter development shows that in many areas we havebeen able to adjust our operations to the challenging economicenvironment. However, a number of efforts to maintain goodprofitability levels are still needed.In 2009, Sanoma will make structural changes, discontinue loss-makingoperations and improve the efficiency of all its businesses. We haveinitiated structural changes in Sanoma News, Sanoma Magazines Belgiumand our Estonian retail operations. The efficiency improvements andstructural changes will improve Sanoma's long-term operatingconditions in the changing media environment. In the first sixmonths, we discontinued 26 magazine titles and closed downloss-making kiosks in Russia.We continue to reduce our operating expenses and our target is tohave them clearly below the 2008 level. This will be partly achievedthrough personnel reductions. During the first six months, ouroperating expenses decreased by over 5%.The learning business, one of our focus areas, has proved to befairly resilient to the general economic downturn and Sanoma Learning& Literature is performing well in its biggest educational materialmarkets. In Finland, magazine operations and Sanoma Entertainment'sTV and broadband businesses have developed very well during the firstsix months. Across Europe, our online advertising sales continued toincrease in the second quarter. Sanoma's total digital revenues grewby 3% and represented over 12% of the Group's net sales in the firstsix months.Sanoma's position as a market leader will bring us added value. Wehave been able to strengthen our market positions in a number ofareas. We have gained market share in the magazine markets in Belgiumand Finland and our TV channels' share of Finnish TV advertising hasgrown. Focusing strongly on our profitability, we continue,at the same time, to be on the lookout for possibilities that canfurther enhance our operations and strengthen our market positions."Outlook for 2009In 2009, Sanoma's net sales are expected to decrease. It is estimatedthat the Group's operating profit excluding non-recurring items willclearly decline from the previous year. In the comparable year of2008, operating profit excluding non-recurring items was EUR 295.7million. The Group's interest expenses are expected to decreasemarkedly, and as a result, Sanoma's net result for 2009 is expectedto decrease less than its operating profit. The Group will stronglyincrease the efficiency of its operations in all markets.The outlook of Sanoma's net sales and operating profit in 2009 isaffected by the development of advertising and private consumption inthe Group's countries of operation. In 2009, advertising and privateconsumption are expected to decrease from 2008 levels in all ofSanoma's markets.Net salesIn January-June Sanoma's net sales were down by 8.2%, totalling EUR1,333.2 (1,452.8) million. Excluding the effect of exchange ratechanges, net sales would have been 6.6% lower than in the comparableperiod. Adjusted for changes in the Group structure, January-June netsales decreased by 9.1%. Net sales were at the comparable year'slevel in Sanoma Entertainment. Net sales decreased in otherdivisions, with advertising sales in particular being affected by thegeneral economic situation.Advertising sales decreased clearly and accounted for 22% (26%) ofthe Group's total net sales. Online advertising sales, however,continued to increase, Sanoma Magazines Netherlands contributing themost to the increase. The growth from the comparable period was 4%.The Group's subscription sales remained stable and single copy salesacross the Group decreased only slightly. In geographical terms,Finland accounted for 52% (51%) of net sales, with other EU countriesaccounting for 45% (44%) and non-EU countries for 3% (5%).ResultSanoma's operating profit excluding non-recurring items was EUR 95.8(146.2) million in the first six months. The operating profitincluded a total of EUR -9.7 (25.0) million in non-recurring items.These non-recurring expenses were related to restructuring ofoperations and voluntary severance packages offered to employees. Inthe comparable period, non-recurring capital gains were recorded fromthe divestment of the movie distribution company R.C.V. Entertainmentand a real estate holding.NON-RECURRING ITEMS 4-6/ 4-6/ 1-6/ 1-6/ 1-12/EUR million 2009 2008 2009 2008 2008MagazinesRestructuring expenses -1.3 -1.3A gain on sale of R.C.V. Entertainment 23.5 23.5A gain on sale of Payback 7.0Expenses on closing down a youth siteand related impairment loss -5.1Impairment loss of immaterialrights and goodwill -78.6NewsExpenses related to the efficiency -6.1 -8.4programmeLearning & LiteratureInventory write-offs andrestructuring expenses -7.6Other companiesA gain on sale of a land area 1.5 1.5 1.5NON-RECURRING ITEMS TOTAL -7.4 1.5 -9.7 25.0 -59.3The Group's operating profit was EUR 86.1 (171.2) million or 6.5%(11.8%) of net sales. Operating profit grew in Sanoma Entertainment,where all business units developed favourably. In other divisions,operating profit decreased as a result of lower sales and changes inexchange rates.Sanoma's net financial items totalled EUR -13.8 (-20.6) million.Financial income amounted to EUR 15.5 (6.6) million, of whichexchange rate gains were EUR 10.4 (4.6) million. Financial expensesamounted to EUR 29.3 (27.2) million with interest expenses of EUR16.9 (23.9) million being the largest item. Exchange rate lossesamounted to EUR 11.2 (5.8) million. The refined financing structureand lower reference rates have clearly decreased the Group's interestexpenses.The result before taxes was EUR 72.0 (155.2) million. Sanoma'seffective tax rate was higher than in the comparable period, mainlybecause of a non-taxable capital gain in the first quarter of 2008.Earnings per share, including the non-recurring items, were EUR 0.32(0.74). The result for the period totalled EUR 51.3 (119.7) million.Efficiency improvementsIn 2009, Sanoma will make structural changes, discontinue loss-makingoperations and improve the efficiency of all its businesses. Sanomahas initiated a large number of efficiency improvement programmes todevelop its operations in the long-term and to save costs. In orderto obtain its savings targets, Sanoma will continue to reduce thenumber of personnel. For example, the Sanoma News' programme, inaddition to a number of structural changes, aims to reduce personnelexpenses in the Division by some 300 man-years through means such asvoluntary severance packages and forgoing of holiday bonuses.Sanoma Magazines Belgium has renewed its strategy. The new strategycan be implemented only through substantial structural changes. Therenewed organisational structure will reduce annual costs by EUR 12million from 2010 onwards. In connection, some 70 positions will beterminated. Other staff reductions are being carried out in severalbusiness units either as a result of the weakened economic outlook orrelated to restructuring initiated by changing business needs forexample in Russia, the Czech Republic and Finland.Sanoma Trade has initiated restructuring in its Estonian operationsand completed the programme started in the Dutch press distributionunit already over a year ago. Sanoma Learning & Literature continuesthe restructuring in its literature and other businesses unit and isstreamlining its language services according to the current marketenvironment. Altogether, the Sanoma Group has over 1,100 employeesless than at the year-end.Balance sheet and financial positionAt the end of June, the consolidated balance sheet totalled EUR3,211.1 (3,369.2) million. Cash flow from operations was EUR 7.5(37.3) million and cash flow per share was EUR 0.05 (0.23). Cash flowfrom operations decreased as a result of a weaker operational resultin January-June. The development of cash flow from operations wasbalanced by lower financial items and taxes paid.There were no significant changes in the Group's financial positionduring January-June. Sanoma's equity ratio at the end of June was37.3% (40.8%). The changes from the comparable period and theyear-end were mainly caused by the dividend payment in the secondquarter. The result in 2008 was affected by the impairmentwrite-downs made in the last quarter of the year. Net gearingincreased to 103.0% (81.6%). Equity totalled EUR 1,127.6 (1,297.1)million. Interest-bearing liabilities were EUR 1,220.3 (1,148.5)million and interest-bearing net debt EUR 1,161.0 (1,058.4) million.At the end of June, the Group's cash and cash equivalents totalledEUR 59.3 (90.2) million.Sanoma's financial position is stable. The existing creditfacilities, such as the syndicated, long-term credit facility of EUR802 million, cover all Sanoma's financing needs and Sanoma has noneed for material refinance in the near future. Net debt/EBITDA ratioat the end of June was 3.0, in line with the Group's target to keepthe ratio below 3.5.Investments, acquisitions and divestmentsInvestments in tangible and intangible assets totalled EUR 41.8(49.4) million in January-June, and consisted mainly of ICT systemsas well as replacement investments and renovations.There were no significant transactions during the review period. Inthe comparable period, Sanoma Magazines divested the Dutch moviedistribution company R.C.V. Entertainment and a capital gain of EUR23.5 million was recorded for the transaction. On 11 March 2008,Sanoma Learning & Literature completed its acquisition of the Polisheducational publisher Nowa Era.SANOMA MAGAZINESSanoma Magazines is a leading publisher of magazines and has a strongdigital media presence in 13 European countries. The company activelyreaches out to an audience of 290 million consumers at every lifestage, and aims to strengthen its market leader positions in each ofthe markets it operates in.- Sanoma Magazines' online advertising sales continued to grow in thesecond quarter.- Sanoma Magazines Belgium and Sanoma Magazines Finland strengthenedtheir market leading positions.- Active portfolio management continued: four new online sites werelaunched and six magazines discontinued in the second quarter.Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 275.9 318.5 -13.4 538.1 603.9 -10.9 1,246.8Operating profit 31.5 46.6 -32.3 47.1 71.2 -34.0 138.9excluding non-recurringitems % of net sales 11.4 14.6 8.7 11.8 11.1Operating profit 30.2 46.6 -35.1 45.8 94.7 -51.7 85.7Capital expenditure 12.3 12.2 1.5 26.8Average number of employees (full-time 5,611 5,520 1.7 5,731equivalents)* In 2009, the non-recurring items included EUR 1.3 million of SanomaMagazines Belgium's restructuring expenses in the second quarter andin 2008 a capital gain of EUR 23.5 million from the divestment ofmovie distributor R.C.V. Entertainment in the first quarter.Operational indicators * 1-6/ 1-6/ 2009 2008Number of magazines published 306 323Magazine copies sold, thousands 187,066 205,160Advertising pages sold 26,284 33,153* Including joint ventures.Sanoma Magazines' net sales in January-June decreased by 10.9% to EUR538.1 (603.9) million. The general economic situation affectedadvertising sales in all operating countries with Sanoma MagazinesInternational's net sales being impacted the most. The Division's netsales adjusted for changes in the Group structure decreased by 12.0%.Of the Division's net sales, 18% (17%) came from Finland. InApril-June, the Division's net sales decreased by 13.4% to EUR 275.9(318.5) million. The decrease mostly came from Sanoma MagazinesInternational, but sales in the Netherlands also weakened.The Division's advertising sales decreased by 21% in the first sixmonths and represented 29% (33%) of net sales. The economic downturnhas hit Sanoma Magazines International's advertising revenues inparticular. The Division's online advertising sales were up by 5%,with the growth rate slowing down in the second quarter.Sanoma Magazines' circulation sales decreased by 4% and represented60% (56%) of the Division's net sales. Subscription sales remainedstable during the first six months and even increased in Belgium.Single copy sales declined clearly in the CEE countries and in theNetherlands.In January-June Sanoma Magazines Netherlands' net sales amounted toEUR 233.9 (246.9) million. New online assets increased SanomaMagazines Netherlands' online revenues, which grew by 12%. Totaladvertising sales decreased due to a decline in the print advertisingrevenues. However, Sanoma Magazines Netherlands outperformed theconsumer magazine advertising market. According to Nielsen MediaResearch, the consumer magazine advertising market in the Netherlandsdecreased by 18% in January-May 2009 and magazine advertising's shareof the total advertising market declined. In total, advertising salesrepresented 27% (27%) of Sanoma Magazines Netherlands' net sales. Thereaders market in the Netherlands continued to decrease. SanomaMagazines Netherlands' subscription sales were at the comparableperiod's level but single copy sales were lower and the totalcirculation sales decreased. Sanoma Magazines Netherlands launchedfour online sites in the second quarter.Sanoma Magazines International's net sales in January-June were EUR104.0 (146.9) million. The economic downturn has affected SanomaMagazines International's operations strongly. Advertising salesdecreased in all countries, especially in Russia and Ukraine as wellas in the Czech Republic, where a number of magazine titles werediscontinued. The reported net sales were also clearly affected bythe negative exchange rate developments, especially in Russia andHungary. In total, advertising sales represented 49% (55%) of SanomaMagazines International's net sales. Circulation sales were clearlybelow the comparable period. This is partly attributable to thereduced number of magazines published and in some cases the number ofissues. The publication frequency of various titles has been adjustedin order to save costs. In the second quarter, Sanoma MagazinesInternational discontinued six magazine titles.Net sales at Sanoma Magazines Belgium totalled EUR 104.0 (109.7)million. Advertising sales decreased and represented 27% (29%) ofSanoma Magazines Belgium's net sales. Circulation sales remainedstable with subscription sales increasing and single copy salesdecreasing slightly. In Belgium, both the advertising and readersmarket have declined. With its strong brands, Sanoma MagazinesBelgium has been able to increase its market share in the advertisingmarket and kept its strong position in the readers market. SanomaMagazines Belgium has renewed its strategy and initiated arestructuring programme to respond to changes in the mediaenvironment.Sanoma Magazines Finland's net sales amounted to EUR 98.3 (102.6)million with advertising sales declining. Circulation sales remainedstable. Advertising sales represented 14% (17%) of Sanoma MagazinesFinland's net sales. According to TNS Gallup Adex, advertising inconsumer magazines in Finland decreased by 22% in January-June andthe magazine single copy market decreased in volume by 21%. SanomaMagazines Finland outperformed the market development both inadvertising and the readers market and has increased its marketshares. In particular the key titles, like the women's weekly MeNaiset, have clearly strengthened their position in both markets.In January-June, Sanoma Magazines' operating profit excludingnon-recurring items decreased by 34.0% to EUR 47.1 (71.2) million.Decreasing advertising sales affected results in all businesses andthe decline in operating profit was only partly offset by costsavings. Non-recurring items totalled EUR -1.3 million and wererelated to restructuring in Sanoma Magazines Belgium. In thecomparable period, operating profit included a EUR 23.5 millionnon-recurring gain on the divestment of movie distributor R.C.V.Entertainment. Operating profit for the first six months amounted toEUR 45.8 (94.7) million. In April-June, the Division's operatingprofit excluding non-recurring items decreased 32.3% and totalled EUR31.5 (46.6) million.Sanoma Magazines Netherlands' operational result was affected by thelower sales and increased personnel expenses. The operating profitwas down significantly since the comparable period included thenon-recurring gain from the sale of R.C.V. Entertainment. The declinein advertising sales decreased Sanoma Magazines International'soperating result markedly. Sanoma Magazines Belgium increased itsresult. Sanoma Magazines Finland reached the comparable period'soperating profit levels thanks to efficient cost-saving measures.Sanoma Magazines continues to develop its magazine portfolio andonline businesses as well as invest in strengthening its marketpositions in all countries it operates in, with a special focus onits key titles in each operating country. At the same time SanomaMagazines is strongly focused on improving efficiency and savingcosts. The Division has initiated several programmes to improve theprofitability of its business units.In 2009, Sanoma Magazines' net sales are expected to decrease and itis estimated that operating profit excluding non-recurring items willbe clearly below the previous year's level.SANOMA NEWSSanoma News is the leading newspaper publisher in Finland, and itsproducts, both in print and digital format, have a strong presence inthe lives of their readers. In addition to Helsingin Sanomat, thelargest daily in the Nordic region, Sanoma News publishes othernational and regional newspapers and is also a significant digitalplayer in Finland.- In May Sanoma News expanded its programme to restructure theDivision. The total annual savings goal of all programmes is now atEUR 30 million.- The tabloid Ilta-Sanomat's circulation development showed positivesigns in the second quarter. Single copy sales in May and June grewfrom the comparable year. Online advertising of the Ilta-Sanomatbusiness unit increased in the second quarter by 38%.- The financial news site Taloussanomat.fi had a record number ofvisitors in the second quarter and was the most visited financialnews site for several weeks.Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 107.1 121.1 -11.6 214.8 242.0 -11.2 474.7Operating profit 9.6 14.7 -34.4 18.0 32.6 -44.9 57.3excluding non-recurringitems % of net sales 9.0 12.1 8.4 13.5 12.1Operating profit 3.5 14.7 -75.9 9.6 32.6 -70.6 57.3Capital expenditure 5.6 9.7 -42.0 19.6Average number of employees (full-time 2,421 2,456 -1.4 2,491equivalents)* In 2009, the non-recurring items included in the first quarter EUR2.3 million and in the second quarter EUR 6.1 million expensesrelated to the efficiency programme.Operational indicators 1-6/ 1-6/ 2009 2008Distribution of free sheets, millions 37.5 49.1 1-12/ 1-12/Audited circulation 2008 2007Helsingin Sanomat 412,421 419,791Ilta-Sanomat 161,615 176,531 1-6/ 1-6/Online services, unique visitors, weekly 2009 2008Iltasanomat.fi 1,628,730 1,385,758HS.fi 1,075,308 931,577Huuto.net 420,069 416,724Oikotie.fi 325,617 311,541Taloussanomat.fi 413,964 280,286Keltainenporssi.fi 191,324 164,407Sanoma News' net sales in January-June decreased by 11.2%, totallingEUR 214.8 (242.0) million. Most of the decrease came from theHelsingin Sanomat business unit, where advertising sales declinedsignificantly. Net sales in other business units were also lower thanin the comparable period. Adjusted for changes in the Groupstructure, net sales decreased by 12.1%. In April-June, net salesdecreased by 11.6% due to poor advertising sales development andtotalled EUR 107.1 (121.1) million.According to TNS Gallup Adex, newspaper advertising in Finlanddecreased by 24% in January-June. Job advertising in Finlanddecreased by 54% and real estate advertising by 38%. Advertising infree sheets was down by 17%. Following the general advertisingenvironment, online advertising included in statistics also decreasedby 9%. Sanoma News' advertising sales decreased by 26% from thecomparable period, due to the decline in newspaper advertising, withthe classified advertising development affecting the sales the most.Online advertising sales performed clearly better than the market andwere on the comparable period's level. Advertising sales represented46% (55%) of the Division's net sales.The Finnish printed tabloid market showed some positive signs in thespring, but the structural migration to online continues and theprinted tabloid market declined by 8% in January-June. The amount ofonline visitors continued to increase. Sanoma News' circulation salesgrew by 2% and circulation sales accounted for 43% (37%) of theDivision's net sales. Subscription sales increased. Newsstand salesremained stable, due to the increased single copy sales in May andJune.The Helsingin Sanomat business unit's net sales totalled EUR 120.1(145.3) million. Circulation sales increased from the comparableperiod due to new forms of subscriptions and price increases.Advertising sales were down markedly, and Helsingin Sanomat's job andreal estate print advertising, in particular, continued to beaffected by the overall economic situation. Job advertising in theHelsingin Sanomat daily paper decreased by 55% and real estateadvertising by 55%. Online advertising of the business unit decreasedby 18%, but Oikotie.fi, the classified online site, strengthened itsmarket position during the first six months. In total, advertisingsales represented 54% (64%) of net sales. Helsingin Sanomat continuedto restructure its operations and to improve the efficiency of itsorganisation through reorganisation of operations in, among others,its newsroom and marketing departments.Net sales of the Ilta-Sanomat business unit amounted to EUR 38.3(42.4) million. Ilta-Sanomat had a 57.0% (57.4%) share of the tabloidmarket. The circulation sales increased from the comparable periodwith the second quarter developing positively. The overall readershipwas further strengthened by the continuous growth of online readers.The unit's advertising sales decreased due to declining printadvertising revenues. Online advertising sales of the Iltasanomat.fisite developed positively in the second quarter. In total,advertising sales represented 23% (26%) of the business unit's netsales in January-June.Net sales from other publishing were at the comparable period's levelat EUR 46.7 (48.9) million. Advertising sales decreased, especiallyin Sanoma Lehtimedia's regional newspapers. The circulation sales inthe regional papers grew slightly. Sanoma Lehtimedia has streamlinedits organisation in order to better serve its customers, removeoverlapping functions, and increase efficiency and co-operation. Netsales in the Sanoma Kaupunkilehdet business unit for free sheetsdecreased slightly, mainly due to structural changes as Metro andUutislehti 100 titles were merged last autumn. However, SanomaKaupunkilehdet has gained market share in the advertising market,since free sheets in general are performing better than the mediamarket in general. The local news site Vartti.fi has become theleading local news site in Finland. Sanoma Kaupunkilehdet madeseveral efficiency improvements in its portfolio during 2008. Theorganisation of the financial news site Taloussanomat.fi has beenfurther streamlined. The Sanoma Digital business unit's net salesincreased due to new operations, and its service offering has beenimproved. Its comparison site Hintaseuranta.fi continued tostrengthen its market leading position.Net sales from other businesses, mainly comprising internal services,were EUR 72.2 (75.4) million. Net sales decreased due to fewerinternal printing jobs. External printing services developed wellincreasing 41% from last year.In January-June, Sanoma News' operating profit excludingnon-recurring items decreased by 44.9%, totalling EUR 18.0 (32.6)million. The non-recurring items included in the operating profittotalled EUR-8.4 (0.0) million and consisted of expenses related to theefficiency programme, including such items as voluntary severancepackages to employees. Operating profit including the non-recurringitems totalled EUR 9.6 (32.6) million in the first six months.Decreased advertising sales lowered operating profits in all reportedbusinesses. In April-June, the Division's operating profit excludingnon-recurring items decreased by 34.4% and was at EUR 9.6 (14.7)million. A number of cost-saving measures helped Sanoma News toimprove its efficiency compared to the previous quarter. Includingthe non-recurring items, the Division's operating profit in thesecond quarter was EUR 3.5 (14.7) million.Sanoma News will continue the planned development of its printedproducts and digital services. Renewal projects are ongoing in allunits to develop the products so that they will meet the changingcustomer needs. The company has also decided to invest in a newreader-customer management system to support, among other actions,product development opportunities for newspapers in the multimediaenvironment. However, in 2009 the media advertising market continuesto be challenging. Sanoma News has therefore started a programme toreshape its organisation and to adapt its operations to the lowerrevenue level.In 2009, net sales of Sanoma News are estimated to decrease clearlyand operating profit excluding non-recurring items will lessenmarkedly from the previous year due to the decline in the advertisingmarket.SANOMA ENTERTAINMENTSanoma Entertainment offers entertaining experiences on television,radio, online and mobile. Sanoma Entertainment's business unitsinclude Nelonen Media, which focuses on broadcast operations, andWelho, Finland's largest cable television operator. The Division'slatest business area is online casual gaming.- Sanoma Entertainment's operating profit continued to grow in thesecond quarter, with all businesses improving from 2008.- Nelonen Media increased its market share of Finnish TV advertisingsignificantly, to 33.5%.- The number of Welho's broadband subscriptions grew.- Nelonen Media launched Ruutu.fi, a new WebTV, in June.Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 40.6 40.9 -0.7 81.0 81.4 -0.6 157.1Operating profit excluding 6.9 6.3 8.1 13.0 10.4 25.3 17.3non-recurring items % of net sales 16.9 15.5 16.1 12.8 11.0Operating profit 6.9 6.3 8.1 13.0 10.4 25.3 17.3Capital expenditure 4.1 7.5 -44.3 13.5Average number of employees (full-time 481 471 2.2 482equivalents)Operational indicators 1-6/ 1-6/Thousands 2009 2008TV channels' share of Finnish TV advertising 33.5% 29.8%TV channels' national commercial viewing share 29.6% 30.3%TV channels' national viewing share 14.7% 14.6%Number of connected households (30 June) 324 321Number of pay TV customers (30 June) 67 68Number of broadband internet connections (30 June) 110 102Sanoma Entertainment's net sales in January-June were at thecomparable period's level and amounted to EUR 81.0 (81.4) million. Inaddition, net sales adjusted for changes in the Group structureremained stable. Advertising sales accounted for 51% (51%) of SanomaEntertainment's net sales. In April-June, net sales were EUR 40.6(40.9) million.Broadcast operations' net sales totalled EUR 47.1 (47.1) million inJanuary-June, while the Finnish TV advertising market shrank by 13%according to TNS Gallup Adex. Nelonen Media's multichannel strategyin TV operations has resulted in the increase of its market share to33.5% (29.8%). New targeted TV channels, national radio stations andWebTV all increased their advertising sales.Sanoma Entertainment's WebTV services and their popularity havecontinued to grow and in June Nelonen Media launched a new WebTVservice Ruutu.fi. Ruutu.fi offers streaming broadcasts of TV seriesfrom Nelonen Media TV channels as a free catch-up service, extramaterials for popular programmes, and podcasts.Nelonen Media's Liv, launched successfully as a free TV channelavailable on the cable network in February, was granted a one-yearlicence to broadcast the lifestyle channel on the terrestrial networkas well. In June, Sanoma Entertainment acquired the remainingminority shareholding in Suomen Urheilutelevisio, which operates thetwo sports channels in Nelonen Media's TV channel portfolio.Radio advertising has increased its share of the total advertisingmarket. Nelonen Media's radio channels have been successful andduring the spring, the weekly reach of Radio Rock rose to itsall-time high.Net sales from other businesses were EUR 34.7 (34.7) million. Thenumber of Welho's broadband subscriptions continued to increase. Themobile broadband market is growing, and Welho has kept up with thisdevelopment with its mobile broadband product, Wekkula, launched inJanuary 2009. In line with the Finnish pay TV market development,Welho's pay TV operations were stable.Sanoma Entertainment's operating profit increased by 25.3% inJanuary-June, totalling EUR 13.0 (10.4) million. The operating profitdid not include any non-recurring items. Operating profit improvedboth in broadcasting and other businesses. The increase was driven bylower expenses in general and cost-saving measures. The gooddevelopment of both broadcasting and other operations continued inApril-June, and operating profit grew by 8.1% amounting to EUR 6.9(6.3) million.In line with its strategy, Sanoma Entertainment focuses on its corebusinesses: television, broadband services and consumer entertainmentservices. Sanoma Entertainment continues to develop its digitalcontent and media solutions business, invest resources in thedevelopment of its online services and in its viewing and listeningshares. In addition, Sanoma Entertainment is refining its processesand service offering to better meet the needs of its customers and toimprove its efficiency.In 2009, Sanoma Entertainment's net sales and operating profitexcluding non-recurring items are expected to be at the previousyear's level.SANOMA LEARNING & LITERATURESanoma Learning & Literature is a leading European educationalpublisher offering learning materials in print and digital format.With operations in nine countries, the Division has growinginternational language service operations and is also the leadinggeneral literature publisher in Finland.- The educational material market has been fairly resilient to theeconomic downturn; Sanoma Learning & Literature is performing well inits biggest markets.- Language operations are clearly suffering from the current economicclimate. The language business is streamlining its structureaccordingly.- Literature and other businesses unit continues its restructuringprogramme.Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 101.9 110.5 -7.7 162.8 168.8 -3.6 390.0Operating profit 25.1 26.4 -4.9 18.2 22.0 -17.4 53.2excluding non-recurringitems % of net sales 24.6 23.9 11.2 13.0 13.6Operating profit 25.1 26.4 -4.9 18.2 22.0 -17.4 45.6Capital expenditure 4.4 7.4 -40.5 15.6Average number of employees (full-time 2,847 2,618 8.8 2,737equivalents)Operational indicators 1-6/ 1-6/ 2009 2008LearningNumber of new titles published, books 756 803Number of new titles published, digital products 228 236Literature and other businessesNumber of new titles published, books 181 215Number of new titles published, digital products 42 41Books sold, millions 12.9 12.9In January-June Sanoma Learning & Literature's net sales decreased by3.6% and totalled EUR 162.8 (168.8) million, with especially netsales of literature and other businesses decreasing. Net salesadjusted for changes in the Group structure decreased by 7.3%. Atotal of 59% (57%) of the Division's net sales came from outsideFinland. In April-June, the Division's net sales decreased by 7.7% toEUR 101.9 (110.5) million. This was mainly due to timing differencesin the learning business.Sanoma Learning & Literature's reporting structure has been modifiedto better reflect the focus of operations. The comparable figures for2008 have been adjusted accordingly. Sanoma Learning & Literature'sthree reporting levels are now learning, language services, andliterature and other businesses, which includes general literature,printing and logistics.Net sales in learning totalled EUR 112.2 (115.2) million. Sales inthe biggest market, the Netherlands, were ahead of the comparableperiod, mostly due to earlier order intake than in the comparableperiod. Net sales grew in Belgium. Net sales decreased in Finland dueto shifts in order time in secondary education and lower sales in theWSOYpro unit, a provider of corporate educational materials. Netsales decreased in Poland: E-learning provider YDP's sales were lowerthan in the comparable period, when the Polish government awardedmore tenders than in the reporting period. Nowa Era's net sales wereslightly below the comparable period due to a change in the Polishcurricula, which has caused a delay in ordering. Exchange ratedevelopments negatively affected net sales in Poland and Hungary.Net sales in language services grew to EUR 14.5 (11.9) million. Theincrease is attributable to the new operations acquired in 2008.Sales of language services have been strongly affected by the generaleconomic situation. The business unit's focus is now on integratingthe Swedish business acquired in 2008 and on adopting the fixed coststructure to the new circumstances in the market.Net sales in literature and other businesses were EUR 41.6 (48.3)million with most of the decrease coming from multi-volume andyear-book publishing as well as decreased sales in printing. InFinland, the general literature market has slowed down considerably,but WSOY General Literature has outperformed the market.The Division's operating profit in January-June decreased 17.4% andamounted to EUR 18.2 (22.0) million. The operating profit did notinclude any non-recurring items. Most of the decrease came from thelanguage service operations, where the economic downturn has affectedthe sales considerably. The operating profit in learning was slightlybelow the comparable period due to the negative impact of theconsolidation of Nowa Era's seasonal losses in the first quarter.Cost-savings have offset the effect lower sales have had on profits.Operating profit in literature and other businesses decreased. InApril-June, the Division's operating profit decreased by 4.9% to EUR25.1 (26.4) million due to weaker results in language services aswell as in literature.The Division's business is very seasonal. Profit in learning ismainly accrued in the second and third quarters. The acquisition ofNowa Era added to the size of the learning business and thereforeincreased seasonality in the Division.Sanoma Learning & Literature continues to focus on furtherinternationalising its learning business, expanding language servicesand maintaining market leadership in Finnish general literaturepublishing.In 2009, it is estimated that the net sales and operating profitexcluding non-recurring items of Sanoma Learning & Literature willdecrease from the previous year's level. The development of net salesand operating profit is significantly affected by the exchange ratedevelopments in Sanoma Learning & Literature's operating countries.SANOMA TRADERetail specialist Sanoma Trade's strengths are a thoroughunderstanding of customers' needs and solid concepts. Sanoma Tradeserves its customers in over 200 million annual sales contacts atkiosks, bookstores and movie theatres. Operating in seven countries,press distribution is a strong link between publishers and retailers.- Kiosk operations' net sales grew in Finland in the second quarter.- Movie admissions grew by 11% in the second quarter in Finland.- Sanoma Trade's business in Finland has performed well, but theeconomic situation strongly affects the Baltic and Eastern Europeanbusinesses. The Russian kiosk network has been downsized.Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/EUR million 2009 2008 % 2009 2008 % 2008Net sales 195.7 203.2 -3.7 383.4 405.8 -5.5 866.6Operating profit 3.8 7.4 -48.8 7.6 17.3 -56.2 45.1excluding non-recurringitems % of net sales 1.9 3.6 2.0 4.3 5.2Operating profit 3.8 7.4 -48.8 7.6 17.3 -56.2 45.1Capital expenditure 15.2 12.4 22.7 33.8Average number of employees (full-time 6,282 6,527 -3.7 6,633equivalents)Operational indicators 1-6/ 1-6/Thousands 2009 2008Customer volume in kiosk operations 97,764 104,435Customer volume in bookstores 3,083 3,218Customer volume in movie theatres 4,515 4,799Number of copies sold (press distribution) 171,302 194,982Sanoma Trade's net sales in January-June decreased by 5.5%, totallingEUR 383.4 (405.8) million. Net sales of kiosk operations were at thecomparable period's level. Net sales decreased in press distributionand bookstores, and slightly in movie operations. Net sales adjustedfor changes in the Group structure decreased by 4.9%. Of SanomaTrade's net sales, 32% (34%) came from outside Finland. InApril-June, The Division's net sales were down by 3.7% and totalledEUR 195.7 (203.2) million. Most of the decrease came from operationsoutside Finland. In kiosk operations, net sales grew in the secondquarter.Net sales from kiosk operations amounted to EUR 197.6 (197.1)million. Kiosk sales in Finland and Estonia remained quite stable. InFinland, customer volume began to grow in the second quarter. Netsales increased slightly in Lithuania and in the new operations ofRussia and Romania. In Russia, Sanoma Trade has closed downloss-making kiosks. Kiosk sales decreased in Latvia, largely due tothe strong emphasis on fast food in the kiosks' product assortment.Net sales from press distribution were EUR 105.0 (118.4) million. Netsales decreased overall - with the exception of Russia, where saleswere in line with the comparable period. Additionally, cumulativepress distribution volumes decreased in all countries, although inFinland, the sales of tabloids increased clearly in May-June. In mostmarkets, cover prices rose due to VAT increases, which also affectedvolumes.The net sales of bookstores were EUR 46.9 (55.0) million. The netsales of the comparable period included the subscription businessdivested in May 2008. In line with the generally sluggish literaturemarket, net sales from bookstores decreased both in Finland andEstonia. In June, the bookstore chain Suomalainen Kirjakauppa wasvoted by consumers the retail chain brand with the best reputation inFinland.Net sales from movie operations totalled EUR 41.7 (43.8) million.Movie admissions in Finland have grown steadily during the first sixmonths from the record year 2008 and net sales increased in Finland.Finnkino's e-ticket concept was voted by consumers to be the mostrecommendable e-store in Finland. The economic downturn and lowerprivate consumption affected movie sales in the Baltic countries andnet sales decreased in Latvia in particular, where competition hasalso increased.In January-June, Sanoma Trade's operating profit decreased by 56.2%,totalling EUR 7.6 (17.3) million. The operating profit did notinclude any non-recurring items. The operating profit of kioskoperations was decreased by the economic slowdown and declining salesin the Baltic countries and the earlier investments in Russia andRomania. In press distribution, the operating profit declined in allmarkets. The operating profit of bookstores was slightly below thecomparable period. In movie operations, the result decreased due tofalling sales in the Baltic countries. Sanoma Trade has intensivecost-saving programmes in place in all of its businesses. In additionto strict cost-control, structural arrangements are being executed,starting in Estonia. In April-June, the Division's operating profitwas down by 48.8% and totalled EUR 3.8 (7.4) million. Kiosk and movietheatre operations performed well in Finland, but the weak results offoreign operations in general decreased the Division's result in thesecond quarter.Sanoma Trade continues to develop chain concepts in all itsbusinesses. Efficient chain management as well as the product andservice offerings catering to the needs of customers are key successfactors in all markets and will ensure the competitiveness of SanomaTrade.In 2009, Sanoma Trade's net sales are expected to decrease somewhatand operating profit excluding non-recurring items to decreaseclearly.THE SANOMA GROUPDividendIn line with the Board's proposal, the Annual General Meeting decidedto pay out a dividend of EUR 0.90 (1.00) per share for the year 2008.The record date for distribution of dividends was 6 April 2009 and inFinland, the dividends were paid on 15 April 2009. EUR 0.5 millionwas transferred to the donation reserve and EUR 511.5 million wasleft in equity. Sanoma conducts an active dividend policy andprimarily distributes over half of the Group result after taxes individends.Shares and holdingsIn January-June, a total of 43,578,137 (57,365,039) Sanoma shareswere traded on the NASDAQ OMX Helsinki. Traded shares accounted for27% (35%) of the average number of shares for the period. Sanoma'stotal stock exchange turnover was EUR 428.2 (960.2) million.In January-June, the volume-weighted average price of a Sanoma sharewas EUR 9.76, with a low of EUR 8.02 and a high of EUR 11.87. At theend of the review period, Sanoma's market capitalisation was EUR1,778.4 (2,260.3) million and the closing price of the share was EUR11.05 (14.07). At the end of June 2009, Sanoma had 20,924shareholders, with foreign holdings accounting for 9.7% (10.9%) ofall shares and votes. There were no major changes in share ownershipduring the review period and Sanoma did not issue any flaggingannouncements.During the period under review, the Board had an authorisation torepurchase the Company's shares. No shares were repurchased in thefirst six months of 2009 and the Company shares acquired in 2008 werecancelled in the first quarter. During the first quarter, the numberof shares also changed because of shares registered with stockoptions. There were no changes during the second quarter and at theend of June, Sanoma had 160,943,658 shares and the registered sharecapital totalled EUR 71,258,986.82.Board of Directors and auditorsThe AGM of 1 April 2009 confirmed the number of Sanoma's Boardmembers at ten. Board members Jaakko Rauramo and Sakari Tamminen werere-elected, and Annet Aris was elected to the Board as a new member.The Board of Directors of Sanoma consists of: Jaakko Rauramo,Chairman; Sakari Tamminen, Vice Chairman; and Annet Aris, RobertCastrén, Jane Erkko, Paavo Hohti, Sirkka Hämäläinen-Lindfors, SeppoKievari, Rafaela Seppälä and Hannu Syrjänen as members.The AGM re-appointed Pekka Pajamo, APA, and Sixten Nyman, APA, as hisdeputy, and chartered accountants KPMG Oy Ab, with Kai Salli, APA,acting as the Auditor in Charge, as the auditors of the Company.Board authorisationsThe AGM held on 1 April 2009 authorised the Board of Sanoma to decideon the repurchase of the Company's own shares. The authorisation iseffective until 30 June 2010.A maximum of 16,000,000 of the Company's own shares can berepurchased with the Company's unrestricted shareholders' equity, andthe repurchases will reduce the funds available for distribution ofprofits. The shares will be repurchased to develop the Company'scapital structure, carry out potential corporate acquisitions orother business arrangements, or to be transferred for other purposes,retained as treasury shares, or cancelled. The shares can berepurchased either through a tender offer made to all shareholders onequal terms or in other proportion than that of the currentshareholders at the market price on the NASDAQ OMX Helsinki Ltd atthe moment of repurchase.In addition, the Board has a valid authorisation to increase theshare capital. According to the authorisation issued by the AGM on 4April 2007, the Board may decide, until the AGM of 2010, on the issueof new shares, the transfer of treasury shares and the granting ofspecial rights entitling to shares. The authorisation does notexclude the right of the Board of Directors to decide on a directedshare issue. With this authorisation, and as a result of the use ofspecial rights, the Board is authorised to decide on the issuance ofa maximum of 82,000,000 new shares and the transfer of a maximum of5,000,000 treasury shares. In a directed share issue, a maximum of41,000,000 shares may be issued or transferred. With thisauthorisation, the Board is authorised to issue a maximum of5,000,000 stock options as part of an incentive programme within theCompany. Under the authorisation, the Board decided on 19 December2008 on the issuance of Stock Option Scheme 2008.During the review period, the authorisation by the AGM of 1 April2008 for repurchasing the Company's own shares was in force. Theauthorisation was not used during the review period and its validityended on 1 April 2009.Seasonal fluctuationThe net sales and result of Sanoma Magazines, Sanoma News and SanomaEntertainment are particularly affected by the development ofadvertising. Advertising sales are influenced, for example, by thenumber of newspaper and magazine issues published during eachquarter, which varies annually. Television advertising in Finland isusually strongest in the second and fourth quarters.Learning accrues most of its net sales and results during the secondand third quarters.A major portion of the net sales and results in retail are, on theother hand, generated in the last quarter, particularly fromChristmas sales. Of course, the number of shopping days and, forexample, the distribution of holidays over different quarters alsoimpacts the net retail sales between quarters.Seasonal business fluctuations influence the Group's net sales andoperating profit, with the first quarter traditionally being clearlythe smallest.Significant risks and uncertainty factorsManagement of business risks and utilisation of the opportunitiesassociated with them is included in the daily responsibilities ofSanoma's management. The management takes calculated risks in orderto ensure that the Company develops its business as successfully aspossible.The most significant risks and uncertainty factors Sanoma is facingare described in the Financial Statements, together with the mainprinciples of risk management. The most significant uncertaintyfactors of the current year are related to the development of mediaadvertising and consumer spending, as well as the development ofcurrency exchange rates. Due to the uncertain general economicsituation, reliable estimates on, for example, the development ofmedia advertising in the Group's various markets are not available.Sanoma expects media advertising to continue to decrease in 2009. Arapid change in media advertising and consumer confidence wouldaffect the Group result.Sanoma's stable business, strong balance sheet and current loanagreements ensure the Group's financial position even if theuncertainty in the financial markets continues.INTERIM REPORT (UNAUDITED)Accounting policiesThe Sanoma Group has prepared its Interim Report in accordance withIAS 34 'Interim Financial Reporting' while adhering to related IFRSstandards and interpretations applicable within the EU on 30 June2009. Sanoma Learning & Literature has started to capitaliseprepublication costs of learning material to intangible assets as of1 January 2009. Previously, the principle was to includeprepublication expenses in acquisition cost of inventory. The changein accounting policy does not have any material impact on Sanoma'sincome statement or balance sheet. The accounting policies of theInterim Report and the definitions of key indicators are presented onthe Sanoma website at Sanoma.com. All figures have been rounded andconsequently the sum of individual figures can deviate fromthe presented sum figure. Key figures have been calculated usingexact figures.CONSOLIDATED INCOME STATEMENT 1-6/ 1-6/ 1-12/EUR million 2009 2008 2008NET SALES 1,333.2 1,452.8 3,030.1Other operating income 33.5 55.8 97.1Materials and services 591.3 642.8 1,367.4Employee benefit expenses 351.0 349.8 702.8Other operating expenses 257.2 272.5 588.8Depreciation and impairment losses 81.2 72.4 231.9OPERATING PROFIT 86.1 171.2 236.3Share of results in associated companies -0.3 4.6 4.9Financial income 15.5 6.6 18.9Financial expenses 29.3 27.2 69.9RESULT BEFORE TAXES 72.0 155.2 190.3Income taxes -20.7 -35.5 -69.4RESULT FOR THE PERIOD 51.3 119.7 120.8Result attributable to:Equity holders of the Parent Company 51.6 118.9 115.7Non-controlling interests -0.3 0.7 5.1Earnings per share for result attributable tothe equity holders of the Parent companyEarnings per share, EUR 0.32 0.74 0.72Diluted earnings per share, EUR 0.32 0.73 0.72STATEMENT OF COMPREHENSIVE INCOME 1-6/ 1-6/ 1-12/EUR million 2009 2008 2008Result for the period 51.3 119.7 120.8Other comprehensive income:Change in translation differences -14.7 14.5 -39.1TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 36.7 134.1 81.7Total comprehensive income attributable to:Equity holders of the Parent Company 37.4 132.8 77.5Non-controlling interests -0.7 1.4 4.2CONSOLIDATED BALANCE SHEETEUR million 30.6.2009 30.6.2008 31.12.2008ASSETSNON-CURRENT ASSETSTangible assets 500.4 506.8 510.4Investment property 9.4 9.8 10.2Goodwill 1,487.7 1,504.1 1,491.6Other intangible assets 397.1 380.1 379.7Interests in associated companies 67.3 70.4 69.9Available-for-sale financial assets 20.7 21.4 20.6Deferred tax receivables 39.4 45.7 36.6Trade and other receivables 38.8 42.2 41.0NON-CURRENT ASSETS, TOTAL 2,560.8 2,580.5 2,560.0CURRENT ASSETSInventories 152.7 196.1 173.2Income tax receivables 28.2 42.2 24.9Trade and other receivables 409.4 459.2 409.1Available-for-sale financial assets 0.5 1.1 0.5Cash and cash equivalents 59.3 90.2 110.9CURRENT ASSETS, TOTAL 650.2 788.7 718.7ASSETS, TOTAL 3,211.1 3,369.2 3,278.7EQUITY AND LIABILITIESEQUITYEquity attributable to the equity holders of the Parent CompanyShare capital 71.3 71.3 71.3Share premium fund 187.6Treasury shares -31.2 -37.5Fund for invested unrestricted equity 192.7 0.0 192.7Other equity 850.2 1,048.4 993.7 1,114.1 1,276.1 1,220.1Non-controlling interests 13.4 21.0 17.0EQUITY, TOTAL 1,127.6 1,297.1 1,237.1NON-CURRENT LIABILITIESDeferred tax liabilities 105.0 106.1 106.2Pension obligations 36.8 43.7 37.9Provisions 6.2 8.4 6.0Interest-bearing liabilities 713.1 448.7 449.0Trade and other payables 35.9 28.3 34.6CURRENT LIABILITIESProvisions 10.2 9.3 10.9Interest-bearing liabilities 507.2 699.8 633.6Income tax liabilities 19.9 29.2 11.7Trade and other payables 649.0 698.6 751.7LIABILITIES, TOTAL 2,083.5 2,072.1 2,041.6EQUITY AND LIABILITIES, TOTAL 3,211.1 3,369.2 3,278.7CHANGES IN CONSOLIDATED EQUITYEUR million Equity attributable to the equity holders of the Parent Company Fund for Non- inves- cont- Share ted rol- Share pre- Trea- unres- ling Equi- capi- mium sury tricted Other inte- ty, tal fund shares equity equity Total rests totalEquity at1 Jan 2008 71.3 187.6 -51.6 1,138.6 1,345.9 18.3 1,364.2Unregistered usageof share -0.1 -2.4 -2.6 -2.6optionsAcquisitionof treasury -41.2 -41.2 -41.2sharesCancellationof treasury 61.6 -61.6sharesRegistrationofnew shares 0.1 2.4 2.6 2.6Expenserecognitionofoptions 2.6 2.6 2.6grantedDividends -160.8 -160.8 -2.2 -163.0paidChange innon-controllinginterests -3.1 -3.1 3.5 0.4Comprehensiveincome for the 132.8 132.8 1.4 134.1periodEquity at30 June 2008 71.3 187.6 -31.2 1,048.4 1,276.1 21.0 1,297.1Equity at1 Jan 2009 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1Unregistered usageof share -1.8 -1.8 -1.8optionsCancellationof treasury 37.5 -37.5sharesRegistrationofnew shares 1.8 1.8 1.8Expenserecognitionofoptions 2.0 2.0 2.0grantedDividends -144.9 -144.9 -0.9 -145.8paidChange innon-controllinginterests -2.0 -2.0Donations -0.5 -0.5 -0.5Comprehensiveincome for the 37.4 37.4 -0.7 36.7periodEquity at30 June 2009 71.3 192.7 850.2 1,114.1 13.4 1,127.6INCOME STATEMENT BY QUARTEREUR million 1-3/ 4-6/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/ 2009 2009 2008 2008 2008 2008 2008NET SALES 636.0 697.2 683.1 769.8 778.6 798.7 3,030.1Other operating income 14.1 19.4 38.1 17.7 14.8 26.5 97.1Materials and services 286.4 304.8 309.4 333.4 352.0 372.6 1,367.4Employee benefit 176.2 174.8 172.2 177.5 167.8 185.2 702.8expensesOther operating expenses 128.2 129.0 131.1 141.5 141.9 174.3 588.8Depreciation and 38.4 42.8 35.8 36.6 37.7 121.9 231.9impairment lossesOPERATING PROFIT 20.9 65.1 72.7 98.5 94.0 -28.8 236.3Share of results in 0.3 -0.6 3.0 1.6 0.4 -0.1 4.9associated companiesFinancial income 6.7 8.8 3.5 3.1 6.1 6.2 18.9Financial expenses 17.0 12.3 12.7 14.5 15.3 27.4 69.9RESULT BEFORE TAXES 10.9 61.1 66.5 88.7 85.2 -50.1 190.3Income taxes -3.2 -17.4 -12.2 -23.4 -24.1 -9.8 -69.4RESULT FOR THE PERIOD 7.7 43.7 54.4 65.3 61.1 -59.9 120.8Result attributable to:Equity holders of the 8.3 43.3 54.5 64.4 59.0 -62.2 115.7Parent CompanyNon-controlling -0.6 0.3 -0.2 0.9 2.1 2.3 5.1interestsEarnings per share for result attributableto the equity holders of the Parent companyEarnings per share, EUR 0.05 0.27 0.34 0.40 0.37 -0.39 0.72Diluted earnings per 0.05 0.27 0.34 0.40 0.37 -0.39 0.72share, EURCONSOLIDATED CASH FLOW STATEMENT 1-6/ 1-6/ 1-12/EUR million 2009 2008 2008OPERATIONSResult for the period 51.3 119.7 120.8Adjustments Income taxes 20.7 35.5 69.4 Financial expenses 29.3 27.2 69.9 Financial income -15.5 -6.6 -18.9 Share of results in associated companies 0.3 -4.6 -4.9 Depreciation and impairment losses 81.2 72.4 231.9 Gains/losses on sales of non-current assets -1.9 -27.8 -34.2 Other adjustments -28.7 -18.5 -40.1Change in working capital Change in trade and other receivables -0.5 -38.6 -18.5 Change in inventories -6.4 -15.5 -0.5 Change in trade and other payables, and -78.4 -43.7 3.6 provisionsInterest paid -24.6 -27.5 -53.4Other financial items -0.2 4.4 -4.5Taxes paid -19.1 -39.2 -70.2CASH FLOW FROM OPERATIONS 7.5 37.3 250.3INVESTMENTSAcquisition of tangible and intangible assets -43.1 -49.9 -113.3Operations acquired -17.8 -75.4 -162.3Sales of tangible and intangible assets 2.7 9.7 12.7Operations sold 0.0 39.6 49.2Loans granted -2.1 -20.2 -19.8Repayments of loan receivables 1.6 3.3 8.8Sales of short-term investments 0.5Interest received 3.6 1.5 7.4Dividends received 3.1 5.9 7.5CASH FLOW FROM INVESTMENTS -51.9 -85.5 -209.3CASH FLOW BEFORE FINANCING -44.4 -48.3 41.1FINANCINGProceeds from share subscriptions 0.0 5.1Minority capital investment/repayment of equity 0.0 1.0Purchase of treasury shares -40.9 -48.2Change in loans with short maturity 0.0 106.9 -53.8Drawings of other loans 366.5 167.9 525.1Repayments of other loans -245.1 -6.0 -264.6Payment of finance lease liabilities -1.6 -1.3 -2.8Dividends paid -145.8 -163.0 -164.3Donations/other profit sharing -0.5 -0.5 -0.5CASH FLOW FROM FINANCING -26.6 63.0 -3.1CHANGE IN CASH AND CASH EQUIVALENTSACCORDING TO CASH FLOW STATEMENT -71.0 14.7 38.0Effect of exchange rate differences on cash and -2.4 -0.5 0.1cash equivalentsNET CHANGE IN CASH AND CASH EQUIVALENTS -73.4 14.2 38.1Cash and cash equivalents at the beginning of 110.5 72.4 72.4the periodCash and cash equivalents at the end of the 37.0 86.6 110.5periodCash and cash equivalents in cash flow statement include cash andcash equivalents less bank overdrafts.NET SALES BY BUSINESS 1-3/ 4-6/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/EUR million 2009 2009 2008 2008 2008 2008 2008SANOMA MAGAZINESSanoma Magazines 110.6 123.2 111.7 135.2 124.8 143.9 515.7NetherlandsSanoma Magazines 50.9 53.2 70.1 76.8 77.4 82.4 306.7InternationalSanoma Magazines Belgium 51.3 52.6 54.2 55.5 53.7 59.8 223.2Sanoma Magazines Finland 50.3 48.0 50.7 51.9 49.1 53.9 205.6Eliminations -1.0 -1.2 -1.3 -0.9 -1.0 -1.1 -4.3TOTAL 262.1 275.9 285.5 318.5 304.0 338.9 1,246.8SANOMA NEWSHelsingin Sanomat 61.7 58.3 74.1 71.2 65.6 68.6 279.5Ilta-Sanomat 18.4 19.8 20.5 21.9 20.6 20.2 83.2Other publishing 22.9 23.8 23.9 24.9 23.5 25.8 98.2Other businesses 36.2 35.9 37.9 37.5 36.5 38.2 150.1Eliminations -31.7 -30.8 -35.5 -34.5 -32.7 -33.5 -136.2TOTAL 107.7 107.1 120.8 121.1 113.5 119.2 474.7SANOMA ENTERTAINMENTTV and radio
Datum: 06.08.2009 - 07:31 Uhr
Sprache: Deutsch
News-ID 4407
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