Alma Media Corporation's Interim Report for January-September 2009:
Profitability remained good desp
(Thomson Reuters ONE) - Alma Media Corporation Interim Report 29 October 2009 at 9:00am (EET)ALMA MEDIA CORPORATION'S INTERIM REPORT FOR JANUARY-SEPTEMBER 2009:PROFITABILITY REMAINED GOOD DESPITE POOR MARKET CONDITIONSJuly-September 2009 in brief:- Net sales MEUR 73.0 (81.4), down 10.3%.- Operating profit MEUR 11.1 (12.2), 15.3% (15.0%) of net sales.- Operating profit without one-time capital gains MEUR 11.7 (12.2),down 4.5%- Profit before taxes MEUR 10.9 (12.1), profit before taxes withoutone-time capital gains MEUR 11.4 (12.1).- Financial result for the period MEUR 7.7 (8.6), down 11.4%.- Earnings per share EUR 0.10 (0.11).- Interest-bearing net debt MEUR -3.2 (19.8).Dividends:- The Board of Directors of Alma Media Corporation has decided not toexercise the authorisation provided by the Annual General Meetingregarding additional dividend payment for the fiscal year 2008.Outlook for 2009:- Alma Media expects that the full year's comparable net sales andoperating profit will be lower than in 2008 due to the decline inadvertising sales. In the last quarter, net sales will fall behindthe comparison period in 2008. Operating profit is expected to beclose to that of the comparison period.Kai Telanne, President and CEO, on Alma Media's third quarter:The weakness in the advertising market continued. As in the secondquarter, the newspapers' advertising sales were approximatelyone-fifth lower than the comparison period. The poor marketconditions also decreased Alma Media's net sales. In particular,there was a decrease in nationwide advertising. Local advertisingsales for our newspapers varied somewhat from one region andnewspaper to another. Advertising sales for the newspapers' onlineservices continued to improve: third-quarter sales increased by 17.7%from the comparison period.The circulations and readership of Alma Media's newspapers remainedat a good level in the third quarter.Alma Media's profitability remained good despite the difficult marketsituation, thanks to savings measures progressing as planned.In August, we made a mandatory tender offer for all shares inTalentum Oyj as our ownership exceeded 30%. We have decided to extendthe duration of the tender offer until 16 November 2009 because theFinnish Competition Authority decided to refer the tender offer tocontinued consideration on September 9, 2009. During the furtherproceedings that may last a maximum of three months, the FCA mayapprove the deal as such, impose conditions upon its approval orpropose that the Market Court prohibit the deal.For further information, please contact:Kai Telanne, President and CEO, telephone +358 10 665 3500Tuomas Itkonen, CFO, telephone +358 10 665 2244Conference, webcast and conference call:The company will hold a conference for analysts, investors and themedia in the Finnish language in the "Carl" conference room of theScandic Marski hotel at the address Mannerheimintie 10, Helsinki onOctober 29, 2009 from 11:00am to 12:00noon. The material for theevent will be available online at www.almamedia.fi/calendar beginning11:00am.A webcast and conference call in English will start on October 29,2009 at 2:00pm. You can participate by telephone on +44 (0)20 30032666 or follow the conference at the web addresswww.almamedia.fi/investors.Rauno HeinonenVice President, Corporation Communications and IRAlma Media CorporationDISTRIBUTIONNASDAQ OMX HelsinkiPrincipal mediaALMA MEDIA CORPORATION'S INTERIM REPORT JANUARY 1-SEPTEMBER 30, 2009The figures are compared in accordance with the InternationalFinancial Reporting Standards (IFRS) with those of the correspondingperiod in 2008, unless otherwise stated. The figures are unaudited.The figures in the tables are independently rounded.GROUP KEY FIGURESKEY FIGURES 2009 2008 Change 2009 2008 Change 2008 2007MEUR Q3 Q3 % Q1-Q3 Q1-Q3 % Q1-Q4 Q1-Q4Net sales 73.0 81.4 -10.3 228.8 254.7 -10.2 341.2 328.9Operating profit 11.1 12.2 -9.0 29.6 38.8 -23.8 48.3 64.4 % of net sales 15.3 15.0 12.9 15.3 14.2 19.6Operating profitwithout one-timeitems 11.7 12.2 -4.5 31.4 38.2 -17.9 47.7 52.9 % of net sales 16.0 15.0 13.7 15.0 14.0 16.1Return on Equity/ROE(Annually)* 42.7 53.7 32.5 42.3 37.7 43.8Return on Invets/ROI(Annually)* 37.3 39.0 28.6 37.4 34.8 39.9Net financialexpenses 0.2 0.2 -3.0 0.3 -0.1 -635.9 0.4 -0.1Net financialexpenses, % of netsales 0.2 0.2 0.1 0.0 0.1 0.0Share of associatedcompanies' results -0.1 0.0 -575.8 -0.4 1.8 -122.2 4.5 3.5Balance sheettotal 155.4 166.5 -6.9 166.9 181.3Gross capitalexpenditure 2.2 1.5 91.1 5.2 11.6 -49.8 14.5 12.1Gross capitalexpenditure, %of net sales 3.0 1.8 2.3 4.6 4.2 3.7Equity ratio 63.4 54.2 57.2 69.8Gearing, % -3.7 24.6 6.5 -15.2Interest-bearingnet debt -3.2 19.8 -116.3 5.8 -17.9Interest-bearingliabilities 11.9 25.3 -53.0 19.1 6.8Non-interest-bearingliabilities 56.7 60.8 -6.7 59.3 56.2Average no. ofpersonnel,calculated asfull-timeemployees, excl.delivery staff 1,916 2,039 -6,1 1,927 1,988 -3,1 1,981 1,971Average no. ofdelivery staff 1,045 1,045 0,0 993 987 0,6 968 962Earnings/share,EUR (basic) 0.10 0.11 -10.8 0.27 0.40 -30.5 0.51 0.68Earnings/share,EUR (diluted) 0.10 0.11 -10.6 0.27 0.39 -30.4 0.51 0.68Cash flow fromoperatingactivities, EUR 0.05 0.08 -33.3 0.44 0.51 -14.8 0.63 0.70Shareholders'equity/share, EUR 1.16 1.07 8.5 1.18 1.58Marketcapitalization 543.2 604.4 -10.1 369.3 870.7Average no. ofshares (1,000shares)- basic 74,613 74,613 74,613 74,613 74,613 74,613- diluted 74,673 74,769 74,635 74,789 74,764 74,773No. of shares atend of period(1,000 shares) 74.613 74,613 74,613 74,613 74,613 74,613*ref. Main accounting principles of Interim ReportGROUP NET SALES AND RESULT JULY-SEPTEMBER 2009During the review period, Alma Media's net sales declined 10.3% fromthe corresponding period in the previous year, being MEUR 73.0(81.4).The operating profit declined to MEUR 11.1 (12.2), 15.3% (15.0%) ofnet sales. The third-quarter operating profit includes one-timecapital gains of MEUR -0.5 (0.0).GROUP NET SALES AND RESULT JANUARY-SEPTEMBER 2009The Group's net sales from January to September 2009 totalled MEUR228.8 (254.7). The share of the online business was 13.0% (13.0%) ofconsolidated net sales, MEUR 29.6 (33.2). The group operating profitwas MEUR 29.6 (38.8), representing a 12.9% (15.3%) margin. Thecomparable operating profit for January-September was MEUR 31.4(38.2), down 17.9% from the comparison period in the previous year.The operating profit includes one-time items in the amount of MEUR-1.8 (0.6). The one-time items in the current year consist mainly ofreorganisation costs due to savings measures. The one-time profitfrom sales in the comparison period is from the sale of real estate.Net sales of the Newspapers segment were MEUR 164.0 (175.6). Netsales of the segment's advertising sales declined 14.6% from thecomparison period. Circulation net sales for Newspapers increasedslightly, supported by price increases. The comparable operatingprofit for Newspapers was MEUR 28.1 (31.0).Net sales of the Kauppalehti Group were MEUR 47.0 (54.5). Thesegment's advertising sales declined 30.1% from the comparisonperiod. Kauppalehti's circulation sales remained at the previousyear's level. The circulation sales for the entire Kauppalehti Groupdeclined 4.9%. The comparable operating profit for the KauppalehtiGroup was MEUR 4.7 (7.6).Net sales of the Marketplaces segment were MEUR 20.5 (26.9). Thecomparable operating loss of Marketplaces was MEUR 0.3 (operatingprofit of MEUR 3.0).CHANGES IN GROUP STRUCTURE IN 2009Alma Media's ownership in Kotikokki.net Oy has risen to 40% in June.This company will be reported as an associated company under theNewspapers segment in the consolidated financial statements.OUTLOOK FOR 2009Uncertainty about the development of advertising sales will continue.Alma Media expects the single-copy sales of afternoon papers tocontinue their decline. The paid circulations of regional and localpapers, as well as Kauppalehti, are expected to stay neutral ordecline moderately. Advertising in newspapers and the online media isexpected to stay at a lower level than in the previous year alsoduring the remaining part of 2009.Alma Media expects the full-year comparable net sales and operatingprofit to decrease from the 2008 level as a result of the decline inadvertising sales. In the last quarter, net sales will fall behindthe levels of the corresponding period in 2008. Operating profit isexpected to be close to that of the comparison period.MARKET CONDITIONSThe Finnish national economy has declined rapidly in 2009. Accordingto Statistics Finland, the Finnish GNP declined 7.6% in the firstquarter and 9.4% in the second quarter of 2009 compared with thecorresponding periods in 2008. The GNP of Finland is forecast toweaken 4.5-7.2% in 2009. For 2010, the forecasts vary between -0.3%and +1.8%.The decline in advertising sales levelled during the second quarter.According to TNS Media Intelligence, total advertising spendingdeclined 19.6% in January-September 2009 and 17.7% in September incomparison with 2008. Advertising in newspapers during the sameperiods declined 23.5% and 20.9%, respectively. In July-September,total advertising spending declined 19.5% and in newspapers, 23.4%.Alma Media is not expecting any significant improvement in theadvertising sales market up to the end of 2009.Online advertising, according to TNS data, declined 7.3% inJanuary-September and 4.8% in the third quarter in comparison withthe year before.Single-copy sales of afternoon papers declined 8.0% inJanuary-September.NET SALES AND OPERATING PROFIT/LOSS BY SEGMENTNET SALES BY SEGMENT, MEUR 2009 2008 2009 2008 2008 Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Newspapers External 51.9 56.2 160.6 172.4 232.2 Inter-segments 1.1 1.0 3.3 3.2 4.5Newspapers total 53.0 57.1 164.0 175.6 236.7Kauppalehti Group External 14.5 16.6 46.6 54.6 73.4 Inter-segments 0.1 0.0 0.4 0.0 0.1Kauppalehti Group total 14.6 16.5 47.0 54.5 73.5Marketplaces External 6.3 8.4 20.5 26.6 34.0 Inter-segments 0.0 0.1 0.0 0.2 0.3Marketplace total 6.2 8.4 20.5 26.9 34.3Others External 0.4 0.4 1.1 1.2 1.6 Inter-segments 3.5 3.5 11.0 9.7 13.5Others total 3.9 3.9 12.1 10.9 15.1Elimination -4.7 -4.5 -14.7 -13.1 -18.4Total 73.0 81.4 228.8 254.7 341.2 2009 2008 2009 2008 2008OPERATING PROFIT/LOSS BY SEGMENT, MEUR * Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4 Newspapers 8.8 10.0 26.8 31.0 41.5 Kauppalehti Group 2.3 2.5 4.3 7.6 9.7 Marketplaces 0.0 1.0 -0.4 3.0 2.0 Other operations 0.0 -1.3 -1.2 -2.8 -4.9Total 11.1 12.2 29.6 38.8 48.3*) incl. one-time itemsNEWSPAPERS 2009 2008 2009 2008 2008Key figures, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Net sales 53.0 57.1 164.0 175.6 236.7Circulation sales 28.5 28.3 82.7 81.5 108.6Media advertisingsales 22.2 26.5 73.9 86.4 117.7Other sales 2.3 2.4 7.5 7.7 10.4Operating profit 8.8 10.0 26.8 31.0 41.5Operating profit,% 16.7 17.4 16.3 17.7 17.5Operating profitwithout one-timeitems 9.3 10.0 28.1 31.0 41.5Operating profitwithout one-timeitems, % 17.5 17.4 17.1 17.7 17.5Average no. ofpersonnel,calculated asfull-timeemployees excl.delivery staff 1 185 1 244 1 172 1 207 1 197Average no. ofdelivery staff 1 045 1 045 993 987 968 2009 2008 2009 2008 2008Operational keyfigures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4AuditedcirculationIltalehti 122,548Aamulehti 139,130Online services,unique visitors,weeklyIltalehti.fi 1,685,265 1,383,260 1,696,981 1,346,394 1,412,534Telkku.com 553,276 488,791 573,088 507,212 515,939Aamulehti.fi 195,761 136,055 191,197 138,831 147,048The Newspapers segment reports the publishing activities of 35newspapers. The largest titles are Aamulehti and Iltalehti.The third-quarter net sales for the Newspapers segment declined 7.3%from the previous year, totalling MEUR 53.0. Advertising sales inthis segment declined MEUR 4.3 (16.3%) during the third quarter of2009.Circulation net sales for Newspapers grew slightly in the thirdquarter, mainly with the assistance of price increases. Circulationdevelopment for regional and local papers remained neutral or in aslight decline. Iltalehti's single-copy sales decreased 6.6% in thethird quarter while the entire afternoon paper market declined 5.7%.Iltalehti.fi further strengthened its position as Finland's mostpopular online service. According to TNS Gallup, the service made twonational records on calendar week 40 with 1,915,283 unique weeklyvisitors and more than 10 million visits.Cost savings were realised according to business unit specific plans.The production efficiency of printing houses was good.The Newspapers segment's third-quarter operating profit declined toMEUR 8.8 (10.0). The segment's comparable operating profit was MEUR9.3 (10.0).KAUPPALEHTI GROUP 2009 2008 2009 2008 2008Key figures, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Net sales 14.6 16.5 47.0 54.5 73.5Circulation sales 5.9 5.9 17.4 18.3 24.8Media advertising sales 3.0 4.7 11.4 16.3 22.2Other sales 5.6 5.9 18.2 19.8 26.4Operating profit 2.3 2.5 4.3 7.6 9.7Operating margin, % 15.5 15.4 9.3 14.0 13.2Operating profit withoutone-time items 2.3 2.5 4.7 7.6 9.7Operating margin withoutone-time items, % 15.5 15.4 10.0 14.0 13.2Average no. of personnel,calculated as full-timeemployees 477 503 485 500 499 2009 2008 2009 2008 2008Operational key figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Audited circulationKauppalehti 86,654Online services, uniquevisitors, weeklyKauppalehti.fi 504,031 366,585 528,466 360,585 391,453The Kauppalehti Group specialises in the production of business andfinancial information. Its best known title is Finland's leadingbusiness paper, Kauppalehti. The Group also includes the contractpublishing company Lehdentekijät, direct marketing companyKauppalehti 121 and the news agency BNS that operates in the Balticcountries.The net sales of the Kauppalehti Group declined 11.4% in the thirdquarter of 2009, being MEUR 14.6. This was mainly due to the declineof Kauppalehti's advertising sales by 35.8%. Kauppalehti'sadvertising sales development continued at the second quarter level.The segment's circulation sales were slightly lower than the previousyear's third-quarter level.Kauppalehti increased its readership, and the number of visitors tothe Kauppalehti.fi online service continued to grow. The websitereached a new record, 600,304 unique weekly visitors, on calendarweek 38.Programmes to implement the planned cost savings have advanced in allbusiness units of the Kauppalehti Group.The third-quarter operating profit of the Kauppalehti Group declinedMEUR 0.3 and was MEUR 2.3. The comparable operating profit for theGroup was MEUR 2.3 (2.5).MARKETPLACES 2009 2008 2009 2008 2008Key figures, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Net sales 6.2 8.4 20.5 26.9 34.3Operations in Finland 5.2 6.9 17.0 22.1 28.0Operations outside Finland 1.1 1.5 3.5 4.8 6.3Operating profit 0.0 1.0 -0.4 3.0 2.0Operating margin, % 0.7 11.6 -1.9 11.1 5.9Operating profit withoutone-time items 0.2 1.0 -0.3 3.0 2.0Operating margin withoutone-time items, % 2.4 11.6 -1.3 11.1 5.9Average no. of personnel,calculated as full-timeemployees 189 220 207 210 216 2009 2008 2009 2008 2008Operational key figures Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Online services, uniquevisitors, weeklyEtuovi.com 363,331 325,377 354,495 323,812 321,176Autotalli.com 100,811 87,281 98,074 92,855 91,744Monster.fi 67,837 55,642 73,970 66,458 65,585Mikko.fi 87,732 76,576 79,028 40,313 47,915Mascus.com (Finland) 123,594 87,894 123,179 71,939 80,679City24 213,091 256,922 243,264 259,298 265,516The Marketplaces segment reports classified services produced on theinternet and supported by printed products. The services in Finlandare Etuovi.com, Monster.fi, Autotalli.com, Mascus.fi and Mikko.fi.The services outside Finland are City 24, Mascus and Bovision.In the third quarter of 2009, the net sales of Marketplaces declined26.3%. No significant changes in comparison with the second quartertook place in the operating environment of Marketplaces. There wassome revival in the recruitment advertising market towards the end ofthe third quarter when a few large companies re-started their publicrecruitment activities. The slight upturn in the home sales and usedvehicle markets continued in the third quarter.The operating profit of Marketplaces declined from MEUR 1.0 to 0.0 inthe third quarter. The segment's comparable operating profit was MEUR0.2 (1.0).The Russian business of City24 was discontinued during the reviewperiod. A one-time expense of MEUR 0.1 was recorded for thearrangement.ASSOCIATED COMPANIESShare of associated companies result, 2009 2008 2009 2008 2008MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Newspapers 0.0 0.0 0.1 0.1 0.1Kauppalehti group Talentum Oyj -0.3 -0.3 -1.0 1.0 1.6Marketplaces 0.0 0.0 0.0 0.0 0.0Other operations AP-Paino Oy 0.0 0.0 0.0 0.0 1.8 Other associated companies 0.2 0.3 0.5 0.7 1.0Total -0.1 0.0 -0.4 1.8 4.5Alma Media Corporation purchased 375,000 Talentum Oyj shares in adeal on August 10, 2009. After the purchase, Alma Media Group holds a30.65 per cent stake in Talentum Oyj, which is reported under theKauppalehti Group. The company's own shares in the possession ofTalentum are here included in the total number of shares. In theconsolidated financial statements of Alma Media the own shares heldby Talentum itself are not included in the total number of shares.Alma Media's shareholding in Talentum was stated as 31.1% in itsconsolidated financial statements of September 30, 2009.When the shareholding of Alma Media group in Talentum Oyj exceeded3/10, Alma Media was obliged to make a mandatory tender offer for allof Talentum Oyj's shares as stipulated by the Securities Markets Act.The offer started on August 19, 2008 at EUR 1.85 per share. AlmaMedia has decided to extend the offer period until November 16, 2009as the Finnish Competition Authority moved the deal to continuedconsideration that may last a maximum of three months on September 9,2009.The corporation sold its ownership in AP-Paino Oy in December 2008.BALANCE SHEET AND FINANCIAL POSITIONThe consolidated balance sheet at the end of September 2009 stood atMEUR 155.4 (166.9 on December 31, 2008). The corporation's equityratio at the end of September was 63.4% (57.2% on December 31, 2008)and equity per share was EUR 1.16 (1.18 on December 31, 2008).The Group currently has a MEUR 100 commercial paper programme inFinland underwhich it is permitted to issue papers to a total amount of MEUR0-100. The unused part of the programme was MEUR 93 on September 30,2009.In addition, Alma Media Corporation entered a two-year credit limitagreement in the amount of MEUR 50 with Nordea Bank Finland in thethird quarter to strengthen its financial structure and liquidityreserves.The Group's interest-bearing debt is denominated in euros andtherefore does not require hedging against exchange rate differences.The most significant purchasing contracts denominated in foreigncurrency are hedged.The consolidated cash flow in the third quarter fell MEUR 1.9 behindthe comparison period, being MEUR 3.9. Cash flow before financing wasMEUR 2.4 (4.6).CAPITAL EXPENDITUREAlma Media Group's capital expenditure in July-September totalledMEUR 2.2 (1.5). The third-quarter capital expenditure comprisednormal operational and replacement investments, as well as thepurchase of the shares in Talentum Oyj.RISKS AND RISK MANAGEMENTThe purpose of Alma Media's risk management activities is tocontinuously evaluate and manage all opportunities, threats and risksin conjunction with the company's operations to enable the company toreach its set objectives and to secure business continuity.The risk management process identifies the risks, developsappropriate risk management methods and regularly reports on riskissues to the risk management organisation. Risk management is partof Alma Media's internal audit function and thereby part of goodcorporate governance. Written limits and processing methods are setfor quantitative and qualitative risks by the corporate riskmanagement system.The strategic risks for Alma Media are a significant drop in thereadership of its newspapers and a decline in advertising sales.Fluctuating economic cycles are reflected on the development ofadvertising sales, which accounts for approximately half of thecorporation's net sales. Developing businesses outside Finland, suchas the Baltic countries and other East European countries, includecountry-specific risks relating to market development and economicgrowth.In the long term, the media business will undergo changes along withthe changes in media consumption and technological developments. TheGroup's strategic objective is to meet this challenge through renewaland the development of new business operations, particularly inonline media.The most important operational risks are disturbances in informationtechnology systems and telecommunication, and an interruption ofprinting operations.ADMINISTRATIONAlma Media Corporation's ordinary Annual General Meeting held onMarch 11, 2009 elected Lauri Helve, Matti Kavetvuo, Kai Seikku, ErkkiSolja, Kari Stadigh, Harri Suutari, Catharina Stackelberg-Hammarénand Seppo Paatelainen members of the company's Board of Directors.In its constitutive meeting held after the Annual General Meeting,the Board of Directors elected Kari Stadigh its Chairman and SeppoPaatelainen its Deputy Chairman. The Board also elected the membersof its committees. Kai Seikku, Erkki Solja, CatharinaStackelberg-Hammarén and Harri Suutari were elected members of theAudit Committee. Kari Stadigh, Seppo Paatelainen and Lauri Helve wereelected members of the Nomination and Remuneration Committee.The Annual General Meeting elected the auditing firm Ernst & Young Oythe company's auditor.DIVIDENDSIn accordance with the proposal by the Board of Directors, the annualgeneral meeting decided to pay a dividend of EUR 0.30 per share forthe financial period 2008. Dividend payment date was March 25, 2009.The dividends paid to the shareholders of the company in Marchtotalled MEUR 22.4.The Board of Directors of Alma Media Corporation has decided not toexercise the authorisation provided by the Annual General Meetingregarding additional dividend payment for the fiscal year 2008.THE ALMA MEDIA SHAREIn July-September, altogether 1,806,695 Alma Media shares were tradedat NASDAQ OMX Helsinki Stock Exchange, representing 2.4% of the totalnumber of shares. The closing price of the Alma Media share at theend of the last trading day of the review period, September 30, 2009,was EUR 7.28. The lowest quotation during the review period was EUR6.50 and the highest was EUR 7.35. Alma Media Corporation's marketcapitalisation at the end of the review period was MEUR 543.2.The company does not own any of its own shares. The annual generalmeeting decided to authorise the Board of Directors to repurchase amaximum of 3,730,600 of the company's shares, representing 5% of allshares. The authorisation is valid until the closing of the nextordinary general meeting.Option rightsOption programme 2006The Annual General Meeting of March 8, 2006 approved a three-stageoption programme (option rights 2006A, 2006B and 2006C), disapplyingthe pre-emptive subscription right of the shareholders. Under theprogramme, stock options may be granted to the managements of AlmaMedia Corporation and its subsidiaries as incentives for ensuringmotivation and long-term commitment. Altogether 1,920,000 stockoptions may be granted in three lots of 640,000 each and these may beexercised to subscribe to a maximum of 1,920,000 Alma Media shares.A total of 515,000 2006A options have been issued to Groupmanagement. Altogether 75,000 of the 2006A options have been returnedto the company due to the termination of employment contracts. Afterthe returned options, Group management possesses a total of 440,0002006A option rights. In 2007 and 2008, Alma Media's Board ofDirectors decided to annul a total of 200,000 2006A option rights inpossession of the company. The option rights of the 2006A programmeare traded at NASDAQ OMX Helsinki Exchange since April 10, 2008.In 2007, the Board of Directors of Alma Media decided to issue515,000 options under the 2006B programme to Group management.Altogether 50,000 of the 2006B options have been returned to thecompany. Group management possesses a total of 465,000 2006B optionrights. All 175,000 2006B option rights in the possession of thecompany have been annulled. The option rights of the 2006B programmeare traded at NASDAQ OMX Helsinki Exchange since April 1, 2009.In 2008, the Board of Directors of Alma Media decided to issue520,000 options under the 2006C programme to Group management.Altogether 50,000 of the 2006C options have been returned to thecompany, and Group management now possesses a total of 470,000 2006Coption rights. 170,000 2006C option rights have been annulled.If all the subscription rights are exercised, the programme willdilute the holdings of the earlier shareholders by 1.8%.The share subscription periods and prices are:2006A: April 1, 2008-April 30, 2010, average trade-weighted priceApril 1-May 31, 20062006B: April 1, 2009-April 30, 2011, average trade-weighted priceApril 1-May 31, 20072006C: April 1, 2010-April 30, 2012, average trade-weighted priceApril 1-May 31, 2008The subscription price of shares that may be subscribed under thesestock option rights will be reduced by the amount of dividends andcapital repayments decided after the start of the period determiningthe subscription price and before the subscription of shares on thesettlement date for each dividend payment or capital repayment. Theshare subscription price under the 2006A option is EUR 5.28 pershare, the subscription price under the 2006B option is EUR 8.65 andthe subscription price under the 2006C option is EUR 8.76,correspondingly.Option programme 2009The Annual General Meeting of Alma Media on March 11, 2009 decided,in accordance with the proposal by the Board of Directors, tocontinue the incentive and commitment system for Alma Mediamanagement through an option programme according to earlierprinciples and decided to grant stock options to the key people ofAlma Media Corporation and its subsidiaries in the period 2009-2011.Altogether 2,130,000 stock options may be granted, and these may beexercised to subscribe to a maximum of 2,130,000 Alma Media shares,either new or in possession of Alma Media.The Board of Directors of Alma Media Corporation in May 2009 decidedto grant 640,000 option rights to corporate management under the2009A programme. The company is in possession of 70,000 2009Aoptions. The subscription price of a 2009A option is EUR 5.21 pershare.The granting of option rights is decided upon by the Board ofDirectors. The shares subscribed on the basis of the option rightsnow issued will constitute no more than 2.8% of all of the company'sshares and votes after a share subscription, in case new shares areissued.The share subscription periods and prices are:2009A: April 1, 2012-March 31, 2014, average trade-weighted priceApril 1-30, 20092009B: April 1, 2013-March 31, 2015, average trade-weighted priceApril 1-30, 20102009C: April 1, 2014-March 31, 2016, average trade-weighted priceApril 1-30, 2011The Board of Directors has no other current authorisations to raiseconvertible loans and/or to raise the share capital through a newissue.Market liquidity guaranteeAlma Media and eQ Pankki Oy have had a liquidity contract under whicheQ Pankki Oy guarantees bid and ask prices for the shares with amaximum spread of 3% during 85% of the exchange's trading hours. Thecontract applies to a minimum lot of 2,000 shares. eQ Pankki gavenotice to terminate the liquidity guarantee agreement on October 22,2009.Flagging noticesIn July-September 2009, Alma Media received the following notices ofchanges in shareholdings pursuant to Chapter 2, Section 9 of theSecurities Act:On July 2, 2009 Alma Media received flagging notices fromSkandinaviska Enskilda Banken, Ilkka-Yhtymä Oy and Kaleva KustannusOy. According to the notices, Skandinaviska Enskilda Banken AB (publ)Helsinki Branch intended to sell an aggregate of 11,958,000 AlmaMedia shares to Ilkka-Yhtymä Oy and Kaleva Kustannus Oy.On August 10, 2009 Skandinaviska Enskilda Banken AB (publ) HelsinkiBranch notified that it had sold 11,958,000 Alma Media shares. Withthe completed deal, the holding of Skandinaviska Enskilda Banken AB(publ) Helsinki Branch in the shares and voting rights of Alma MediaCorporation falls below the flagging limit of 1/20 and becomes zero.According to a notification by Ilkka-Yhtymä Oyj (Business ID0182140-9), the company purchased an aggregate of 7,500,000 AlmaMedia shares on August 10, 2009. With the deal, Ilkka-Yhtymä Oyj'sholding in Alma Media Corporation's shares and voting rights exceedsthe flagging limit of 1/5, being 20.40% (a total of 15,218,991 sharesand votes).According to a notification by Kaleva Kustannus Oy (Business ID0187274-0), the company purchased an aggregate of 4,458,000 AlmaMedia shares on August 10, 2009. With the deal, Kaleva Kustannus Oy'sholding in Alma Media Corporation exceeds the flagging limit of 1/20,being 5.97% (a total of 4,458,000 shares and votes).EVENTS AFTER THE REVIEW PERIODBaltic News Service, part of the Alma Media Group, bought the entirestock of Cision AB's Lithuanian subsidiary on October 1, 2009. CisionLithuania is a company specialising in media monitoring and mediaanalysis. The company is reported under the Kauppalehti Group.SUMMARY OF FINANCIAL STATEMENTS AND NOTES 2009 2008 2009 2008 2008INCOME STATEMENT, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4NET SALES 73.0 81.4 228.8 254.7 341.2 Other operating income 0.0 0.1 0.2 0.8 1.7 Materials and services -22.6 -25.0 -70.0 -76.5 -102.0 Costs arising from employmentbenefits -25.1 -27.5 -83.3 -87.0 -119.0 Depreciation and writedowns -2.3 -2.2 -6.6 -6.4 -8.8 Operating expenses -11.9 -14.6 -39.6 -46.7 -64.9OPERATING PROFIT 11.1 12.2 29.6 38.8 48.3 Financial income 0.1 0.2 0.5 1.0 1.2 Financial expenses -0.2 -0.3 -0.8 -0.9 -1.6 Share of associated companies'results -0.1 0.0 -0.4 1.8 4.5PROFIT BEFORE TAX 10.9 12.1 28.9 40.7 52.4 Income tax -3.2 -3.5 -8.3 -10.6 -13.4PROFIT FOR THE PERIOD 7.7 8.6 20.6 30.1 39.0OTHER COMPREHENSIVE INCOMEExchange difference on translation offoreign operations 0.4 0.0 0.3 0.0 -0.8Share of associated companies' othercomprehensive income 0.3 0.0 -0.4 -0.3 -0.9Income tax relating to components ofother comprehensive income 0.0 0.0 0.0 0.0 0.0 Other comprehensive income for the period, net of tax 0.7 0.0 -0.1 -0.3 -1.8TOTAL COMPREHENSIVE INCOME FOR THEPERIOD 8.4 8.6 20.5 29.8 37.2Distribution of the profit for theperiod: To the parent company shareholders 7.6 8.5 20.5 29.5 38.4 Minority interest 0.1 0.2 0.1 0.6 0.6Distribution of the comprehensiveincome for the period: To the parent company shareholders 8.3 8.5 20.4 29.2 36.6 Minority interest 0.1 0.2 0.1 0.6 0.6Earning/share calculated from theprofit for the period to the parentcompany shareholdersEarnings/share, EUR 0.10 0.11 0.27 0.40 0.51Earnings/share (diluted), EUR 0.10 0.11 0.27 0.39 0.51 30 Sep 30 Sep 31 DecBALANCE SHEET, MEUR 2009 2008 2008 ASSETS NON-CURRENT ASSETS Goodwill 33.1 33.3 33.0 Intangible assets 11.4 12.0 12.3 Tangible assets 32.7 36.2 35.2 Investments in associated companies 29.2 31.5 31.6 Other financial assets 4.5 4.2 4.2 Deferred tax assets 1.1 1.0 1.3 CURRENT ASSETS Inventories 1.3 1.0 1.5 Tax receivables 0.0 1.6 4.0 Accounts receivable and other receivables 26.1 32.7 27.5 Other short-term financial assets 0.7 2.7 2.9 Cash and cash equivalents 15.1 5.6 13.3 ASSETS AVAILABLE FOR SALE 0.0 4.7 0.0 TOTAL ASSETS 155.4 166.5 166.9 30 Sep 30 Sep 31 DecBALANCE SHEET, MEUR 2009 2008 2008 SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 44.8 44.8 44.8 Share premium fund 2.8 2.8 2.8 Cumulative translation adjustment -0.5 0.0 -0.8 Retained earnings 39.5 32.2 41.1 Parent company shareholders' equity 86.6 79.8 87.9 Minority interest 0.1 0.6 0.6 TOTAL SHAREHOLDERS' EQUITY 86.8 80.4 88.5 LIABILITIES Non-current liabilities Interest-bearing liabilities 3.0 4.1 3.9 Deferred tax liabilities 2.5 2.6 2.5 Pension obligations 3.4 3.6 3.7 Provisions 0.1 0.1 0.1 Other long-term liabilities 0.5 0.4 0.5 Current liabilities Interest-bearing liabilities 8.9 21.2 15.2 Advances received 18.6 18.3 12.3 Tax liabilities 0.3 0.0 1.3 Provisions 0.6 0.2 1.0 Accounts payable and other liabilities 30.7 35.6 37.9 TOTAL LIABILITIES 68.6 86.1 78.4 TOTAL EQUITY AND LIABILITIES 155.4 166.5 166.9RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January-30 September 2009 Share Parent Share premium Translation Retained company Minority EquityMEUR capital fund difference earnings total interest totalEquity, 1 Jan2009 44.8 2.8 -0.8 41.1 87.9 0.6 88.5Dividend paidby parentcompany -22.4 -22.4 -22.4Dividendspaid bysubsidiaries -0.6 -0.6Share ofassociatedcompanies'equity items 0.2 0.2 0.2Share-basedpayments 0.5 0.5 0.5TotalComprehensiveincome forthe period 0.3 20.1 20.4 0.1 20.5Equity, 30Sep 2009 44.8 2.8 -0.5 39.5 86.6 0.1 86.8RECONCILIATION OF SHAREHOLDERS' EQUITY 1 January-30 September 2008 Share Parent Share premium Translation Retained company Minority EquityMEUR capital fund difference earnings total interest totalEquity, 1 Jan2008 44.8 2.8 0.0 70.0 117.7 0.6 118.3Dividend paidby parentcompany -67.2 -67.2 -67.2Dividendspaid bysubsidiaries 0.0 -0.6 -0.6Share ofassociatedcompanies'equity items -0.5 -0.5 -0.5Share-basedpayments 0.6 0.6 0.6TotalComprehensiveincome forthe period 29.2 29.2 0.6 29.8Equity, 30Sep 2008 44.8 2.8 0.0 32.2 79.8 0.6 80.4 2009 2008 2009 2008 2008CASH FLOW STATEMENT, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Cash flow from operating activities Profit for the period 7.7 8.6 20.6 30.1 39.0 Adjustments 5.6 5.8 15.0 14.4 17.5 Change in working capital -8.1 -4.3 1.0 3.1 4.0 Dividend income received 0.0 0.0 1.6 4.0 4.5 Interest income received 0.1 0.1 0.4 0.7 0.9 Interest expenses paid -0.2 -0.3 -0.7 -1.0 -1.6 Taxes paid -1.1 -4.1 -5.1 -13.0 -17.5Net cash provided by operating activities 3.9 5.8 32.6 38.3 46.9Cash flow from investing activities Investments in tangibleand intangible assets -1.3 -1.2 -3.0 -3.5 -4.2 Proceeds from disposal oftangible and intangible assets 0.0 0.0 0.0 1.0 1.0 Other investments 0.0 -0.1 0.0 -0.8 -1.2 Proceeds from disposal of otherinvestments 0.7 0.0 1.6 0.1 0.8 Change in receivables 0.0 0.0 -0.1 0.0 0.0 Subsidiary shares purchased 0.0 0.0 0.0 -3.9 -4.0 Associated company shares purchased -0.9 0.0 -1.1 0.0 0.0 Proceed from disposal of subsidiaryshares 0.0 0.0 0.0 0.0 0.0 Proceed from disposal of associatedcompany shares 0.0 0.0 0.0 0.0 6.5Net cash used in investing activities -1.5 -1.2 -2.5 -7.2 -1.0Cash flow before financing activities 2.4 4.6 30.1 31.1 45.8Cash flow from financing activities Long-term loan repayments 0.0 0.0 0.0 0.0 0.0 Short-term loans raised 0.0 0.0 17.8 35.0 35.0 Short-term loans repaid -2.8 -7.5 -25.3 -17.7 -24.3 Change in interest-bearing receivables 1.1 0.0 2.2 0.2 0.0 Dividends paid and capital repayment 0.0 0.0 -23.0 -67.8 -67.8 -1.7 -7.5 -28.3 -50.3 -57.1Change in cash funds(increase + / decrease -) 0.7 -2.9 1.8 -19.2 -11.2Cash and cash equivalents at start ofperiod 14.4 8.5 13.3 24.8 24.8Impact of change in foreign exchangerates 0.0 0.0 0.0 0.0 0.2Cash and cash equivalents at end ofperiod 15.1 5.6 15.1 5.6 13.3 2009 2008 2009 2008 2008Net sales by geographical area, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4 Finland 70.2 77.5 219.4 241.4 324.0 Rest of EU countries 2.7 3.8 8.9 12.9 16.7 Rest of other countries 0.1 0.1 0.4 0.4 0.6Yhteensä 73.0 81.4 228.8 254.7 341.2INFORMATION BY SEGMENTAlma Media's reporting segments in the financial statements areNewspapers, Kauppalehti Group and Marketplaces. Other Operationscomprise the Group's parent company and the operations of the Group'sfinancial management service centre.The descriptive section of the financial statements presents the netsales and operating profits of the segments and the allocation of theassociated companies' results to the reporting segments. Financialitems and income taxes are not allocated to the segments. Thefollowing table presents the assets and liabilities by segment aswell as the non-allocated asset and liability items.ASSETS BY SEGMENT, MEUR 30 Sep 2009 30 Sep 2008 31 Dec 2008 Newspapers 63.4 65.4 67.5 Kauppalehti Group 49.6 55.2 52.3 Marketplaces 13.2 16.6 15.2 Other operations andeliminations 12.3 18.6 10.5 Non-allocated assets 16.9 10.7 21.4Total 155.4 166.5 166.9LIABILITIES BY SEGMENT, MEUR 30 Sep 2009 30 Sep 2008 31 Dec 2008 Newspapers 33.3 35.8 32.7 Kauppalehti Group 11.4 12.4 11.8 Marketplaces 3.2 4.0 4.2 Other operations andeliminations 6.1 5.9 6.8 Non-allocated liabilities 14.6 28.0 22.9Total 68.6 86.1 78.4 2009 2008 2009 2008 2008GROUP INVESTMENTS, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4 Newspapers 1.0 0.7 2.5 8.2 9.4 Kauppalehti Group 1.0 0.3 1.6 1.1 1.4 Marketplaces 0.1 0.4 0.6 1.2 2.1 Others 0.1 0.1 0.5 1.1 1.6Total 2.2 1.5 5.2 11.6 14.5PROVISIONSThe company's provisions on September 30, 2009 totalled MEUR 0.7,representing a decrease of MEUR 0.4 from the situation on December31, 2008. The major part of the provisions concern restructuringprovisions. It has not been necessary to change the estimates madewhen the provisions were entered. The change in provisions is due toactual expenses. 30 Sep 31 DecCOMMITMENTS AND CONTINGENCIES, MEUR 30 Sep 2009 2008 2008Collateral on own behalf Chattel mortgages 0.0 0.0 0.0Collateral for others Guarantees 0.0 0.0 0.0Other commitments Commitments based on agreements 0.1 0.1 0.1Minimum rents payable based on other leaseagreements: Within one year 7.3 7.7 7.9 Within 1-5 years 18.6 17.2 19.1 After 5 years 25.7 24.4 27.9 Total 51.6 49.3 54.9The Group also has purchase agreementsbased on IFRIC 4 which include a leasecomponent per IAS 17, Minimum paymentsbased on these agreements: 1.4 3.6 3.1 31 DecGROUP DERIVATIVE CONTRACTS, MEUR 30 Sep 2009 30 Sep 2008 2008Commodity derivative contracts.electricity derivatives Fair value * -0.1 0.1 -0.1 Nominal value 0.8 0.5 0.7* The fair-value represents the return that would have arisen if thederivative had been cleared on the balance sheet date.RELATED PARTIESAlma Media Group's related parties are companies controlled by it,associated companies and companies owned by these. The followingtable summarises the business operations undertaken between AlmaMedia and its associated companies and the status of theirreceivables and liabilities:RELATED PARTY ACTIVITIES WITH ASSOCIATED 2009 2008 2009 2008 2008COMPANIES, MEUR Q3 Q3 Q1-Q3 Q1-Q3 Q1-Q4Sales of goods and services 0.0 0.0 0.1 0.2 0.2Purchases of goods and services 0.9 1.0 2.8 3.3 4.5Accounts receivable, loan and otherreceivables at the balance sheet date 0.0 4.7 0.0Accounts payable at the balance sheetdate 0.1 0.1 0.1Related parties also include the company's senior management (membersof the Board of Directors, presidents and the Group Executive Team).The section The Alma Media Share - Option Rights of this reportpresents information on changes to the current option programmeintended to motivate and secure the long-term commitment of theGroup's senior management.MAIN ACCOUNTING PRINCIPLES (IFRS)This interim report has been prepared according to IFRS standards(IAS 34).The report applies the same accounting principles and calculationmethods as the previous annual accounts dated December 31, 2008.However, the interim report does not contain all the information ornotes to the accounts included in the annual financial statements.This interim report should therefore be read in conjunction with thecompany's annual report.The repayment of Talentum's premium fund is recorded in thethird-quarter figures as adjustment to cost of investment. In thecash flow calculation of the second quarter 2009, the capitalrepayment has been adjusted between Share of results in associatedcompanies under Cash flow from operating activities and Proceeds fromdisposal of other investments under Cash flow from investingactivities. The change has no effect on the result of the Alma MediaGroup.The key indicators are calculated using the same formula as appliedin the previous annual financial statements. The quarterlypercentages of Return on Investment (ROI) and Return on Equity (ROE)have been annualised using the formula ((1+quarterly return)4)-1).In June, the Group performed and impairment test on goodwill andother assets. Based on the tests, no impairments have been recorded.In the financial year 2009, the Group has adopted the following newaccounting standards and interpretations:IFRS 8 Operating StandardsIAS 23 Borrowing costs, amendment to standardIAS 1 Presentation of financial statements, amendment to standardIFRS 2 Share-based payments, amendment to standardIAS 1: Presentation of financial statements and IAS 32 presentationof financing instruments, amendment to standardIAS 39: Financial Instruments: recognition and measurement, amendmentto standardIFRS 7 Financial instruments, amendment to standardIFRIC 12: Service concession arrangementsIFRIC 13: Customer loyalty programmesIFRIC 15: Agreements for the construction of real estateIFRIC 16: Hedges of a net investment in a foreign operationImprovements to IFRS amendmentsThe Group preliminarily expects that the above new standards andinterpretations will have only a minor effect. The Grouppreliminarily expects that their application mainly affects the wayof presenting the profit and loss statement, the balance sheet, thepresentation of changes in equity and notes to the financialstatements.New accounting standards to be adopted from the beginning of 2010are:IFRS 3 Business combinations, amendment to standardIAS 27 Consolidated and separate financial statementsThese amendments will affect the treatment of future acquisitions asfar as, for example, the minority share, goodwill and acquisitioncosts are concerned. The amendments will have no effect onacquisitions already made.The figures in this interim report are unaudited.SEASONALITYThe Group recognises its circulation revenues as paid. For thisreason circulation revenues accrue in the income statement fairlyevenly during the four quarters of the year. The bulk of circulationinvoicing takes place at the beginning of the year and therefore thecash flow from operating activities is strongest in the first andsecond quarters. This also affects the company's balance sheetposition in different quarters.GENERAL STATEMENTThis report contains certain statements that are estimates based onthe management's best knowledge at the time they were made. For thisreason they contain a certain amount of risk and uncertainty. Theestimates may change in the event of significant changes in thegeneral economic conditions.NEXT INTERIM REPORTAlma Media will publish its financial statements for the fourthquarter of 2009 and the entire financial year 2009 on Friday,February 12, 2010 at approximately 9:00am (EET).ALMA MEDIA CORPORATIONBoard of Directorshttp://hugin.info/3000/R/1351053/326360.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.10.2009 - 07:59 Uhr
Sprache: Deutsch
News-ID 7581
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 271 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Alma Media Corporation's Interim Report for January-September 2009:
Profitability remained good desp"
steht unter der journalistisch-redaktionellen Verantwortung von
Alma Media Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
