TALENTUM OYJ INTERIM REPORT 27 October 2011 at 9.00 am
TALENTUM INTERIM REPORT JANUARY-SEPTEMBER 2011
Aarne Aktan appointed CEO of Talentum
July-September 2011 in brief
- Talentum Group’s net sales increased by 11.2%, totalling EUR 15.6 million
(EUR 14.1 million).
- Net sales from publishing operations increased by 13.2%, totalling EUR 14.2
million (EUR 12.6 million).
- The amount of media advertising in Talentum’s media increased in both
Finland and Sweden by a total of 19.4%.
- Operating income without non-recurring items EUR -0.9 million (EUR -0.3
million).
- Operating income (EBIT) EUR -0.8 million (EUR -1.6 million)
- Talentum sold Sverige Bygger and Norge Bygges. The purchase price was EUR
15.2 million, and the gain on sale EUR 7.2 million. As a result of the
transaction Group’s net liabilities decreased and equity ratio increased.
January-September 2011 in brief
- Talentum Group’s net sales increased by 15.3%, totalling EUR 58.9 million
(EUR 51.1 million).
- Net sales from publishing operations increased by 18.1%, totalling EUR 54.7
million (EUR 46.3 million).
- Operating income without non-recurring items EUR 0.7 million (EUR 0.1
million)
- Operating income (EBIT) EUR 0.7 million (EUR -1.2 million)
- Earnings per share EUR 0.01 (EUR -0.02)
- Net liabilities EUR 3.0 million (31 Dec 2010: EUR 12.4 million)
Sector and Talentum prospects for 2011
Activity among Talentum’s customers increased in 2010 and the increase has continued during 2011 as well. This was evident in Talentum’s improved sales figures in both Finland and Sweden.
Talentum keeps the prospects for the whole year unchanged and estimates that, in 2011, its net sales will increase and operating income will improve.
The sale of Sverige Bygger ja Norge Bygges is estimated to reduce Talentum Group’s net sales by EUR 3.6 million on the year level. The transaction will not have significant effect on Talentum’s 2011 operating income for the remainder of the year.
CHIEF EXECUTIVE OFFICER JUHA BLOMSTER:
“The uncertainty surrounding the general economic situation in Europe continued in July–September. The nervousness in the Finnish media sector was further fuelled by the implementation of the Finnish government’s decision to raise VAT on subscription magazines.
In August, Talentum entered into an agreement to sell the Sweden-based Sverige Bygger AB and the Norway-based Norge Bygges AS. The companies developed favourably in Talentum Group, but Talentum estimated that their value creation potential as a part of the Group was lower than the received offer and Talentum decided to sell them. The enterprise value of the deal was estimated at EUR 12 million, and the total purchase price of the companies’ shares was approximately EUR 15 million, which was paid in cash. As a result of the deal, Talentum recorded a sales profit of approximately EUR 7 million. With the capital gain the credit facility was repaid by EUR 9.5 million during the third quarter and equity ratio increased.
In the third quarter, Talentum Group’s net sales increased by 11 per cent and net sales from publishing operations increased by 13 per cent. Without the event business acquired in September 2010 and at comparable exchange rates, consolidated net sales increased by 4 per cent. The consolidated operating income from continuing operations was EUR -0.8 million, an increase of 52 per cent with respect to the same period last year.
Talentum’s magazine business continued to develop favourably in both Finland and Sweden. In July–September, Talentum’s advertising revenue increased by 19 per cent compared to the same period in the previous year. Growth was brought about especially by job advertising. Circulation revenue increased by 6 per cent. Other content revenue increased by 14 per cent, and the event business acquired last year accounted again for all such growth. Other content revenue includes books, training, events and business information.
Long-term cooperation between Tekniikka & Talous and a major subscriber will end at the beginning of 2012. The circulation of the magazine may decrease. However, work on building new, profitable circulation is progressing in a goal-oriented way.
Talentum will continue to invest in developing its brands in order to improve our market position and profitability.”
