TALENTUM INTERIM REPORT 17 July 2015 at 8.30 a.m.
Talentum Corporation Interim Report for April-June 2015:
THE GROUP’S NET SALES WERE NEARLY AT PREVIOUS YEAR'S LEVEL, OPERATING INCOME IMPROVED MARKEDLY
April-June 2015 in brief
- Talentum Group's net sales totalled EUR 18.6 million (EUR 18.7 million)
- Operating income without non-recurring items was EUR 1.2 million (EUR 0.7 million) and operating income (EBIT) was EUR 1.1 million (EUR 0.2 million)
- Operating profit excluding non-recurring items from Magazine Business Finland increased slightly compared to the previous year. Advertising sales continued to weaken but circulation sales improved slightly.
- Operating profit excluding non-recurring items from Magazine Business Sweden remained at the previous year's level
- Books and Legal Training, Events and Direct Marketing all showed improved operating income
- Talentum acquired the MB magazine from Sanoma Media Finland and it became part of Magazine Business Finland on 1 May 2015. The integration has proceeded as expected.
- In Sweden, a continuation agreement with the Sveriges Ingenjörer union was concluded. The agreement will take effect as of 1 January 2016. The union's 135 000 members will continue to receive the Ny Teknik magazine, either in printed or digital form.
Net sales of business segments (EUR million):
- Magazine Business Finland: EUR 6.6 million (EUR 6.8 million)
- Magazine Business Sweden: EUR 4.6 million (EUR 5.2 million)
- Events: EUR 2.8 million (EUR 2.8 million)
- Books and Legal Training: EUR 2.4 million (EUR 2.1 million)
- Direct Marketing: EUR 2.9 million (EUR 2.7 million)
January-June 2015 in brief
- Talentum Group's net sales totalled EUR 37.0 million (EUR 36.9 million)
- Operating income without non-recurring items was EUR 2.2 million (EUR 1.4 million) and operating income (EBIT) was EUR 1.7 million (EUR 0.5 million)
- Operating income of Events, Magazine Business Finland and Direct Marketing improved clearly in comparison with previous year
- Due to lower-than-expected advertising sales, operating income excluding non-recurring items from Magazine Business Sweden weakened
Net sales of business segments (EUR million):
- Magazine Business Finland: EUR 12.6 million (EUR 13.1 million)
- Magazine Business Sweden: EUR 8.9 million (EUR 9.9 million)
- Events: EUR 6.0 million (EUR 5.8 million)
- Books and Legal Training: EUR 5.1 million (EUR 4.0 million)
- Direct Marketing: EUR 5.7 million (EUR 5.6 million)
| KEY FINANCIAL FIGURES | |||||
| EUR million | 4-6 2015 | 4-6 2014 | 1-6 2015 | 1-6 2014 | 1-12 2014 |
| Net sales | 18.6 | 18.7 | 37.0 | 36.9 | 72.3 |
| Operating income without non-recurring items | 1.2 | 0.7 | 2.2 | 1.4 | 4.1 |
| as % of net sales | 6.6 | 3.8 | 5.8 | 3.8 | 5.7 |
| Operating income | 1.1 | 0.2 | 1.7 | 0.5 | 3.4 |
| as % of net sales | 5.7 | 0.8 | 4.7 | 1.4 | 4.8 |
| Income before taxes | 0.9 | 0.4 | 1.5 | 0.8 | 3.8 |
| Net cash from operating activities | 0.7 | 2.0 | 4.4 | ||
| Total assets | 53.5 | 51.3 | 51.8 | ||
| Investments | 2.1 | 3.3 | 2.4 | 3.8 | 4.2 |
| as % of net sales | 11.2 | 17.8 | 6.4 | 10.3 | 5.8 |
| Return on invested capital % | 7.2 | 3.9 | 17.5 | ||
| Return on equity % | 7.2 | 3.3 | 14.7 | ||
| Equity ratio, % | 44.9 | 43.7 | 47.2 | ||
| Gearing ratio, % (net debt to equity) | 29.3 | 14.5 | 3.8 | ||
| Interest-bearing liabilities | 8.1 | 5.8 | 5.4 | ||
| Net interest-bearing liabilities | 5.4 | 2.5 | 0.7 | ||
| Personnel on average | 727 | 730 | 721 | ||
| Earnings per share, EUR | 0.02 | 0.01 | 0.03 | 0.01 | 0.06 |
|
Cash flow from operating activities per share, EUR |
0.02 | 0.05 | 0.10 | ||
| Equity per share, EUR | 0.42 | 0.39 | 0.43 | ||
Talentum’s business operations are divided into six segments: Magazine Business Finland, Magazine Business Sweden, Events, Books and Legal Training, Direct Marketing and Other Activities.
Chief Executive Officer Aarne Aktan:
"The Group's operating profit improved markedly compared to last year. The result is fairly satisfactory in light of the present economic climate. We have been able to compensate the dropping advertising sales by increasing the performance of circulation sales. Thereby we have reduced the extent to which our income depends on fluctuating advertising income.
Net sales of digital products and services amounted to EUR 2.8 million in the second quarter. This represents growth of 15.4 per cent on the previous year and the proportion of net sales accounted for by digital sales was 15.0 per cent. Advertising sales accounted for 64.4 per cent of digital net sales while circulation sales accounted for 35.6 per cent. In addition to the B2B business acquired from Sanoma Pro, the growth is due to new products and more efficient sales.
The Events segment has showed good development. A third successive profitable quarter demonstrates that the measures that were taken last year with the aim of improving profitability have had the desired effect.
Operating income from Magazine Business Sweden remained at the previous year's level. Cost management has been reasonably successful but advertising sales, recruitment advertising sales in particular, continue to be weak. We will continue our efforts to improve profitability. In the second quarter, advertising sales accounted for 46.4 per cent of net sales, while circulation sales accounted for 49.9 per cent.
The profitability of Magazine Business Finland has remained good thanks to cost management and successful circulation sales. Circulation income accounted for 67.0 per cent of Magazine Business Finland's net sales. We acquired the MB magazine at the beginning of May and we will build a better future for this classic magazine together with the readers.
Direct Marketing generated a strong result that was even better than we had expected.
Books and Legal Training improved its operating income on the previous year but expectations were even higher. We continue to believe that the investments that we have made so far this year will improve profitability for the remainder of the year."
Talentum prospects for 2015 unchanged
Talentum estimates that its net sales for 2015 will remain approximately at the same level as in 2014. Operating income without non-recurring items will be higher than in 2014. Operating income without non-recurring items was EUR 4.1 million in 2014.
General statement
The forecasts and estimates presented here are based on the management’s current view of economic development, and the actual results may differ substantially from what is now expected of the company.
Financial information 2015
Talentum is planning to publish the results in 2015 as follows:
January-September result 22 October 2015
Briefing
A briefing will be held for analysts and the media on 17 July 2015 at 11.00 a.m. at Sokos Hotel Vaakuna, Asema-aukio 2, 00100, Helsinki.
TALENTUM CORPORATION
Board of Directors
ADDITIONAL INFORMATION
CEO Aarne Aktan, tel. +358 40 342 4440 and CFO Niclas Köhler, tel. +358 40 342 4420
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.talentum.fi
Talentum in brief
Talentum Corporation focuses on professionals with main products of magazines, books, digital services, trainings and events. Talentum produces contents from various fields of economy, law, management, HR, sales and marketing, ICT, technology and health care with the mission to help professionals succeed.
In 2014, Talentum’s net sales totalled EUR 72.3 million. The company employs 720 persons in Finland, Sweden, Denmark, Estonia and Latvia. Talentum Corporation is listed on Nasdaq Helsinki. Read more: www.talentum.fi.
