Helsinki, Finland, 2015-10-22 07:30 CEST (GLOBE NEWSWIRE) --
TALENTUM INTERIM REPORT 22 October 2015 at 8.30 a.m.
Talentum Corporation Interim Report for July-September 2015:
STRONG THIRD QUARTER
July-September 2015 in brief
-Talentum Group's net sales totalled EUR 14.4 million (EUR 13.7 million)
- Operating profit without non-recurring items was EUR 0.3 million (EUR -0.4 million) and operating profit (EBIT) was EUR 0.0 million (EUR -0.3 million)
- Operating profit excluding non-recurring items from Books and Legal Training increased markedly compared to the previous year
- Operating profit excluding non-recurring items from Magazine Business Finland also increased markedly. Advertising sales continued to weaken but circulation sales improved.
- Magazine Business Sweden and Direct Marketing improved their operating income. Operating income from the Events segment was similar to that in the reference period.
- Alma Media made a voluntary public exchange offer for Talentum at the end of the third quarter. Talentum's Board of Directors recommends that the shareholders accept Alma Media's offer.
Net sales of business segments (EUR million):
- Magazine Business Finland: EUR 4.8 million (EUR 4.8 million)
- Magazine Business Sweden: EUR 3.0 million (EUR 2.9 million)
- Events: EUR 1.9 million (EUR 2.0 million)
- Books and Legal Training: EUR 2.4 million (EUR 2.1 million)
- Direct Marketing: EUR 2.9 million (EUR 2.6 million)
January-September 2015 in brief
- Talentum Group's net sales totalled EUR 51.3 million (EUR 50.6 million)
- Operating profit without non-recurring items was EUR 2.4 million (EUR 1.0 million) and operating profit (EBIT) was EUR 1.7 million (EUR 0.2 million)
- Operating income of Events, Magazine Business Finland, Direct Marketing and Books and Legal Training improved in comparison with previous year
- Operating income of Magazine Business Sweden improved slightly
Net sales of business segments (EUR million):
- Magazine Business Finland: EUR 17.3 million (EUR 17.9 million)
- Magazine Business Sweden: EUR 11.9 million (EUR 12.8 million)
- Events: EUR 8.0 million (EUR 7.9 million)
- Books and Legal Training: EUR 7.5 million (EUR 6.2 million)
- Direct Marketing: EUR 8.6 million (EUR 8.3 million)
| KEY FINANCIAL FIGURES | |||||
| EUR million | 7-9 2015 | 7-9 2014 | 1-9 2015 | 1-9 2014 | 1-12 2014 |
| Net sales | 14.4 | 13.7 | 51.3 | 50.6 | 72.3 |
| Operating income without non-recurring items | 0.3 | -0.4 | 2.4 | 1.0 | 4.1 |
| as % of net sales | 2.0 | -3.2 | 4.7 | 1.9 | 5.7 |
| Operating income | 0.0 | -0.3 | 1.7 | 0.2 | 3.4 |
| as % of net sales | 0.0 | -2.5 | 3.4 | 0.4 | 4.8 |
| Income before taxes | 0.1 | -0.5 | 1.6 | 0.3 | 3.8 |
| Net cash from operating activities | 1.0 | 0.8 | 4.4 | ||
| Total assets | 52.3 | 51.9 | 51.8 | ||
| Investments | 0.5 | 0.1 | 2.9 | 3.9 | 4.2 |
| as % of net sales | 3.5 | 0.5 | 5.6 | 7.6 | 5.8 |
| Return on invested capital % | 8.6 | 2.8 | 17.5 | ||
| Return on equity % | 7.0 | 1.3 | 14.7 | ||
| Equity ratio, % | 45.4 | 43.0 | 47.2 | ||
| Gearing ratio, % (net debt to equity) | 31.1 | 23.0 | 3.8 | ||
| Interest-bearing liabilities | 6.8 | 6.0 | 5.4 | ||
| Net interest-bearing liabilities | 5.6 | 3.9 | 0.7 | ||
| Personnel on average | 731 | 721 | 721 | ||
| Earnings per share, EUR | -0.00 | -0.01 | 0.03 | 0.01 | 0.06 |
| Cash flow from operating activities per share, EUR | 0.02 | 0.02 | 0.10 | ||
| Equity per share, EUR | 0.40 | 0.38 | 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:
"Alma Media made a voluntary public exchange offer for Talentum at the end of the third quarter. Consequently, there is currently more interest in Talentum than usual. On 28 September 2015, Talentum and Alma Media signed an agreement to merge their businesses. The exchange offer was prepared in collaboration between the two companies and Talentum's Board of Directors recommends that the shareholders accept Alma Media's offer. The transaction requires the approval of the shareholders.
From the perspective of the Group, the third quarter exceeded our own expectations. Contrary to earlier trends, we were able to generate a profit in the third quarter of this year. Our magazines and books are not published in the summer so income for the third quarter has generally been negative. The positive result was due to long-term work to change the company's cost structure and the effects of this work are now being realised. A further factor was the excellent result generated by the book business.
Net sales of digital products and services amounted to EUR 2.2 million in the third quarter. This represents growth of 5.6 per cent on the previous year and the proportion of net sales accounted for by digital sales was 15.6 per cent. Advertising accounted for 55.1 per cent of the digital sales, while content sales accounted for 44.9 per cent.
The operating income from Magazine Business Finland was good. Circulation sales showed good growth but sales of advertising continued to weaken. Mikrobitti, a magazine we acquired in the spring, has begun to show promise as a Talentum publication. The product has been overhauled and the ramp-up has surpassed our expectations in every way.
Magazine Business Sweden improved its profitability. Recruitment advertising continues to be a problem but sales of product advertisements began to appear more positive. Content sales have shown good growth.
The investments that were made in Books and Legal Training in the first half of the year are beginning to bear fruit. Both net sales and operating profit improved markedly in comparison with the previous year. The segment has developed digital services and created diverse service packages for its target groups.
Direct Marketing is doing well in all three countries. The unit improved its net sales and operating profit in the third quarter."
Talentum prospects for 2015 unchanged, new for 2016
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.
Concerning 2016, Talentum’s preliminary estimate is that its net sales will remain approximately on the same level as in 2015. Operating income without non-recurring items in 2016 is preliminarily estimated to be higher than in 2015.
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.
Full-year result
Talentum is planning to publish its full-year result 2015 on 11 February 2016.
Briefing
A briefing will be held for analysts and media on 22 October 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.
