Helsinki, Finland, 2016-02-12 07:00 CET (GLOBE NEWSWIRE) --
TALENTUM FINANCIAL STATEMENT RELEASE 12 February 2016 at 8.00 a.m.
Talentum Corporation Financial Statement Release for January-December 2015:
STRONG FULL-YEAR OPERATING INCOME EXCLUDING NON-RECURRING ITEMS
October-December 2015 in brief
- Talentum Group's net sales totalled EUR 21.3 million (EUR 21.7 million)
- Operating profit without non-recurring items was EUR 2.9 million (EUR 3.2 million) and operating profit (EBIT) was EUR -7.8 million (EUR 3.3 million)
- Operating profit excluding non-recurring items from Magazine Business Finland showed clear growth thanks to increased circulation income and cost savings
- Operating profit excluding non-recurring items in the Talentum Pro segment (formerly Books and Legal Training) remained at the same level as in the comparison period
- Operating income excluding non-recurring items in Direct Marketing showed clear growth
- Operating income excluding non-recurring items in the Event Business and Magazine Business Sweden showed a clear decrease on the previous year
- As a result of impairment testing, a write-down of EUR 9.9 million on the value of publishing rights and goodwill was recognised and allocated to Magazine Business Sweden
- Alma Media implemented an exchange of Talentum Oyj's shares in accordance with the terms of the exchange offer and Talentum Oyj became a subsidiary of Alma Media
Net sales of business segments:
- Magazine Business Finland: EUR 6.6 million (EUR 6.5 million)
- Magazine Business Sweden: EUR 5.0 million (EUR 5.3 million)
- Events: EUR 3.0 million (EUR 3.6 million)
- Talentum Pro: EUR 4.3 million (EUR 4.3 million)
- Direct Marketing: EUR 3.0 million (EUR 2.5 million)
January-December 2015 in brief
- Talentum Group's net sales totalled EUR 72.6 million (EUR 72.3 million)
- Operating profit without non-recurring items was EUR 5.4 million (EUR 4.1 million) and operating profit (EBIT) was EUR -6.0 million (EUR 3.4 million)
- Operating profit excluding non-recurring items from Magazine Business Finland showed clear growth thanks to increased circulation income and cost savings
- Operating profit excluding non-recurring items in the Talentum Pro and Direct Marketing business segments showed a clear increase on the previous year
- The savings realised in Magazine Business Sweden could not compensate for the decline in advertising sales and operating income excluding non-recurring items decreased, resulting in an operating loss
- Operating profit excluding non-recurring items in the Event Business decreased from the previous year
Net sales of business segments:
- Magazine Business Finland: EUR 23.9 million (EUR 24.3 million)
- Magazine Business Sweden: EUR 16.9 million (EUR 18.1 million)
- Events: EUR 11.0 million (EUR 11.5 million)
- Talentum Pro: EUR 11.7 million (EUR 10.5 million)
- Direct Marketing: EUR 11.6 million (EUR 10.8 million)
The Board of Directors proposes that no dividend be distributed for 2015 and that no funds be distributed from the invested non-restricted equity fund (in 2014, a dividend of EUR 0.05 per share was paid).
| KEY FINANCIAL FIGURES | ||||
| EUR million | 10-12 2015 | 10-12 2014 | 1-12 2015 | 1-12 2014 |
| Net sales | 21.3 | 21.7 | 72.6 | 72.3 |
| Operating income without non-recurring items | 2.9 | 3.2 | 5.4 | 4.1 |
| as % of net sales | 13.8 | 14.6 | 7.4 | 5.7 |
| Operating income | -7.8 | 3.6 | -6.0 | 3.4 |
| as % of net sales | -36.5 | 15.0 | -8.3 | 4.8 |
| Income before taxes | -8.1 | 3.5 | -6.5 | 3.8 |
| Net cash from operating activities | 4.3 | 4.4 | ||
| Total assets | 43.3 | 51.0 | ||
| Investments | 0.5 | 0.3 | 3.3 | 4.2 |
| as % of net sales | 2.2 | 1.4 | 4.6 | 5.8 |
| Return on invested capital % | -28.0 | 17.5 | ||
| Return on equity % | -41.0 | 14.7 | ||
| Equity ratio, % | 36.8 | 47.2 | ||
| Gearing ratio, % (net debt to equity) | 22.2 | 3.8 | ||
| Interest-bearing liabilities | 5.0 | 5.4 | ||
| Net interest-bearing liabilities | 2.5 | 0.7 | ||
| Personnel on average | 733 | 721 | ||
| Earnings per share, EUR | -0.17 | 0.06 | -0.14 | 0.06 |
| Cash flow from operating activities per share, EUR | 0.10 | 0.10 | ||
| Equity per share, EUR | 0.25 | 0.43 |
Talentum’s business operations are divided into six segments: Magazine Business Finland, Magazine Business Sweden, Events, Talentum Pro, Direct Marketing and Other Activities.
Chief Executive Officer Aarne Aktan:
“The Group's operating profit for 2015 is very good. EUR 5.4 million excluding non-recurring items is a clear improvement on the previous year with similar net sales. I would like to express my thanks to Talentum's employees, who were able to achieve a very good result in a difficult market and in a challenging time of change.
Net sales of digital products and services increased by 13.8 per cent last year to EUR 10.4 million, and digital sales accounted for 14.3 per cent of overall turnover. Advertising accounted for 61.5 per cent of net digital sales, while sales of content accounted for 38.5 per cent. In the fourth quarter, net sales of digital products and services amounted to EUR 3.0 million. This represents growth of 7.4 per cent in comparison with the previous year.
We are highly satisfied with the way Magazine Business Finland performed last year. Operating profit excluding non-recurring items showed clear improvement, mainly due to increased circulation income and cost savings. For the same reasons, the fourth quarter was also good.
The operating profit excluding non-recurring items generated by Talentum Pro (formerly Books and Legal Training) in the fourth quarter remained at the same level as in the comparison period but the segment had a very strong year overall. Net sales also showed clear growth. Investments in digital services and a diverse range of service packages translated into growth in digital content sales for the year.
The last quarter of the year exceeded expectations for Direct Marketing, and operating profit showed a clear increase, both in the last quarter and for the year as a whole.
In the Events Business, the last quarter of the year was clearly weaker than in the previous year, when income in the comparison period was exceptionally good. Operating profit excluding non-recurring items for the full year decreased somewhat from the previous year, leading to a passable result.
It was a difficult year in Sweden and the fourth quarter fell below expectations. In the last quarter of the year, an impairment of EUR 9.9 million was recognised for Magazine Business Sweden. We will continue to take measures to improve profitability.
These are Talentum's last financial statements as an independent company. The merger with Alma Media is underway and will create a strong operator on the Finnish media market. I believe that the company has a bright future ahead of it following the merger.”
Talentum prospects for 2016
Talentum forecasts that net sales for its businesses in 2016 will remain at approximately the same level as in 2015. The businesses are expected to generate better operating income excluding non-recurring items in 2016 than in 2015.
The Board of Directors’ motion concerning distribution of profits
The parent company’s distributable profits as of 31 December 2015 comprise invested non-restricted equity of EUR 52,942,876.08, treasury shares of EUR -769,759.13 and EUR -20,345,624.10 of retained earnings, of which the loss for the financial year is EUR -20,436,642.54, totalling EUR 31,827,492.83. A decrease in value of Talentum Media Oy's and Talentum Sweden Ab’s shares of EUR 19.9 million had a negative effect on the income for the financial year of the parent company.
The Board of Directors proposes that no dividend be distributed for 2015 and that no funds be distributed from the invested non-restricted equity fund (in 2014, a dividend of EUR 0.05 per share was paid).
Annual General Meeting
Talentum Oyj’s Annual General Meeting will be summoned approximately in May 2016.
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
Talentum is planning to publish the results in 2016 as follows:
Half-year Report for January-June 2016 on Friday, 22 July 2016
Talentum's Financial Statements, Annual Report by the Board of Directors, Auditor's Report and Corporate Governance Statement for financial year 2015 will be published as a pdf document on Thursday, 25 February 2016.
Briefing
A briefing will be held for analysts and media on 12 February 2016 at 10.30 a.m. at Alma Media, Alvar Aallon katu 3C, 00100, Helsinki.
TALENTUM OYJ
Board of Directors
ADDITIONAL INFORMATION
CEO Aarne Aktan, tel. +358 40 342 4440 and CFO Niclas Köhler, tel. +358 40 342 4420
DISTRIBUTION
Nasdaq 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. Talentum is part of Alma Media Corporation. Read more: www.talentum.fi.
