Sanoma Corporation, January-March 2013 Interim Report, 2 May 2013 at 11:00 CET+1
- Net sales in the first quarter amounted to EUR 505.2 million (2012: 543.6).
- Adjusted for changes in the Group structure, Sanoma’s net sales decreased by 7.5%.
- Operating profit excluding non-recurring items was EUR -3.0 million (2012: 15.6).
- Non-recurring items included in the operating profit in the first quarter amounted to EUR -37.2 million (2012: 0.0) and consisted mainly of non-cash impairment charges.
- Earnings per share were EUR -0.24 (2012: -0.11).
- Earnings per share excluding non-recurring items were EUR -0.03 (2012: 0.00).
- Cash flow from operations was EUR -62.7 million (2012: -21.9).
- In 2013, Sanoma expects that the Group’s consolidated net sales will decline by 2-4% compared to 2012 and operating profit excluding non-recurring items is estimated to be EUR 180-205 million.
| KEY INDICATORS * | Restated | Restated | ||
| EUR million | 1-3/ | 1-3/ | Change | 1-12/ |
| 2013 | 2012 | % | 2012 | |
| Net sales | 505.2 | 543.6 | -7.1 | 2,376.3 |
| Operating profit excluding non-recurring items | -3.0 | 15.6 | 231.0 | |
| % of net sales | -0.6 | 2.9 | 9.7 | |
| Operating profit | -40.2 | 15.6 | 181.0 | |
| Result for the period from continuing operations | -51.8 | -18.0 | 69.9 | |
| Result for the period **** | -51.8 | -16.8 | 149.0 | |
| Capital expenditure ** | 11.7 | 12.4 | -6.2 | 59.5 |
| % of net sales | 2.3 | 2.3 | 2.5 | |
| Return on equity (ROE), % *** / **** | 7.4 | 3.4 | 9.7 | |
| Return on investment (ROI), % *** / **** | 7.1 | 5.5 | 8.3 | |
| Equity ratio, % **** | 40.4 | 38.5 | 41.3 | |
| Net gearing, % **** | 86.5 | 97.3 | 78.7 | |
| Number of employees at the end of the period (FTE) | 10,290 | 11,114 | -7.4 | 10,381 |
| Average number of employees (FTE) | 10,375 | 11,090 | -6.5 | 10,804 |
| Earnings/share, EUR, continuing operations | -0.24 | -0.12 | 0.39 | |
| Earnings/share, EUR **** | -0.24 | -0.11 | 0.88 | |
| Cash flow from operations/share, EUR **** | -0.39 | -0.13 | 1.18 | |
| Equity/share, EUR **** | 7.58 | 7.62 | -0.6 | 7.82 |
* Comparable figures have been restated due to a change in IAS19 ‘Employee benefits’. The revised standard eliminates the possibility of using the corridor approach in recognising the actuarial gains and losses from defined benefit plans. The revised IAS 19 standard requires the actuarial gains and losses to be recognised immediately in the statement of other comprehensive income. For 2012, the restated total equity has decreased by EUR 52.0 million to EUR 1,576.6 million and the restated operating profit excluding non-recurring items has decreased by EUR 1.3 million to EUR 231.0 million.
** Including finance leases.
*** Rolling 12-month period.
**** Includes continuing and discontinued operations.
Harri-Pekka Kaukonen, President and CEO
”Learning’s performance was solid in the first quarter, supported by earlier than expected sales recognition in the Netherlands.
The development of the advertising market, however, was significantly worse than expected. In addition, circulation sales continued to be under pressure and also impacted our consumer media revenues and profitability.
The underlying shift in consumer behaviour and advertising spend is driving growth in online media. Growth in online is, however, not fully compensating for the significant decline in print, and coupled with our investments in service and product portfolio has negatively impacted our profitability in the first quarter.
We continue to address our cost structures. The ongoing EUR 60 million gross savings programme is proceeding according to plan. However, the programme and additional actions initiated because of the changed environment are not able to compensate for the estimated decline in net sales. Therefore we took a more cautious view for the year and revised our outlook for 2013 on 22 March.”
Group outlook for 2013 (unchanged from the revised outlook published on 22 March 2013)
In 2013, Sanoma expects that the Group’s consolidated net sales will decline by 2-4% compared to 2012 and operating profit excluding non-recurring items is estimated to be EUR 180-205 million.
Sanoma’s outlook is based on the assumptions that the European economic environment remains subdued and advertising markets remain depressed in Sanoma’s main operating countries.
January-March 2013 Interim Report webcast
The event for investors and analysts will be held in English by President and CEO Harri-Pekka Kaukonen and CFO Kim Ignatius today at 13:30 Finnish time (11:30 UK time) at Nelonen studio, Sanomatalo, Töölönlahdenkatu 2, Helsinki. The webcast can be viewed on Sanoma’s website at www.sanoma.com/en/investors.
| Please join by dialing | |
| UK | +44 (0)207 1620 177 |
| Finland | +358 (0)9 2313 9202 |
| Netherlands | +31 (0)20 7965 012 |
| US | +1 334 323 6203 |
| Access code | 931453 |
Sanoma will publish its Interim Reports in 2013 on a quarterly basis:
- Interim Report January-June 2013 on 1 August, at approximately 8:30 CET+1
- Interim Report January-September 2013 on 31 October, at approximately 8:30 CET+1
Additional information
Sanoma's Investor Relations, Martti Yrjö-Koskinen, tel. +358 40 684 4643 or ir@sanoma.com
Sanoma.com
Get the world. Sanoma helps people access and understand the world. Sanoma is a front runner in consumer media and learning in Europe. We employ more than 10,000 professionals in some 20 countries. In 2012, the Group’s net sales totalled EUR 2.4 billion. Sanoma’s share is listed on the NASDAQ OMX Helsinki