Sanoma Corporation, Stock Exchange Release, 9 February 2016 at 8:30 CET+1
Fourth quarter
- Net sales amounted to EUR 408.8 million (2014: 452.5).
- Adjusted for changes in the Group structure, Sanoma’s net sales decreased by 3.0%.
- Operating profit excluding non-recurring items was EUR -8.9 million (2014: -5.6).
- Non-recurring items included in the operating profit amounted to EUR -123.0 million (2014: -103.5), mainly related to impairment of goodwill and intangible assets and restructuring expenses. In the fourth quarter of 2014 the non-recurring items were mainly related to goodwill impairments, realisation of FX loss (Russia) as well as restructuring expenses.
- Earnings per share were EUR -0.70 (2014: -0.65).
- Earnings per share excluding non-recurring items were EUR -0.09 (2014: -0.05).
- Cash flow from operations was EUR 67.9 million (2014: 50.2).
2015
- Net sales amounted to EUR 1,716.6 million (2014: 1,901.6).
- Adjusted for changes in the Group structure, Sanoma’s net sales decreased by 3.4%.
- Operating profit excluding non-recurring items was EUR 83.2 million (2014: 118.8).
- Non-recurring items included in the operating profit amounted to EUR -206.9 million (2014: 15.0), mainly related to impairments of goodwill and other intangible assets as well as restructuring expenses. In 2014, non-recurring items were mainly related to capital gains, impairment of goodwill and other intangible assets, realisation of FX loss (Russia) and restructuring expenses.
- Earnings per share were EUR -0.91 (2014: 0.32).
- Earnings per share excluding non-recurring items were EUR 0.13 (2014: 0.33).
- Cash flow from operations was EUR 25.2 million (2014: 73.7).
- The Board of Directors proposes a dividend of EUR 0.10 per share (2014: 0.20).
Outlook
In 2016, Sanoma expects that the Group’s consolidated net sales development adjusted for structural changes will be in line with last year or improve (2015: -3.4%). The Operational EBIT* margin is estimated to be over 7%.
*Due to upcoming changes in regulation by the European Securities and Market Authority, Sanoma has decided to replace operating profit excluding non-recurring items by Operational EBIT. The changes will be effective from the beginning of 2016.
Key indicators (based on reported figures, not adjusted for structural changes
| 10–12/ | 10–12/ | Change | 1–12/ | 1–12/ | Change | |
| EUR million | 2015 | 2014 | % | 2015 | 2014 | % |
| Net sales | 408.8 | 452.5 | -9.6 | 1,716.6 | 1,901.6 | -9.7 |
| Operating profit excluding non-recurring items | -8.9 | -5.6 | 83.2 | 118.8 | -29.9 | |
| % of net sales | -2.2 | -1.2 | 4.8 | 6.2 | ||
| Operating profit | -131.8 | -109.2 | -123.6 | 133.8 | ||
| Result for the period | -131.7 | -104.1 | -158.0 | 61.6 | ||
| Capital expenditure * | 11.5 | 18.7 | -38.3 | 54.7 | 50.7 | 8.0 |
| % of net sales | 2.8 | 4,1 | 3.2 | 2.7 | ||
| Return on equity (ROE), % ** | -13.6 | 4.9 | ||||
| Return on investment (ROI), % ** | -5.3 | 6.5 | ||||
| Equity ratio, % | 39.5 | 42.2 | ||||
| Net gearing, % | 77.8 | 66.7 | ||||
| Number of employees at the end of the period (FTE) | 6 116 | 7,583 | -19.3 | |||
| Average number of employees (FTE) | 6 776 | 8,259 | -18.0 | |||
| Earnings/share, EUR | -0.70 | -0.65 | -0.91 | 0.32 | ||
| Cash flow from operations/share, EUR | 0.42 | 0.31 | 35.6 | 0.16 | 0.45 | -65.8 |
| Equity/share, EUR | 4.59 | 5.54 | -17.2 | |||
| Dividend/share, EUR *** | 0.10 | 0.20 | -50.0 | |||
| Market capitalisation | 633.7 | 748.9 | -15.4 | |||
* Including finance leases.
** Rolling 12-month period.
*** Dividend for 2015 is a proposal by the Board of Directors
Organic Growth, %
10–12/2015 vs. 10–12/2014 | 1–12/2015 vs. 1–12/2014 | 1–12/2014 vs. 1–12/2013 | ||
| Media BeNe | 0.6 | -1.4 | -2.7 | |
| Media Finland | -2.9 | -4.1 | -5.3 | |
| Learning | -24.2 | -4.0 | 1.0 | |
| Other | -31.1 | -29.1 | -14.2 | |
| Group | -3.0 | -3.4 | -3.7 |
Susan Duinhoven, President and CEO
“2015 was a challenging year for Sanoma, but as a result of the tough choices made and a focus on innovating the ways we work, we managed to exceed the modest expectations for the year. The divestment programme we commenced in 2013 was finalised and we experienced solid growth in new media sales, one of our key success indicators.
In addition, we secured refinancing for a major part of our corporate debt. The trust in Sanoma that this new financing signifies is something we take with us while we continue to focus on serving our audiences with information, entertainment and impactful learning tools.
Media BeNe is increasingly reaping the benefits of its cross-media domain strategy. SBS TV operations’ revenues improved in 2015 supported by gains in both the advertising- and viewing share. Overall organic net sales increased in the fourth quarter, driven by TV and online and mobile sales. For the full year net sales declined on account of divestments and closures of non-core magazines. The profitability was negatively impacted by an additional amortisation of around EUR 15 million on TV programming rights during the fourth quarter. Changes in the competitive landscape and consumer habits led to the slight devaluation, especially related to international fiction.
In Media Finland, advertising sales were at last year’s level on a like-for-like during the fourth quarter despite the challenging advertising market. Online and mobile sales continued on a solid growth path in 2015. Share of new media sales improved, and now represent already 38% of Media Finland’s total net sales. Profitability improved during the second half of 2015 due to market share gains in advertising sales as well as cost savings. Divestments of non-core operations had a visible impact in Media Finland’s net sales in 2015.
Net sales of Learning decreased by 4% in 2015 when adjusted for acquisitions and divestments. During the fourth quarter of 2015, we decided to change the amortisation period for Learning’s prepublication rights to be better aligned with the general market practice. The change had a positive impact on profitability in the fourth quarter, and will have a positive impact on 2016 figures as well. New legislation in Poland is expected to have a material negative impact on the educational textbook market in the coming years, however, this will be partly compensated for by new products and services as well as cost savings across the segment.
As a result of the progress in our business development, we expect profitability to improve in 2016.”
Full-Year Result 2015 webcast
The event for analysts and investors will be held today in English by President and CEO Susan Duinhoven and CFO Kim Ignatius at 11:00 Finnish time (9:00 UK time) at Sanomatalo, Töölönlahdenkatu 2, Helsinki. The live webcast can be viewed on Sanoma’s website at www.sanoma.com/en/investors and on demand after the event.
Please join by dialing
Finland: +358 (0)9 23101619 / US: +1 646 2543371 / UK: +44 (0)20 3364 5728 / Netherlands: +31 (0)20 716 8251
Conference id: 4349280
Financial reporting 2016
- Interim Report January-March on 3 May 2016, approx. at 8:30
- Interim Report January-June on 27 July 2016, approx. at 8:30
- Interim Report January-September on 28 October 2016, approx. at 8:30.
Additional information
Sanoma's Investor Relations, Pekka Rouhiainen, tel. +358 40 7395897
Sanoma.com
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Sanoma is a front running consumer media and learning company in Europe. In Finland and the Netherlands we are the market leading media company with a broad presence across multiple platforms. Our main markets in learning are Belgium, Finland, the Netherlands, Poland and Sweden. In 2015, Sanoma’s net sales totalled EUR 1.7 billion. Sanoma is listed on the Nasdaq Helsinki stock exchange.