Stock Exchange Release 12/4/2012 11:15
On 5 March 2012, Sanoma Corporation announced that it had signed an agreement to sell its kiosk operations in Finland, Lithuania and Estonia as well as its press distribution operations in Estonia and Lithuania to the Norwegian Reitan Servicehandel AS. According to International Financial Reporting Standards (IFRS) any material divestment that represents a separate major line of business shall be classified as discontinued operation. Hence, Sanoma has to classify these operations to be divested as discontinued operations for the 2012 reporting. The discontinued operations are eliminated in the Consolidated Income Statement and only the result for the period of these discontinued operations are presented as a separate item after the result for continuing operations. Accordingly, the Consolidated Income Statement for 2011 has been restated.
The tables with the restated Consolidated Income Statement, Statement of Comprehensive Income, Income Statement by quarter, segment information, net sales by business unit, operating profit by segment and operating profit excluding non-recurring items by segment for 2011 can also be found on Sanoma's website at www.sanoma.com/archive/files.
Group's outlook for 2012 unchanged
In 2012, Sanoma expects its net sales to grow slightly, mostly due to the acquired SBS operations in the Netherlands and Belgium. Operating profit margin, excluding non-recurring items, is estimated to be around 10% of net sales. Earnings per share excluding non-recurring items are estimated to grow.
Sanoma's net sales and result are affected by the underlying environment, particularly by the development of advertising markets in the Group's countries of operation. The 2012 outlook is based on the assumption that the advertising markets in the Group's main operating countries will vary from stable to slightly decreasing, as the economic uncertainty continues.
The restated 2011 figures in the tables are unaudited.
CONSOLIDATED INCOME STATEMENT | ||||
EUR million | ||||
1-3/ | 1-6/ | 1-9/ | 1-12/ | |
CONTINUING OPERATIONS | 2011 | 2011 | 2011 | 2011 |
NET SALES | 530.2 | 1,122.8 | 1,750.2 | 2,378.1 |
Other operating income | 7.0 | 77.0 | 87.4 | 116.5 |
Materials and services | 205.5 | 422.8 | 651.2 | 858.2 |
Employee benefit expenses | 148.1 | 300.2 | 442.8 | 611.7 |
Other operating expenses | 118.7 | 255.2 | 394.2 | 541.3 |
Share of results in associated companies | -0.1 | -1.2 | -1.2 | |
Depreciation, amortisation and impairment losses | 37.7 | 77.5 | 221.4 | 309.5 |
OPERATING PROFIT | 27.2 | 143.9 | 126.7 | 172.6 |
Share of results in associated companies | 1.9 | 1.8 | -1.5 | -3.7 |
Financial income | 2.3 | 3.6 | 4.6 | 13.9 |
Financial expenses | 4.7 | 11.3 | 24.3 | 46.6 |
RESULT BEFORE TAXES | 26.7 | 138.0 | 105.5 | 136.3 |
Income taxes | -8.3 | -26.7 | -48.0 | -57.7 |
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS | 18.4 | 111.3 | 57.4 | 78.6 |
DISCONTINED OPERATIONS | ||||
Result for the period from discontinued operations | 0.1 | 4.7 | 4.2 | 7.4 |
RESULT FOR THE PERIOD | 18.5 | 116.0 | 61.6 | 86.0 |
Result from continuing operations | ||||
attributable to: | ||||
Equity holders of the Parent Company | 18.4 | 111.4 | 62.2 | 77.0 |
Non-controlling interests | 0.0 | -0.1 | -4.7 | 1.5 |
Result attributable to: | ||||
Equity holders of the Parent Company | 18.5 | 116.1 | 66.3 | 84.5 |
Non-controlling interests | 0.0 | -0.1 | -4.7 | 1.5 |
Equity per share for result attributable | ||||
to equity holders of the Parent company: | ||||
Earnings per share, EUR, continuing operations | 0.11 | 0.68 | 0.38 | 0.47 |
Diluted earnings per share, EUR, continuing operation | 0.11 | 0.68 | 0.38 | 0.47 |
Earnings per share, EUR, discontinued operations | 0.00 | 0.03 | 0.03 | 0.05 |
Diluted earnings per share, EUR, discontinued operations | 0.00 | 0.03 | 0.03 | 0.05 |
Earnings per share, EUR | 0.11 | 0.71 | 0.41 | 0.52 |
Diluted earnings per share, EUR | 0.11 | 0.71 | 0.41 | 0.52 |
STATEMENT OF COMPREHENSIVE INCOME | ||||
EUR million | 1-3/ | 1-6/ | 1-9/ | 1-12/ |
2011 | 2011 | 2011 | 2011 | |
Result for the period | 18.5 | 116.0 | 61.6 | 86.0 |
Other comprehensive income: | ||||
Change in translation differences | 6.0 | 6.5 | -23.4 | -25.6 |
Cash flow hedges | 1.8 | 0.8 | -6.9 | -11.7 |
Income tax related to cash flow hedges | -0.5 | -0.2 | 1.8 | 2.9 |
Other comprehensive income for the period, net of tax | 7.3 | 7.1 | -28.5 | -34.4 |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 25.8 | 123.1 | 33.1 | 51.6 |
Total comprehensive income attributable to: | ||||
Equity holders of the Parent Company | 25.9 | 123.2 | 37.8 | 50.1 |
Non-controlling interests | 0.0 | -0.1 | -4.7 | 1.5 |
INCOME STATEMENT BY QUARTER | ||||
EUR million | ||||
1-3/ | 4-6/ | 7-9/ | 10-12/ | |
CONTINUING OPERATIONS | 2011 | 2011 | 2011 | 2011 |
NET SALES | 530.2 | 592.6 | 627.4 | 627.9 |
Other operating income | 7.0 | 70.0 | 10.4 | 29.1 |
Materials and services | 205.5 | 217.3 | 228.4 | 207.0 |
Employee benefit expenses | 148.1 | 152.1 | 142.6 | 168.8 |
Other operating expenses | 118.7 | 136.6 | 139.0 | 147.1 |
Share of results in associated companies | -0.1 | -1.1 | ||
Depreciation, amortisation and impairment losses | 37.7 | 39.8 | 143.9 | 88.1 |
OPERATING PROFIT | 27.2 | 116.7 | -17.2 | 46.0 |
Share of results in associated companies | 1.9 | -0.1 | -3.2 | -2.2 |
Financial income | 2.3 | 1.4 | 1.0 | 9.3 |
Financial expenses | 4.7 | 6.6 | 13.1 | 22.2 |
RESULT BEFORE TAXES | 26.7 | 111.3 | -32.5 | 30.8 |
Income taxes | -8.3 | -18.4 | -21.3 | -9.7 |
RESULT FOR THE PERIOD FROM CONTINUING OPERATIONS | 18.4 | 92.9 | -53.8 | 21.1 |
DISCONTINUED OPERATIONS | ||||
Result for the period from discontinued operations | 0.1 | 4.6 | -0.5 | 3.3 |
RESULT FOR THE PERIOD | 18.5 | 97.5 | -54.4 | 24.4 |
Result from continuing operations | ||||
attributable to: | ||||
Equity holders of the Parent Company | 18.4 | 92.9 | -49.2 | 14.9 |
Non-controlling interests | 0.0 | -0.1 | -4.6 | 6.2 |
Result attributable to: | ||||
Equity holders of the Parent Company | 18.5 | 97.5 | -49.7 | 18.1 |
Non-controlling interests | 0.0 | -0.1 | -4.6 | 6.2 |
Equity per share for result attributable | ||||
to equity holders of the Parent company: | ||||
Earnings per share, EUR, continuing operations | 0.11 | 0.57 | -0.30 | 0.09 |
Diluted earnings per share, EUR, continuing operation | 0.11 | 0.57 | -0.30 | 0.09 |
Earnings per share, EUR, discontinued operations | 0.00 | 0.03 | 0.00 | 0.02 |
Diluted earnings per share, EUR, discontinued operations | 0.00 | 0.03 | 0.00 | 0.02 |
Earnings per share, EUR | 0.11 | 0.60 | -0.31 | 0.11 |
Diluted earnings per share, EUR | 0.11 | 0.60 | -0.31 | 0.11 |
SEGMENT INFORMATION
The continuing operations of the Group include four reportable segments: Media, News, Learning and Trade. The segmentation is based on business model and product differences. Media, operating in 12 countries, is responsible for magazines and TV operations. Sanoma News is responsible for newspapers in Finland. Both segments also have a great variety of online and mobile services. Learning's business is mainly B2B business. In 2012, Trade segment includes the Trade services in Finland, the bookstore operations in Estonia, and the real estate and administration operations of the segment. The figures of Trade segment in 2011 include also the operations that were divested during 2011. In addition to the Group eliminations column unallocated/eliminations includes Sanoma Corporation and real estate companies as well as items not allocated to segments.
Segment assets do not include cash and cash equivalents, interest-bearing receivables and tax receivables. Transactions between segments are based on market prices.
Sanoma segments 1.1-31.3.2011 | ||||||
Unallo- | ||||||
cated/ | ||||||
Lear- | elimi- | Continuing | ||||
EUR million | Media | News | ning | Trade | nations | operations |
External net sales | 290.1 | 107.7 | 57.7 | 74.7 | -0.2 | 530.0 |
Internal net sales | 1.0 | 0.6 | 3.0 | 7.1 | -11.5 | 0.2 |
NET SALES, TOTAL | 291.1 | 108.4 | 60.7 | 81.8 | -11.7 | 530.2 |
OPERATING PROFIT | 22.7 | 12.9 | -5.2 | 3.3 | -6.5 | 27.2 |
Share of results in | ||||||
associated companies | 1.7 | 0.0 | 0.0 | 0.2 | 1.9 | |
Financial income | 2.3 | 2.3 | ||||
Financial expenses | 4.7 | 4.7 | ||||
RESULT BEFORE TAXES | 26.7 | |||||
SEGMENT ASSETS | 1,808.1 | 320.8 | 569.8 | 258.9 | 40.3 | 2,997.9 |
Sanoma segments 1.1-30.6.2011 | ||||||
Unallo- | ||||||
cated/ | ||||||
Lear- | elimi- | Continuing | ||||
EUR million | Media | News | ning | Trade | nations | operations |
External net sales | 612.8 | 219.5 | 163.8 | 126.2 | -0.1 | 1,122.3 |
Internal net sales | 2.0 | 1.1 | 5.4 | 14.7 | -22.7 | 0.5 |
NET SALES, TOTAL | 614.8 | 220.6 | 169.2 | 140.9 | -22.7 | 1,122.8 |
OPERATING PROFIT | 69.7 | 22.8 | 22.1 | 43.1 | -13.8 | 143.9 |
Share of results in | ||||||
associated companies | 2.6 | 0.5 | 0.0 | -1.3 | 1.8 | |
Financial income | 3.6 | 3.6 | ||||
Financial expenses | 11.3 | 11.3 | ||||
RESULT BEFORE TAXES | 138.0 | |||||
SEGMENT ASSETS | 1,830.4 | 318.7 | 596.9 | 153.0 | 71.1 | 2,970.1 |
Sanoma segments 1.1-30.9.2011 | ||||||
Unallo- | ||||||
cated/ | ||||||
Lear- | elimi- | Continuing | ||||
EUR million | Media | News | ning | Trade | nations | operations |
External net sales | 967.3 | 322.6 | 280.6 | 179.2 | -0.2 | 1,749.6 |
Internal net sales | 2.9 | 1.2 | 9.8 | 22.7 | -36.0 | 0.6 |
NET SALES, TOTAL | 970.2 | 323.8 | 290.5 | 201.9 | -36.2 | 1,750.2 |
OPERATING PROFIT | 38.8 | 35.3 | 39.4 | 35.0 | -21.8 | 126.7 |
Share of results in | ||||||
associated companies | -1.0 | 0.7 | -0.1 | -1.1 | -1.5 | |
Financial income | 4.6 | 4.6 | ||||
Financial expenses | 24.3 | 24.3 | ||||
RESULT BEFORE TAXES | 105.5 | |||||
SEGMENT ASSETS | 3,048.5 | 319.8 | 540.3 | 84.7 | 47.8 | 4,041.2 |
Sanoma segments 1.1-31.12.2011 | ||||||
Unallo- | ||||||
cated/ | ||||||
Lear- | elimi- | Continuing | ||||
EUR million | Media | News | ning | Trade | nations | operations |
External net sales | 1,412.1 | 434.1 | 331.9 | 198.4 | 0.3 | 2,376.8 |
Internal net sales | 3.7 | 1.7 | 11.2 | 30.4 | -45.7 | 1.2 |
NET SALES, TOTAL | 1,415.8 | 435.8 | 343.1 | 228.7 | -45.4 | 2,378.1 |
OPERATING PROFIT | 92.0 | 40.2 | 16.6 | 38.9 | -15.1 | 172.6 |
Share of results in | ||||||
associated companies | -2.5 | 0.6 | 0.1 | -1.9 | -3.7 | |
Financial income | 13.9 | 13.9 | ||||
Financial expenses | 46.6 | 46.6 | ||||
RESULT BEFORE TAXES | 136.3 | |||||
SEGMENT ASSETS | 3,048.7 | 320.7 | 549.0 | 81.1 | 47.2 | 4,046.8 |
NET SALES BY BUSINESS UNIT | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
2011 | 2011 | 2011 | 2011 | 2011 | |
MEDIA | |||||
The Netherlands | 105.3 | 130.6 | 174.0 | 232.2 | 642.0 |
Finland | 74.2 | 79.4 | 70.0 | 86.2 | 309.7 |
Russia & CEE | 51.4 | 54.3 | 50.8 | 56.7 | 213.1 |
Belgium | 50.1 | 48.7 | 48.4 | 61.9 | 209.1 |
Other businesses and eliminations | 10.2 | 10.7 | 12.3 | 8.6 | 41.8 |
TOTAL | 291.1 | 323.7 | 355.5 | 445.6 | 1,415.8 |
NEWS | |||||
Helsingin Sanomat | 61.2 | 61.2 | 55.3 | 60.8 | 238.5 |
Ilta-Sanomat | 19.1 | 22.2 | 21.6 | 21.6 | 84.4 |
Other publishing | 23.7 | 25.0 | 22.9 | 25.4 | 97.0 |
Other businesses and eliminations | 4.4 | 3.9 | 3.4 | 4.2 | 15.9 |
TOTAL | 108.4 | 112.2 | 103.2 | 112.0 | 435.8 |
LEARNING | |||||
Learning | 34.3 | 87.4 | 100.2 | 34.7 | 256.6 |
Language services | 8.7 | 8.1 | 7.2 | 8.4 | 32.4 |
Literature and other businesses | 20.1 | 15.1 | 13.9 | 10.4 | 59.5 |
Eliminations | -2.4 | -2.1 | -0.1 | -0.8 | -5.4 |
TOTAL | 60.7 | 108.6 | 121.2 | 52.7 | 343.1 |
TRADE | |||||
Kiosk operations | 6.7 | 6.9 | 7.3 | 0.0 | 20.9 |
Trade services | 28.8 | 27.3 | 24.4 | 23.2 | 103.6 |
Bookstores | 24.8 | 18.8 | 29.7 | 3.7 | 77.0 |
Movie operations | 21.9 | 6.5 | 0.0 | 0.0 | 28.4 |
Eliminations | -0.3 | -0.5 | -0.4 | 0.0 | -1.2 |
TOTAL | 81.8 | 59.1 | 61.0 | 26.9 | 228.7 |
Other companies and eliminations | -11.7 | -11.0 | -13.5 | -9.3 | -45.4 |
CONTINUING OPERATIONS | 530.2 | 592.6 | 627.4 | 627.9 | 2,378.1 |
OPERATING PROFIT BY SEGMENT | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
2011 | 2011 | 2011 | 2011 | 2011 | |
Media | 22.7 | 47.0 | -31.0 | 53.2 | 92.0 |
News | 12.9 | 9.9 | 12.5 | 4.9 | 40.2 |
Learning | -5.2 | 27.3 | 17.3 | -22.7 | 16.6 |
Trade | 3.3 | 39.8 | -8.1 | 3.9 | 38.9 |
Other companies and eliminations | -6.5 | -7.4 | -7.9 | 6.7 | -15.1 |
CONTINUING OPERATIONS | 27.2 | 116.7 | -17.2 | 46.0 | 172.6 |
OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS BY SEGMENT | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
2011 | 2011 | 2011 | 2011 | 2011 | |
Media | 22.7 | 37.9 | 25.8 | 64.6 | 151.1 |
News | 12.9 | 9.9 | 12.5 | 14.1 | 49.4 |
Learning | -6.1 | 29.0 | 42.4 | -19.7 | 45.5 |
Trade | 3.3 | -2.9 | 4.8 | -1.4 | 3.8 |
Other companies and eliminations | -6.5 | -8.4 | -7.9 | -2.9 | -25.7 |
CONTINUING OPERATIONS | 26.3 | 65.6 | 77.6 | 54.7 | 224.1 |
Sanoma Corporation
Kim Ignatius
Chief Financial Officer
Additional information: Sanoma's Investor Relations, Martti Yrjö-Koskinen tel. +358 105 19 5064 or ir@sanoma.com
Sanoma.com
Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 15,000 people in over 20 countries. In 2011, the Group's net sales totalled EUR 2.7 billion.