Sanoma Corporation, Stock Exchange Release, 3 May 2016 at 8:30 CET+1
First quarter
- Net sales amounted to EUR 353.1 million (2015: 380.1).
- Adjusted for changes in the Group structure, Sanoma’s net sales decreased by 0.1%.
- Operational EBIT* was EUR 1.9 million (2015: -19.9).
- Items affecting comparability included in the operating profit amounted to EUR 1.2 million (2015: 8.8), mainly related to sales gains and restructuring expenses, similar to the previous year.
- Earnings per share were EUR 0.00 (2015: -0.06).
- Operational earnings per share were EUR -0.04 (2015: -0.15).
- Cash flow from operations was EUR -56.2 million (2015: -73.1).
Outlook (unchanged)
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’.
Key indicators (based on reported figures, not adjusted for structural changes)
| EUR million | 1-3/ 2016 | 1-3/ 2015 | Change % | 1-12/ 2015 | |||||
| Net sales | 353.1 | 380.1 | -7.1 | 1,716.6 | |||||
| Operational EBIT | 1.9 | -19.9 | 83.2 | ||||||
| % of net sales | 0.5 | -5.2 | 4.8 | ||||||
| Operating profit | 3.1 | -11.0 | -123.6 | ||||||
| Result for the period | 0.6 | -8.3 | -158.0 | ||||||
| Capital expenditure * | 5.7 | 12.0 | -52.6 | 54.7 | |||||
| % of net sales | 1.6 | 3.1 | 3.2 | ||||||
| Return on equity (ROE), % ** | -13.4 | -5.9 | -13.6 | ||||||
| Return on investment (ROI), % ** | -5.4 | -0.5 | -5.3 | ||||||
| Equity ratio, % | 39.3 | 40.4 | 39.5 | ||||||
| Net gearing, % | 81.8 | 73.2 | 77.8 | ||||||
| Number of employees at the end of the period (FTE) | 5,379 | 7,000 | -23.2 | 6,116 | |||||
| Average number of employees (FTE) | 5,602 | 7,080 | -20.9 | 6,776 | |||||
| Earnings/share, EUR | 0.00 | -0.06 | -0.91 | ||||||
| Cash flow from operations/share, EUR | -0.35 | -0.45 | 0.16 | ||||||
| Equity/share, EUR | 4.44 | 5.26 | -15.6 | 4.59 | |||||
* Including finance leases.
** Rolling 12-month period.
Organic growth, %
| 1–3/2016 vs. 1–3/2015 | 1–12/2015 vs. 1–12/2014 | |||
| Media BeNe | +3.1 | -1.4 | ||
| Media Finland | -0.8 | -4.1 | ||
| Learning | -12.8 | -4.0 | ||
| Group | -0.1 | -3.4 |
Susan Duinhoven, President and CEO
“Sanoma’s first quarter of the year was strong: organic net sales were practically on previous year’s level and profitability improved. Cost innovations throughout the company and the full impact of the 2015 fall programme further improved the operational EBIT of EUR 1.9 million (2015: -19.9).
Media Finland continued a good performance after the promising fourth quarter in 2015 and made a solid operational EBIT of EUR 11.0 million (2015: -2.1). Growth in advertising sales in combination with the cost innovations made during past six months increased Media Finland’s profitability significantly.
A major part of the positive development was thanks to Nelonen Media that gained market shares with successful programming and became the market leader in commercial television. Also radio operations were in good shape; net sales grew by 39%. Strong growth in number of radio listeners and TV viewers stimulated advertising sales that increased more than 6%. Our non-print sales grew by 12.8%, supported by growth in online and mobile advertising.
Even though the advertising sales developed positively in Media Finland we remain cautious with our view on the markets. We still think that the advertising market in Finland 2016 will follow the pattern of 2015 and will remain volatile.
Also Media BeNe had a favourable start of the year: organic sales grew by 3.1% and operational EBIT improved from previous year. SBS viewing shares grew from 19.5 % to 20.9 % during the first quarter. Comparable net sales grew also in our Dutch print & online brand portfolio, which shows that focused portfolio and cross-media approach are working to our advantage.
First quarter of the year is typically a ‘light’ quarter in Learning representing around 13% of the full year sales. Our net sales decreased but the profitability improved, supported by the renewed prepublication amortisation schedule and cost savings.”
January–March 2016 Interim Report webcast
The event for analysts, investors and media will be held in English by President and CEO Susan Duinhoven and CFO Kim Ignatius on 3 May 2016 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 6937 9590 / US: +1 212 444 0896 / UK: +44 (0)20 3427 1908 / Netherlands: +31 (0)20 716 8256
Conference id: 9772714
Financial reporting 2016
- 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
About Sanoma
Sanoma is an inspiring, relevant and trusted consumer media and learning company. Ever since its formation in 1889, the company has held creativity and independent thinking at its core in order to deliver high-quality content in new and different ways.
Sanoma’s consumer media business provides consumers with engaging and personalised content through cross-media brands that touch their lives. Sanoma’s close relationships with its consumers enable the company to offer unique value-added marketing solutions to its business partners.
Sanoma Learning’s learning solutions enable teachers to excel at developing the talents of every child, creating opportunities for children to advance their prospects in life.
With operating companies in Finland, the Netherlands, Belgium, Poland and Sweden, Sanoma realised net sales of more than EUR 1.7 billion in 2015. The company employed over 6,000 employees.