Sanoma sells its Romanian press distribution and kiosk operations
Press Release 8/4/2011 16:15
The Sanoma Trade division of the Sanoma Group will sell its press distribution and kiosk operations in Romania to Dan Vasile, the acting Managing Director of Rautakirja Romania S.A. and R-Kiosk Romania S.A. Sanoma will record a non-recurring restructuring cost of some EUR 8 million from this transaction in its second quarter result.
This transaction is in line with Sanoma's strategy to focus its operations and to concentrate on consumer media and learning solutions.
In 2010, net sales of the Romanian kiosk operations were EUR 5 million and R-Kiosk Romania has some 20 kiosks, located mainly in Bucharest and Sibiu. The kiosk operations employ some 120 people (FTEs). Net sales of the press distribution operations were EUR 18 million in 2010 and Rautakirja Romania has 35% market share in the Romanian press distribution market. The press distribution operations employ some 200 people (FTEs). The divested operations will not be included in Sanoma Trade's figures as of 1 May.
As the result of the transaction, Sanoma Trade's outlook for the operating profit improves. Sanoma Trade's operating profit excluding non-recurring items is now expected to be at the previous year's level. Previously, Sanoma Trade's operating profit excluding non-recurring items was expected to decrease clearly. Sanoma Trade's net sales are still estimated to decrease clearly in 2011. This transaction does not have an effect on the outlook of the Sanoma Group.
Chief Financial Officer
Additional information: Sanoma's Investor Relations, Kare Laukkanen tel. +358 105 19 5064 and Anna Tuominen tel. +358 105 19 5066 or email@example.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 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.