Sanoma Magazines

Half year result Sanoma Magazines affected by economic downturn

Amsterdam, 6 August 2009 – In the first half of 2009 the net sales and operating profit of Sanoma Magazines have decreased. Sanoma Magazines, a leading European consumer media company, is part of media group Sanoma (listed on the NASDAQ OMX Helsinki; SAA1V).

Sanoma Magazines was impacted by the economic downturn in all of its operating countries, especially in Central and Eastern Europe. In Belgium and Finland the company reinforced its market leading positions, and Sanoma Magazines was also able to grow its online advertising sales. The company will continue to manage its media portfolio actively: in the second quarter of 2009 four websites were launched, and six magazine titles were discontinued.

NET SALES

In the first six months of 2009 Sanoma Magazines’ net sales decreased by 10.9% to €538.1 (603.9) million. The global economic downturn affected sales in all of Sanoma Magazines’ operating countries, especially in Central and Eastern Europe where Sanoma Magazines International is active. Net sales adjusted for changes in the Group structure decreased by 12.0%.

The advertising sales of Sanoma Magazines decreased by 21% in the first six months of 2009 and represented 29% of total net sales. In the first half of 2008, this was 33%. The economic downturn has hit Sanoma Magazines International's advertising revenues in particular.

The online advertising sales of Sanoma Magazines increased by 5%; the growth rate slowed down in the second quarter.

The company’s circulation sales decreased by 4% and represented 60% (56%) of the Division's net sales.

Subscription sales remained stable during the first six months and even increased in Belgium.

Single copy sales declined clearly in Central and Eastern Europe and in the Netherlands.

Net Sales (in € million)	01-06/2009	01-06/2008	% change
Sanoma Magazines	538.1	603.9	(10.9%)
Sanoma Magazines Netherlands	233.9	246.9	(5.3%)
Sanoma Magazines International	104.0	146.9	(29.2%)
Sanoma Magazines Belgium	104.0	109.7	(5.2%)
Sanoma Magazines Finland	98.3	102.6	(4.2%)
Eliminations	-2.1	-2.2

OPERATING PROFIT

Sanoma Magazines’ operating profit including non-recurring items decreased by 51.7% to €45.8 (94.7) million in the first half of 2009. In 2009, the non-recurring items include restructuring expenses of €1.3 million in the second quarter in Belgium. In 2008, Sanoma Magazines profited from a €23.5 million capital gain from the divestment of Dutch film distributor R.C.V. Entertainment.

Sanoma Magazines’ operating profit excluding non-recurring items decreased by 34.0% to €47.1 (71.2) million.

In all of Sanoma Magazines’ businesses decreasing advertising sales affected results. The decline in operating profit was only partly offset by cost savings. OUTLOOK

Sanoma Magazines continues to develop its media portfolio as well as invest in strengthening market positions in all its operating countries, with an emphasis on key brands. The company is strongly focused on improving efficiency and saving costs. The company has initiated several programmes to improve the profitability of its business units.

In 2009, Sanoma Magazines' net sales are expected to decrease and it is estimated that operating profit excluding non-recurring items will be clearly below the previous year's level.

About Sanoma Magazines:

Sanoma Magazines is a leading publisher of magazines and digital media that actively connect with a potential audience of 290 million European consumers at every life stage. We publish more than 300 consumer magazines in thirteen countries*, spanning Europe from the North to the Bering Sea.In all of our operating countries, we aim to grow market leading positions. Our magazine portfolio consists of the strongest local brands, supplemented with world-renowned international brands. For many global publishing companies, we have become a preferred licensing partner.Next to developing our strong portfolio of magazine brands, we are expanding our business to digital media in all countries. In Bulgaria, Hungary and the Netherlands we have already established leading market positions in digital media next to our strong position in magazines.Sanoma Magazines is a Division of the Sanoma Group, a strong European media group operating in diverse fields of media in more than twenty European countries.

* Sanoma Magazines is active in Belgium, Bulgaria, Croatia, Czech Republic, Hungary, Finland, the Netherlands, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.

For more information, please contact (not for publication):Sanoma Magazines

* Robin Janszen, Manager Corporate Communication
* E-mail: r.janszen@sanomamagazines.com