Amsterdam, 6 May 2010 - The net sales of Sanoma Magazines in January–March 2010 were slightly below the comparable period’s level. Sanoma Magazines is part of media group Sanoma (listed on the NASDAQ OMX Helsinki, SAA1V). Sanoma's magazine and digital media division experienced some growth in Belgium and Finland while other businesses were slightly down.

The Division's advertising sales were at the comparable period’s level and represented 29% (2009: 29%) of net sales. Advertising sales grew in the Netherlands, but continued to decrease in Sanoma Magazines International’s markets. Online advertising sales grew, in particular due to the good development in the Netherlands.

Sanoma Magazines' circulation sales remained stable and represented 62% (2009: 62%) of the Division's net sales. Subscription sales were slightly above the comparable period, but single copy sales declined slightly, mostly in the CEE countries.

Sanoma Magazines Netherlands' net sales were down by 2.9% due to lower print advertising sales than in the comparable period. Sanoma Magazines Netherlands’ sales outperformed the market development. Online advertising sales grew clearly. In the first quarter, Sanoma Magazines Netherlands developed in particular its online operations and strengthened its portfolio of comparison sites.

Sanoma Magazines International's net sales decreased by 4.3%. The economic downturn in the CEE countries and Russia continued to have an effect on sales in all of Sanoma Magazines International’s countries. In Hungary, Sanoma Magazines International improved its digital media position through acquisition of Hazipatika.com Group, which operates, among other sites, Hungary's most visited healthcare website. In Romania, the leading car magazine Auto motor si Sport is now part of Sanoma Magazines International’s portfolio.

Net sales atSanoma Magazines Belgium grew by 4.3%. The growth came from circulation sales with both subscription sales and single copy sales developing positively and in line with the readers' market.

Sanoma Magazines Finland's net sales increased by 1.9%%.For the second year in a row, Sanoma Magazines Finland’s media sales were awarded as the best in Finland. According to the National Readership Survey, Sanoma Magazines Finland’s key brands have continued to gain more readers and its market share in the readers’ market has improved further.

Operating Profit
Sanoma Magazines' operating profit excluding non-recurring items in January–March improved significantly, by 66% due to efficiency improvements. In 2009, the efficiency improvements started to have a visible impact in the second half of the year. Operating profit improved in all businesses, in particular in Sanoma Magazines Netherlands and Finland. The operating profit did not include any non-recurring items.

Outlook
Sanoma Magazines continues to develop its magazine portfolio with a special focus on its key titles in each operating country. Sanoma Magazines is investing in strengthening its market positions, and wants to become stronger in digital media. The growth in digital operations can be achieved by leveraging existing assets. E-readers also offer interesting opportunities for combining magazines with digital media. At the same time Sanoma Magazines continues to strongly focus on improving efficiency.

In 2010, Sanoma Magazines' net sales are expected to grow slightly and it is estimated that operating profit excluding non-recurring items will be at the previous year's level.