Sanoma Magazines first quarter results lower than last year's
Amsterdam, 7 May 2009 - Sanoma Magazines, part of media group Sanoma (listed on the NASDAQ OMX Helsinki; SAA1V), has suffered from net sales and operating profit decreases in the first quarter of 2009. The company reacted to the market challenges by discontinuing twenty loss-making titles and by initiating cost-saving programmes. At the same time investments in promising segments continued by launching new magazines and digital media.
Sanoma Magazines’ net sales in January-March decreased by 8.2% to €262.1 million. Net sales were in line with the comparable period in the Netherlands and Finland, but decreased significantly in Sanoma Magazines International due to market circumstances and unfavourable currency effects. Net sales adjusted for changes in the Group structure decreased by 9.5%.
|
Net Sales (in € million)
|
01-03/2009
|
01-03/2008
|
% change
|
|
Sanoma Magazines
|
262.1
|
285.5
|
(8.2%)
|
|
|
110.6
|
111.7
|
(1.0%)
|
|
|
50.9
|
70.1
|
(27.4%)
|
|
|
51.3
|
54.2
|
(5.4%)
|
|
|
50.3
|
50.7
|
(0.8%)
|
|
|
-1.0
|
-1.3
|
|
The company's advertising sales decreased by 17% in the first quarter and represented 29% (32%) of net sales. In particular Sanoma Magazines International’s advertising revenues were affected by the general economic uncertainty. Online advertising sales continued to grow and were up by 8%, due to good developments in the Netherlands. Sanoma Magazines’ circulation sales decreased by 3% and represented 62% (58%) of net sales. Subscription sales developed positively in Belgium and Finland. Single copy sales in the CEE countries declined clearly.
In the first quarter Sanoma Magazines’ operating profit excluding non-recurring items decreased by 37.1% to €15.5 (2008: 24.7) million. Operating profit including non-recurring items decreased by 67.8% to €15.5 (48.2) million. In the comparable period last year operating profit included a €23.5 million non-recurring gain on the divestment of movie distributor RCV Entertainment.
Currently Sanoma Magazines is strongly focused on improving efficiency and saving costs. The company has initiated several cost-saving programmes to improve the profitability of its business units. At the same time, Sanoma Magazines continues to develop its magazine portfolio and digital businesses as well as invest in strengthening market positions in all countries it operates in, with a special focus on its key titles in each operating country. In 2009, the company's net sales are expected to decrease. It is estimated that operating profit excluding non-recurring items will clearly be 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 and Russian 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 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
