Amsterdam, 31 October 2008 – Sanoma Magazines, part of media group Sanoma (listed on the NASDAQ OMX Helsinki; SAA1V), has improved both net sales as well as operating profit in January-September 2008. The company intends to continue to develop its media portfolio. In the third quarter nine magazine titles and four online services were acquired or launched. For the full year, Sanoma Magazines expects its net sales to grow. Operating profit excluding non-recurring items is expected to remain at the previous year’s level.
Net Sales
Net Sales (in € million)
|
01-09/2008
|
01-09/2007
|
% change
|
|
Sanoma Magazines
|
907.9
|
885.7
|
+2.5%
|
- Sanoma Magazines Netherlands
|
371.6
|
385.6
|
(3.6%)
|
- Sanoma Magazines International
|
224.3
|
200.3
|
+12.0%
|
|
|
163.3
|
156.4
|
+4.4%
|
|
|
151.7
|
146.8
|
+3.3%
|
|
|
-3.1
|
-3.4
|
|
Main growth driver was Sanoma Magazines International. Net sales grew in all businesses, except for Sanoma Magazines Netherlands that strongly focused its operations and divested activities both in June 2007 and January 2008. Adjusted for changes in the Group structure, the Division’s net sales grew by 3.7%.
The Division’s advertising sales increased by 13% and represented 32% (29%) of net sales. Most growth came from Sanoma Magazines International and online advertising in the Netherlands. In total, the Division’s online advertising sales grew by 32%.
Circulation sales grew by 1% and represented 57% (57%) of Sanoma Magazines’ net sales. Circulation sales in Belgium and Finland developed positively, but single copy sales in the Netherlands have declined in the first nine months.
Operating Profit
Sanoma Magazines
|
01-09/2008
|
01-09/2007
|
% change
|
|
Operating Profit (in €M)
|
126.3
|
123.8
|
+2.1%
|
- Non-recurring items (in €M)
|
23.5
|
21.2
|
|
- Operating profit ex. non-recurring items (in €M)
|
102.8
|
102.6
|
+0.3%
|
Sanoma Magazines’ operating profit in January-September includes non-recurring items related to the divestment of R.C.V. Entertainment in the Netherlands. Operating profit grew both in Sanoma Magazines Netherlands and Sanoma Magazines International. In Belgium and Finland the result was lower than in the comparable period because of investments in new businesses and marketing.
Sanoma Magazines will continue to develop its media portfolio and invest in growth, which is expected to be most rapid in Central, South East and Eastern Europe as well as Russia. The company estimates that its net sales in 2008 will grow. Operating profit excluding non-recurring items is expected to remain at the previous year’s level.
About Sanoma Magazines:
Sanoma Magazines is a leading publisher of magazines and digital media that actively reaches out to an audience of 290 million European and Russian consumers at every life stage.
We publish more than 300 consumer magazines in thirteen European countries, spanning the continent 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.
Next to developing our strong portfolio of magazine brands, we are expanding our business to digital media. In Bulgaria, Finland (with Sanoma News and Sanoma Entertainment), 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 Sanoma Corporation, a strong European media group operating in diverse fields of media in more than twenty European countries.
For more information, please contact (not for publication)
Sanoma Magazines
