Alma Media’s revenue for the full year 2013 declined by 6.2% to MEUR 300.2 (320.1).
Revenue from digital products and services in 2013 amounted to MEUR 84.8 (77.8), an increase of 8.4%. Digital products and services accounted for 28.1% (24.3%) of Group revenue. Revenue from print media was MEUR 191.9 (217.2), with a share of 63.9% (67.9%) in the Group’s revenue.
Content revenue declined by 5.7% to MEUR 115.3 (122.3). Content revenue decreased from the comparison period due to the declining circulations of print media. Digital content revenue grew, but not sufficiently to compensate for the decrease in subscription and single copy sales revenue of print media.
Revenue from advertising sales decreased by 8.3% to MEUR 147.3 (160.8). Advertising sales made up 49.1% (50.2%) of the Group’s total revenue. Advertising sales for print media decreased by 18.1% from the comparison period, totalling MEUR 80.0 (97.7). Online advertising sales grew by 7.6% to MEUR 66.5 (61.8). Sales of Alma Media’s digital network products grew significantly during the period.
Service revenue totalled MEUR 37.6 (37.1). Service revenue includes items such as the business operations of Kauppalehti Information Services, the custom publishing house Alma 360 Group and the online dating service E-kontakti.fi.
Operating profit and profit for the period
Operating profit excluding non-recurring items was down 27.8% to MEUR 24.2 (33.5), constituting 8.0% (10.5%) of revenue. Operating profit was MEUR 27.0 (26.5), rising to 9.0% (8.3%) of revenue.
The operating profit includes MEUR 2.8 (-7.0) in net non-recurring items. The non-recurring items during the review period were related to the sales gains from the heavy machinery business Mascus, impairment losses related to assets as well as restructuring costs. The non-recurring items in the comparison period were mainly related to organisational restructuring, as well as impairment losses for capitalised research and development costs for the Marketplaces business.
The full-year 2013 financial result was MEUR 16.0 (17.4), and excluding non-recurring items, MEUR 18.1 (29.3). A non-recurring write-down of MEUR 5.0 was recognised in the value of associated companies during 2013. The review period’s result includes changes in the fair value of contingent considerations and debt incurred by the reorganisation of the Marketplaces business in the amount of MEUR 1.1 (3.6).
Balance sheet and financial position
At the end of December 2013, the consolidated balance sheet stood at MEUR 272.8 (245.1). The Group’s equity ratio at the end of December was 34.9% (36.5%) and equity per share rose to EUR 1.17 (1.08).
At the end of December, the Group’s interest-bearing debt amounted to MEUR 109.9 (79.4). The total interest-bearing debt at the end of December comprised MEUR 74.9 in finance leasing debt and MEUR 35.0 in commercial papers.
The Group’s interest-bearing net debt at the end of December stood at MEUR 97.6 (62.3). The increase in net debt was due to including the finance leasing debt for the new printing press on the balance sheet.
Financial assets recognised at fair value through profit or loss created through corporate transactions amounted to MEUR 2.0 (0.9) on December 31, 2013, and the fair value of debt MEUR 0.3 (2.7). The contingent considerations resulting from mergers and acquisitions are tied to the companies’ operating profit for 2013.
The consolidated cash flow from operations in January–December was MEUR 24.4 (24.9). Cash flow before financing was MEUR 26.7 (-38.0).
Alma Media has a MEUR 25.0 million and two MEUR 20.0 financing limits at its disposal, of which all, a total of MEUR 65.0, were unused on December 31, 2013. In addition, on the balance sheet date, the company had a commercial paper programme of MEUR 100.0 in Finland. Of the commercial paper programme, MEUR 65.0 was unused on December 31, 2013.
The Alma Media share is quoted at NASDAQ OMX Helsinki Stock Exchange, in the Mid Cap category. Trading in Alma Media’s shares in alternative trading venues was very minor in 2013.
In January–December, altogether 8,130,118 Alma Media shares were traded at NASDAQ OMX Helsinki Stock Exchange, representing 10.8% of the total number of shares. The closing price of the Alma Media share at the end of the last trading day of the year, 31 December 2013, was EUR 2.99. The lowest quotation during the year was EUR 2.49 and the highest EUR 5.00. Alma Media Corporation’s market capitalisation was MEUR 225.7 at the end of the year.
Among sustainable investing indices, Alma Media is included in the OMX GES Finland Sustainability Index, comprising the 40 leading companies in Finland in terms of sustainability. In October 2013, Alma Media became the only media company to achieve a position in CDP’s Nordic Climate Disclosure Leadership Index (CDLI), which highlights the companies that have the highest scores in the international CDP climate survey.
Dividend proposal for the 2013 financial year
Alma Media’s Board of Directors proposes to the Annual General Meeting that a capital repayment of EUR 0.10 (0.10) per share be paid from the reserve for invested non-restricted equity for the financial year 2013. Based on the number of shares on the closing date, 31 December 2013, the total capital repayment would amount to EUR 7,548,685 (dividend for 2012: EUR 7,548,685).
In addition, the Board proposes to the Annual General Meeting that it be given an authorisation to decide on an additional capital repayment of a maximum of EUR 0.10 per share.
Long-term financial targets
In November 2013, Alma Media published its long-term financial targets to support the communication of the company’s strategy.
The company’s long-term financial targets are as follows:
|Return on investement
|Dividend payout ratio*||> 50%||59%||103%||159%||103%||45%||50%**|
|*Includes repayment of capital to shareholders.
** Board’s proposal to the Annual General Meeting.
The financial targets reflect the priorities of Alma Media’s strategy and business development. The long-term targets are reached by developing digital media and service business and improving the quality and cost efficiency of publishing activity. Alma Media aims to allocate investments, repayment of debt and distribution of profit optimally from the company’s and investors’ point of view.