SanomaWSOY clarified its figures and presented its focuses
SanomaWSOY will continue with its current strategic line. Market leadership, profitable growth, concentration on core competencies, and divestment of non-core assets will still be among the Group's focus areas. Hannu Syrjänen, President and COO of SanomaWSOY, introduced the Group's strategic focus areas and objectives for 2005-2007 at SanomaWSOY's fourth Capital Markets Day.
"Sanoma Magazines aims to gain the leading position in all its existing markets by 2006. One of its overall objectives is to be the third largest European Magazine Publisher within three to five years. Growth will be sought by executing successful launches in Sanoma Magazines' existing countries and by entering two or three new geographical areas. Opportunities for larger acquisitions will be considered as well," Syrjänen said.
According to Syrjänen, the newspaper division Sanoma will seek growth by developing existing and new products and, in particular, models for multichannel publishing. It will grow and expand by also widening its markets for free sheets, and by mergers and acquisitions. Acquisition targets will be monitored in other SanomaWSOY countries.
Rautakirja is also seeking expansion through organic growth and acquisitions. It will increase its share of international activities in the emerging Central European market and Russia; negotiations are in progress at the moment in Russia and Romania.
Educational materials, eLearning and business training are examples of the key growth areas of the book publisher WSOY. The electronic media division SWelcom's Nelonen is a strong challenger to Finnish commercial TV. According to Syrjänen, the initial market share target of 30% should soon be increased. The division's growth in net sales will be achieved through strong organic growth in the existing core businesses: TV advertising, cable TV services and broadband internet.
Key figures were clarified
Matti Salmi, CFO of SanomaWSOY, clarified SanomaWSOY's key figures and the effects of the changes in accounting principles on the Group's reporting.
SanomaWSOY will start reporting according to IFRS standards in 2005. The Group's EBIT will increase as goodwill is no longer amortised according to plan.
Increase in annual pension expenses, and increased personnel expenses due to the new accounting treatment of SanomaWSOY warrants to the management will increase the Group's expenses.
"Rough P&L impact is currently estimated to be a one-digit number, but it still is subject to changes," Salmi stated.
More than 40 analysts attended SanomaWSOY's Capital Markets Day in Helsinki. English-language recordings of the seminar and the slides presented during the day (in English and in Finnish) will be published at www.sanomawsoy.fi on Tuesday, 8 June.
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