Stock Exchange Release 9/3/2011 10:30
Sanoma Corporation published a new divisional structure on 4 November 2010, which is reflected in the Company's financial segment reporting. As of 1 January 2011, Sanoma's operations are grouped into four segments: Sanoma Media, Sanoma News, Sanoma Learning & Literature and Sanoma Trade.
The segmentation is based on business model and product differences. The media business, based on advertising and circulation sales, is divided into two segments: Sanoma Media, operating in 12 countries, is responsible for magazines and TV operations and Sanoma News for newspapers in Finland. Both divisions also have a great variety of online and mobile services. Sanoma Learning & Literature's business is mainly B2B business. Sanoma Trade, on the other hand, operates on a retail business model.
In the full year financial statements for 2010, figures were reported according to the previous segment structure. The new segment structure will be implemented in the first quarterly report to be published on 3 May 2011.
Unaudited quarterly figures for 2010 according to the new segment reporting structure are presented in the tables below.
NET SALES BY BUSINESS | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
| 2010 | 2010 | 2010 | 2010 | 2010 |
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SANOMA MEDIA |
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The Netherlands | 107.4 | 128.0 | 118.8 | 136.1 | 490.4 |
Finland | 92.6 | 91.7 | 67.5 | 87.4 | 339.3 |
The CEE countries | 48.7 | 54.3 | 51.0 | 60.9 | 214.9 |
Belgium | 53.5 | 52.3 | 48.7 | 53.8 | 208.3 |
Other businesses and eliminations | 9.9 | 13.0 | 11.5 | 12.4 | 46.7 |
TOTAL | 312.1 | 339.4 | 297.5 | 350.6 | 1,299.6 |
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SANOMA NEWS |
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Helsingin Sanomat | 59.1 | 56.7 | 55.5 | 64.1 | 235.4 |
Ilta-Sanomat | 19.9 | 20.7 | 21.1 | 21.6 | 83.3 |
Other publishing | 25.3 | 25.6 | 23.5 | 25.0 | 99.5 |
Other businesses and eliminations | 5.0 | 5.5 | 4.6 | 4.2 | 19.4 |
TOTAL | 109.4 | 108.5 | 104.8 | 114.9 | 437.6 |
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SANOMA LEARNING & LITERATURE |
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Learning | 29.9 | 85.0 | 100.6 | 33.7 | 249.3 |
Language services | 6.9 | 6.2 | 5.2 | 8.9 | 27.1 |
Literature and other businesses | 23.6 | 17.2 | 18.0 | 24.8 | 83.6 |
Eliminations | -2.3 | -2.9 | -2.5 | -2.2 | -9.9 |
TOTAL | 58.2 | 105.5 | 121.2 | 65.1 | 350.1 |
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SANOMA TRADE |
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Kiosk operations | 91.9 | 104.9 | 99.2 | 102.4 | 398.4 |
Trade services | 30.3 | 33.8 | 32.7 | 34.5 | 131.3 |
Bookstores | 26.0 | 19.9 | 31.6 | 43.2 | 120.6 |
Movie operations | 25.4 | 19.9 | 20.7 | 23.9 | 90.0 |
Eliminations | -3.4 | -4.0 | -3.1 | -3.5 | -14.0 |
TOTAL | 170.2 | 174.4 | 181.1 | 200.5 | 726.3 |
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Eliminations | -12.0 | -12.5 | -14.1 | -13.8 | -52.4 |
TOTAL | 637.9 | 715.4 | 690.6 | 717.3 | 2,761.2 |
OPERATING PROFIT BY DIVISION | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
| 2010 | 2010 | 2010 | 2010 | 2010 |
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Sanoma Media | 31.2 | 229.3 | -4.2 | 31.6 | 287.9 |
Sanoma News | 15.6 | 8.9 | 15.7 | 15.9 | 56.1 |
Sanoma Learning & Literature | -6.4 | 25.1 | 45.5 | -17.2 | 47.1 |
Sanoma Trade | 3.7 | 2.4 | 6.4 | 3.0 | 15.5 |
Other companies and eliminations | -3.7 | -4.7 | 0.5 | -6.1 | -13.9 |
TOTAL | 40.4 | 261.0 | 63.9 | 27.4 | 392.7 |
OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS BY DIVISION | |||||
EUR million | 1-3/ | 4-6/ | 7-9/ | 10-12/ | 1-12/ |
| 2010 | 2010 | 2010 | 2010 | 2010 |
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Sanoma Media | 31.2 | 47.3 | 31.0 | 36.3 | 145.8 |
Sanoma News | 9.6 | 8.9 | 15.7 | 13.0 | 47.2 |
Sanoma Learning & Literature | -5.2 | 26.4 | 45.7 | -14.4 | 52.6 |
Sanoma Trade | 3.7 | 2.4 | 7.4 | 5.6 | 19.1 |
Other companies and eliminations | -3.7 | -4.7 | -4.9 | -6.1 | -19.3 |
TOTAL | 35.6 | 80.3 | 94.9 | 34.5 | 245.4 |
In 2010, Sanoma Media's non-recurring items included in the second quarter a EUR 2.6 million gain from selling 49% of the Humo magazine and a EUR 179.0 million gain on the sale of the cable TV operator Welho, in the third quarter a EUR 28.9 million impairment of goodwill in the Dutch press distribution and a EUR 6.3 million impairment of intangible assets in the Dutch media business and in the fourth quarter EUR 3.3 million restructuring expenses in the Netherlands and a EUR 1.0 impairment of intangible assets in the CEE countries.
Sanoma News' non-recurring items in 2010 included in the first quarter a EUR 6.0 million gain on the sale of Lehtikuva and in the fourth quarter a EUR 2.9 million gain on the sale of Sanoma Lehtimedia's local papers.
Sanoma Learning & Literature's non-recurring items in 2010 included in the first quarter a EUR 1.1 million loss on the sale of Bertmark Norge and in the second quarter EUR 1.3 million, in the third quarter EUR 0.2 million and in the fourth quarter EUR 0.8 million restructuring expenses and in the fourth quarter a EUR 2.1 million impairment of a Dutch non-core entity.
Sanoma Trade's non-recurring items in 2010 included in the third quarter EUR 1.0 million and in the fourth quarter a EUR 2.6 million loss on sale of Russian operations.
SEGMENT INFORMATION
In addition to the Group eliminations column unallocated/eliminations includes Sanoma Corporation and real estate companies as well as items not allocated to segments.
Segment assets do not include cash and cash equivalents, interest-bearing receivables and tax receivables. Transactions between segments are based on market prices.
1.1-31.12.2010 | ||||||
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| Unallo- |
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| Sanoma |
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| Sanoma | Sanoma | Learning & | Sanoma | Elimi- | Group |
EUR million | Media | News | Literature | Trade | nations | total |
External net sales | 1,294.6 | 431.7 | 334.8 | 700.5 | -0.5 | 2,761.2 |
Internal net sales | 5.0 | 5.9 | 15.2 | 25.7 | -51.9 |
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NET SALES, TOTAL | 1,299.6 | 437.6 | 350.1 | 726.3 | -52.4 | 2,761.2 |
OPERATING PROFIT | 287.9 | 56.1 | 47.1 | 15.5 | -13.9 | 392.7 |
Share of results in | ||||||
associated companies | -24.5 | 0.3 | 0.0 | 0.3 |
| -23.9 |
Financial income | 11.1 | 11.1 | ||||
Financial expenses | 23.8 | 23.8 | ||||
RESULT BEFORE TAXES | 356.0 | |||||
SEGMENT ASSETS | 1,826.8 | 324.9 | 551.8 | 344.8 | 34.6 | 3,082.8 |
1.1-30.9.2010 | ||||||
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| Sanoma |
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| Sanoma | Sanoma | Learning & | Sanoma | Elimi- | Group |
EUR million | Media | News | Literature | Trade | nations | total |
External net sales | 945.5 | 317.9 | 274.4 | 506.3 | -0.1 | 2,043.8 |
Internal net sales | 3.5 | 4.8 | 10.6 | 19.5 | -38.5 |
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NET SALES, TOTAL | 949.0 | 322.7 | 285.0 | 525.8 | -38.6 | 2,043.8 |
OPERATING PROFIT | 256.3 | 40.2 | 64.3 | 12.5 | -7.8 | 365.3 |
Share of results in | ||||||
associated companies | -0.6 | 0.3 | 0.0 | 0.3 |
| 0.1 |
Financial income | 8.7 | 8.7 | ||||
Financial expenses | 17.3 | 17.3 | ||||
RESULT BEFORE TAXES | 356.8 | |||||
SEGMENT ASSETS | 1,830.9 | 326.3 | 596.6 | 349.6 | 32.7 | 3,136.0 |
1.1-30.6.2010 | ||||||
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| Sanoma |
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| Sanoma | Sanoma | Learning & | Sanoma | Elimi- | Group |
EUR million | Media | News | Literature | Trade | nations | total |
External net sales | 649.1 | 214.4 | 158.0 | 331.8 | 0.1 | 1,353.3 |
Internal net sales | 2.4 | 3.5 | 5.7 | 12.9 | -24.5 |
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NET SALES, TOTAL | 651.5 | 217.9 | 163.7 | 344.6 | -24.5 | 1,353.3 |
OPERATING PROFIT | 260.5 | 24.5 | 18.7 | 6.1 | -8.4 | 301.4 |
Share of results in | ||||||
associated companies | -1.1 | 0.1 | 0.0 | 0.3 |
| -0.7 |
Financial income | 4.6 | 4.6 | ||||
Financial expenses | 12.3 | 12.3 | ||||
RESULT BEFORE TAXES | 293.1 | |||||
SEGMENT ASSETS | 1,892.2 | 330.0 | 592.4 | 347.4 | 37.1 | 3,199.0 |
1.1-31.3.2010 | ||||||
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| Sanoma |
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| Sanoma | Sanoma | Learning & | Sanoma | Elimi- | Group |
EUR million | Media | News | Literature | Trade | nations | total |
External net sales | 310.9 | 107.4 | 55.1 | 164.3 | 0.2 | 637.9 |
Internal net sales | 1.2 | 2.0 | 3.1 | 5.9 | -12.3 |
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NET SALES, TOTAL | 312.1 | 109.4 | 58.2 | 170.2 | -12.0 | 637.9 |
OPERATING PROFIT | 31.2 | 15.6 | -6.4 | 3.7 | -3.7 | 40.4 |
Share of results in | ||||||
associated companies | -2.5 | 0.1 |
| 0.0 |
| -2.4 |
Financial income | 2.2 | 2.2 | ||||
Financial expenses | 6.0 | 6.0 | ||||
RESULT BEFORE TAXES | 34.1 | |||||
SEGMENT ASSETS | 1,729.7 | 339.2 | 571.2 | 332.0 | 36.0 | 3,008.0 |
Sanoma Corporation
Kim Ignatius
Chief Financial Officer
Additional information: Sanoma's Group Communications, tel +358 105 19 5062 or communications@sanoma.com
Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.