Sanoma interim report: sales continue decreasing, redesing ahead

Adjusted for changes in the Group structure, Sanoma’s net sales decreased by 5.1 percent in the third third quarter. The decrease is mainly due to the continued deterioration in advertising markets and circulation. Advertising sales alone decreased by 8.3% to EUR 165.7 million. “New technologies are fundamentally changing the behaviour of media consumers. Consequently advertisers are following consumers. This implies a rapid increase in advertising in digital channels that enable targeting, measuring and performance-based pricing”, says President and CEO Harri-Pekka Kaukonen. In July–September, Sanoma’s operating profit excluding non-recurring items decreased by 3.6% and totalled EUR 76.9 million. According to interim report, the non-recurring items included in the operating profit amounted to EUR -316.6 million (2012: -18.3) mainly related to non-cash impairment charges of goodwill and intangible assets, restructuring expenses as well as sales gains and losses. Outlook for the the year 2013 is unchanged. In 2013, Sanoma expects that the Group’s consolidated net sales will decline more than 4% compared to 2012 and operating profit excluding non-recurring items is estimated to be below EUR 180 million. Sanoma is  launching a plan regarding the largest transformation in Sanoma’s history. ”We will have to make tough choices to finance the investments needed to enable future growth, and to seize all opportunities in the businesses that we are focusing on.”