Alma Media Corporation Financial Statements Bulletin 5 February 2025 at 8.00 a.m.
ALMA MEDIA'S FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2024:
The result for Q4 improved in all business segments
Financial performance October-December 2024:
- Revenue MEUR 81.2 (78.0), up 4.1%.
- The share of digital business was 83.6% (81.3%) of revenue.
- Adjusted operating profit MEUR 19.5 (16.7), 24.0% (21.5%) of revenue.
- Operating profit MEUR 17.7 (15.8), up 11.5%.
- Alma Career: Profitability improved as a result of lower costs. Adjusted operating profit increased by 6.4%.
- Alma Marketplaces: Revenue grew, adjusted operating profit grew by 23.5%, supported by both organic growth and acquisitions.
- Alma News Media: Revenue was on a par with the comparison period, adjusted operating profit increased by 13.3% as a result of lower expenses.
- Earnings per share EUR 0.15 (0.13).
Financial performance in 2024:
- Revenue MEUR 312.7 (304.9), up 2.5%.
- The share of digital business at 84.2% (82.4%) of revenue.
- Adjusted operating profit MEUR 76.9 (73.6), 24.6% (24.1%) of revenue.
- Operating profit MEUR 73.4 (73.0).
- Earnings per share EUR 0.64 (0.69).
- The Board's preliminary dividend proposal: EUR 0.46 (0.45) per share.
Key figures
| MEUR | 2024 Q4 | 2023 Q4 | Change % | 2024 Q1-Q4 | 2023 Change Q1-Q4 % | |
| Revenue | 81.2 | 78.0 | 4.1 | 312.7 | 304.9 2.5 | |
| Classified | 29.8 | 29.6 | 0.9 | 122.2 | 122.4 | -0.1 |
| Advertising | 16.5 | 18.1 | -8.4 | 60.0 | 64.9 | -7.6 |
| Digital services | 15.1 | 10.9 | 38.8 | 57.2 | 43.9 | 30.3 |
| Content | 13.2 | 12.7 | 3.9 | 50.6 | 50.5 | 0.3 |
| Other | 6.5 | 6.7 | -4.3 | 22.6 | 23.2 | -2.7 |
| Digital business revenue | 67.9 | 63.4 | 7.0 | 263.4 | 251.2 4.9 | |
| Digital business, % of revenue | 83.6 | 81.3 | 84.2 | 82.4 | ||
| Adjusted total expenses | 61.8 | 61.3 | 0.8 | 236.2 | 231.5 2.0 | |
| Adjusted EBITDA | 23.9 | 21.0 | 13.5 | 94.0 | 91.0 | 3.3 |
| EBITDA | 22.5 | 20.4 | 10.4 | 91.0 | 90.6 | 0.4 |
| Adjusted operating profit | 19.5 | 16.7 | 16.6 | 76.9 | 73.6 | 4.4 |
| % of revenue | 24.0 | 21.5 | 24.6 | 24.1 | ||
| Operating profit/loss | 17.7 | 15.8 | 11.5 | 73.4 | 73.0 | 0.5 |
| % of revenue | 21.8 | 20.3 | 23.5 | 23.9 | ||
| Profit for the period before tax | 16.5 | 11.4 | 44.5 | 67.0 | 68.5 | -2.1 |
| Profit for the period | 12.1 | 10.6 | 13.9 | 52.6 | 56.4 | -6.7 |
Preliminary dividend proposal to the Annual General Meeting
On 31 December 2024, the Group's parent company had distributable funds totalling EUR 155,670,182 (152,095,452). Alma Media's Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.46 per share be paid for the financial year 2024 (2023: EUR 0.45 per share). The dividend will be paid to shareholders who are registered in Alma Media Corporation's shareholder register maintained by Euroclear Finland Ltd on the record date of the payment, 14 April 2025. The Board of Directors proposes that the dividend be paid on 23 April 2025. Based on the number of outstanding shares on the closing date, 31 December 2024, the dividend payment totals EUR 37,786,811 (36,932,982).
Alma Media publishes notice to the Annual General Meeting of 5 March 2025, Financial Statements and Dividend Proposal will be published on 20 March 2025.
No essential changes have taken place after the end of the financial year with respect to the company's financial standing. The proposed distribution of profit does not, in the view of the Board of Directors, compromise the company's liquidity.
CEO's review: Improved efficiency in a subdued operating environment
Alma Media's business developed favourably in the fourth quarter. Revenue grew by 4.1% to MEUR 81.2. Revenue was supported by acquisitions, but the weakened Czech koruna dampened revenue performance. The Group's advertising sales decreased by 8.4%.
Adjusted operating profit grew substantially, by 16.6%, reaching MEUR 19.5, or 24.0% of revenue. The share of digital business was 83.6% of revenue. We continued to invest in the development of our services, particularly in the Career and Marketplaces segments. Profitability for the full year came to 24.6%, approaching our long-term target of 25%.
There are positive signals in the market and national economies are expected to pick up, but fluctuations in the global economy may still affect market development. Inflation has decreased from its peak and the lowering of the key interest rates initiated by the ECB has helped strengthen consumer confidence in their finances and promote households' opportunities to make purchases of durable consumer goods, such as homes and cars.
We accelerated our investments in product development
In the Alma Career segment, revenue decreased by 2.5% and amounted to MEUR 26.3. Adjusted operating profit increased by 6.4% to MEUR 10.6 and represented 40.4% of revenue. In local currencies, revenue decreased by 1.0% and adjusted operating profit increased by 6.8%. In Q4, the development of invoicing in local currencies was on a par with the comparison period. The development costs associated with the segment's common platform had a negative effect on profitability.
There were again significant differences in the labour market cycle between the segment's operating countries. Among the significant operating countries, the employment situation remained good in the Czech Republic and Slovakia, which maintained stable demand for labour. Recruitment activity increased particularly among small and medium-sized employers, but some of the larger customer companies continued to postpone recruitment. The Croatian labour market also performed well during the year, as the unemployment rate fell below 5% for the first time. In the Baltic countries and Finland, however, the situation still did not improve.
In the Alma Marketplaces segment, revenue increased by 18.1% to MEUR 25.9 in Q4, supported by the acquisition of Netwheels. Adjusted operating profit increased by 23.5% to MEUR 6.9 and was 26.6% of revenue. Organic revenue growth was 5.6%. Expenses increased by 16.2% as a result of acquisitions. In spite of the weak market conditions, we continued to implement our development projects, particularly in digital services related to the automotive and housing verticals, focusing on the development of transactional business. Revenue from the Mobility business area increased by 52.7% to MEUR 9.0. Excluding the effect of acquisitions and divestments, revenue increased by 6.1%. There were further signals of a recovery in the housing market, especially with regard to old dwellings. Revenue from the Real Estate business area increased by 7.8% and amounted to MEUR 9.4.
The Alma News Media segment's revenue remained on a par with the comparison period, but active cost management meant that the segment's adjusted expenses decreased by 2.4% and adjusted operating profit improved by 13.3%, reaching 17.5% of revenue. This is a high level for the media business by international comparison.
Change negotiations were conducted to ensure longterm competitiveness. As a result, the publication of Kauppalehti's print supplements Optio and Fakta was discontinued, as was the publication of Mediuutiset. The number of employees was reduced by 20 person-years.
The economic conditions were not easy for the Finnish media industry, although interest in the news remained at a high level. Advertising revenue decreased by 2.8%. The share of revenue from digital business rose to 61.5% and the digital revenue grew by 14.1% The number of digital subscriptions is now 207,000.
AI is developing quickly - and so are we
Our strategy is focused on the development, growth and scaling up of business with the help of the latest AI technology. We want to improve our agility and accelerate product and service development and the introduction of new products to the market. We respond the changing needs of our customers and partners by making the necessary investments in expertise and technology to produce solutions that utilise AI and improve processes in our customers' value chains. We have the level of preparedness, capabilities and motivation required for continuous renewal.
Alma has dozens of AI-related projects under way to improve productivity and efficiency in our existing processes, complement our existing services with AI-driven components, and ultimately introduce completely new AI-based business concepts to the market.
Kai Telanne
President and CEO
Operating environment
The European Commission (EC) published its latest economic forecast on 15 November 2024, estimating that the rate of economic growth in the EU was 0.9% in 2024, and that inflation had slowed to 2.6%. The year 2024 marked the return of falling interest rates. This was particularly due to the weaker economic situation in Europe and reduced inflation, which made it possible for the ECB to start its interest rate cuts.
For 2025, the EC expects growth of 1.5% for the EU economy, and inflation is projected to decrease to 2.4%. The EC estimates that the unemployment rate in the EU will be 5.9%, representing a decrease from the level of 6.1% seen in 2024. The markets expect the ECB to continue its interest rate cuts this year. At the same time, risks related to global trade policy and geopolitics have grown, and the expectations are subject to increased uncertainty, which may be reflected in economic development.
In Alma Media's main operating countries, expectations for economic development in 2025 are primarily positive. The Finnish economy has cautious outlook, which is expected to see a gradual pick-up, with the EC projecting growth of 1.5%, inflation of 2.0% and an unemployment rate of 7.9% this year. It is expected that the price of financing will gradually fall, and this will support household spending on durable consumer goods and the willingness of companies to invest. Housing construction is expected to recover slowly.
In addition to Finland, Alma Media's main markets are the Czech Republic and Slovakia in Eastern Central Europe, and Croatia in Southern Europe. The EC projects that GDP growth will accelerate from 1.0% in 2024 to 2.4% this year in the Czech Republic and from 2.2% to 2.3% in Slovakia, whereas for Croatia, it predicts growth to slow from 3.6% to 3.3%. The EC's unemployment rate projections for this year are 2.7% for the Czech Republic, 5.3% for Slovakia and 4.7% for Croatia. Alma's main operating countries are dependent on foreign trade, and the increased uncertainty in global politics casts a shadow over the positive drivers.
Outlook for 2025
Alma Media expects its full-year revenue and adjusted operating profit of 2025 to remain at the 2024 level. The full-year revenue for 2024 was MEUR 312.7 and the adjusted operating profit was MEUR 76.9.
Background for the outlook
The outlook is based on the assessment that the national economies in the company's main markets will pick up, but uncertainty in the markets will continue. Fluctuations in the global economy may affect the development of the markets.
The period of slow growth in Finland is expected to continue, and advertising is still subject to uncertainty. Acquisitions will increase the company's revenue and operating profit. The diversification of the Group's business activities between multiple geographical markets and business areas, and purposeful cost control, stabilise the company's outlook even in challenging market conditions.
Market situation in the main markets in Finland
Market development in the automotive industry
According to statistics provided by the Finnish Information Centre of the Automobile Sector, first registrations of new passenger cars in Finland decreased in by 15.4% year-on-year in 2024. Sales of used cars by car dealerships increased by approximately 5%.
Market development in housing
According to the Central Federation of Finnish Real Estate Agencies, the number of housing transactions for old dwellings in 2024 was 50,388, which represents a decrease of 1.5% when compared to the previous year. In Q4, the sales volume of old dwellings (15,698 units) was on a par with the corresponding period in the previous year, and 11.2% lower than the five-year average. The sales volume of new dwellings (770 units) decreased by 4.1% year-on-year and was 69.1% lower than the five-year average. The total sales volume (16,468 units) decreased by 0.4% year-on-year and was 18.3% lower than the five-year average.
Market development in the media business
According to Kantar TNS, a total of MEUR 1,302 was spent on media advertising in 2024, a 1.3% reduction from year before. On top of the 25% (MEUR 188 million) share of retail trade, the major industries in media advertising, were food (MEUR 79) and cars (MEUR 63). When excluded social media and search advertising from the total, media advertising dipped by 3.3%. Among the industries, advertising in cosmetics, telecommunications and food increased the most and advertising in construction, cosmetics, motor vehicles and telecommunications fell the most. Job vacancy advertisements softened by 30.9% in December.
More information:
Kai Telanne, President and CEO, tel. +358 (0)10 665 3500
Taru Lehtinen, CFO, tel. +358 (0)10 665 3609
News conference and live webcast
Alma Media Corporation will publish the Financial Statement Bulletin for January 1-December 31, 2024, accounting period on Wednesday, 5 February 2025 approximately at 8.00 EET.
A combined analyst, investor and media conference and webcast will be held in English by President & CEO Kai Telanne and CFO Taru Lehtinen at 11.00-12.00.
The conference will be arranged in the Alma House (address: Alvar Aallon katu 3 C, Helsinki). To participate in the conference in Alma House, we kindly ask you to register beforehand by e-mail to: kutsut@almamedia.fi.
The live webcast can be followed via https://almamedia.videosync.fi/q4-2024/register. Questions can be asked through the webcast chat function. An on-demand version of the webcast and the presentation material will be available on the company's website on the same day www.almamedia.fi/en/investors/reports-and-presentations/presentations.
Alma Media's financial calendar 2025
- Interim Report for January-March 2025 on Friday, 25 April 2025, at approximately 8:00 EET
- Interim Report for January-June 2025 on Thursday, 17 July 2025, at approximately 8:00 EET
- Interim Report for January-September 2025 on Friday, 31 October 2025 at approximately 8:00 EET
- The Financial Statements, Report by the Board of Directors, Auditor's Report and Corporate Governance Statement for the financial year 2024 will be published by Thursday, 20 March 2025.
- The Annual General Meeting is planned to be held on Thursday, 10 April 2025. The materials related to the Annual General Meeting will be available on the Alma Media website.
ALMA MEDIA CORPORATION
Board of Directors
Distribution: NASDAQ Helsinki, main media, www.almamedia.fi/en
Alma Media in brief
Alma Media is an international company of digital media, marketplaces and services with a strong capacity for renewal. We inspire human curiosity and choice by creating services that combine technology and content with a local heart. In Finland, our best-known brands include Kauppalehti, Talouselämä, Iltalehti, Jobly, Etuovi.com, Nettiauto and Nettimoto. Our recruitment services include prace.cz and jobs.cz in the Czech Republic, Profesia.sk in Slovakia and mojposao.net in Croatia.
In Finland, our business operations include leading housing and automotive marketplaces, financial and professional media, national consumer media and content and data services for businesses and professionals. Alma Media's international business in Eastern Central Europe, Sweden and the Baltic countries consists of recruitment services and an online marketplace for commercial properties.
Alma Media operates in 11 countries in Europe and employs approximately 1,700 professionals. Alma Media's revenue from continuing operations was EUR 313 million in 2024 of which the share of digital business was 84%. Alma Media's share is listed on NASDAQ Helsinki. Read more at www.almamedia.fi/en/.
