Sanoma publishes and prints Finland’s leading newspapers, Helsingin Sanomat and Ilta-Sanomat. Sanoma’s titles also include the dailies Etelä-Saimaa, Kymen Sanomat, and Kouvolan Sanomat among others, the business daily Taloussanomat, the free sheet Uutislehti 100, the sports and betting weekly IS Veikkaaja, the free-ad publication Keltainen Pörssi as well as free sheets and local papers in Southern Finland.
KEY INDICATORS, € million | 31.3.2005 | 31.3.2004 | Change, % | 31.12.2004 |
Net sales | 108.6 | 104.1 | 4.3 | 435.2 |
Operating profit | 13.9 | 11.3 | 23.3 | 70.8 |
% of net sales | 12.8 | 10.8 | 16.3 | |
Balance sheet total | 459.1 | 437.2 | 5.0 | 474.5 |
Gross investments | 6.6 | 9.4 | -29.6 | 24.9 |
Personnel under employment contract, average | 2 730 | 2 661 | 2.6 | 2 746 |
Personnel, average (full-time equivalents) | 2 313 | 2 301 | 0.5 | 2 389 |
OPERATIONAL INDICATORS, 1.1–31.3. | 2005 | 2004 | 2003 | |
Helsingin Sanomat | ||||
Weekday circulation, copies *) | 424 598 | 429 244 | ||
Sunday circulation, copies *) | 492 385 | 500 269 | ||
Advertising volume (column metres) | 10 088 | 10 052 | ||
Ilta-Sanomat | ||||
Circulation, copies *) | 201 281 | 198 693 | ||
Advertising volume (column metres) | 1 551 | 1 377 | ||
Taloussanomat | ||||
Circulation, copies *) | 39 229 | 34 784 | ||
Advertising volume (column metres) | 545 | 570 |
*) Audited circulation figures, 1.1–31.12.
Sanoma’s net sales amounted to EUR 108.6 (104.1) million in January–March. Net sales grew in almost all business units. Helsingin Sanomat’s net sales increased to EUR 64.6 (63.1) million. Ilta-Sanomat’s (previously: IS Business Unit) net sales, EUR 22.1 (22.1) million remained at the previous year’s level. Sanoma Lehtimedia’s net sales grew to EUR 11.7 (11.2) million. As a result of the reorganisation at the beginning of the year, Lehtimedia’s printing operations were centralised under Sanomapaino and the Division’s ICT operations under Sanoma Data.
In January–March, there were three newspaper issues fewer than in the comparable period, which affected both advertising and circulation sales.
Advertising sales grew by 9% in the first quarter and accounted for 50% (48%) of Sanoma’s net sales. Advertising sales grew in all Business Units. Job advertising in Helsingin Sanomat grew by 10%. Significant growth was generated by the new business unit for free sheets, Sanoma Kaupunkilehdet.
Circulation sales decreased by 1% and accounted for 43% (44%) of the Division’s net sales. Circulation of Helsingin Sanomat decreased slightly compared to the previous year, and so did that of Ilta-Sanomat, whose market share in the tabloid market was 60.4% (62.0%). As for regional papers, the circulation increased slightly.
Sanoma’s operating profit increased to EUR 13.9 (11.3) million, due to growth in advertising sales and continued moderate cost development. Operating profit improved particularly in Helsingin Sanomat.
In March, Sanoma centralised its business-to-business services, Taloussanomat Oy, the Esmerk group and Lehtikuva Oy, in a new Sanoma Business Services business unit. Sanoma Kaupunkilehdet announced that the first regional issue of the free sheet Kaupunkilehti Kymppi is to come out in April in Eastern Helsinki. After the review period, Uutislehti 100 signed agreements with regard to distributing the sheet on about 600 buses as well as on trams and at metro stations in Helsinki.
Sanoma strengthened Helsingin Sanomat’s cross media strategy and the paper’s position in the Helsinki metropolitan area by acquiring the local radio station Radio Helsinki after the review period. The deal is subject to Government approval for the transfer of license.
Growth in media advertising is expected to continue in 2005. Sanoma’s advertising sales are expected to grow at least in line with this general trend. The Division’s net sales are expected to grow. Comparable operating profit is estimated to be at least at the previous year’s level.