SWELCOM
Electronic media
SWelcom’s unit, TV channel Nelonen, is Finland’s third most important advertising medium. HTV (Helsinki Television) is the country’s biggest cable TV company.
SWelcom’s unit, TV channel Nelonen, is Finland’s third most important advertising medium. HTV (Helsinki Television) is the country’s biggest cable TV company.
KEY INDICATORS, € million | 31.3.2005 | 31.3.2004 | Change, % | 31.12.2004 |
Net sales | 29.8 | 29.2 | 2.1 | 117.5 |
Operating profit | 2.7 | 0.9 | 207.2 | 9.6 |
% of net sales | 9.1 | 3.0 | 8.2 | |
Balance sheet total | 142.5 | 141.0 | 1.0 | 135.0 |
Gross investments | 2.2 | 2.4 | -7.5 | 10.7 |
Personnel under employment contract, average | 415 | 426 | -2.7 | 415 |
Personnel, average (full-time equivalents) | 377 | 388 | -2.8 | 378 |
OPERATIONAL INDICATORS, 1.1–31.3. | 2005 | 2004 | ||
Nelonen’s share of Finnish TV advertising | 29.7% | 29.3% | ||
Nelonen’s daily coverage | 44% | 45% | ||
Nelonen’s national commercial viewing share | 22.0% | 23.4% | ||
Nelonen’s national viewing share | 11.1% | 12.0% | ||
Number of connected households, thousands (31.3.) | 284 | 265 | ||
Number of pay TV subscriptions, thousands (31.3.) | 36 | 34 | ||
Number of broadband internet connections, thousands (31.3.) | 56 | 46 |
SWelcom’s net sales grew to EUR 29.8 (29.2) million in January–March. After adjustment for changes in Group structure, net sales grew by 5.2%. The figures for the comparable period included Måndag, sold in April 2004. Advertising sales totalled 58% (55%) of the Division’s net sales.
Nelonen’s net sales increased to EUR 17.2 (15.9) million. Nelonen’s advertising sales and its share in TV advertising grew compared to the first quarter of 2004. Unlike in 2004, Nelonen’s most important programme launches took place in April, and these are estimated to increase both viewing and market shares. After the review period, Nelonen acquired the broadcasting rights for Finnish National Ice Hockey League for 2005–2008, in co-operation with Canal+. Canal+ is part of the Nordic pay TV company C More Entertainment AB.
Growth in HTV’s net sales slowed down as consumer prices for broadband internet services decreased markedly at the end of 2004. According to TNS Gallup, users of Welho Broadband are the most satisfied with their service in Finland, for the second time. In March, HTV was the first cable TV company in Finland to provide internet-based VoIP voice services, to complement their range of digital TV and broadband services.
SWelcom’s operating profit continued to develop well, reaching EUR 2.7 (0.9) million. Net sales were improved by growth in Nelonen’s sales and allocation of major programme investments mainly to the following quarters.
In 2005, SWelcom’s net sales are expected to grow. In addition to Nelonen’s advertising sales, SWelcom’s result is influenced by overall price development in broadband services. Operating profit is estimated to remain at the previous year’s level.