Sanoma's Interim Report 1 Jan-30 Sept 2010: Outlook for 2010 improved

11/3/2010, 10:01 AM (Source: GlobeNewswire)

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Interim Report  3/11/2010  11:00

Third quarter

- Net sales amounted to EUR 690.6 million (2009: EUR 701.1 million). Adjusted
for changes in the Group structure, Sanoma's net sales grew by 1.2%.
- Operating profit excluding non-recurring items improved by 12% to EUR 94.9
million (2009: EUR 84.5 million).
- Non-recurring items totalled EUR -31.0 million (2009: EUR -7.4 million) and
were mostly related to an impairment of goodwill in the Dutch press distribution
operations.
- Earnings per share were EUR 0.24 (2009: EUR 0.30).

First nine months

- Sanoma Group's net sales were stable at EUR 2,043.8 million (2009: EUR
2,034.4 million).
- Operating profit excluding non-recurring items improved by 17% and totalled
EUR 210.8 million (2009: EUR 180.2 million).
- Cash flow from operations amounted to EUR 174.0 million (2009: EUR 119.6
million).
- Earnings per share were EUR 1.86 (2009: EUR 0.62).
- The outlook for the Group's operating profit excluding the non-recurring items
is upgraded. It is now expected to improve somewhat from the 2009 level. The
upgrade is based on the improved outlooks in Magazines, News and Learning &
Literature, while the outlook for Trade is downgraded. Group's net sales are
expected to be at the previous year's level.


KEY INDICATORS 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009 % 2010 2009 % 2009



Net sales 690.6 701.1 -1.5 2,043.8 2,034.4 0.5 2,767.9

Operating profit excluding 94.9 84.5 12.4 210.8 180.2 17.0 229.5
non-recurring items

  % of net sales 13.7 12.0   10.3 8.9   8.3

Operating profit 63.9 77.1 -17.0 365.3 163.1 124.0 195.4

Result for the period 39.1 47.2 -17.2 298.3 98.5 202.7 107.1



Capital expenditure 59.6 61.2 -2.7 83.4

  % of net sales 2.9 3.0   3.0



Equity ratio, % 44.3 39.4   41.4

Net gearing, % 71.4 90.3   79.4



Number of employees at the end of the period 15,863 16,998 -6.7 16,723
(FTE)

Average number of employees (FTE) 16,148 17,507 -7.8 17,343



Earnings/share, EUR 0.24 0.30 -18.0 1.86 0.62 201.3 0.66

Cash flow from 0.71 0.70 1.2 1.08 0.74 44.7 1.50
operations/share, EUR


Hannu Syrjänen, President and CEO

"In the third quarter, we saw stable growth in the advertising markets of our
most important operating countries. Also the outlook for 2010 has become
clearer.

Growing advertising sales, good performance in learning business and better
operational efficiency improved our profitability clearly also in the third
quarter. Especially Sanoma News and learning business performed well. Online
advertising sales grew in all businesses. However, the economic recovery in most
of the Central Eastern European countries has not really picked up yet. In
addition to growing our operations, we continue to emphasise strong cash flow
and improving efficiency.

A key element of Sanoma's strategy is to focus our operations and balance our
portfolio. In the third quarter, this was executed by consolidating B2B
businesses into a single unit and after the review period, by discontinuing
Russian kiosk and press distribution operations.

We develop our concepts to better respond to the changing needs of our
customers. Media experiences will be much more customised, personal and
increasingly mobile. Our approach to these new trends, however, is a pragmatic
one: new services must have solid business models. In mobile media, for example,
we currently have some 40 applications for the iPhone and iPad. These generate
not only interesting insight into how consumers and advertisers are adopting new
habits, but also provide a test environment for different revenue models. New,
innovative concepts in media, learning and retail will offer us interesting
growth opportunities."

Outlook for 2010

Sanoma Group's outlook is changed. In 2010, Sanoma's net sales are expected to
be at the previous year's level. The operating profit excluding non-recurring
items is estimated to improve somewhat. The upgrade is based on the improved
outlooks in Magazines, News and Learning & Literature, while the outlook for
Trade is downgraded. Earlier Sanoma estimated its net sales to grow and
operating profit excluding non-recurring items to improve only slightly. In the
comparable year 2009, operating profit excluding non-recurring items was EUR
229.5 million.

This outlook takes into account the effect of the weekly magazine Humo and the
cable TV operator Welho transactions. The estimated negative impact of these
transactions on the 2010 operating profit excluding non-recurring items is some
EUR 12 million.

The outlook of Sanoma's net sales and operating profit in 2010 is affected by
the development of advertising and private consumption in the Group's countries
of operation. The current outlook is based on the assumption that the
advertising markets in the Group's main operating countries grow somewhat in
2010.

Net sales

Third quarter

In the third quarter of 2010, Sanoma's net sales decreased by 2% and amounted to
EUR 690.6 million (2009: EUR 701.1 million). Net sales increased in News and
Learning & Literature and were at the comparable quarter's level in Magazines
and Trade. Net sales decreased in Entertainment following the divestment of
cable TV and broadband operations. Currency translations did not have material
effect on the third quarter sales. Adjusted for changes in the Group structure,
net sales grew by 1.2% in the third quarter.

The growth of advertising sales continued: In the third quarter, Sanoma's
advertising sales grew by 12% and accounted for 20% (2009: 18%) of the total net
sales. Online advertising sales increased significantly, by 22%, with the
biggest contributors, Sanoma Magazines Netherlands and Sanoma News, both showing
clear growth.

The circulation sales were slightly below the comparable quarter. The Group's
subscription sales remained stable, but single copy sales decreased slightly in
most of the operating countries.

First nine months

In January-September, Sanoma's net sales grew by 1% and amounted to
EUR 2,043.8 million (2009: EUR 2,034.4 million). Net sales increased in News,
Learning & Literature and Trade. In Magazines net sales remained stable.
Entertainment's net sales were affected by the Welho divestment.

Sanoma has a target to double its consumer online sales by 2012 from 2008. In
the first nine months of 2010, such sales grew by 19% to EUR 109.9 million
(2009: EUR 92.6 million). Total digital sales, which also include items such as
e-learning and the access services divested in June, increased by 7% and
amounted to 12% (2009: 11%) of net sales.

By country, Finland accounted for 51% (2009: 51%) of the cumulative net sales
and the Netherlands 23% (2009: 23%). Net sales from other EU countries totalled
23% (2009: 23%) and non-EU countries accounted for 3% (2009: 3%).

Result

Third quarter

Sanoma's operating profit excluding non-recurring items in July-September
improved by 12% and totalled EUR 94.9 million (2009: EUR 84.5 million). The
result improved in Magazines, News and Learning & Literature. Operating profit
excluding non-recurring items was 13.7% (2009: 12.0%) of net sales. The Group's
result increased in particular due to improved efficiency of operations, growing
advertising sales and good performance in learning. Currency translations did
not have material effect on the third quarter result.

Sanoma continues to see the effects of the efficiency improvement measures and
structural changes mostly carried out in 2009. In the third quarter, the Group's
total expenses came down by 3%. Paper costs in particular continued to decrease.
Employee benefit expenses decreased by 5%. The Group had 860 employees less than
at the year-end 2009, corresponding to a decrease of 5%. From the comparable
quarter, the number of personnel has decreased by 7%. A decrease of some 200
employees is due to the Welho divestment.

Sanoma announced in September that it will centralise and outsource the Group's
shared administrative ICT services in Finland and possibly in the Baltic
countries. The project is expected to create clear savings and enable more
consistency in operating methods.

In July-September, the operating profit included a total of EUR -31.0 million
(2009: EUR -7.4 million) in non-recurring items. The majority of the non-
recurring costs were related to an impairment of goodwill in the Dutch trade
services business. This impairment is related to the realignment of the
operations in the distribution company Aldipress. In the future, Aldipress will
focus on press single copy distribution and strengthen its service to local
publishers. To facilitate this, Aldipress will be moved from Sanoma Trade's
trade services to Sanoma Magazines as of 1 January 2011. Other non-recurring
costs are related to the continuous restructuring of distribution operations in
Estonia and general literature in Finland as well as a write-down of an online
asset in the Netherlands. Non-recurring gains are related to divestments of real
estate assets.

NON-RECURRING ITEMS 7-9/ 7-9/ 1-9/ 1-9/ 1-12/

EUR million 2010 2009 2010 2009 2009

Magazines

Restructuring expenses (Magazines Belgium)   -0.2   -1.5 -12.4

Gain from Humo     2.6

Restructuring expenses (Magazines Netherlands)   -4.6   -4.6 -4.7

Write-down of intangible assets (Magazines -6.3   -6.3
Netherlands)

News

Gain on sale of Lehtikuva     6.0

Expenses related to the efficiency programme       -8.4 -8.4

Entertainment

Gain on sale of Welho     179.4

Learning & Literature

Loss on sale of Bertmark Norge     -1.2

Restructuring expenses -0.2 -1.5 -1.5 -1.5 -3.9

Expense related to the sale of children's magazines   -1.1   -1.1 -1.1

Trade

Restructuring expenses -1.0   -1.0   -3.6

Write-down of goodwill in the Dutch press -28.9   -28.9
distribution

Sanoma Corporation

Gain on sales of real estates 5.4   5.4

NON-RECURRING ITEMS IN OPERATING PROFIT -31.0 -7.4 154.5 -17.1 -34.1



Impairment losses on loans and other receivables

and available-for-sale investments   -5.0     -8.7
--------------------------------------------------------------------------------
NON-RECURRING ITEMS IN FINANCIAL ITEMS   -5.0     -8.7



First nine months

In January-September, Sanoma's operating profit excluding non-recurring items
improved by 17% and totalled EUR 210.8 million (2009: EUR 180.2 million).
Operating profit excluding non-recurring items improved in Magazines, News and
Learning & Literature.

Following the divestment of Welho and the related acquisition of 21% in the
Finnish telecommunication group DNA, Sanoma now reports its share of DNA's
result in the associated companies. In the third quarter, profits from
associated companies totalled EUR 0.1 million (2009: EUR -2.3 million) with the
DNA result developing as expected. The most significant associated companies, in
addition to DNA, include Hansaprint, Stratosféra and Jokerit HC.

In January-September, Sanoma's net financial items totalled EUR -8.6 million
(2009: EUR -21.7 million). Lower reference rates than in the comparable period
decreased the Group's interest expenses clearly. Financial income amounted to
EUR 8.7 million (2009: EUR 19.6 million), of which exchange rate gains were EUR
5.5 million (2009: EUR 13.1 million). Financial expenses amounted to EUR 17.3
million (2009: EUR 41.3 million). Interest expenses amounted to EUR 9.5 million
(2009: EUR 21.5 million) and exchange rate losses to EUR 6.0 million (2009: EUR
13.2 million). The positive effects of lower interest rates has started to even
out in the third quarter, since the reference rates came down in the second
quarter of 2009.

The result before taxes amounted to EUR 356.8 million (EUR 139.2 million).
Group's result and the effective tax rate were significantly affected by the
divestment of Welho in June 2010.

Balance sheet and financial position

At the end of September, Sanoma's consolidated balance sheet totalled EUR
3,246.5 million (2009: EUR 3,186.0 million). Efficient cash flow management
continued to be a focus area, and in the first nine months, the Group's cash
flow from operations amounted to EUR 174.0 million (2009: EUR 119.6 million).
Cash flow from operations per share was EUR 1.08 (2009: EUR 0.74). In addition
to a significantly better operational result, positive development of net
working capital and lower interest costs also improved the cash flow.

Sanoma's financial position remained strong and financial flexibility continued
to improve. Equity ratio strengthened and was 44.3% (2009: 39.4%) at the end of
September. Equity totalled EUR 1,357.6 million (2009: EUR 1,181.7 million).
Interest-bearing liabilities continued to decrease and totalled EUR 1,024.3
million (2009: EUR 1,133.4 million) and interest-bearing net debt was EUR 969.1
million (2009: EUR 1,067.0 million). Sanoma's net debt/EBITDA ratio was 1.6 at
the end of September.

Investments, acquisitions and divestments

Investments in tangible and intangible assets amounted to EUR 59.6 million
(2009: EUR 61.2 million) in January-September. Investments were mainly related
to ICT systems as well as replacements and renovations. Sanoma has a policy to
keep annual capital expenditure, excluding M&A, below EUR 100 million. Sanoma's
business acquisitions totalled EUR 37.1 million (2009: EUR 8.3 million).

In May, Sanoma Magazines Belgium sold 49% of its Humo magazine to Belgian De
Vijver NV. As part of the transaction, Sanoma Magazines Belgium acquired 25% of
Belgium's largest TV production company Woestijnvis, which is owned by De
Vijver.

In June, Sanoma Entertainment divested its cable TV operator Welho to the DNA
telecommunication group, invested the total enterprise value of Welho into DNA
and became DNA's second largest owner with an ownership share of 21%.


SANOMA MAGAZINES

Sanoma Magazines, operating in 12 European countries, is a leading publisher of
magazines and has a strong presence in digital media. The company actively
reaches out to an audience of 290 million consumers at every life stage, and
aims to strengthen its market leader positions in each of the markets it
operates in.

- Advertising sales developed positively in the third quarter, and Sanoma
Magazines outperformed market growth in many of its markets.
- Sanoma Magazines continued its portfolio management in the third quarter: the
new iPad applications launched in the Netherlands and Russia quickly became
popular.
- Sanoma Magazines' outlook for operating profit excluding non-recurring items
has been upgraded and it is now estimated to improve clearly in 2010.

Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009  % 2010 2009 % 2009

Net sales 264.4 266.1 -0.6 804.9 804.2 0.1 1,111.2

  Sanoma Magazines 118.8 120.7 -1.5 354.3 354.5 -0.1 493.2
  Netherlands

  Sanoma Magazines 51.0 48.8 4.5 154.0 152.8 0.8 211.3
  International

  Sanoma Magazines 48.7 50.8 -4.3 154.5 154.8 -0.2 212.3
  Belgium

  Sanoma Magazines 46.9 46.9 -0.1 145.2 145.3 0.0 198.8
  Finland

  Eliminations -1.0 -1.2 16.1 -3.1 -3.3 5.4 -4.3

Operating profit excluding non- 28.9 27.9 3.6 93.1 75.0 24.2 113.4
recurring items *

  % of net sales 10.9 10.5   11.6 9.3   10.2

Operating profit 22.6 23.1 -2.2 89.4 68.9 29.8 96.3

Capital expenditure 12.8 17.8 -27.8 24.4

Number of employees at the end of the period (FTE) 4,989 5,355 -6.8 5,191

Average number of employees (FTE) 5,062 5,521 -8.3 5,452

* In 2010, the non-recurring items included in the second quarter a EUR 2.6
million gain from selling 49% of Humo magazine and in the third quarter a EUR
6.3 million write-down of intangible assets in Sanoma Magazines Netherlands. In
2009, the non-recurring items included in the second quarter EUR 1.3 million, in
the third quarter EUR 0.2 million and in the fourth quarter EUR 10.9 million of
Sanoma Magazines Belgium's restructuring expenses and in the third quarter EUR
4.6 million and in the fourth quarter EUR 0.1 million of Sanoma Magazines
Netherlands' restructuring expenses.

Operational indicators * 1-9/ 1-9/

  2010 2009

Number of magazines published 280 298

Magazine copies sold, thousands 257,426 280,874

Advertising pages sold 35,865 37,788

* Including joint ventures

Third quarter

Sanoma Magazines' net sales in July-September were stable. Net sales were
slightly below the comparable quarter in the Netherlands and in Belgium. Finnish
sales remained stable and Sanoma Magazines International's sales improved.
Adjusted for changes in the Division structure, sales grew by 1.3%.

The Division's advertising sales grew by 11% and represented 28% (2009: 25%) of
the third quarter net sales. Advertising sales grew in all four businesses, with
especially strong performances in the Netherlands, Sanoma Magazines
International and Finland. Sanoma Magazines' online advertising sales grew
significantly, in particular due to the good development in the Netherlands and
Sanoma Magazines International.

Sanoma Magazines' circulation sales decreased slightly and represented 61%
(2009: 64%) of the Division's net sales. Subscription sales were at the
comparable quarter's level and single copy sales decreased.

Sanoma Magazines Netherlands' net sales were slightly below the comparable
quarter. Advertising sales growth was in line with the previous quarter. Online
advertising sales continued to increase clearly. Advertising sales represented
27% (2009: 24%) of Sanoma Magazines Netherlands' net sales. Its circulation
revenues decreased, with subscription sales remaining stable but single copy
sales declining somewhat. Sanoma Magazines Netherlands discontinued one
magazine. The NU HD iPad application, developed by Sanoma Digital the
Netherlands, became an immediate hit after its launch in July. Another popular
mobile media solution is the application for Autoweek, which also explores the
new possibilities of the tablets both for readers and advertisers.

Sanoma Magazines International's net sales grew by 5% due to increased
advertising sales in Russia and the favourable currency translation effect. The
advertising market outlook is also improving in Hungary, but the visibility and
advertising sales remain low in other CEE countries. Advertising sales
represented 48% (2009: 45%) of Sanoma Magazines International's net sales in the
third quarter. Circulation sales decreased, with both single copy and
subscription sales declining somewhat. In July, Sanoma Magazines International
divested its Slovakian magazine operations. Sanoma Digital Romania acquired the
country's leading real estate site MagazinulDeCase.ro. Sanoma Magazines has
established a divisional centre of expertise for the development of smart phone
and tablet applications in Hungary. The iPad version of the Russian Cosmopolitan
was launched in August and has become globally popular among Russian speaking
readers.

Net sales from Sanoma Magazines Belgium decreased by 4%, due to divestment of
49% of the weekly Humo, one of Sanoma Magazines Belgium's key titles, in May.
Advertising sales increased, thanks to other titles' good performance, whereas
circulation sales decreased. Advertising sales represented 24% (2009: 22%) of
Sanoma Magazines Belgium's net sales.

Sanoma Magazines Finland's net sales were at the comparable quarter's level.
Advertising sales improved and represented 12% (2009: 10%) of net sales. Sanoma
Magazines Finland's key titles continued to perform well and circulation sales
remained at the comparable quarter's level.

Sanoma Magazines' operating profit excluding non-recurring items in July-
September grew by 4%. Operational efficiency continued to improve but the
postponement of marketing campaigns to the third quarter slowed down the growth
rate from previous quarters. The fourth quarter result will also be burdened by
increased marketing activities. In the comparable year 2009, marketing was at a
low level. Result improved in Sanoma Magazines International and in Sanoma
Magazines Netherlands in the third quarter, but declined in Sanoma Magazines
Belgium due to the Humo transaction. In Sanoma Magazines Finland, timing
differences led to a smaller number of issues published than in the comparable
quarter, which lowered the result. The non-recurring costs included in the
operating profit totalled EUR 6.3 million (2009: EUR 4.8 million) and consisted
of an impairment loss on intangible assets related to an online property.

First nine months

In January-September, Sanoma Magazines' net sales were at the comparable
period's level. Adjusted for changes in the Division structure, the growth was
1.5%. Operating profit excluding non-recurring items increased by 24%.

According to Nielsen Media Research, the consumer magazine advertising market in
the Netherlands was slightly up in January-August. Sanoma Magazines Netherlands'
sales clearly outperformed the market development. According to TNS Gallup Adex,
advertising in consumer magazines in Finland decreased by 3% in January-
September. Sanoma Magazines Finland's advertising sales outperformed the market
development clearly.

Sanoma Magazines continuously develops its magazine portfolio with a special
focus on its key titles in each operating country. Sanoma Magazines is investing
in strengthening its market positions, and wants to become stronger in digital
media. In particular mobile media solutions such as tablets offer interesting
opportunities for combining magazines with digital media and Sanoma Magazines
continues to launch new applications which can be used to test interesting
business models.

In 2010, Sanoma Magazines' net sales are expected to be at the previous year's
level. It is estimated that operating profit excluding non-recurring items will
improve clearly.


SANOMA NEWS

Sanoma News is the leading newspaper publisher in Finland and its printed and
digital products have a strong presence in the lives of Finns. In addition to
Helsingin Sanomat, the largest daily in the Nordic region, Sanoma News publishes
other national and regional newspapers and it is also one of the most
significant digital media players in Finland.

- Recruitment advertising in Helsingin Sanomat and Oikotie.fi grew significantly
in the third quarter. The Division's online display advertising sales also
continued to develop strongly.
- Sanoma News' business information operations were transferred to the Sanoma
Learning & Literature division in September.
- Pekka Soini was appointed President of the Division.
- Sanoma News' outlook for operating profit excluding non-recurring items has
been upgraded and it is now estimated to improve significantly in 2010.

Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009 % 2010 2009 % 2009

Net sales 104.8 101.2 3.5 322.7 316.0 2.1 428.9

  Helsingin Sanomat 55.5 53.3 4.2 171.4 167.3 2.4 228.4

  Ilta-Sanomat 21.1 19.6 7.5 61.6 57.9 6.4 78.2

  Other publishing 23.5 24.2 -2.8 74.5 76.9 -3.1 103.8

  Other businesses 32.0 34.9 -8.3 99.5 107.1 -7.1 143.7

  Eliminations -27.4 -30.8 11.1 -84.3 -93.3 9.6 -125.2

Operating profit excluding non- 15.7 11.8 33.4 34.2 29.8 14.9 40.6
recurring items *

  % of net sales 15.0 11.6   10.6 9.4   9.5

Operating profit 15.7 11.8 33.4 40.2 21.4 88.1 32.2

Capital expenditure 7.8 8.0 -2.7 10.6

Number of employees at the end of the period (FTE) 1,977 2,322 -14.8 2,306

Average number of employees (FTE) 2,231 2,431 -8.2 2,399

* In 2010, the non-recurring items included in the first quarter a EUR 6.0
million gain on the sale of Lehtikuva. In 2009, the non-recurring items included
in the first quarter EUR 2.3 million and in the second quarter EUR 6.1 million
of expenses related to the efficiency programme.

Operational indicators 1-9/ 1-9/

        2010 2009

Distribution of free sheets, millions 55.5 56.0



        1-12/ 1-12/

Audited circulation 2009 2008

Helsingin Sanomat 397,838 412,421

Ilta-Sanomat 152,948 161,615



        7-9/ 7-9/

Online services, unique visitors, weekly 2010 2009

Iltasanomat.fi 1,662,812 1,603,731

HS.fi 1,217,887 1,094,630

Huuto.net 418,683 429,449

Oikotie.fi 355,293 347,121

Taloussanomat.fi 511,576 444,694



Third quarter

Sanoma News' net sales in July-September increased by 4%. Adjusted for changes
in the Division structure, sales grew by 5%.

Sanoma News' advertising sales grew by 10%. Especially online advertising sales
performed well and grew by 28% but print advertising has also recovered and
increased by 7%. Advertising sales represented 45% (2009: 42%) of the Division's
net sales in the third quarter. One of Sanoma News' aims has been to strengthen
its market share in the media market. Its strong brands and active media sales
improved market position further in the third quarter.

The Division's circulation sales grew by 3%. Both the subscription sales and
single copy sales increased. Circulation sales accounted for 47% (2009: 47%) of
the Division's net sales. Online services Hs.fi and Iltasanomat.fi had record
audiences in the third quarter.

The net sales of the Helsingin Sanomat business unit grew by 4%. Both
circulation and advertising sales developed positively, with recruitment
classified advertising in the daily print edition of Helsingin Sanomat showing
impressive growth of 48% in the third quarter. Advertising sales represented
50% (2009: 48%) of the business unit's net sales.

The Ilta-Sanomat business unit's net sales grew by 7%. Ilta-Sanomat's market
share increased and the decline in circulation continued to slow down. The
tabloid's weekday price was increased from EUR 1.20 to EUR 1.30 in mid-August,
which increased circulation sales. Advertising sales, representing 22% (2009:
22%) of the business unit's net sales, also grew clearly. In particular online
advertising sales developed favourably.

Net sales from other publishing operations decreased by 3% due to the
divestments of picture agency Lehtikuva and business information provider
Esmerk. Online advertising sales in the Sanoma Digital Finland continued their
strong performance. Advertising and circulation sales in regional papers grew.
Advertising sales in free sheets were at the comparable quarter's level.

In July-September, Sanoma News' operating profit excluding non-recurring items
increased by 33%. Operating profit improved significantly in the Helsingin
Sanomat and Ilta-Sanomat business units. Despite the structural changes, the
result improved significantly also in other publishing, thanks to Sanoma Digital
Finland's increased online advertising sales. The operating profit did not
include any non-recurring items.

First nine months

In January-September, Sanoma News' net sales grew by 2%. Adjusted for changes in
the Division structure, the growth was 3%. Sanoma News's operating profit
excluding non-recurring items grew by 15%. The withheld holiday pay in 2009 and
the equal-size bonus paid in May 2010 had impacts on the operating profit in the
second quarter in particular. Excluding the effects of the holiday pay, the
increase in result would have been some 40%.

According to TNS Gallup Adex, newspaper advertising in Finland grew by 1% in
January-September. Job advertising in Finland increased by 26%, and real estate
advertising by 2%. Job advertising in the daily print edition of Helsingin
Sanomat was 22% above the comparable period, and real estate advertising 3%.
Online, Oikotie recruitment outperformed the market. Advertising in free sheets
was up by 8%, partly due to changes in reporting. Online advertising included in
the statistics grew by 34%, much faster than other media segments.

In January-September, the total volume of the Finnish tabloid market decreased
by 3%. However, Ilta-Sanomat was able to improve its market position further in
the tabloid newsstand market and now has a market share of 58.0% (2009: 56.9%).

Sanoma News is looking for new sources of revenues through development of the
product and service portfolio. In particular, paid content services and creating
content for e-reading devices and smart phones are in focus: For example Hs.fi
2.0 for iPhone with paid-for Helsingin Sanomat content was launched in July and
the iPad version of Helsingin Sanomat is planned to be launched during the
fourth quarter 2010. Strengthening market share both in the media market and in
the readers' market remains a key priority for Sanoma News.

In 2010, Sanoma News' net sales are expected to be at the previous year's level
due to the divestments of Lehtikuva and Esmerk. The Division's operating profit
excluding non-recurring items is estimated to improve significantly.


SANOMA ENTERTAINMENT

Sanoma Entertainment offers entertaining experiences on television, radio and
online. Sanoma Entertainment consists of Nelonen Media, which focuses on
broadcast operations as well as online TV, and Sanoma Games, provider of online
casual gaming.

- Nelonen Media's viewing shares continued to develop positively.
- TV and radio performed excellently and the Division's advertising sales grew
by 23% in the third quarter.
- Nelonen Media got a third pay TV licence. The new channel will begin
broadcasting in spring 2011.

Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009  % 2010 2009 % 2009

Net sales 20.8 35.0 -40.6 106.9 115.9 -7.8 157.1

Operating profit excluding non- 1.6 3.8 -56.7 16.0 16.8 -4.7 20.7
recurring items *

  % of net sales 7.9 10.8   15.0 14.5   13.2

Operating profit 1.6 3.8 -56.7 195.4 16.8 1,063.2 20.7

Capital expenditure 5.0 6.1 -17.4 9.3

Number of employees at the end of the period (FTE) 225 445 -49.4 458

Average number of employees (FTE) 376 474 -20.7 469

* In 2010, the non-recurring items included in the second quarter a EUR 179.4
million gain on the sale of the cable TV operator Welho. In 2009, the operating
profit did not include any non-recurring items.

Operational indicators 1-9/ 1-9/

  2010 2009

TV channels' share of Finnish TV advertising 33.7% 33.6%

TV channels' national commercial viewing share 30.8% 29.8%

TV channels' national viewing share 14.9% 14.7%



Third quarter

Sanoma Entertainment's net sales in July-September decreased by 41 %, following
the divestment of cable TV and broadband operator Welho. Adjusted for changes in
the Division structure, sales grew by 16%, due to clearly improving TV
advertising sales. In addition, online sales showed excellent development, with
Ruutu.fi growing 63% and Sanoma Games 19%. Following the Welho transaction, the
advertising sales are 88% of the Division's net sales (2009: 42%).

In the third quarter, Nelonen Media was granted a national terrestrial operating
licence for a new pay TV channel. Nelonen Maailma (Nelonen World) will begin
broadcasting in spring 2011 and it will improve Nelonen Media's position in the
Finnish pay TV market. Nelonen Maailma is Nelonen Media's third pay TV channel.

Sanoma Entertainment's operating profit excluding non-recurring items in July-
September declined by 57%. However, the profitability of broadcasting operations
improved significantly. The operating profit did not include any non-recurring
items.

First nine months

In January-September, Sanoma Entertainment's net sales decreased by 8% and
operating profit excluding non-recurring items declined by 5% due to the
divestment of Welho at the end of the second quarter.

The Finnish TV advertising market grew by 9% in January-September according to
TNS Gallup Adex. Nelonen Media outperformed the market growth and was able to
increase its market share to 33.7%, thanks to its improved viewing share and the
successful execution of the multichannel strategy in broadcast operations.
Online TV offers advertisers interesting new interactive ways to reach their
target groups. The visibility in the TV advertising market has improved clearly
from the beginning of the year.

Nelonen Media's commercial viewing share also improved to 35.6% (2009: 33.1%) in
its main target group, viewers between 10 and 44 years of age. The viewing
shares were boosted by the success of the targeted theme channels, Liv and Jim.
The viewing of these channels has continuously improved, with Liv reaching its
highest viewing shares ever in September. In January-September Nelonen Media's
radio channels outperformed the market growth of 8%.

With the growing convergence of media, TV and videos are becoming a natural part
of all online content. Sanoma Entertainment's multimedia know-how offers
interesting opportunities in combining media assets across Sanoma's markets.
Other interesting possibilities exist in co-operation with telecommunications
companies in offering consumers new, easy ways to consume media with new
technology.

Due to the divestment of Welho as of 30 June 2010, Sanoma Entertainment's net
sales and operating profit excluding non-recurring items are expected to
decrease significantly in 2010.


SANOMA LEARNING & LITERATURE

Sanoma Learning & Literature, operating in 14 countries, is a leading European
provider of learning materials and solutions in print and digital format. The
Division has growing international information and language service operations
and is also the leading general literature publisher in Finland.

- The sales of learning developed positively in the third quarter, in particular
in Poland.
- Sanoma Learning & Literature improved its result significantly, thanks to
improved efficiency and growth in sales.
- Information and media monitoring services provider Esmerk became part of the
B2B service offering of Sanoma Learning & Literature.
- Sanoma Learning & Literature's outlook for operating profit excluding non-
recurring items has been upgraded and it is now estimated to improve clearly in
2010.

Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009 % 2010 2009 % 2009

Net sales 121.2 117.6 3.1 285.0 280.4 1.6 345.1

  Learning 100.6 94.3 6.7 215.5 206.4 4.4 239.1

  Language services 5.2 6.7 -23.1 18.3 21.2 -13.7 27.5

  Literature and other 18.0 19.3 -6.9 58.8 60.9 -3.4 88.9
  businesses

  Eliminations -2.5 -2.7 6.5 -7.7 -8.1 5.2 -10.4

Operating profit excluding non- 45.7 35.7 28.3 67.0 53.8 24.4 43.5
recurring items *

  % of net sales 37.7 30.3   23.5 19.2   12.6

Operating profit 45.5 33.1 37.8 64.3 51.2 25.4 38.5

Capital expenditure 10.8 9.8 10.4 13.1

Number of employees at the end of the period (FTE) 2,676 2,683 -0.3 2,745

Average number of employees (FTE) 2,614 2,801 -6.7 2,780

*In 2010, the non-recurring items included in the first quarter a EUR 1.2
million loss on the sale of Bertmark Norge and in the second quarter EUR 1.3
million and in the third quarter EUR 0.2 million restructuring expenses. In
2009, the non-recurring items included in the third quarter EUR 1.5 million and
in the fourth quarter EUR 2.4 million restructuring expenses and in the third
quarter EUR 1.1 million of expenses related to the sale of children's magazines.

Operational indicators 1-9/ 1-9/

        2010 2009

Learning

Number of new titles published, books 989 1,199

Number of new titles published, digital products 269 332



Literature and other businesses

Number of new titles published, books 315 342

Number of new titles published, digital products 112 46



Books sold, millions 30.7 31.6




Third quarter

Sanoma Learning & Literature's net sales in July-September grew by 3% due to the
good development of the learning business. All growth was organic.

Learning business has by nature an annual cycle and strong seasonality. It
accrues most of its net sales and results during the second and third quarters.
Changes between quarters can be significant and often explain most of the
changes from the comparable period.

Net sales in learning developed well in the third quarter and were up by 7%,
partly due to favourable currency translation effect. In the Netherlands, sales
of both primary and secondary learning materials and solutions performed well.
Sales in Finland increased also. Even though in the Netherlands and Finland the
purchase of most of the learning materials is funded by the government, the
budget cuts have not yet had an effect on the sales. In Belgium, the third
quarter sales were below the comparable quarter due to shifts between quarters.
Sales in Hungary grew, but the delays in tenders can affect development in the
latter part of the year. Nowa Era's sales continued to increase clearly in
Poland. The sales of e-learning provider YDP were at the comparable quarter's
level.

Net sales in language services declined by 23%. Translation and localisation
services continued their positive development in the third quarter, but the
sales prospects for language training in 2010 are weak. In September, Sanoma
consolidated its B2B business by transferring the information and media
monitoring service provider Esmerk to Sanoma Learning & Literature. Together
language services provider AAC Global and Esmerk will be better positioned to
support their corporate customers in a global business environment through
reliable information and language services.

Net sales in literature and other businesses decreased by 7%. The general
literature market in Finland remains sluggish and WSOY's net sales developed in
line with the market development. The restructuring of the business is
proceeding as planned.

The Division's operating profit excluding non-recurring items in July-September
increased by 28% due to significant improvement of results in the learning
business. However, the result in learning will be burdened e.g. by increased
marketing activities in the fourth quarter. Operating profit weakened in
language services. Results improved in literature and other businesses. The non-
recurring costs included in the operating profit totalled EUR 0.2 million (2009:
EUR 2.6 million) and were related to the restructuring of Finnish general
literature operations.

First nine months

In January-September, Sanoma Learning & Literature's net sales were at the
comparable period's level. Operating profit excluding non-recurring items grew
by 24%.

Sanoma Learning & Literature continues to focus on growth through further
internationalisation of its learning and language services businesses. At the
same time, the Division will continue to restructure its other operations.
Customers are increasingly looking for customised solutions both in learning and
language services. Sanoma Learning & Literature is well positioned to offer
these and can gain efficiency from developing concepts and platforms to be used
in several markets.

In 2010, it is estimated that the net sales of Sanoma Learning & Literature will
increase slightly and operating profit excluding non-recurring items clearly.


SANOMA TRADE

Operating in eight countries, retail specialist Sanoma Trade's strengths lie in
a thorough understanding of customers' needs and solid concepts. Sanoma Trade
serves its customers in 210 million annual sales contacts at kiosks, bookstores
and movie theatres. Sanoma Trade's trade services business unit is a strong link
between publishers and retailers.

- The first results of the new kiosk concept show increased sales especially in
high-traffic areas.
- The positive development of movie operations continued in the third quarter in
Finland.
- After the review period, Sanoma Trade announced the divestment of its
operations in Russia.
- Sanoma Trade's outlook has been downgraded. It is now estimated that in 2010,
operating profit excluding non-recurring items will be slightly below the 2009
level.

Key indicators 7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/

EUR million 2010 2009 % 2010 2009 % 2009

Net sales 206.0 209.2 -1.5 599.3 592.6 1.1 827.8

  Kiosk operations 99.2 99.3 0.0 296.0 293.6 0.8 404.2

  Trade services 57.6 59.4 -3.1 170.3 167.3 1.8 227.9

  Bookstores 31.6 31.8 -0.7 77.5 78.8 -1.6 123.3

  Movie operations 20.7 22.7 -8.8 66.0 64.4 2.5 88.0

  Eliminations -3.1 -4.1 23.2 -10.5 -11.5 8.8 -15.6

Operating profit excluding non- 7.8 9.7 -19.8 13.8 17.3 -20.4 27.6
recurring items *

  % of net sales 3.8 4.7   2.3 2.9   3.3

Operating profit -22.1 9.7 -326.9 -16.1 17.3 -192.9 24.0

Capital expenditure 22.2 19.3 15.2 25.5

Number of employees at the end of the period (FTE) 5,854 6,118 -4.3 5,943

Average number of employees (FTE) 5,753 6,201 -7.2 6,164

* In 2010, the non-recurring items included a EUR 28.9 million impairment of
goodwill in the Dutch press distribution and EUR 1.0 million restructuring
expenses. In 2009, the non-recurring items included in the fourth quarter EUR
3.6 million of restructuring expenses.

Operational indicators 1-9/ 1-9/

Thousands 2010 2009

Customer volume in kiosk operations 136,746 147,117

Customer volume in bookstores 4,886 4,857

Customer volume in movie theatres 7,358 7,061

Number of copies sold (press distribution) 256,410 263,205



Third quarter

Sanoma Trade's net sales in July-September were at the comparable quarter's
level. Net sales adjusted for changes in the Group structure decreased by 2%.

Net sales from kiosk operations were stable. Net sales were at the comparable
quarter's level in Finland, and grew in Latvia and Romania. In Estonia,
Lithuania and Russia net sales decreased. In September, R-kiosk celebrated its
100(th) anniversary, marked with numerous special events and offers for
customers around Finland. After the review period, Sanoma Trade announced the
divestment of its Russian press distribution and retail business. The
transactions are subject to the approval of the Russian competition authorities.
Sanoma Trade focuses its resources now on developing its kiosk concept. In
Finland, the initial results of some 20 pilot kiosks show positive results. The
roll-out of the new concept continues in the fourth quarter.

Net sales from trade services decreased by 3%. New operations increased sales
slightly in Finland, but net sales decreased in other operating countries. The
Baltic economies seem to have reached the bottom, but no recovery is yet visible
in the market or in sales. In the Netherlands, Aldipress has revised its
strategy and business focus. In order to increase the local focus and strengthen
its relationship with Dutch publishers, Aldipress operations will be transferred
to Sanoma Magazines as of 1 January 2011.

Net sales from bookstores were at the comparable quarter's level both in Finland
and Estonia. The overall book market is still sluggish, but stationery has been
selling well at the beginning of the school year. A new bookstore concept is
being developed and the first pilot store will be opened in the fourth quarter.

Net sales from movie operations decreased by 9%. This was caused by a drop in
the sales of all Baltic countries. Restructuring of Sanoma Trade's operations in
Estonia affected sales of movie operations. In Finland, sales grew slightly.

Sanoma Trade's operating profit excluding non-recurring items in July-September
decreased by 20%, with all businesses showing weaker results than in the
comparable quarter. In the Finnish kiosks, the sales mix was influenced by the
new Opening Hours Act, which negatively affected the sales margin. The poor
economic situation in the Baltic countries continued to have an effect on the
results in all businesses. In the third quarter, the operating profit included
EUR 29.9 million (2009: EUR 0.0 million) of non-recurring costs from the
impairment of goodwill related to the Aldipress transfer and the continued
restructuring of the Estonian operations.

First nine months

In January-September, Sanoma Trade's net sales were at the comparable period's
level. Operating profit excluding non-recurring items decreased by 20%.

Sanoma Trade continues to develop its kiosk and bookstore concepts in particular
to better cater for the needs of its customers. With its 210 million annual
customer contacts, Sanoma Trade gains valuable consumer insight and has good
possibilities to develop its product and service offering.

In 2010, Sanoma Trade's net sales are estimated to be at the previous year's
level and operating profit excluding non-recurring items is estimated to be
slightly below that of 2009.


THE GROUP

Dividend

The Annual General Meeting on 8 April 2010 decided to pay a dividend of EUR
0.80 (2009: EUR 0.90). The dividends were paid on 20 April 2010 in Finland.

Shares and holdings

In January-September, 44,018,242 (2009: 57,269,565) Sanoma shares were traded on
the NASDAQ OMX Helsinki. Traded shares accounted for 27% (2009: 36%) of the
average number of shares. Sanoma's total stock exchange turnover was EUR 671.5
million (2009: EUR 609.7 million).

In January-September, the volume-weighted average price of a Sanoma share was
EUR 15.25, with a low of EUR 13.41 and a high of EUR 17.07. At the end of
September, Sanoma's market capitalisation was EUR 2.5 billion (2009: EUR 2.4
billion), with Sanoma's share closing at EUR 15.52 (2009: EUR 15.09). The
Company had 22,342 shareholders at the end of September, with foreign holdings
accounting for 11.1% (2009: 10.1%) of all shares and votes. There were no major
changes in share ownership in the first nine months of 2010 and Sanoma did not
issue any flagging announcements. At the end of September, Sanoma had
161,816,894 shares.

Board of Directors, auditors and management

The AGM held on 8 April 2010 confirmed the number of Sanoma's Board members at
ten. Board members Sirkka Hämäläinen-Lindfors and Seppo Kievari were re-elected
and Antti Herlin was elected as a new member to the Board. The Board of
Directors of Sanoma consists of Jaakko Rauramo (Chairman), Sakari Tamminen (Vice
Chairman), and Annet Aris, Robert Castrén, Jane Erkko, Antti Herlin, Paavo
Hohti, Sirkka Hämäläinen-Lindfors, Seppo Kievari and Rafaela Seppälä as members.

The AGM re-appointed Pekka Pajamo, APA, and Sixten Nyman, APA, as his deputy,
and Authorised Public Accountants KPMG Oy Ab, with Kai Salli, APA, acting as the
Auditor in Charge, as the auditors of the Company.

Pekka Soini was appointed President of Sanoma News and member of Sanoma's
Executive Management Group as of 24 September 2010. Previously he was the acting
president of the Sanoma News division. Harri-Pekka Kaukonen was appointed
President and CEO of the Sanoma Group as of 1 January 2011. The current
President and CEO of Sanoma, Hannu Syrjänen, will retire as originally agreed in
his contract at the age of 60 in the autumn of 2011.

Board authorisations

The AGM held on 8 April 2010 authorised the Board of Directors to decide on an
issuance of a maximum of 82,000,000 new shares and a transfer of a maximum of
5,000,000 treasury shares. The authorisation will be valid until 30 June 2013.
The AGM also authorised the Board to decide on the repurchase of a maximum of
16,000,000 of the Company's own shares. This authorisation is effective until
30 June 2011 and terminates the corresponding authorisation granted by the AGM
on 1 April 2009.

Seasonal fluctuation

The net sales and result of Magazines, News and Entertainment are particularly
affected by the development of advertising. Advertising sales are influenced,
for example, by the number of newspaper and magazine issues published each
quarter, which varies annually. Television advertising in Finland is usually
strongest in the second and fourth quarters.

Learning accrues most of its net sales and results during the second and third
quarters.

A major portion of the net sales and results in retail are, on the other hand,
generated in the last quarter, particularly from Christmas sales. Of course, the
number of shopping days and, for example, the distribution of holidays over
different quarters impacts the retail sales between quarters.

Seasonal business fluctuations influence the Group's net sales and operating
profit, with the first quarter traditionally being clearly the smallest one for
both.

Significant risks and uncertainty factors

The most significant risks and uncertainty factors Sanoma currently faces are
described in the Financial Statements and on the Group's website at Sanoma.com,
together with the Group's main principles of risk management. Many of the
identified risks relate to changes in customer preferences. The driving force
behind these changes is the ongoing digitisation. Sanoma has identified action
plans in all its divisions on how to respond to this challenge.

Normal business risks associated with the industry relate to developments in
media advertising and consumer spending. Media advertising is sensitive to
economic fluctuations. Therefore, the general economic conditions of the
countries in which the Group operates and the economic trends of the industry
influence Sanoma's business activities and operational performance.


INTERIM REPORT (UNAUDITED)

Accounting policies

The Sanoma Group has prepared its Interim Report in accordance with IAS 34
'Interim Financial Reporting' while adhering to related IFRS standards and
interpretations applicable within the EU on 30 September 2010.

The Group has applied the following revised and amended standards as of 1
January 2010: IFRS 3 (Revised 2008) Business Combinations and IAS 27 (Amended
2008) Consolidated and Separate Financial Statements.

The adoption of the revised IFRS 3 'Business Combinations' will have an impact
on the amount of goodwill from acquisitions and results on disposing businesses.
The standard is also estimated to have an impact on profit and loss in those
periods in which new business is acquired, the deferred purchase price is paid
or additional shares are acquired. According to the transitional provisions of
the standard, business combinations for which the acquisition date is before the
adoption of the standard are not adjusted.

The amended IAS 27 'Consolidated and Separate Financial Statements' requires the
effects of all transactions with a non-controlling interest to be recorded in
equity if the control remains with the parent company. The amendment also
specifies that a share of the loss for a period can also be allocated to non-
controlling interest when the losses exceed the amount of invested capital by
the non-controlling parties.

The accounting policies of the Interim Report and the definitions of key
indicators are presented on the Sanoma website at Sanoma.com. All figures have
been rounded and consequently the sum of individual figures can deviate from the
presented sum figure. Key figures have been calculated using exact figures. This
Interim Report is unaudited.

CONSOLIDATED INCOME STATEMENT

EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/

  2010 2009 2010 2009 2009



NET SALES 690.6 701.1 2,043.8 2,034.4 2,767.9

Other operating income  20.9 13.3 238.5 46.7 64.6

Materials and services  300.7 315.0 887.0 906.3 1,238.5

Employee benefit expenses 151.9 160.5 493.4 511.4 695.5

Other operating expenses  124.2 122.1 385.5 379.4 536.2

Depreciation, amortisation and impairment 70.7 39.8 151.2 120.9 167.0
losses
--------------------------------------------------------------------------------
OPERATING PROFIT 63.9 77.1 365.3 163.1 195.4

Share of results in associated companies 0.8 -2.0 0.1 -2.3 -3.9

Financial income 4.0 4.1 8.7 19.6 22.5

Financial expenses 5.0 12.0 17.3 41.3 52.6
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 63.7 67.2 356.8 139.2 161.4

Income taxes -24.6 -20.0 -58.5 -40.6 -54.3
--------------------------------------------------------------------------------
RESULT FOR THE PERIOD 39.1 47.2 298.3 98.5 107.1



Result attributable to:

Equity holders of the Parent Company 39.2 47.6 300.5 99.2 105.6

Non-controlling interests -0.1 -0.3 -2.2 -0.6 1.6



Earnings per share for result attributable

to the equity holders of the Parent company:

Earnings per share, EUR 0.24 0.30 1.86 0.62 0.66

Diluted earnings per share, EUR 0.24 0.30 1.85 0.62 0.66



STATEMENT OF COMPREHENSIVE INCOME

EUR million 7-9/ 7-9/ 1-9/ 1-9/ 1-12/

  2010 2009 2010 2009 2009



Result for the period 39.1 47.2 298.3 98.5 107.1

Other comprehensive income:

Change in translation differences -3.4 6.0 8.7 -8.7 -5.0
--------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 35.7 53.2 307.0 89.8 102.1



Total comprehensive income attributable to:

Equity holders of the Parent Company 35.8 53.2 309.2 90.6 100.5

Non-controlling interests -0.1 -0.1 -2.2 -0.8 1.6






CONSOLIDATED BALANCE SHEET

EUR million 30.9.2010 30.9.2009 31.12.2009



ASSETS



NON-CURRENT ASSETS

Tangible assets 431.7 490.7 484.2

Investment property 8.8 9.4 9.4

Goodwill 1,447.9 1,494.2 1,488.9

Other intangible assets 403.6 402.3 399.3

Interests in associated companies 273.0 65.4 63.5

Available-for-sale financial assets 15.9 16.0 15.7

Deferred tax receivables 34.8 40.5 30.1

Trade and other receivables 30.0 38.5 31.4
--------------------------------------------------------------------
NON-CURRENT ASSETS, TOTAL 2,645.7 2,557.0 2,522.3



CURRENT ASSETS

Inventories  128.9 150.5 141.6

Income tax receivables 9.0 15.6 19.3

Trade and other receivables 407.5 396.0 362.9

Available-for-sale financial assets 0.3 0.5 0.5

Cash and cash equivalents 55.2 66.4 59.7
--------------------------------------------------------------------
CURRENT ASSETS, TOTAL 600.8 629.1 584.0



ASSETS, TOTAL 3,246.5 3,186.0 3,106.3



EQUITY AND LIABILITIES



EQUITY

Equity attributable to the equity holders of the Parent Company

Share capital 71.3 71.3 71.3

Fund for invested unrestricted equity 188.8 176.6 188.8

Other equity 1,094.4 920.5 931.1
--------------------------------------------------------------------
  1,354.5 1,168.3 1,191.2

Non-controlling interests 3.2 13.3 15.4
--------------------------------------------------------------------
EQUITY, TOTAL 1,357.6 1,181.7 1,206.6



NON-CURRENT LIABILITIES

Deferred tax liabilities 97.2 102.8 101.2

Pension obligations 30.3 36.3 29.9

Provisions 8.2 6.9 10.7

Interest-bearing liabilities 517.0 640.3 541.6

Trade and other payables 19.6 32.8 28.2



CURRENT LIABILITIES

Provisions 16.5 19.5 23.8

Interest-bearing liabilities 507.3 493.1 476.1

Income tax liabilities 35.8 21.8 16.9

Trade and other payables 657.0 650.8 671.3


--------------------------------------------------------------------
LIABILITIES, TOTAL 1,888.9 2,004.4 1,899.7



EQUITY AND LIABILITIES, TOTAL 3,246.5 3,186.0 3,106.3






CHANGES IN CONSOLIDATED EQUITY

EUR million

  Equity attributable to the equity holders of the Parent
Company

      Fund for     Non-

      inves-     cont-

      ted     rol-

    Trea- unres-     ling Equi-

  Share sury tricted Other   inte- ty,

  capital shares equity equity Total rests total



Equity at

1 Jan 2009 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1

Cancellation

of treasury shares 37.5   -37.5
--------------------------------------------------------------------------------
Expense

recognition of

options granted   3.0 3.0   3.0
--------------------------------------------------------------------------------
Dividends paid   -144.9 -144.9 -0.9 -145.8
--------------------------------------------------------------------------------
Change in non-

controlling

interests       -2.0 -2.0
--------------------------------------------------------------------------------
Donations   -0.5 -0.5   -0.5
--------------------------------------------------------------------------------
Transfer from

fund -16.1 16.1
--------------------------------------------------------------------------------
Comprehensive

income for the period   90.6 90.6 -0.8 89.8
--------------------------------------------------------------------------------
Equity at

30 Sept 2009 71.3   176.6 920.5 1,168.3 13.3 1,181.7



Equity at

1 Jan 2010 71.3   188.8 931.1 1,191.2 15.4 1,206.6

Share subscription

with options 0.0   0.0   0.0
--------------------------------------------------------------------------------
Expense

recognition of

options granted   2.8 2.8   2.8
--------------------------------------------------------------------------------
Dividends paid   -129.5 -129.5 -1.8 -131.2
--------------------------------------------------------------------------------
Change in non-

controlling

interests   -18.7 -18.7 -8.3 -27.0
--------------------------------------------------------------------------------
Donations   -0.5 -0.5   -0.5
--------------------------------------------------------------------------------
Comprehensive

income for the period   309.2 309.2 -2.2 307.0
--------------------------------------------------------------------------------
Equity at

30 Sept 2010 71.3   188.8 1,094.4 1,354.5 3.2 1,357.6






INCOME STATEMENT BY QUARTER

EUR million 1-3/ 4-6/ 7-9/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/

  2010 2010 2010 2009 2009 2009 2009 2009



NET SALES 637.9 715.4 690.6 636.0 697.2 701.1 733.6 2,767.9

Other operating income  20.4 197.3 20.9 14.1 19.4 13.3 17.9 64.6

Materials and services  279.0 307.3 300.7 286.4 304.8 315.0 332.2 1,238.5

Employee benefit expenses 169.1 172.3 151.9 176.2 174.8 160.5 184.0 695.5

Other operating expenses  128.9 132.4 124.2 128.2 129.0 122.1 156.8 536.2

Depreciation, amortisation 40.8 39.6 70.7 38.4 42.8 39.8 46.0 167.0
and impairment losses
--------------------------------------------------------------------------------
OPERATING PROFIT 40.4 261.0 63.9 20.9 65.1 77.1 32.3 195.4

Share of results in -2.4 1.7 0.8 0.3 -0.6 -2.0 -1.6 -3.9
associated companies

Financial income 2.2 2.5 4.0 6.7 8.8 4.1 2.8 22.5

Financial expenses 6.0 6.2 5.0 17.0 12.3 12.0 11.3 52.6
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 34.1 259.0 63.7 10.9 61.1 67.2 22.3 161.4

Income taxes -10.0 -23.8 -24.6 -3.2 -17.4 -20.0 -13.7 -54.3
--------------------------------------------------------------------------------
RESULT FOR THE PERIOD 24.1 235.1 39.1 7.7 43.7 47.2 8.6 107.1



Result attributable to:

Equity holders of the Parent 25.9 235.4 39.2 8.3 43.3 47.6 6.4 105.6
Company

Non-controlling interests -1.8 -0.2 -0.1 -0.6 0.3 -0.3 2.2 1.6



Earnings per share for result attributable

to the equity holders of the Parent company:

Earnings per share, EUR 0.16 1.45 0.24 0.05 0.27 0.30 0.04 0.66

Diluted earnings per share, 0.16 1.45 0.24 0.05 0.27 0.30 0.04 0.66
EUR





CONSOLIDATED CASH FLOW STATEMENT 1-9/ 1-9/ 1-12/

EUR million 2010 2009 2009

OPERATIONS

Result for the period 298.3 98.5 107.1

Adjustments

  Income taxes 58.5 40.6 54.3

  Financial expenses 17.3 41.3 52.6

  Financial income -8.7 -19.6 -22.5

  Share of results in associated companies -0.1 2.3 3.9

  Depreciation and impairment losses 151.2 120.9 167.0

  Gains/losses on sales of non-current assets -194.9 -1.9 -2.4

  Other adjustments -38.2 -43.3 -56.4

Change in working capital

  Change in trade and other receivables -54.5 10.7 47.4

  Change in inventories 4.3 -3.7 5.6

  Change in trade and other payables, and provisions -11.9 -67.6 -36.9

Interest paid -8.7 -30.6 -34.6

Other financial items -1.7 0.0 -2.0

Taxes paid -36.8 -28.1 -41.4
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATIONS 174.0 119.6 241.8



INVESTMENTS

Acquisition of tangible and intangible assets -55.2 -61.5 -80.2

Operations acquired -48.7 -25.5 -27.1

Sales of tangible and intangible assets 14.3 3.8 5.4

Operations sold 25.1 0.3 0.5

Loans granted -0.6 -0.3 -0.9

Repayments of loan receivables 4.5 3.9 3.3

Sales of short-term investments 0.2   0.0

Interest received 1.7 4.1 4.8

Dividends received 3.9 4.0 4.3
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTMENTS -54.8 -71.1 -89.9



CASH FLOW BEFORE FINANCING 119.2 48.5 151.9



FINANCING

Proceeds from share subscriptions 0.0   12.3

Change in loans with short maturity 50.1 -22.4 -42.6

Drawings of other loans 263.2 402.5 399.7

Repayments of other loans -280.3 -352.2 -460.0

Payment of finance lease liabilities -2.8 -2.7 -3.5

Dividends paid -131.2 -145.8 -146.2

Donations/other profit sharing -0.5 -0.5 -0.5
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING -101.5 -121.1 -240.8



CHANGE IN CASH AND CASH EQUIVALENTS

ACCORDING TO CASH FLOW STATEMENT 17.7 -72.6 -88.9

Effect of exchange rate differences on cash and cash 1.4 -0.6 0.0
equivalents

NET CHANGE IN CASH AND CASH EQUIVALENTS 19.1 -73.2 -88.9



Cash and cash equivalents at the beginning of the period 21.6 110.5 110.5

Cash and cash equivalents at the end of the period 40.7 37.2 21.6

Cash and cash equivalents in cash flow statement include cash and cash
equivalents less bank overdrafts.




NET SALES BY BUSINESS

EUR million 1-3/ 4-6/ 7-9/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/

  2010 2010 2010 2009 2009 2009 2009 2009



SANOMA MAGAZINES

Sanoma Magazines Netherlands 107.4 128.0 118.8 110.6 123.2 120.7 138.6 493.2

Sanoma Magazines 48.7 54.3 51.0 50.9 53.2 48.8 58.5 211.3
International

Sanoma Magazines Belgium 53.5 52.3 48.7 51.3 52.6 50.8 57.5 212.3

Sanoma Magazines Finland 51.2 47.1 46.9 50.3 48.0 46.9 53.5 198.8

Eliminations -1.0 -1.2 -1.0 -1.0 -1.2 -1.2 -1.0 -4.3
--------------------------------------------------------------------------------
TOTAL 259.9 280.6 264.4 262.1 275.9 266.1 307.1 1,111.2



SANOMA NEWS

Helsingin Sanomat 59.1 56.7 55.5 58.7 55.4 53.3 61.1 228.4

Ilta-Sanomat 19.9 20.7 21.1 18.4 19.8 19.6 20.3 78.2

Other publishing 25.3 25.6 23.5 25.9 26.8 24.2 26.9 103.8

Other businesses 34.4 33.1 32.0 36.2 35.9 34.9 36.6 143.7

Eliminations -29.3 -27.6 -27.4 -31.6 -30.9 -30.8 -32.0 -125.2
--------------------------------------------------------------------------------
TOTAL 109.4 108.5 104.8 107.7 107.1 101.2 112.9 428.9



SANOMA ENTERTAINMENT 41.5 44.6 20.8 40.3 40.6 35.0 41.1 157.1



SANOMA LEARNING & LITERATURE

Learning 29.9 85.0 100.6 30.6 81.6 94.3 32.7 239.1

Language services 6.9 6.2 5.2 8.3 6.2 6.7 6.3 27.5

Literature and other 23.6 17.2 18.0 24.6 17.0 19.3 28.0 88.9
businesses

Eliminations -2.3 -2.9 -2.5 -2.6 -2.8 -2.7 -2.3 -10.4
--------------------------------------------------------------------------------
TOTAL 58.2 105.5 121.2 60.8 101.9 117.6 64.7 345.1



SANOMA TRADE

Kiosk operations 91.9 104.9 99.2 89.9 104.5 99.3 110.5 404.2

Trade services 51.9 60.8 57.6 50.5 57.4 59.4 60.6 227.9

Bookstores 26.0 19.9 31.6 27.3 19.7 31.8 44.5 123.3

Movie operations 25.4 19.9 20.7 23.6 18.0 22.7 23.6 88.0

Eliminations -3.4 -4.0 -3.1 -3.6 -3.9 -4.1 -4.0 -15.6
--------------------------------------------------------------------------------
TOTAL 191.8 201.4 206.0 187.7 195.7 209.2 235.3 827.8



Other companies and -23.0 -25.3 -26.7 -22.7 -24.1 -28.0 -27.5 -102.3
eliminations
--------------------------------------------------------------------------------
TOTAL 637.9 715.4 690.6 636.0 697.2 701.1 733.6 2,767.9






OPERATING PROFIT BY DIVISION

EUR million 1-3/ 4-6/ 7-9/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/

  2010 2010 2010 2009 2009 2009 2009 2009



Sanoma Magazines 25.8 41.0 22.6 15.5 30.2 23.1 27.4 96.3

Sanoma News 15.6 8.9 15.7 6.0 3.5 11.8 10.8 32.2

Sanoma Entertainment 6.2 187.6 1.6 6.1 6.9 3.8 3.9 20.7

Sanoma Learning & Literature -6.4 25.1 45.5 -6.9 25.1 33.1 -12.8 38.5

Sanoma Trade 2.9 3.1 -22.1 3.8 3.8 9.7 6.7 24.0

Other companies and eliminations -3.7 -4.7 0.5 -3.7 -4.3 -4.4 -3.7 -16.2
-----------------------------------------------------------------------------
TOTAL 40.4 261.0 63.9 20.9 65.1 77.1 32.3 195.4



SEGMENT INFORMATION

The operating segments of the Sanoma Group comprise the Group's five divisions:
Sanoma Magazines, Sanoma News, Sanoma Entertainment, 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 three segments: Sanoma Magazines is responsible for
magazines, Sanoma News for newspapers and Sanoma Entertainment for TV business.
Sanoma Learning & Literature's business is mainly B2B business. Sanoma Trade, on
the other hand, operates on a retail business model. 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.

Sanoma Divisions 1.1-30.9.2010 Lear-   Unallo-

      Enter- ning &   cated/ Con-

  Maga-   tain- Lite-   elimi- soli-

EUR million zines News ment rature Trade nations dated
----------------------------------------------------------------------
External net sales 802.9 317.9 105.1 274.4 543.7 -0.1 2,043.8

Internal net sales 2.0 4.8 1.8 10.6 55.6 -74.8

NET SALES, TOTAL 804.9 322.7 106.9 285.0 599.3 -75.0 2,043.8

OPERATING PROFIT 89.4 40.2 195.4 64.3 -16.1 -7.8 365.3

Share of results in

associated companies -2.8 0.3 2.2 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 1,509.5 326.3 286.3 596.6 413.9 3.5 3,136.0



Sanoma Divisions 1.1-30.9.2009 Lear-   Unallo-

      Enter- ning &   cated/ Con-

  Maga-   tain- Lite-   elimi- soli-

EUR million zines News ment rature Trade nations dated
----------------------------------------------------------------------
External net sales 802.6 310.1 115.1 269.8 537.5 -0.8 2,034.4

Internal net sales 1.5 5.9 0.9 10.6 55.1 -74.0

NET SALES, TOTAL 804.2 316.0 115.9 280.4 592.6 -74.8 2,034.4

OPERATING PROFIT 68.9 21.4 16.8 51.2 17.3 -12.5 163.1

Share of results in

associated companies -2.7 0.2   0.1 0.1   -2.3

Financial income         19.6 19.6

Financial expenses         41.3 41.3

RESULT BEFORE TAXES           139.2



SEGMENT ASSETS 1,528.0 351.4 131.3 593.7 438.8 6.9 3,050.0



CHANGES IN PROPERTY, PLANT AND EQUIPMENT

EUR million 30.9.2010 30.9.2009 31.12.2009



Carrying amount at the beginning of the period 484.2 510.4 510.4

Increases 35.6 34.7 46.0

Acquisition of operations 0.4 0.0 1.0

Decreases -4.7 -2.0 -2.9

Disposal of operations -31.5   0.0

Depreciation for the period -47.8 -51.1 -68.5

Impairment losses for the period -0.1 -0.2 -1.6

Exchange rate differences and other changes -4.5 -1.0 0.0
-----------------------------------------------------------------------------
Carrying amount at the end of the period 431.7 490.7 484.2

The Group had no commitments for acquisition of tangible assets at the end of
the reporting period or in the comparative period.

EFFECT OF ACQUISITIONS ON THE CONSOLIDATED BALANCE SHEET

EUR million 1-9/   1-12/

  2010   2009

Acquisition costs 37.1   6.7

Fair value of acquired net assets 14.5   2.8

Recognised in equity -18.7

Recognised in income statement -0.7
---------------------------------------------------------
Goodwill 3.2   3.9

Negative goodwill in income statement     -0.9
---------------------------------------------------------
Change in goodwill 3.2   4.8



CONTINGENT LIABILITIES

EUR million 30.9.2010 30.9.2009 31.12.2009

Contingencies for own commitments

Mortgages 23.3 26.7 22.8

Pledges 6.7 6.0 6.8

Other items 0.0 0.5 0.4

TOTAL 30.0 33.2 30.0



Contingencies incurred on behalf of associated companies

Guarantees 10.5 10.5 10.5

TOTAL 10.5 10.5 10.5



Contingencies incurred on behalf of other companies

Guarantees 0.4 0.1 0.1

TOTAL 0.4 0.1 0.1



Other contingencies

Operating lease liabilities 261.3 245.0 255.4

Royalties 13.9 16.4 18.9

Other items 18.8 29.0 27.7

TOTAL 294.0 290.5 302.0


----------------------------------------------------------
TOTAL 334.8 334.3 342.5

The Sanoma Group had no derivative contracts during the reporting period or
during the previous year.




KEY EXCHANGE RATES

  1-9/ 1-9/ 1-12/

Average rate 2010 2009 2009

EUR/CZK (Czech Koruna) 25.51 26.58 26.52

EUR/HUF (Hungarian Forint) 275.46 282.63 280.30

EUR/PLN (Polish Zloty) 4.01 4.38 4.33

EUR/RUB (Russian Rouble) 40.13 44.27 44.07

EUR/SEK (Swedish Crown) 9.67 10.68 10.61



Closing rate 30.9.2010 30.9.2009 31.12.2009

EUR/CZK (Czech Koruna) 24.60 25.16 26.47

EUR/HUF (Hungarian Forint) 275.75 269.70 270.42

EUR/PLN (Polish Zloty) 3.98 4.23 4.10

EUR/RUB (Russian Rouble) 41.69 43.98 43.15

EUR/SEK (Swedish Crown) 9.14 10.23 10.25





Press Conference and Conference Call

Press and analyst meeting in Finnish will be held by Mr Hannu Syrjänen,
President and CEO of Sanoma at 1:30 pm Finnish time (CET +1) at Sanomatalo,
Töölönlahdenkatu 2, Helsinki.

The conference call in English for analysts and investors will be arranged at
4:30 pm Finnish time. Mr Hannu Syrjänen will present the result. To join the
conference, please dial +44 (0)20 7806 1967 (Europe) or +1 718 247 0887 (US).
The event can also be listened at Sanoma.com either live or later on as on
demand.

The presentation material of the press and analyst meeting as well as the slides
used in the conference call will be available on Sanoma's website after the
press and analyst meeting has started.

Sanoma's Full-Year Result for 2010 will be published on 9 February 2011 at
approximately 8:30 am Finnish time.

Sanoma Corporation



Kim Ignatius
Chief Financial Officer

Additional information: Sanoma's Group Communications, tel +358 105 19 5062 or
communications@sanoma.com

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
20,000 people in over 20 countries throughout Europe. In 2009, the Group's net
sales totalled EUR 2.8 billion.



[HUG#1458410]





Sanoma 3Q10 Interim Report:
http://hugin.info/3123/R/1458410/397948.pdf




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