Sanoma's Interim Report 1 Jan-31 March 2011: Transforming Sanoma for the future

5/3/2011, 10:21 AM (Source: GlobeNewswire)
Stock Exchange Release 3/5/2011  11:20

- Net sales in the first quarter amounted to EUR 610.2 million (2010: EUR 637.9
million). Adjusted for changes in the Group structure, Sanoma's net sales were
at the comparable period's level.
- Operating profit excluding non-recurring items was EUR 26.4 million (2010: EUR
35.6 million). The decrease was mostly due to divestment of operations in 2010.
The non-recurring items in the first quarter amounted to EUR 0.9 million (2010:
EUR 4.8 million).
- Earnings per share were EUR 0.11 (2010: EUR 0.16)
- Cash flow from operations amounted to EUR 18.7 million (2010: EUR 38.0
million).
- As a result of the acquisition of SBS TV assets, the Sanoma Group's net sales
are expected to increase somewhat and operating profit excluding non-recurring
items is expected to improve slightly in 2011.

KEY INDICATORS 1-3/ 1-3/ Change 1-12/

EUR million 2011 2010 % 2010



Net sales 610.2 637.9 -4.3 2,761.2

Operating profit excluding non-recurring items 26.4 35.6 -25.9 245.4

  % of net sales 4.3 5.6   8.9

Operating profit 27.3 40.4 -32.5 392.7

Result for the period 18.5 24.1 -23.1 297.3



Capital expenditure * 33.1 16.6 99.8 85.7

  % of net sales 5.4 2.6   3.1



Equity ratio, % 46.5 42.7   45.7

Net gearing, % 63.0 74.4   63.8



Number of employees at the end of the period (FTE) 15,277 16,293 -6.2 15,405

Average number of employees (FTE) 15,129 16,357 -7.5 16,016



Earnings/share, EUR 0.11 0.16 -28.8 1.85

Cash flow from operations/share, EUR 0.12 0.23 -50.9 1.69

* Including finance leases

Harri-Pekka Kaukonen, President and CEO

"Sanoma is emphasising organic growth and focused operations. Looking back at
the first months of 2011, we have made significant progress in reshaping our
portfolio.

Most notable was the acquisition of the Dutch and Belgium TV activities. Other
important transactions involved the acquisition of learning operations in
Finland and Sweden as well as the divestments of movie operations, Romanian
kiosk and press distribution operations and Finnish general literature
operations. These are all in line with our strategy to focus on consumer media
and learning.

Adding TV to our portfolio in the Netherlands and Belgium considerably improves
our positions in these countries. Along with our strong portfolio of brands,
extensive content know-how in our magazine business and high-class digital
operations, the SBS TV activities and the creative programming expertise from
our partners are excellent building blocks for offering new services and
solutions across media, both for consumers and advertisers.

By combining our media assets in new and innovative ways, we position ourselves
to play a significant role in the new media market."

Outlook for 2011

As a result of the acquisition of SBS TV activities, the Sanoma Group's net
sales are expected to increase somewhat and operating profit excluding non-
recurring items is expected to improve slightly in 2011. In 2010, operating
profit excluding non-recurring items was EUR 245.4 million.

Sanoma's net sales and operating profit in 2011 are 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 will grow somewhat in 2011.

Net sales

In the first quarter of 2011, Sanoma's net sales decreased by 4% and amounted to
EUR 610.2 million (2010: EUR 637.9 million). Net sales grew in the Sanoma
Learning and Literature division. Structural changes affected divisional net
sales in Sanoma Media and Sanoma News. Sanoma Trade's net sales decreased.
Currency translations did not have a material effect on the first quarter sales.
Adjusted for changes in the Group structure, net sales were at the previous
year's level.

The print circulation sales were slightly below the comparable quarter. Both
subscription sales and single copy sales decreased slightly, mainly due to
timing differences and the divestment of Humo.

Advertising sales grew from the low levels of the comparable quarter: Sanoma's
advertising sales grew by 6% in January-March and accounted for 25% (2010: 23%)
of the total net sales. Online advertising sales increased clearly, by 13%.

Sanoma has a target to double the 2008 level of its consumer online sales,
consisting mostly of online advertising, by 2012. In the first quarter of 2011,
consumer online sales grew by 4% to EUR 37.5 million (2010: EUR 36.0 million).
Total digital sales, which also include items such as e-learning, grew by 8%,
and amounted to 11% (2010: 10%) of net sales.

By country, Finland accounted for 53% (2010: 54%) of the cumulative net sales
and the Netherlands 22% (2010: 21%). Net sales from other EU countries totalled
21% (2010: 22%) and non-EU countries accounted for 4% (2010: 3%).

Result

Sanoma's operating profit excluding non-recurring items in January-March
decreased by 26% and totalled EUR 26.4 million (2010: EUR 35.6 million). The
result improved significantly in the Sanoma News division due to increased
advertising sales. Sanoma Media's result was lower mainly due to structural
changes. The result also weakened in Sanoma Learning & Literature and Sanoma
Trade. Operating profit excluding non-recurring items was 4.3% (2010: 5.6%) of
net sales. Currency translations did not have a material effect on the first
quarter result.

In the first quarter, the Group's total expenses came down by 4%, with fixed
costs decreasing by 2%. Paper costs were 5% below the comparable quarter, but
are expected to increase during the coming quarters. Employee benefit expenses
decreased by 3%. The Group had some 1,200 employees less than at the end of
March 2010, corresponding to a decrease of 8%. From the year-end, the number of
personnel has decreased by 6%.

In January-March, the operating profit included EUR 0.9 million (2010: EUR 4.8
million) in non-recurring items related to divestment of non-core operations in
learning.


NON-RECURRING ITEMS 1-3/ 1-3/ 1-12/

EUR million 2011 2010 2010



Media

Restructuring expenses (The Netherlands)     -3.3

Impairment of intangible assets (The Netherlands) -6.3

Impairment of intangible assets (The CEE countries) -1.0

Gain on sale of Humo     2.6

Gain on sale of Welho (Finland)     179.0

Impairment of goodwill in the Dutch press distribution -28.9

News

Gain on sale of Lehtikuva   6.0 6.0

Gain on sales of Sanoma Lehtimedia's local papers   2.9

Learning & Literature

Sale of LDC 0.9

Loss on sale of Bertmark Norge   -1.2 -1.1

Restructuring expenses     -2.3

Impairment of a Dutch non-core entity     -2.1

Trade

Loss on sale of Russian operations     -2.6

Restructuring expenses     -1.0

Sanoma Corporation

Gains on the sales of real estates     5.4
-------------------------------------------------------------
NON-RECURRING ITEMS IN OPERATING PROFIT 0.9 4.8 147.3



Impairment of share in associated company Hansaprint -22.1
-------------------------------------------------------------
NON-RECURRING ITEMS IN RESULTS IN ASSOCIATED COMPANIES -22.1



Sanoma's first quarter result included EUR 1.9 million (2010: EUR -2.4 million)
of profits from associated companies. The most significant associated companies
include DNA, Hansaprint, Stratosféra, Jokerit HC and Desert Fishes, of which DNA
and Desert Fishes were not included in Sanoma's figures in the comparable
period.

In January-March, Sanoma's net financial items totalled EUR -2.4 million (2010:
EUR -3.9 million). Financial income amounted to EUR 2.2 million (2010: EUR 2.2
million), of which exchange rate gains were EUR 0.9 million (2010: EUR 1.5
million). Financial expenses amounted to EUR 4.7 million (2010: EUR 6.0
million). Following the increase in interest rates, interest expenses amounted
to EUR 3.3 million (2010: EUR 3.1 million) and exchange rate losses to EUR 0.9
million (2010: EUR 2.7 million).

The result before taxes amounted to EUR 26.7 million in the first quarter (2010:
EUR 34.1 million). The effective tax rate was 30.8% (2010: 29.3%). Earnings per
share were EUR 0.11 (2010: EUR 0.16).

Balance sheet and financial position

At the end of March, Sanoma's consolidated balance sheet totalled EUR 3,220.2
million (2010: EUR 3,137.5 million). In the first quarter, the Group's cash flow
from operations amounted to EUR 18.7 million (2010: EUR 38.0 million). Cash flow
from operations per share was EUR 0.12 (2010: EUR 0.23). In addition to the
lower result, cash flow was weakened by higher investments in broadcasting
rights, timing of tax payments and volatility of net working capital between
quarters in the learning business.

Sanoma's financial position continued to strengthen in January-March. The equity
ratio was 46.5% (2010: 42.7%) at the end of March. Equity totalled EUR 1,402.9
million (2010: EUR 1,251.7 million). Interest-bearing liabilities continued to
decrease and totalled EUR 949.4 million (2010: EUR 991.4 million) and interest-
bearing net debt was EUR 884.4 million (2010: EUR 931.3 million). The Group's
net debt always increases in the second quarter when dividends are paid.
Sanoma's net debt/EBITDA ratio was 1.5 at the end of March.

Investments, acquisitions and divestments

Investments in tangible and intangible assets, including finance leases,
amounted to EUR 33.1 million (2010: EUR 16.6 million) in January-March 2011.
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 in the first quarter
totalled EUR 0.5 million (2010: EUR 7.8 million).

To support its growth objectives and nurture innovation within the Group, Sanoma
has launched an internal Growth Fund. The funding for the first four growth
projects amounted to EUR 1.0 million. Each project supported by the Growth Fund
will be offered a budget to develop the concept, an internal mentor, as well as
external coaching to enhance the project's chances of success.

In March, Sanoma sold its movie operations in Finland and the Baltic countries
to the Swedish private equity company Ratos AB. In 2010, net sales of movie
operations were EUR 88.6 million and operating profit EUR 8.4 million. The
enterprise value of the transaction was EUR 116.0 million, and the transaction
was finalised at the end of April. Consequently, Sanoma will record a non-
recurring capital gain of approximately EUR 50 million in its second quarter
result.

Events after the review period

On 8 April, Sanoma announced that it will sell its press distribution and kiosk
operations in Romania. Net sales (2010) of these operations amounted to some EUR
23 million. Also the remaining kiosk operations in Russia were divested at the
beginning of April. Sanoma will record non-recurring costs of some EUR 9 million
from these transactions in its second quarter result.

On 20 April, Sanoma agreed to acquire the SBS free-to-air TV assets in the
Netherlands and Belgium from ProSiebenSat.1 together with Talpa Media in the
Netherlands and Corelio and Wouter Vandenhaute & Eric Watté in Belgium. The
enterprise value of the transaction is EUR 1,225 million. The Dutch acquisition
is subject to the approval of the Netherlands Competition Authority (NMa). The
entire transaction is estimated to be finalised during the summer. The net sales
of the acquired companies totalled EUR 404 million in 2010 and their operating
profit was some EUR 110 million (pro forma, unaudited). Sanoma's share of the
new operations will be reported in the Sanoma Media division.

Sanoma will finance its equity investment of EUR 566 million related to the SBS
acquisition with new debt. As a result of the transaction, the consolidated net
debt of Sanoma, including the equity investment and additional consolidated
debt, is estimated to increase by some EUR 900 million to EUR 1.9 billion. The
transaction does not affect the financing costs of Sanoma's existing credit
facilities.

On 29 April, Sanoma announced that it will acquire the Finnish educational
publisher Tammi Learning and the Swedish educational publisher Bonnier
Utbildning from the Swedish media company Bonnier. At the same, Sanoma will
divest its Finnish general literature publisher WSOY to Bonnier. The divestment
is subject to the approval of the Finnish competition authorities. The
transaction is expected to be closed during the autumn.

SANOMA MEDIA

Sanoma Media, 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.

- Finnish TV operations continued to grow clearly.
- Russian advertising sales have seen a strong recovery.
- After the review period, Sanoma acquired the SBS TV activities in the
Netherlands and Belgium

Key indicators 1-3/ 1-3/ Change 1-12/

EUR million 2011 2010 % 2010

Net sales 291.1 312.1 -6.7 1,299.6

The Netherlands 105.3 107.4 -2.0 490.4

Finland 74.2 92.6 -19.9 339.3

The CEE countries 51.4 48.7 5.5 214.9

Belgium 50.1 53.5 -6.4 208.3

Other businesses and eliminations 10.2 9.9 3.4 46.7

Operating profit excluding non-recurring items * 22.7 31.2 -27.1 145.8

  % of net sales 7.8 10.0   11.2

Operating profit 22.7 31.2 -27.1 287.9

Capital expenditure 6.3 6.0 4.1 25.2

Number of employees at the end of the period (FTE) 5,384 5,779 -6.8 5,419

Average number of employees (FTE) 5,353 5,796 -7.7 5,602

* In 2011, the operating profit did not include any non-recurring items. In
2010, the non-recurring items included in the second quarter a EUR 2.6 million
gain from selling 49% of the Humo magazine and a EUR 179.0 million gain on the
sale of the cable TV operator Welho, in the third quarter a EUR 28.9 million
impairment of goodwill in the Dutch press distribution and a EUR 6.3 million
impairment of intangible assets in the Dutch media business and in the fourth
quarter EUR 3.3 million restructuring expenses in the Netherlands and a EUR 1.0
impairment of intangible assets in the CEE countries.

Operational indicators * 1-3/ 1-3/

  2011 2010

Number of magazines published 273 286

Magazine copies sold, thousands 81,623 86,457

Advertising pages sold 10,221 11,368

TV channels' share of Finnish TV advertising 32.2% 34.2%

TV channels' national commercial viewing share 35.3% 30.2%

TV channels' national viewing share 14.7% 14.1%

* Including joint ventures

First quarter net sales

Sanoma Media's net sales in January-March decreased by 7%. Adjusted for changes
in the Division structure, sales grew by 1%.

The Division's advertising sales grew by 4% and represented 34% (2010: 31%) of
the first quarter net sales. Advertising sales grew in Finland and CEE
countries. Sanoma Media's online advertising sales grew clearly, in particular
due to the good development in the Netherlands, Finland and some of the CEE
countries.

Sanoma Media's print circulation sales decreased slightly and represented 53%
(2010: 52%) of the Division's net sales. Subscription sales decreased somewhat
but single copy sales were at the comparable quarter's level.

The good development of online advertising sales and the increased digital
content sales boosted the Division's digital sales. In total, these sales grew
by 9% in the first quarter and represented 17% (2010: 15%) of the Division's net
sales.

Developments in the businesses

In the Netherlands, net sales were 2% below the comparable quarter due to a
decrease in singly copy sales. Subscription and advertising sales remained
stable. The market for consumer magazine advertising in the Netherlands grew 4%
in January-March and Sanoma Media Netherlands strengthened its market position.
Advertising sales represented 28% (2010: 28%) of the Dutch net sales. According
to the 2010 circulation statistics, circulation volume in the Netherlands has
decreased clearly. Sanoma Media Netherlands' market share remained stable.

In Finland, net sales decreased clearly due to divestment of cable TV business
in 2010. In magazines, there were fewer issues published in the first quarter
than in the comparable period. This timing issue affected both magazine
advertising and circulation sales negatively. According to the circulation
statistics for 2010, Sanoma Magazines Finland's main titles have strengthened
their position and the company remains the clear market leader in Finland. The
consumer magazine advertising market in Finland decreased by 5% while TV
advertising increased by 12% in the first three months. Sanoma's broadcasting
operations grew. Advertising sales continued to increase clearly, with targeted
theme channels and online TV performing extremely well. In total, advertising
sales increased and represented 42% (2010: 31%) of Finnish net sales.

In the CEE countries, Sanoma Media's net sales grew by 6% following the strong
recovery of Russian advertising sales. The advertising market continued to
improve also in Hungary and Bulgaria, but the general economic environment and
the outlook for advertising sales is still weak in many CEE countries.
Advertising sales represented 50% (2010: 47%) of the first quarter sales in the
CEE countries. The single copy markets continued to decline in the CEE
countries, except for Russia and Bulgaria. Also Sanoma Media's circulation sales
decreased, with both single copy sales and subscription sales being slightly
lower than in the comparable quarter.

Net sales in Belgium decreased by 6%. This is fully due to the Humo divestment
in May 2010, which affected both advertising and circulation sales. Adjusted for
the structural changes, net sales grew slightly. Advertising sales represented
26% (2010: 26%) of net sales in Belgium. The long-term circulation trends also
show a slight decrease in the number of copies sold in Belgium, mostly offset by
price increases. Sanoma Media has strengthened its market position in the
Belgian readers market.

After the review period, Sanoma announced that it will acquire, together with
partners, the free-to-air TV activities of SBS in the Netherlands and Belgium.
In 2011, the new operations will increase Sanoma Media's net sales, but its
result will be burdened by costs related to the transaction.

First quarter operating profit

Sanoma Media's operating profit excluding non-recurring items in January-March
decreased by 27%, due to structural changes in Finland and Belgium. In the
Netherlands, the result was in line with the comparable quarter. In Finland, the
good operational result of TV operations did not fully compensate the effects of
the cable TV divestment and lower operating profit of magazines, which resulted
from decreased sales due to timing differences. In the CEE countries, the result
improved.

Sanoma Media's outlook

Sanoma Media has a strong portfolio of media brands in magazines, in online and
mobile media, and in radio and television. Being at the forefront of the
changing of the media landscape allows Sanoma Media to generate revenues by
bringing new a kind of offering to consumers, and connecting them with
advertisers in new and better way.

Following the SBS transaction, Sanoma Media's net sales are estimated to
increase significantly and operating profit excluding non-recurring items is
expected to increase slightly.

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.

- Sanoma News improved its operating profit significantly.
- Oikotie is now the leading online recruitment site in Finland.
- Helsingin Sanomat and Ilta-Sanomat mobile news services are the two most
popular mobile services in Finland.

Key indicators 1-3/ 1-3/ Change 1-12/

EUR million 2011 2010 % 2010

Net sales 108.4 109.4 -0.9 437.6

Helsingin Sanomat 61.2 59.1 3.6 235.4

Ilta-Sanomat 19.1 19.9 -4.1 83.3

Other publishing 23.7 25.3 -6.4 99.5

Other businesses and eliminations 4.4 5.0 -13.3 19.4

Operating profit excluding non-recurring items * 12.9 9.6 33.8 47.2

  % of net sales 11.9 8.8   10.8

Operating profit 12.9 15.6 -17.6 56.1

Capital expenditure 3.5 2.8 25.5 14.0

Number of employees at the end of the period (FTE) 2,003 2,168 -7.6 2,016

Average number of employees (FTE) 1,993 2,190 -9.0 2,176

* In 2011, the operating profit did not include any non-recurring items. In
2010, the non-recurring items included in the first quarter a EUR 6.0 million
gain on the sale of Lehtikuva and in the fourth quarter a EUR 2.9 million gain
on the sale of Sanoma Lehtimedia's local papers.

Operational indicators 1-3/ 1-3/

  2011 2010

Online services, unique visitors, weekly

Iltasanomat.fi 1,957,740 1,523,279

HS.fi 1,360,404 1,027,315

Huuto.net 518,631 435,948

Oikotie.fi 437,796 378,116

Taloussanomat.fi 595,955 531,382



  1-12/ 1-12/

Audited circulation 2010 2009

Helsingin Sanomat 383,361 397,838

Ilta-Sanomat 150,351 152,948



First quarter net sales

Sanoma News' net sales in January-March were at the previous year's level.
Adjusted for changes in the Division structure, sales grew by 2%.

The Division's print circulation sales were almost at the comparable period's
level. Both the single copy and subscription volumes continued the long-term
decreasing trend, but Sanoma News was able to compensate this almost fully with
price increases and new products. Circulation sales accounted for 42% (2010:
43%) of the Division's net sales.

Sanoma News' advertising sales grew by 7%, with print advertising sales
increasing by 3% and online advertising by 26%. In particular recruitment
advertising in the online classified service Oikotie performed well. According
to TNS Gallup Adex, newspaper advertising in Finnish market grew by 4% in the
first three months, while online advertising included in the statistics grew by
32%. Advertising sales represented 50% (2010: 47%) of the Division's net sales
in the first quarter.

In total, the Division's digital sales, including both online advertising sales
and digital content sales, represented 12% (2010: 12%) of the Division's net
sales.

Developments in the businesses

The net sales of the Helsingin Sanomat business unit grew by 4%. Classified
advertising in the daily print edition of Helsingin Sanomat grew significantly,
recruitment advertising in particular. Advertising sales represented 55% (2010:
54%) of the business unit's net sales. The mobile HS.fi service is the most
popular mobile service in Finland. The HS iPad edition has now been downloaded
on 18,000 devices.

The Ilta-Sanomat business unit's net sales decreased by 4%. The total volume of
the Finnish tabloid market decreased by 8% during the last 12 months. Ilta-
Sanomat now commands a 58.0% (2010: 57.1%) share of the tabloid newsstand
market. Ilta-Sanomat has developed an efficient method of producing print
supplements which enable a more versatile use of the single copy channel, and
published six special supplements in the first quarter. Advertising sales,
representing 27% (2010: 25%) of the business unit's net sales, were at the
previous year's level.

Net sales from other publishing operations decreased by 6% due to several
divestments of operations in 2010. Sanoma News is focusing a significant amount
of resources to its digital operations. In January, Sanoma Digital Finland
acquired a daily deal business Offerium.fi.

First quarter operating profit

In January-March, Sanoma News' operating profit excluding non-recurring items
improved by 34% mainly due to advertising sales development and good cost
control. Operating profit increased clearly in the Helsingin Sanomat business
unit due to advertising sales growing from the low levels of the comparable
period. Ilta-Sanomat's result decreased. Despite the structural changes, the
result improved significantly in other publishing, thanks to increased online
advertising sales. The operating profit did not include any non-recurring items
in the first quarter (2010: EUR 6.0 million).

Sanoma News' outlook

Sanoma News aims to strengthen its multichannel approach both when creating
journalistic content as well as when serving its advertisers. The Division will
increase its share of digital operations and create new sources of revenues
through development of the product and service portfolio both in print and
online. Strengthening market share both in the media market and in the readers
market remains a key priority for Sanoma News.

In 2011, Sanoma News' net sales are estimated to be at the previous year's level
due to the divestments made in 2010 and operating profit excluding non-recurring
items is expected to improve slightly.

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 also has growing international business information and language
service operations.

- Net sales grew in learning and language services, mainly due to changes
between quarters.
- After the review period, Sanoma announced that it will acquire Bonnier's
Finnish and Swedish learning operations and divest its general literature
operations to Bonnier.

Key indicators 1-3/ 1-3/ Change 1-12/

EUR million 2011 2010 % 2010

Net sales 60.7 58.2 4.2 350.1

Learning 34.3 29.9 14.6 249.3

Language services 8.7 6.9 25.4 27.1

Literature and other businesses 20.1 23.6 -15.0 83.6

Eliminations -2.4 -2.3 -5.8 -9.9

Operating profit excluding non-recurring items * -6.1 -5.2 -16.8 52.6

  % of net sales -10.0 -9.0   15.0

Operating profit -5.2 -6.4 19.1 47.1

Capital expenditure 2.0 2.9 -28.7 14.9

Number of employees at the end of the period (FTE) 2,623 2,637 -0.5 2,656

Average number of employees (FTE) 2,628 2,689 -2.2 2,629

* In 2011, the non-recurring items included in the first quarter a EUR 0.9
million non-recurring income related to sale of LDC. In 2010, the non-recurring
items included in the first quarter a EUR 1.1 million loss on the sale of
Bertmark Norge and in the second quarter EUR 1.3 million, in the third quarter
EUR 0.2 million and in the fourth quarter EUR 0.8 million restructuring expenses
and in the fourth quarter a EUR 2.1 million impairment of a Dutch non-core
entity.

First quarter net sales

Sanoma Learning & Literature's net sales in January-March increased by 4%, also
adjusted for changes in the Division structure.

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.

Developments in the businesses

Net sales in learning increased by 15%, mainly due to sales in the Netherlands
and Poland materialising earlier than in the comparable year. Net sales were
stable in the other countries. The first quarter is fairly small in the learning
business, and there were no major changes in the business environment. In the
Netherlands, some non-core operations were divested in March.

Net sales in language services increased significantly due to new operations:
the business information and media monitoring service provider Esmerk has been
included in the figures since September 2010, and its sales have developed
positively. Net sales of AAC Global were behind the comparable quarter. AAC
Global will launch a new language service platform in the second quarter, which
is expected to improve sales.

Net sales in literature and other businesses decreased by 15%. Sales of general
literature started slowly due to lack of bestsellers in the first quarter
catalogue.

After the review period, Sanoma announced that it will acquire the Finnish
educational publisher Tammi Learning and the Swedish educational publisher
Bonnier Utbildning from the Swedish media company Bonnier. At the same, Sanoma
will divest its Finnish general literature publisher WSOY to Bonnier. The
divestment is subject to the approval of the Finnish competition authorities.
The transaction is expected to be closed during the autumn.

First quarter operating profit

The Division's operating result excluding non-recurring items in January-March
was 17% lower than in the comparable period. Increased sales improved the
operating result of learning. The result in language services and literature and
other businesses was weaker than in the comparable quarter. The non-recurring
items included in the operating profit amounted to EUR 0.9 million (2010: EUR
1.2 million) and were related to the divestment of non-core operations.

Sanoma Learning & Literature's outlook

Sanoma Learning & Literature's customers are increasingly looking for
comprehensive solutions both in learning and language services. The Division
will continue its transformation in order to offer the most appealing solutions,
create value for the customer by applying new technologies and gain efficiency
through developing concepts and platforms to be used in several markets. At the
same time, the Division is looking for growth through further
internationalisation of its learning and language services businesses.

Following the transaction with Bonnier, the net sales of Sanoma Learning &
Literature in 2011 are estimated to be at the previous year's level and
operating profit excluding non-recurring items is expected to decrease somewhat.
Learning business has a strong seasonality within the year, the first and fourth
quarter being typically loss-making. For general literature, on the other hand,
the fourth quarter is typically the strongest one. Due to this seasonality, this
transaction will lower Sanoma Learning & Literature's fourth quarter result in
2011.

SANOMA TRADE

Operating in four countries, retail specialist Sanoma Trade's strengths lie in
its solid concepts and thorough understanding of customers' needs. Sanoma Trade
serves its customers in 190 million annual sales contacts at kiosks and
bookstores. Sanoma Trade's trade services business unit is a strong link between
publishers and retailers.

- Concept development and its roll-out in kiosks and bookstores continues.
- Sanoma Trade divested its Romanian kiosk and trade services operations after
the review period.

Key indicators 1-3/ 1-3/ Change 1-12/

EUR million 2011 2010 % 2010

Net sales 161.8 170.2 -5.0 726.3

Kiosk operations 85.3 91.9 -7.2 398.4

Trade services 32.4 30.3 7.1 131.3

Bookstores 24.8 26.0 -4.7 120.6

Movie operations 21.9 25.4 -13.9 90.0

Eliminations -2.6 -3.4 22.5 -14.0

Operating profit excluding non-recurring items * 3.3 3.7 -9.4 19.1

  % of net sales 2.1 2.2   2.6

Operating profit 3.3 3.7 -9.4 15.5

Capital expenditure ** 20.7 4.7 342.7 29.7

Number of employees at the end of the period (FTE) 5,089 5,625 -9.5 5,149

Average number of employees (FTE) 4,980 5,601 -11.1 5,486

* In 2011, the operating profit did not include any non-recurring items. In
2010, the non-recurring items included in the third quarter EUR 1.0 million
restructuring expenses and in the fourth quarter a EUR 2.6 million loss on sale
of Russian operations.
** Including finance leases

Operational indicators 1-3/ 1-3/

Thousands 2011 2010

Number of kiosk outlets 1,421 1,539

Customer volume in kiosk operations 40,608 43,787

Customer volume in bookstores 1,859 1,718

Customer volume in movie theatres 2,586 2,907

Number of copies sold (press distribution) 54,211 65,206



First quarter net sales

Sanoma Trade's net sales in January-March decreased by 5%. Net sales adjusted
for changes in the Division structure decreased by 4%.

Developments in the businesses

Net sales from kiosk operations were down by 7%. Net sales grew in Estonia, but
decreased in other countries. The concept development of the kiosk chain
continues. In Finland, there are now 56 kiosks with the new concept. Sales in
these outlets continue to develop positively. The service offering was widened
with a new 'pay-a-bill' service, which enables customers to pay their invoices
in an R-kiosk at a more advantageous price than in a bank.

After the review period, the remaining Russian kiosk operations were divested on
1 April 2011, and the Romanian kiosk and trade services operations were divested
on 8 April. Sanoma Trade will record non-recurring costs of some EUR 9 million
from these transactions in its second quarter result.

Net sales from trade services grew by 7%, partly due to improved sales of in-
store merchandising and logistics services in Finland. Net sales were stable in
Latvia and Lithuania, but decreased in Estonia.

Net sales from bookstores decreased by 5%. In Finland, the sales of stationery,
paperbacks and office supplies in particular all developed well, but the lack of
interesting titles clearly lowered the sales of fiction. Concept development
continued with the opening of the second new bookstore in March in Helsinki.
Sales development has been very positive during the first month.

Net sales from movie operations decreased by 14%. The lack of big blockbuster
movies affected sales in all markets, which was partly compensated by the higher
average ticket price and improved sales of cinema advertising. The divestment of
movie operations, announced in March, was finalised on 29 April, when all
necessary approvals from the competition authorities were received.

First quarter operating profit

Sanoma Trade's operating profit excluding non-recurring items in January-March
decreased by 9%. The result improved in trade services, but was below the
comparable period in other businesses. In order to improve its efficiency,
Sanoma Trade has initiated statutory employer-employee negotiations in its
Finnish kiosk and bookstore operations as well as in trade services.

Sanoma Trade's outlook

Continuous development of its product and service offering, based on the
consumer insight gained from its 190 million annual customer contacts, is a key
success factor for Sanoma Trade. Sanoma Trade continues to focus its resources
on improving its concepts and better catering for the needs of its customers.
The new kiosk and bookstore concepts continue to be rolled out in 2011, and the
service offering of trade services will be expanded.

Following the divestment of the movie operations and the Romanian operations,
Sanoma Trade's net sales in 2011 are estimated to decrease clearly but operating
profit excluding non-recurring items is expected to be at the previous year's
level.



THE GROUP

Dividend

The Annual General Meeting on 5 April 2011 decided to pay a dividend of EUR
1.10 (2010: EUR 0.80) per share. The dividends were paid on 15 April 2011 in
Finland. Sanoma conducts an active dividend policy and primarily distributes
over half of the Group result for the period in dividends.

Shares and holdings

In January-March, 19,248,278 (2010: 14,018,438) Sanoma shares were traded on the
NASDAQ OMX Helsinki. Traded shares accounted for 9% (2010: 9%) of the average
number of shares. Sanoma's total stock exchange turnover was EUR 314.5 million
(2010: EUR 218.5 million).

During the first quarter, the volume-weighted average price of a Sanoma share
was EUR 16.33, with a low of EUR 15.25 and a high of EUR 17.79. At the end of
March, Sanoma's market capitalisation was EUR 2.6 billion (2010: EUR 2.7
billion), with Sanoma's share closing at EUR 15.97 (2010: EUR 16.40). The
Company had 26,505 shareholders at the end of March, with foreign holdings
accounting for 9.1% (2010: 11.4%) of all shares and votes. There were no major
changes in share ownership during the first quarter and Sanoma did not issue any
flagging announcements. At the end of March, Sanoma had 162,810,593 shares.

Board of Directors, auditors and management

The AGM held on 5 April 2011 confirmed the number of Sanoma's Board members at
ten. Board members Jane Erkko and Rafaela Seppälä were re-elected, and Nancy
McKinstry and Kai Öistämö were elected as new members to the Board. The Board of
Directors of Sanoma consists of Jaakko Rauramo (Chairman), Sakari Tamminen (Vice
Chairman), and Annet Aris, Jane Erkko, Antti Herlin, Sirkka Hämäläinen-Lindfors,
Seppo Kievari, Nancy McKinstry, Rafaela Seppälä and Kai Öistämö as members.

The AGM appointed chartered accountants KPMG Oy Ab, with Pekka Pajamo,
Authorised Public Accountant, as Auditor in Charge, as the auditor of the
Company.

On 24 March, the Board appointed Jacqueline Cuthbert as Chief Human Resources
Officer of the Sanoma Group and a member of Sanoma's Executive Management Group
as of 1 July 2011. There were no other changes in the Group management in the
first quarter. The EMG comprised Harri-Pekka Kaukonen (chairman), Eija Ailasmaa,
Jacques Eijkens, Sven Heistermann, Kim Ignatius and Pekka Soini.

Board authorisations

The AGM held on 5 April 2011 authorised the Board to decide on the repurchase of
a maximum of 16,000,000 of the Company's own shares, accounting for 9.8% of
total voting rights that the maximum number of own shares covered by the
authorisation would provide entitlement to. This authorisation is effective
until 30 June 2012 and terminates the corresponding authorisation granted by the
AGM on 8 April 2010. The Board of Directors did not exercise its right under
this authorisation during the first quarter.

The Board also has a valid authorisation from the AGM held on 8 April 2010 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, together accounting for 35.5% of total
voting rights that the maximum number of own shares covered by the authorisation
would provide entitlement to. The authorisation will be valid until 30 June
2013. The Board did not use this authorisation during the first quarter.

Seasonal fluctuation

The net sales and result of media businesses 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.

With regard to changing customer preferences and digitisation, new entrants
might be able to better utilise these changes and therefore gain market share
from Sanoma's established businesses.

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.

Sanoma's financial risks include interest rate and currency risks as well as
risks related to liquidity, counterparties, impairment and availability of
capital. At Group level, the most significant risks are changes to interest
rates, and refinancing risks.

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 31 March 2011. 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 1-3/ 1-3/ 1-12/

  2011 2010 2010



NET SALES 610.2 637.9 2,761.2

Other operating income 12.8 20.4 258.8

Materials and services 263.5 279.0 1,207.4

Employee benefit expenses 164.0 169.1 668.6

Other operating expenses 128.4 128.9 554.2

Depreciation, amortisation and impairment losses 39.8 40.8 197.1
--------------------------------------------------------------------
OPERATING PROFIT 27.3 40.4 392.7

Share of results in associated companies 1.9 -2.4 -23.9

Financial income 2.2 2.2 11.1

Financial expenses 4.7 6.0 23.8
--------------------------------------------------------------------
RESULT BEFORE TAXES 26.7 34.1 356.0

Income taxes -8.2 -10.0 -58.6
--------------------------------------------------------------------
RESULT FOR THE PERIOD 18.5 24.1 297.3



Result attributable to:

Equity holders of the Parent Company 18.6 25.9 299.6

Non-controlling interests 0.0 -1.8 -2.3



Earnings per share for result attributable

to the equity holders of the Parent company:

Earnings per share, EUR 0.11 0.16 1.85

Diluted earnings per share, EUR 0.11 0.16 1.85



STATEMENT OF COMPREHENSIVE INCOME

EUR million 1-3/ 1-3/ 1-12/

  2011 2010 2010



Result for the period 18.5 24.1 297.3

Other comprehensive income:

Change in translation differences 6.0 20.3 9.8

Cash flow hedges 1.8   0.2

Income tax related to cash flow hedges -0.5   -0.1

Other comprehensive income for the period, net of tax 7.3 20.3 10.0
---------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 25.8 44.4 307.3



Total comprehensive income attributable to:

Equity holders of the Parent Company 25.9 45.8 309.6

Non-controlling interests 0.0 -1.4 -2.3





CONSOLIDATED BALANCE SHEET

EUR million 31.3.2011 31.3.2010 31.12.2010



ASSETS



NON-CURRENT ASSETS

Tangible assets 367.7 470.2 429.3

Investment property 8.6 9.3 8.7

Goodwill 1,438.2 1,499.8 1,447.5

Other intangible assets 406.2 417.5 403.2

Interests in associated companies 238.6 60.8 248.7

Available-for-sale financial assets 15.9 15.8 15.8

Deferred tax receivables 34.3 33.3 34.8

Trade and other receivables 28.4 30.9 28.3
--------------------------------------------------------------------
NON-CURRENT ASSETS, TOTAL 2,537.9 2,537.7 2,616.3



CURRENT ASSETS

Inventories   118.7 139.4 122.8

Income tax receivables 19.5 20.5 8.6

Trade and other receivables 370.6 379.3 391.0

Available-for-sale financial assets 0.3 0.5 0.3

Cash and cash equivalents 61.2 60.1 64.0
--------------------------------------------------------------------
CURRENT ASSETS, TOTAL 570.5 599.8 586.8



Assets classified as held for sale 111.9



ASSETS, TOTAL 3,220.2 3,137.5 3,203.0



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 203.3 188.8 203.3

Other reserves 1.5   0.2

Other equity 1,122.1 976.7 1,096.5
--------------------------------------------------------------------
  1,398.1 1,236.8 1,371.2

Non-controlling interests 4.8 14.9 4.8
--------------------------------------------------------------------
EQUITY, TOTAL 1,402.9 1,251.7 1,376.0



NON-CURRENT LIABILITIES

Deferred tax liabilities 92.0 103.2 94.2

Pension obligations 26.1 30.0 26.7

Provisions 7.1 9.7 7.3

Interest-bearing liabilities 412.8 550.9 472.5

Trade and other payables 20.0 28.4 19.9
--------------------------------------------------------------------
NON-CURRENT LIABILITIES, TOTAL 557.9 722.2 620.5




CURRENT LIABILITIES

Provisions 10.8 15.8 15.6

Interest-bearing liabilities 499.2 440.5 469.4

Income tax liabilities 29.5 22.5 22.1

Trade and other payables 651.2 684.8 699.4
-------------------------------------------------------------------
CURRENT LIABILITIES, TOTAL 1,190.7 1,163.6 1,206.5



Liabilities related to assets held for sale 68.7


-------------------------------------------------------------------
LIABILITIES, TOTAL 1,817.3 1,885.8 1,827.0



EQUITY AND LIABILITIES, TOTAL 3,220.2 3,137.5 3,203.0


The assets and liabilities of a disposal group classified as held for sale are
presented separately from other assets and liabilities in the balance sheet. The
disposal group consists of Movie operations, Romanian press distribution and
kiosk operations and the Russian kiosk company KP Roznitsa. These operations are
part of the Sanoma Trade division.

CHANGES IN CONSOLIDATED EQUITY

EUR million

  Equity attributable to the equity holders of the Parent Company

    Fund for       Non-

    inves-       cont-

    ted       rol-

    unres- Other     ling Equi-

  Share tricted re- Other   inte- ty,

  capital equity serves equity Total rests total



Equity at

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

Expense

recognition of

options granted     0.9 0.9   0.9
------------------------------------------------------------------------------
Dividends paid           -0.1 -0.1
------------------------------------------------------------------------------
Change in non-

controlling

interests       -1.1 -1.1 1.0 -0.1
------------------------------------------------------------------------------
Comprehensive

income for the period     45.8 45.8 -1.4 44.4
------------------------------------------------------------------------------
Equity at

31 March 2010 71.3 188.8   976.7 1,236.8 14.9 1,251.7



Equity at

1 Jan 2011 71.3 203.3 0.2 1,096.5 1,371.2 4.8 1,376.0

Expense

recognition of

options granted       0.9 0.9   0.9
------------------------------------------------------------------------------
Change in non-

controlling

interests       0.1 0.1   0.1
------------------------------------------------------------------------------
Comprehensive

income for the period   1.3 24.6 25.9 0.0 25.8
------------------------------------------------------------------------------
Equity at

31 March 2011 71.3 203.3 1.5 1,122.1 1,398.1 4.8 1,402.9





INCOME STATEMENT BY QUARTER

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

  2011 2010 2010 2010 2010 2010



NET SALES 610.2 637.9 715.4 690.6 717.3 2,761.2

Other operating income 12.8 20.4 197.3 20.9 20.3 258.8

Materials and services 263.5 279.0 307.3 300.7 320.4 1,207.4

Employee benefit expenses 164.0 169.1 172.3 151.9 175.3 668.6

Other operating expenses 128.4 128.9 132.4 124.2 168.7 554.2

Depreciation, amortisation and impairment 39.8 40.8 39.6 70.7 45.9 197.1
losses
--------------------------------------------------------------------------------
OPERATING PROFIT 27.3 40.4 261.0 63.9 27.4 392.7

Share of results in associated companies 1.9 -2.4 1.7 0.8 -24.0 -23.9

Financial income 2.2 2.2 2.5 4.0 2.4 11.1

Financial expenses 4.7 6.0 6.2 5.0 6.6 23.8
--------------------------------------------------------------------------------
RESULT BEFORE TAXES 26.7 34.1 259.0 63.7 -0.8 356.0

Income taxes -8.2 -10.0 -23.8 -24.6 -0.2 -58.6
--------------------------------------------------------------------------------
RESULT FOR THE PERIOD 18.5 24.1 235.1 39.1 -1.0 297.3



Result attributable to:

Equity holders of the Parent Company 18.6 25.9 235.4 39.2 -0.9 299.6

Non-controlling interests 0.0 -1.8 -0.2 -0.1 -0.1 -2.3



Earnings per share for result attributable

to the equity holders of the Parent company:

Earnings per share, EUR 0.11 0.16 1.45 0.24 -0.01 1.85

Diluted earnings per share, EUR 0.11 0.16 1.45 0.24 -0.01 1.85





CONSOLIDATED CASH FLOW STATEMENT 1-3/ 1-3/ 1-12/

EUR million 2011 2010 2010

OPERATIONS

Result for the period 18.5 24.1 297.3

Adjustments

  Income taxes 8.2 10.0 58.6

  Financial expenses 4.7 6.0 23.8

  Financial income -2.2 -2.2 -11.1

  Share of results in associated companies -1.9 2.4 23.9

  Depreciation, amortisation and impairment losses 39.8 40.8 197.1

  Gains/losses on sales of non-current assets 1.0 -6.1 -195.2

  Other adjustments -19.6 -11.5 -55.1

Change in working capital

  Change in trade and other receivables 7.8 -11.1 -41.1

  Change in inventories 0.3 -1.0 9.5

  Change in trade and other payables, and provisions -20.7 -1.3 36.8

Interest paid -3.6 -2.9 -13.7

Other financial items 0.9 -0.6 -3.2

Taxes paid -14.5 -8.7 -53.9
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATIONS 18.7 38.0 273.8



INVESTMENTS

Acquisition of tangible and intangible assets -18.4 -16.9 -81.8

Operations acquired -3.8 -6.7 -49.5

Sales of tangible and intangible assets 1.7 3.7 17.8

Operations sold 0.2 6.1 30.8

Loans granted -1.8 -1.0 -0.8

Repayments of loan receivables 0.8 0.7 3.5

Sales of short-term investments     0.2

Interest received 0.4 0.5 2.7

Dividends received 11.0 0.1 3.9
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTMENTS -9.9 -13.5 -73.1



CASH FLOW BEFORE FINANCING 8.8 24.4 200.8



FINANCING

Proceeds from share subscriptions     14.5

Minority capital investment/repayment of equity     1.6

Change in loans with short maturity 45.2 -25.3 4.2

Drawings of other loans 1.1 52.1 287.7

Repayments of other loans -40.8 -40.4 -355.8

Payment of finance lease liabilities -0.9 -0.9 -3.7

Dividends paid   -0.1 -131.3

Donations/other profit sharing     -0.5
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING 4.5 -14.6 -183.3



CHANGE IN CASH AND CASH EQUIVALENTS

ACCORDING TO CASH FLOW STATEMENT 13.4 9.8 17.5

Effect of exchange rate differences on cash and cash 0.5 2.3 2.1
equivalents

NET CHANGE IN CASH AND CASH EQUIVALENTS 13.8 12.1 19.5



Cash and cash equivalents at the beginning of the period 41.1 21.6 21.6

Cash and cash equivalents at the end of the period 54.9 33.7 41.1

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

NET SALES BY BUSINESS

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

  2011 2010 2010 2010 2010 2010



SANOMA MEDIA

The Netherlands 105.3 107.4 128.0 118.8 136.1 490.4

Finland 74.2 92.6 91.7 67.5 87.4 339.3

The CEE countries 51.4 48.7 54.3 51.0 60.9 214.9

Belgium 50.1 53.5 52.3 48.7 53.8 208.3

Other businesses and eliminations 10.2 9.9 13.0 11.5 12.4 46.7
------------------------------------------------------------------------
TOTAL 291.1 312.1 339.4 297.5 350.6 1,299.6



SANOMA NEWS

Helsingin Sanomat 61.2 59.1 56.7 55.5 64.1 235.4

Ilta-Sanomat 19.1 19.9 20.7 21.1 21.6 83.3

Other publishing 23.7 25.3 25.6 23.5 25.0 99.5

Other businesses and eliminations 4.4 5.0 5.5 4.6 4.2 19.4
------------------------------------------------------------------------
TOTAL 108.4 109.4 108.5 104.8 114.9 437.6



SANOMA LEARNING & LITERATURE

Learning 34.3 29.9 85.0 100.6 33.7 249.3

Language services 8.7 6.9 6.2 5.2 8.9 27.1

Literature and other businesses 20.1 23.6 17.2 18.0 24.8 83.6

Eliminations -2.4 -2.3 -2.9 -2.5 -2.2 -9.9
------------------------------------------------------------------------
TOTAL 60.7 58.2 105.5 121.2 65.1 350.1



SANOMA TRADE

Kiosk operations 85.3 91.9 104.9 99.2 102.4 398.4

Trade services 32.4 30.3 33.8 32.7 34.5 131.3

Bookstores 24.8 26.0 19.9 31.6 43.2 120.6

Movie operations 21.9 25.4 19.9 20.7 23.9 90.0

Eliminations -2.6 -3.4 -4.0 -3.1 -3.5 -14.0
------------------------------------------------------------------------
TOTAL 161.8 170.2 174.4 181.1 200.5 726.3



Other companies and eliminations -11.7 -12.0 -12.5 -14.1 -13.8 -52.4
------------------------------------------------------------------------
TOTAL 610.2 637.9 715.4 690.6 717.3 2,761.2



OPERATING PROFIT BY DIVISION

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

  2011 2010 2010 2010 2010 2010



Sanoma Media 22.7 31.2 229.3 -4.2 31.6 287.9

Sanoma News 12.9 15.6 8.9 15.7 15.9 56.1

Sanoma Learning & Literature -5.2 -6.4 25.1 45.5 -17.2 47.1

Sanoma Trade 3.3 3.7 2.4 6.4 3.0 15.5

Other companies and eliminations -6.5 -3.7 -4.7 0.5 -6.1 -13.9
------------------------------------------------------------------
TOTAL 27.3 40.4 261.0 63.9 27.4 392.7





OPERATING PROFIT EXCLUDING NON-RECURRING ITEMS BY DIVISION

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

  2011 2010 2010 2010 2010 2010



Sanoma Media 22.7 31.2 47.3 31.0 36.3 145.8

Sanoma News 12.9 9.6 8.9 15.7 13.0 47.2

Sanoma Learning & Literature -6.1 -5.2 26.4 45.7 -14.4 52.6

Sanoma Trade 3.3 3.7 2.4 7.4 5.6 19.1

Other companies and eliminations -6.5 -3.7 -4.7 -4.9 -6.1 -19.3
-----------------------------------------------------------------
TOTAL 26.4 35.6 80.3 94.9 34.5 245.4



SEGMENT INFORMATION

The operating segments of the Sanoma Group comprise four divisions in 2011:
Sanoma Media, Sanoma News, 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 two
segments: Sanoma Media, operating in 12 countries, is responsible for magazines
and TV operations and Sanoma News for newspapers in Finland. Both divisions also
have a great variety of online and mobile services. 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 1.1-31.3.2011

      Lear-   Unallo-

      ning &   cated/ Con-

      Lite-   elimi- soli-

EUR million Media News rature Trade nations dated
---------------------------------------------------------------
External net sales 290.1 107.7 57.7 154.9 -0.2 610.2

Internal net sales 1.0 0.6 3.0 6.9 -11.5

NET SALES, TOTAL 291.1 108.4 60.7 161.8 -11.7 610.2

OPERATING PROFIT 22.7 12.9 -5.2 3.3 -6.5 27.3

Share of results in

associated companies 1.7 0.0 0.0 0.2   1.9

Financial income     2.2 2.2

Financial expenses     4.7 4.7

RESULT BEFORE TAXES       26.7



SEGMENT ASSETS 1,808.1 320.8 569.8 346.8 40.3 3,085.7





Sanoma Divisions 1.1-31.3.2010

      Lear-   Unallo-

      ning &   cated/ Con-

      Lite-   elimi- soli-

EUR million Media News rature Trade nations dated
---------------------------------------------------------------
External net sales 310.9 107.4 55.1 164.3 0.2 637.9

Internal net sales 1.2 2.0 3.1 5.9 -12.3

NET SALES, TOTAL 312.1 109.4 58.2 170.2 -12.0 637.9

OPERATING PROFIT 31.2 15.6 -6.4 3.7 -3.7 40.4

Share of results in

associated companies -2.5 0.1   0.0   -2.4

Financial income         2.2 2.2

Financial expenses         6.0 6.0

RESULT BEFORE TAXES           34.1



SEGMENT ASSETS 1,729.7 339.2 571.2 332.0 36.0 3,008.0



CHANGES IN PROPERTY, PLANT AND EQUIPMENT

EUR million 31.3.2011 31.3.2010 31.12.2010



Carrying amount at the beginning of the period 429.3 484.2 484.2

Increases 27.1 8.8 50.7

Acquisition of operations   0.0 0.4

Decreases -1.3 -1.2 -5.4

Disposal of operations   -0.3 -31.8

Depreciation for the period -14.0 -16.6 -61.8

Impairment losses for the period 0.1 0.0 -1.0

Exchange rate differences and other changes 0.4 -4.7 -6.1
-----------------------------------------------------------------------------
Carrying amount at the end of the period 441.6 470.2 429.3

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   1-3/ 1-12/

    2011 2010



Acquisition costs   0.5 37.1

Fair value of acquired net assets   0.1 14.5

Recognised in equity     -18.7

Recognised in income statement   0.0 -0.5
---------------------------------------------------------
Goodwill   0.4 3.5

Negative goodwill in income statement
---------------------------------------------------------
Change in goodwill   0.4 3.5





CONTINGENT LIABILITIES

EUR million 31.3.2011 31.3.2010 31.12.2010

Contingencies for own commitments

Mortgages 20.5 23.2 20.6

Pledges 1.6 6.7 6.7

Other items 0.3 0.0 0.6

TOTAL 22.4 29.9 27.8



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 0.0 0.4 0.0

TOTAL 0.0 0.4 0.0



Other contingencies

Operating lease liabilities 235.2 270.5 249.1

Royalties 19.6 18.0 23.5

Other items 28.4 31.6 26.9

TOTAL 283.2 320.2 299.5


----------------------------------------------------------------
TOTAL 316.0 360.9 337.8



DERIVATIVE INSTRUMENTS

EUR million



Fair values 31.3.2011 31.3.2010 31.12.2010

Interest rate derivatives

Interest rate swaps 1.5   0.1



KEY EXCHANGE RATES

  1-3/ 1-3/ 1-12/

Average rate 2011 2010 2010

EUR/CZK (Czech Koruna) 24.55 26.03 25.36

EUR/HUF (Hungarian Forint) 272.06 269.31 276.04

EUR/PLN (Polish Zloty) 3.97 4.00 4.01

EUR/RUB (Russian Rouble) 40.45 41.48 40.45

EUR/SEK (Swedish Crown) 8.88 9.98 9.55



Closing rate 31.3.2011 31.3.2010 31.12.2010

EUR/CZK (Czech Koruna) 24.54 25.44 25.06

EUR/HUF (Hungarian Forint) 265.72 265.75 277.95

EUR/PLN (Polish Zloty) 4.01 3.87 3.98

EUR/RUB (Russian Rouble) 40.29 39.70 40.82

EUR/SEK (Swedish Crown) 8.93 9.71 8.97



Press Conference

Press and analyst meeting will be held in English by President and CEO Harri-
Pekka Kaukonen and CFO Kim Ignatius at 13.30 am at Sanomatalo, Töölönlahdenkatu
2, Helsinki. Webcast of the event can be viewed at Sanoma.com either live or
later on as on demand. Questions to the presenters can be asked also by phone
during the meeting. To join the conference call, please dial +44 (0)20
7162 0125 (Europe) or +1 334 323 6203 (US) and quote the conference code
894295. The presentation material of the press and analyst meeting will be
available on Sanoma's website when the press and analyst meeting has started.

Sanoma's 2Q11 Interim Report will be published on 5 August 2011 at approximately
8:30 am Finnish time.

Sanoma Corporation



Kim Ignatius
Chief Financial Officer

Additional information: Sanoma's Investor Relations, Kare Laukkanen, tel.
+358 105 19 5064 and Anna Tuominen, tel. +358 105 19 5066 or ir@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 nearly
20,000 people in over 20 countries throughout Europe. In 2010, the Group's net
sales totalled EUR 2.8 billion.




Sanoma Interim Report 1Q11:
http://hugin.info/3123/R/1511759/447219.pdf




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originality of the information contained therein.

Source: Sanoma Oyj via Thomson Reuters ONE

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