Sanoma's Interim Report 1 Jan-30 June 2009: Efficiency Improvements to Continue

8/6/2009, 7:31 AM (Source: GlobeNewswire)

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Interim Report 6/8/2009 8:30

- Sanoma Group's net sales decreased 8.2% in the first six months,
totalling EUR 1,333.2 (1,452.8) million. Net sales in the second
quarter were down 9.4%, being EUR 697.2 (769.8) million.
- Operating profit excluding non-recurring items was EUR 95.8 (146.2)
million. Non-recurring items totalled EUR -9.7 (25.0) million. The
second quarter EBIT excluding non-recurring items was EUR 72.5 (97.0)
million.
- Earnings per share were EUR 0.32 (0.74) in January-June. The second
quarter EPS amounted to EUR 0.27 (0.40).
- Sanoma's outlook for 2009 is unchanged.


KEY INDICATORS 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008

Net sales 697.2 769.8 -9.4 1,333.2 1,452.8 -8.2 3,030.1
Operating profit 72.5 97.0 -25.2 95.8 146.2 -34.5 295.7
excluding
non-recurring items
% of net sales 10.4 12.6 7.2 10.1 9.8
Operating profit 65.1 98.5 -33.9 86.1 171.2 -49.7 236.3
Result for the 43.7 65.3 -33.2 51.3 119.7 -57.1 120.8
period

Capital expenditure 41.8 49.4 -15.3 109.9
% of net sales 3.1 3.4 3.6

Equity ratio, % 37.3 40.8 40.0
Net gearing, % 103.0 81.6 78.5
Average number of employees
(full-time equivalents) 17,725 17,693 0.2 18,168

Earnings/share, EUR 0.27 0.40 -32.8 0.32 0.74 -56.4 0.72
Cash flow from 0.10 -0.06 278.6 0.05 0.23 -79.9 1.56
operations/share,
EUR


Hannu Syrjänen, President and CEO

"Sanoma's second quarter development shows that in many areas we have
been able to adjust our operations to the challenging economic
environment. However, a number of efforts to maintain good
profitability levels are still needed.

In 2009, Sanoma will make structural changes, discontinue loss-making
operations and improve the efficiency of all its businesses. We have
initiated structural changes in Sanoma News, Sanoma Magazines Belgium
and our Estonian retail operations. The efficiency improvements and
structural changes will improve Sanoma's long-term operating
conditions in the changing media environment. In the first six
months, we discontinued 26 magazine titles and closed down
loss-making kiosks in Russia.

We continue to reduce our operating expenses and our target is to
have them clearly below the 2008 level. This will be partly achieved
through personnel reductions. During the first six months, our
operating expenses decreased by over 5%.

The learning business, one of our focus areas, has proved to be
fairly resilient to the general economic downturn and Sanoma Learning
& Literature is performing well in its biggest educational material
markets. In Finland, magazine operations and Sanoma Entertainment's
TV and broadband businesses have developed very well during the first
six months. Across Europe, our online advertising sales continued to
increase in the second quarter. Sanoma's total digital revenues grew
by 3% and represented over 12% of the Group's net sales in the first
six months.

Sanoma's position as a market leader will bring us added value. We
have been able to strengthen our market positions in a number of
areas. We have gained market share in the magazine markets in Belgium
and Finland and our TV channels' share of Finnish TV advertising has
grown. Focusing strongly on our profitability, we continue,
at the same time, to be on the lookout for possibilities that can
further enhance our operations and strengthen our market positions."

Outlook for 2009

In 2009, Sanoma's net sales are expected to decrease. It is estimated
that the Group's operating profit excluding non-recurring items will
clearly decline from the previous year. In the comparable year of
2008, operating profit excluding non-recurring items was EUR 295.7
million. The Group's interest expenses are expected to decrease
markedly, and as a result, Sanoma's net result for 2009 is expected
to decrease less than its operating profit. The Group will strongly
increase the efficiency of its operations in all markets.

The outlook of Sanoma's net sales and operating profit in 2009 is
affected by the development of advertising and private consumption in
the Group's countries of operation. In 2009, advertising and private
consumption are expected to decrease from 2008 levels in all of
Sanoma's markets.

Net sales

In January-June Sanoma's net sales were down by 8.2%, totalling EUR
1,333.2 (1,452.8) million. Excluding the effect of exchange rate
changes, net sales would have been 6.6% lower than in the comparable
period. Adjusted for changes in the Group structure, January-June net
sales decreased by 9.1%. Net sales were at the comparable year's
level in Sanoma Entertainment. Net sales decreased in other
divisions, with advertising sales in particular being affected by the
general economic situation.

Advertising sales decreased clearly and accounted for 22% (26%) of
the Group's total net sales. Online advertising sales, however,
continued to increase, Sanoma Magazines Netherlands contributing the
most to the increase. The growth from the comparable period was 4%.
The Group's subscription sales remained stable and single copy sales
across the Group decreased only slightly. In geographical terms,
Finland accounted for 52% (51%) of net sales, with other EU countries
accounting for 45% (44%) and non-EU countries for 3% (5%).

Result

Sanoma's operating profit excluding non-recurring items was EUR 95.8
(146.2) million in the first six months. The operating profit
included a total of EUR -9.7 (25.0) million in non-recurring items.
These non-recurring expenses were related to restructuring of
operations and voluntary severance packages offered to employees. In
the comparable period, non-recurring capital gains were recorded from
the divestment of the movie distribution company R.C.V. Entertainment
and a real estate holding.


NON-RECURRING ITEMS 4-6/ 4-6/ 1-6/ 1-6/ 1-12/
EUR million 2009 2008 2009 2008 2008

Magazines
Restructuring expenses -1.3 -1.3
A gain on sale of R.C.V. Entertainment 23.5 23.5
A gain on sale of Payback 7.0
Expenses on closing down a youth site
and related impairment loss -5.1
Impairment loss of immaterial
rights and goodwill -78.6
News
Expenses related to the efficiency -6.1 -8.4
programme
Learning & Literature
Inventory write-offs and
restructuring expenses -7.6
Other companies
A gain on sale of a land area 1.5 1.5 1.5
NON-RECURRING ITEMS TOTAL -7.4 1.5 -9.7 25.0 -59.3


The Group's operating profit was EUR 86.1 (171.2) million or 6.5%
(11.8%) of net sales. Operating profit grew in Sanoma Entertainment,
where all business units developed favourably. In other divisions,
operating profit decreased as a result of lower sales and changes in
exchange rates.

Sanoma's net financial items totalled EUR -13.8 (-20.6) million.
Financial income amounted to EUR 15.5 (6.6) million, of which
exchange rate gains were EUR 10.4 (4.6) million. Financial expenses
amounted to EUR 29.3 (27.2) million with interest expenses of EUR
16.9 (23.9) million being the largest item. Exchange rate losses
amounted to EUR 11.2 (5.8) million. The refined financing structure
and lower reference rates have clearly decreased the Group's interest
expenses.

The result before taxes was EUR 72.0 (155.2) million. Sanoma's
effective tax rate was higher than in the comparable period, mainly
because of a non-taxable capital gain in the first quarter of 2008.
Earnings per share, including the non-recurring items, were EUR 0.32
(0.74). The result for the period totalled EUR 51.3 (119.7) million.

Efficiency improvements

In 2009, Sanoma will make structural changes, discontinue loss-making
operations and improve the efficiency of all its businesses. Sanoma
has initiated a large number of efficiency improvement programmes to
develop its operations in the long-term and to save costs. In order
to obtain its savings targets, Sanoma will continue to reduce the
number of personnel. For example, the Sanoma News' programme, in
addition to a number of structural changes, aims to reduce personnel
expenses in the Division by some 300 man-years through means such as
voluntary severance packages and forgoing of holiday bonuses.

Sanoma Magazines Belgium has renewed its strategy. The new strategy
can be implemented only through substantial structural changes. The
renewed organisational structure will reduce annual costs by EUR 12
million from 2010 onwards. In connection, some 70 positions will be
terminated. Other staff reductions are being carried out in several
business units either as a result of the weakened economic outlook or
related to restructuring initiated by changing business needs for
example in Russia, the Czech Republic and Finland.

Sanoma Trade has initiated restructuring in its Estonian operations
and completed the programme started in the Dutch press distribution
unit already over a year ago. Sanoma Learning & Literature continues
the restructuring in its literature and other businesses unit and is
streamlining its language services according to the current market
environment. Altogether, the Sanoma Group has over 1,100 employees
less than at the year-end.

Balance sheet and financial position

At the end of June, the consolidated balance sheet totalled EUR
3,211.1 (3,369.2) million. Cash flow from operations was EUR 7.5
(37.3) million and cash flow per share was EUR 0.05 (0.23). Cash flow
from operations decreased as a result of a weaker operational result
in January-June. The development of cash flow from operations was
balanced by lower financial items and taxes paid.

There were no significant changes in the Group's financial position
during January-June. Sanoma's equity ratio at the end of June was
37.3% (40.8%). The changes from the comparable period and the
year-end were mainly caused by the dividend payment in the second
quarter. The result in 2008 was affected by the impairment
write-downs made in the last quarter of the year. Net gearing
increased to 103.0% (81.6%). Equity totalled EUR 1,127.6 (1,297.1)
million. Interest-bearing liabilities were EUR 1,220.3 (1,148.5)
million and interest-bearing net debt EUR 1,161.0 (1,058.4) million.
At the end of June, the Group's cash and cash equivalents totalled
EUR 59.3 (90.2) million.

Sanoma's financial position is stable. The existing credit
facilities, such as the syndicated, long-term credit facility of EUR
802 million, cover all Sanoma's financing needs and Sanoma has no
need for material refinance in the near future. Net debt/EBITDA ratio
at the end of June was 3.0, in line with the Group's target to keep
the ratio below 3.5.

Investments, acquisitions and divestments

Investments in tangible and intangible assets totalled EUR 41.8
(49.4) million in January-June, and consisted mainly of ICT systems
as well as replacement investments and renovations.

There were no significant transactions during the review period. In
the comparable period, Sanoma Magazines divested the Dutch movie
distribution company R.C.V. Entertainment and a capital gain of EUR
23.5 million was recorded for the transaction. On 11 March 2008,
Sanoma Learning & Literature completed its acquisition of the Polish
educational publisher Nowa Era.

SANOMA MAGAZINES

Sanoma Magazines is a leading publisher of magazines and has a strong
digital media presence in 13 European countries. 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.

- Sanoma Magazines' online advertising sales continued to grow in the
second quarter.
- Sanoma Magazines Belgium and Sanoma Magazines Finland strengthened
their market leading positions.
- Active portfolio management continued: four new online sites were
launched and six magazines discontinued in the second quarter.


Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008
Net sales 275.9 318.5 -13.4 538.1 603.9 -10.9 1,246.8
Operating profit 31.5 46.6 -32.3 47.1 71.2 -34.0 138.9
excluding non-recurring
items
% of net sales 11.4 14.6 8.7 11.8 11.1
Operating profit 30.2 46.6 -35.1 45.8 94.7 -51.7 85.7
Capital expenditure 12.3 12.2 1.5 26.8
Average number of employees (full-time 5,611 5,520 1.7 5,731
equivalents)

* In 2009, the non-recurring items included EUR 1.3 million of Sanoma
Magazines Belgium's restructuring expenses in the second quarter and
in 2008 a capital gain of EUR 23.5 million from the divestment of
movie distributor R.C.V. Entertainment in the first quarter.


Operational indicators * 1-6/ 1-6/
2009 2008
Number of magazines published 306 323
Magazine copies sold, thousands 187,066 205,160
Advertising pages sold 26,284 33,153

* Including joint ventures.

Sanoma Magazines' net sales in January-June decreased by 10.9% to EUR
538.1 (603.9) million. The general economic situation affected
advertising sales in all operating countries with Sanoma Magazines
International's net sales being impacted the most. The Division's net
sales adjusted for changes in the Group structure decreased by 12.0%.
Of the Division's net sales, 18% (17%) came from Finland. In
April-June, the Division's net sales decreased by 13.4% to EUR 275.9
(318.5) million. The decrease mostly came from Sanoma Magazines
International, but sales in the Netherlands also weakened.

The Division's advertising sales decreased by 21% in the first six
months and represented 29% (33%) of net sales. The economic downturn
has hit Sanoma Magazines International's advertising revenues in
particular. The Division's online advertising sales were up by 5%,
with the growth rate slowing down in the second quarter.

Sanoma Magazines' circulation sales decreased by 4% and represented
60% (56%) of the Division's net sales. Subscription sales remained
stable during the first six months and even increased in Belgium.
Single copy sales declined clearly in the CEE countries and in the
Netherlands.

In January-June Sanoma Magazines Netherlands' net sales amounted to
EUR 233.9 (246.9) million. New online assets increased Sanoma
Magazines Netherlands' online revenues, which grew by 12%. Total
advertising sales decreased due to a decline in the print advertising
revenues. However, Sanoma Magazines Netherlands outperformed the
consumer magazine advertising market. According to Nielsen Media
Research, the consumer magazine advertising market in the Netherlands
decreased by 18% in January-May 2009 and magazine advertising's share
of the total advertising market declined. In total, advertising sales
represented 27% (27%) of Sanoma Magazines Netherlands' net sales. The
readers market in the Netherlands continued to decrease. Sanoma
Magazines Netherlands' subscription sales were at the comparable
period's level but single copy sales were lower and the total
circulation sales decreased. Sanoma Magazines Netherlands launched
four online sites in the second quarter.

Sanoma Magazines International's net sales in January-June were EUR
104.0 (146.9) million. The economic downturn has affected Sanoma
Magazines International's operations strongly. Advertising sales
decreased in all countries, especially in Russia and Ukraine as well
as in the Czech Republic, where a number of magazine titles were
discontinued. The reported net sales were also clearly affected by
the negative exchange rate developments, especially in Russia and
Hungary. In total, advertising sales represented 49% (55%) of Sanoma
Magazines International's net sales. Circulation sales were clearly
below the comparable period. This is partly attributable to the
reduced number of magazines published and in some cases the number of
issues. The publication frequency of various titles has been adjusted
in order to save costs. In the second quarter, Sanoma Magazines
International discontinued six magazine titles.

Net sales at Sanoma Magazines Belgium totalled EUR 104.0 (109.7)
million. Advertising sales decreased and represented 27% (29%) of
Sanoma Magazines Belgium's net sales. Circulation sales remained
stable with subscription sales increasing and single copy sales
decreasing slightly. In Belgium, both the advertising and readers
market have declined. With its strong brands, Sanoma Magazines
Belgium has been able to increase its market share in the advertising
market and kept its strong position in the readers market. Sanoma
Magazines Belgium has renewed its strategy and initiated a
restructuring programme to respond to changes in the media
environment.

Sanoma Magazines Finland's net sales amounted to EUR 98.3 (102.6)
million with advertising sales declining. Circulation sales remained
stable. Advertising sales represented 14% (17%) of Sanoma Magazines
Finland's net sales. According to TNS Gallup Adex, advertising in
consumer magazines in Finland decreased by 22% in January-June and
the magazine single copy market decreased in volume by 21%. Sanoma
Magazines Finland outperformed the market development both in
advertising and the readers market and has increased its market
shares. In particular the key titles, like the women's weekly Me
Naiset, have clearly strengthened their position in both markets.

In January-June, Sanoma Magazines' operating profit excluding
non-recurring items decreased by 34.0% to EUR 47.1 (71.2) million.
Decreasing advertising sales affected results in all businesses and
the decline in operating profit was only partly offset by cost
savings. Non-recurring items totalled EUR -1.3 million and were
related to restructuring in Sanoma Magazines Belgium. In the
comparable period, operating profit included a EUR 23.5 million
non-recurring gain on the divestment of movie distributor R.C.V.
Entertainment. Operating profit for the first six months amounted to
EUR 45.8 (94.7) million. In April-June, the Division's operating
profit excluding non-recurring items decreased 32.3% and totalled EUR
31.5 (46.6) million.

Sanoma Magazines Netherlands' operational result was affected by the
lower sales and increased personnel expenses. The operating profit
was down significantly since the comparable period included the
non-recurring gain from the sale of R.C.V. Entertainment. The decline
in advertising sales decreased Sanoma Magazines International's
operating result markedly. Sanoma Magazines Belgium increased its
result. Sanoma Magazines Finland reached the comparable period's
operating profit levels thanks to efficient cost-saving measures.

Sanoma Magazines continues to develop its magazine portfolio and
online businesses as well as invest in strengthening its market
positions in all countries it operates in, with a special focus on
its key titles in each operating country. At the same time Sanoma
Magazines is strongly focused on improving efficiency and saving
costs. The Division has initiated several programmes to improve the
profitability of its business units.

In 2009, Sanoma Magazines' net sales are expected to decrease and it
is estimated that operating profit excluding non-recurring items will
be clearly below the previous year's level.

SANOMA NEWS

Sanoma News is the leading newspaper publisher in Finland, and its
products, both in print and digital format, have a strong presence in
the lives of their readers. In addition to Helsingin Sanomat, the
largest daily in the Nordic region, Sanoma News publishes other
national and regional newspapers and is also a significant digital
player in Finland.

- In May Sanoma News expanded its programme to restructure the
Division. The total annual savings goal of all programmes is now at
EUR 30 million.
- The tabloid Ilta-Sanomat's circulation development showed positive
signs in the second quarter. Single copy sales in May and June grew
from the comparable year. Online advertising of the Ilta-Sanomat
business unit increased in the second quarter by 38%.
- The financial news site Taloussanomat.fi had a record number of
visitors in the second quarter and was the most visited financial
news site for several weeks.


Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008
Net sales 107.1 121.1 -11.6 214.8 242.0 -11.2 474.7
Operating profit 9.6 14.7 -34.4 18.0 32.6 -44.9 57.3
excluding non-recurring
items
% of net sales 9.0 12.1 8.4 13.5 12.1
Operating profit 3.5 14.7 -75.9 9.6 32.6 -70.6 57.3
Capital expenditure 5.6 9.7 -42.0 19.6
Average number of employees (full-time 2,421 2,456 -1.4 2,491
equivalents)

* In 2009, the non-recurring items included in the first quarter EUR
2.3 million and in the second quarter EUR 6.1 million expenses
related to the efficiency programme.


Operational indicators 1-6/ 1-6/
2009 2008
Distribution of free sheets, millions 37.5 49.1

1-12/ 1-12/
Audited circulation 2008 2007
Helsingin Sanomat 412,421 419,791
Ilta-Sanomat 161,615 176,531

1-6/ 1-6/
Online services, unique visitors, weekly 2009 2008
Iltasanomat.fi 1,628,730 1,385,758
HS.fi 1,075,308 931,577
Huuto.net 420,069 416,724
Oikotie.fi 325,617 311,541
Taloussanomat.fi 413,964 280,286
Keltainenporssi.fi 191,324 164,407


Sanoma News' net sales in January-June decreased by 11.2%, totalling
EUR 214.8 (242.0) million. Most of the decrease came from the
Helsingin Sanomat business unit, where advertising sales declined
significantly. Net sales in other business units were also lower than
in the comparable period. Adjusted for changes in the Group
structure, net sales decreased by 12.1%. In April-June, net sales
decreased by 11.6% due to poor advertising sales development and
totalled EUR 107.1 (121.1) million.

According to TNS Gallup Adex, newspaper advertising in Finland
decreased by 24% in January-June. Job advertising in Finland
decreased by 54% and real estate advertising by 38%. Advertising in
free sheets was down by 17%. Following the general advertising
environment, online advertising included in statistics also decreased
by 9%. Sanoma News' advertising sales decreased by 26% from the
comparable period, due to the decline in newspaper advertising, with
the classified advertising development affecting the sales the most.
Online advertising sales performed clearly better than the market and
were on the comparable period's level. Advertising sales represented
46% (55%) of the Division's net sales.

The Finnish printed tabloid market showed some positive signs in the
spring, but the structural migration to online continues and the
printed tabloid market declined by 8% in January-June. The amount of
online visitors continued to increase. Sanoma News' circulation sales
grew by 2% and circulation sales accounted for 43% (37%) of the
Division's net sales. Subscription sales increased. Newsstand sales
remained stable, due to the increased single copy sales in May and
June.

The Helsingin Sanomat business unit's net sales totalled EUR 120.1
(145.3) million. Circulation sales increased from the comparable
period due to new forms of subscriptions and price increases.
Advertising sales were down markedly, and Helsingin Sanomat's job and
real estate print advertising, in particular, continued to be
affected by the overall economic situation. Job advertising in the
Helsingin Sanomat daily paper decreased by 55% and real estate
advertising by 55%. Online advertising of the business unit decreased
by 18%, but Oikotie.fi, the classified online site, strengthened its
market position during the first six months. In total, advertising
sales represented 54% (64%) of net sales. Helsingin Sanomat continued
to restructure its operations and to improve the efficiency of its
organisation through reorganisation of operations in, among others,
its newsroom and marketing departments.

Net sales of the Ilta-Sanomat business unit amounted to EUR 38.3
(42.4) million. Ilta-Sanomat had a 57.0% (57.4%) share of the tabloid
market. The circulation sales increased from the comparable period
with the second quarter developing positively. The overall readership
was further strengthened by the continuous growth of online readers.
The unit's advertising sales decreased due to declining print
advertising revenues. Online advertising sales of the Iltasanomat.fi
site developed positively in the second quarter. In total,
advertising sales represented 23% (26%) of the business unit's net
sales in January-June.

Net sales from other publishing were at the comparable period's level
at EUR 46.7 (48.9) million. Advertising sales decreased, especially
in Sanoma Lehtimedia's regional newspapers. The circulation sales in
the regional papers grew slightly. Sanoma Lehtimedia has streamlined
its organisation in order to better serve its customers, remove
overlapping functions, and increase efficiency and co-operation. Net
sales in the Sanoma Kaupunkilehdet business unit for free sheets
decreased slightly, mainly due to structural changes as Metro and
Uutislehti 100 titles were merged last autumn. However, Sanoma
Kaupunkilehdet has gained market share in the advertising market,
since free sheets in general are performing better than the media
market in general. The local news site Vartti.fi has become the
leading local news site in Finland. Sanoma Kaupunkilehdet made
several efficiency improvements in its portfolio during 2008. The
organisation of the financial news site Taloussanomat.fi has been
further streamlined. The Sanoma Digital business unit's net sales
increased due to new operations, and its service offering has been
improved. Its comparison site Hintaseuranta.fi continued to
strengthen its market leading position.

Net sales from other businesses, mainly comprising internal services,
were EUR 72.2 (75.4) million. Net sales decreased due to fewer
internal printing jobs. External printing services developed well
increasing 41% from last year.

In January-June, Sanoma News' operating profit excluding
non-recurring items decreased by 44.9%, totalling EUR 18.0 (32.6)
million. The non-recurring items included in the operating profit
totalled EUR
-8.4 (0.0) million and consisted of expenses related to the
efficiency programme, including such items as voluntary severance
packages to employees. Operating profit including the non-recurring
items totalled EUR 9.6 (32.6) million in the first six months.
Decreased advertising sales lowered operating profits in all reported
businesses. In April-June, the Division's operating profit excluding
non-recurring items decreased by 34.4% and was at EUR 9.6 (14.7)
million. A number of cost-saving measures helped Sanoma News to
improve its efficiency compared to the previous quarter. Including
the non-recurring items, the Division's operating profit in the
second quarter was EUR 3.5 (14.7) million.

Sanoma News will continue the planned development of its printed
products and digital services. Renewal projects are ongoing in all
units to develop the products so that they will meet the changing
customer needs. The company has also decided to invest in a new
reader-customer management system to support, among other actions,
product development opportunities for newspapers in the multimedia
environment. However, in 2009 the media advertising market continues
to be challenging. Sanoma News has therefore started a programme to
reshape its organisation and to adapt its operations to the lower
revenue level.

In 2009, net sales of Sanoma News are estimated to decrease clearly
and operating profit excluding non-recurring items will lessen
markedly from the previous year due to the decline in the advertising
market.

SANOMA ENTERTAINMENT

Sanoma Entertainment offers entertaining experiences on television,
radio, online and mobile. Sanoma Entertainment's business units
include Nelonen Media, which focuses on broadcast operations, and
Welho, Finland's largest cable television operator. The Division's
latest business area is online casual gaming.

- Sanoma Entertainment's operating profit continued to grow in the
second quarter, with all businesses improving from 2008.
- Nelonen Media increased its market share of Finnish TV advertising
significantly, to 33.5%.
- The number of Welho's broadband subscriptions grew.
- Nelonen Media launched Ruutu.fi, a new WebTV, in June.


Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008
Net sales 40.6 40.9 -0.7 81.0 81.4 -0.6 157.1
Operating profit excluding 6.9 6.3 8.1 13.0 10.4 25.3 17.3
non-recurring items
% of net sales 16.9 15.5 16.1 12.8 11.0
Operating profit 6.9 6.3 8.1 13.0 10.4 25.3 17.3
Capital expenditure 4.1 7.5 -44.3 13.5
Average number of employees (full-time 481 471 2.2 482
equivalents)



Operational indicators 1-6/ 1-6/
Thousands 2009 2008
TV channels' share of Finnish TV advertising 33.5% 29.8%
TV channels' national commercial viewing share 29.6% 30.3%
TV channels' national viewing share 14.7% 14.6%
Number of connected households (30 June) 324 321
Number of pay TV customers (30 June) 67 68
Number of broadband internet connections (30 June) 110 102


Sanoma Entertainment's net sales in January-June were at the
comparable period's level and amounted to EUR 81.0 (81.4) million. In
addition, net sales adjusted for changes in the Group structure
remained stable. Advertising sales accounted for 51% (51%) of Sanoma
Entertainment's net sales. In April-June, net sales were EUR 40.6
(40.9) million.

Broadcast operations' net sales totalled EUR 47.1 (47.1) million in
January-June, while the Finnish TV advertising market shrank by 13%
according to TNS Gallup Adex. Nelonen Media's multichannel strategy
in TV operations has resulted in the increase of its market share to
33.5% (29.8%). New targeted TV channels, national radio stations and
WebTV all increased their advertising sales.

Sanoma Entertainment's WebTV services and their popularity have
continued to grow and in June Nelonen Media launched a new WebTV
service Ruutu.fi. Ruutu.fi offers streaming broadcasts of TV series
from Nelonen Media TV channels as a free catch-up service, extra
materials for popular programmes, and podcasts.

Nelonen Media's Liv, launched successfully as a free TV channel
available on the cable network in February, was granted a one-year
licence to broadcast the lifestyle channel on the terrestrial network
as well. In June, Sanoma Entertainment acquired the remaining
minority shareholding in Suomen Urheilutelevisio, which operates the
two sports channels in Nelonen Media's TV channel portfolio.

Radio advertising has increased its share of the total advertising
market. Nelonen Media's radio channels have been successful and
during the spring, the weekly reach of Radio Rock rose to its
all-time high.

Net sales from other businesses were EUR 34.7 (34.7) million. The
number of Welho's broadband subscriptions continued to increase. The
mobile broadband market is growing, and Welho has kept up with this
development with its mobile broadband product, Wekkula, launched in
January 2009. In line with the Finnish pay TV market development,
Welho's pay TV operations were stable.

Sanoma Entertainment's operating profit increased by 25.3% in
January-June, totalling EUR 13.0 (10.4) million. The operating profit
did not include any non-recurring items. Operating profit improved
both in broadcasting and other businesses. The increase was driven by
lower expenses in general and cost-saving measures. The good
development of both broadcasting and other operations continued in
April-June, and operating profit grew by 8.1% amounting to EUR 6.9
(6.3) million.

In line with its strategy, Sanoma Entertainment focuses on its core
businesses: television, broadband services and consumer entertainment
services. Sanoma Entertainment continues to develop its digital
content and media solutions business, invest resources in the
development of its online services and in its viewing and listening
shares. In addition, Sanoma Entertainment is refining its processes
and service offering to better meet the needs of its customers and to
improve its efficiency.

In 2009, Sanoma Entertainment's net sales and operating profit
excluding non-recurring items are expected to be at the previous
year's level.

SANOMA LEARNING & LITERATURE

Sanoma Learning & Literature is a leading European educational
publisher offering learning materials in print and digital format.
With operations in nine countries, the Division has growing
international language service operations and is also the leading
general literature publisher in Finland.

- The educational material market has been fairly resilient to the
economic downturn; Sanoma Learning & Literature is performing well in
its biggest markets.
- Language operations are clearly suffering from the current economic
climate. The language business is streamlining its structure
accordingly.
- Literature and other businesses unit continues its restructuring
programme.


Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008
Net sales 101.9 110.5 -7.7 162.8 168.8 -3.6 390.0
Operating profit 25.1 26.4 -4.9 18.2 22.0 -17.4 53.2
excluding non-recurring
items
% of net sales 24.6 23.9 11.2 13.0 13.6
Operating profit 25.1 26.4 -4.9 18.2 22.0 -17.4 45.6
Capital expenditure 4.4 7.4 -40.5 15.6
Average number of employees (full-time 2,847 2,618 8.8 2,737
equivalents)



Operational indicators 1-6/ 1-6/
2009 2008
Learning
Number of new titles published, books 756 803
Number of new titles published, digital products 228 236

Literature and other businesses
Number of new titles published, books 181 215
Number of new titles published, digital products 42 41

Books sold, millions 12.9 12.9


In January-June Sanoma Learning & Literature's net sales decreased by
3.6% and totalled EUR 162.8 (168.8) million, with especially net
sales of literature and other businesses decreasing. Net sales
adjusted for changes in the Group structure decreased by 7.3%. A
total of 59% (57%) of the Division's net sales came from outside
Finland. In April-June, the Division's net sales decreased by 7.7% to
EUR 101.9 (110.5) million. This was mainly due to timing differences
in the learning business.

Sanoma Learning & Literature's reporting structure has been modified
to better reflect the focus of operations. The comparable figures for
2008 have been adjusted accordingly. Sanoma Learning & Literature's
three reporting levels are now learning, language services, and
literature and other businesses, which includes general literature,
printing and logistics.

Net sales in learning totalled EUR 112.2 (115.2) million. Sales in
the biggest market, the Netherlands, were ahead of the comparable
period, mostly due to earlier order intake than in the comparable
period. Net sales grew in Belgium. Net sales decreased in Finland due
to shifts in order time in secondary education and lower sales in the
WSOYpro unit, a provider of corporate educational materials. Net
sales decreased in Poland: E-learning provider YDP's sales were lower
than in the comparable period, when the Polish government awarded
more tenders than in the reporting period. Nowa Era's net sales were
slightly below the comparable period due to a change in the Polish
curricula, which has caused a delay in ordering. Exchange rate
developments negatively affected net sales in Poland and Hungary.

Net sales in language services grew to EUR 14.5 (11.9) million. The
increase is attributable to the new operations acquired in 2008.
Sales of language services have been strongly affected by the general
economic situation. The business unit's focus is now on integrating
the Swedish business acquired in 2008 and on adopting the fixed cost
structure to the new circumstances in the market.

Net sales in literature and other businesses were EUR 41.6 (48.3)
million with most of the decrease coming from multi-volume and
year-book publishing as well as decreased sales in printing. In
Finland, the general literature market has slowed down considerably,
but WSOY General Literature has outperformed the market.

The Division's operating profit in January-June decreased 17.4% and
amounted to EUR 18.2 (22.0) million. The operating profit did not
include any non-recurring items. Most of the decrease came from the
language service operations, where the economic downturn has affected
the sales considerably. The operating profit in learning was slightly
below the comparable period due to the negative impact of the
consolidation of Nowa Era's seasonal losses in the first quarter.
Cost-savings have offset the effect lower sales have had on profits.
Operating profit in literature and other businesses decreased. In
April-June, the Division's operating profit decreased by 4.9% to EUR
25.1 (26.4) million due to weaker results in language services as
well as in literature.

The Division's business is very seasonal. Profit in learning is
mainly accrued in the second and third quarters. The acquisition of
Nowa Era added to the size of the learning business and therefore
increased seasonality in the Division.

Sanoma Learning & Literature continues to focus on further
internationalising its learning business, expanding language services
and maintaining market leadership in Finnish general literature
publishing.

In 2009, it is estimated that the net sales and operating profit
excluding non-recurring items of Sanoma Learning & Literature will
decrease from the previous year's level. The development of net sales
and operating profit is significantly affected by the exchange rate
developments in Sanoma Learning & Literature's operating countries.

SANOMA TRADE

Retail specialist Sanoma Trade's strengths are a thorough
understanding of customers' needs and solid concepts. Sanoma Trade
serves its customers in over 200 million annual sales contacts at
kiosks, bookstores and movie theatres. Operating in seven countries,
press distribution is a strong link between publishers and retailers.

- Kiosk operations' net sales grew in Finland in the second quarter.
- Movie admissions grew by 11% in the second quarter in Finland.
- Sanoma Trade's business in Finland has performed well, but the
economic situation strongly affects the Baltic and Eastern European
businesses. The Russian kiosk network has been downsized.


Key indicators 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/
EUR million 2009 2008 % 2009 2008 % 2008
Net sales 195.7 203.2 -3.7 383.4 405.8 -5.5 866.6
Operating profit 3.8 7.4 -48.8 7.6 17.3 -56.2 45.1
excluding non-recurring
items
% of net sales 1.9 3.6 2.0 4.3 5.2
Operating profit 3.8 7.4 -48.8 7.6 17.3 -56.2 45.1
Capital expenditure 15.2 12.4 22.7 33.8
Average number of employees (full-time 6,282 6,527 -3.7 6,633
equivalents)



Operational indicators 1-6/ 1-6/
Thousands 2009 2008
Customer volume in kiosk operations 97,764 104,435
Customer volume in bookstores 3,083 3,218
Customer volume in movie theatres 4,515 4,799
Number of copies sold (press distribution) 171,302 194,982


Sanoma Trade's net sales in January-June decreased by 5.5%, totalling
EUR 383.4 (405.8) million. Net sales of kiosk operations were at the
comparable period's level. Net sales decreased in press distribution
and bookstores, and slightly in movie operations. Net sales adjusted
for changes in the Group structure decreased by 4.9%. Of Sanoma
Trade's net sales, 32% (34%) came from outside Finland. In
April-June, The Division's net sales were down by 3.7% and totalled
EUR 195.7 (203.2) million. Most of the decrease came from operations
outside Finland. In kiosk operations, net sales grew in the second
quarter.

Net sales from kiosk operations amounted to EUR 197.6 (197.1)
million. Kiosk sales in Finland and Estonia remained quite stable. In
Finland, customer volume began to grow in the second quarter. Net
sales increased slightly in Lithuania and in the new operations of
Russia and Romania. In Russia, Sanoma Trade has closed down
loss-making kiosks. Kiosk sales decreased in Latvia, largely due to
the strong emphasis on fast food in the kiosks' product assortment.

Net sales from press distribution were EUR 105.0 (118.4) million. Net
sales decreased overall - with the exception of Russia, where sales
were in line with the comparable period. Additionally, cumulative
press distribution volumes decreased in all countries, although in
Finland, the sales of tabloids increased clearly in May-June. In most
markets, cover prices rose due to VAT increases, which also affected
volumes.

The net sales of bookstores were EUR 46.9 (55.0) million. The net
sales of the comparable period included the subscription business
divested in May 2008. In line with the generally sluggish literature
market, net sales from bookstores decreased both in Finland and
Estonia. In June, the bookstore chain Suomalainen Kirjakauppa was
voted by consumers the retail chain brand with the best reputation in
Finland.

Net sales from movie operations totalled EUR 41.7 (43.8) million.
Movie admissions in Finland have grown steadily during the first six
months from the record year 2008 and net sales increased in Finland.
Finnkino's e-ticket concept was voted by consumers to be the most
recommendable e-store in Finland. The economic downturn and lower
private consumption affected movie sales in the Baltic countries and
net sales decreased in Latvia in particular, where competition has
also increased.

In January-June, Sanoma Trade's operating profit decreased by 56.2%,
totalling EUR 7.6 (17.3) million. The operating profit did not
include any non-recurring items. The operating profit of kiosk
operations was decreased by the economic slowdown and declining sales
in the Baltic countries and the earlier investments in Russia and
Romania. In press distribution, the operating profit declined in all
markets. The operating profit of bookstores was slightly below the
comparable period. In movie operations, the result decreased due to
falling sales in the Baltic countries. Sanoma Trade has intensive
cost-saving programmes in place in all of its businesses. In addition
to strict cost-control, structural arrangements are being executed,
starting in Estonia. In April-June, the Division's operating profit
was down by 48.8% and totalled EUR 3.8 (7.4) million. Kiosk and movie
theatre operations performed well in Finland, but the weak results of
foreign operations in general decreased the Division's result in the
second quarter.

Sanoma Trade continues to develop chain concepts in all its
businesses. Efficient chain management as well as the product and
service offerings catering to the needs of customers are key success
factors in all markets and will ensure the competitiveness of Sanoma
Trade.

In 2009, Sanoma Trade's net sales are expected to decrease somewhat
and operating profit excluding non-recurring items to decrease
clearly.

THE SANOMA GROUP

Dividend

In line with the Board's proposal, the Annual General Meeting decided
to pay out a dividend of EUR 0.90 (1.00) per share for the year 2008.
The record date for distribution of dividends was 6 April 2009 and in
Finland, the dividends were paid on 15 April 2009. EUR 0.5 million
was transferred to the donation reserve and EUR 511.5 million was
left in equity. Sanoma conducts an active dividend policy and
primarily distributes over half of the Group result after taxes in
dividends.

Shares and holdings

In January-June, a total of 43,578,137 (57,365,039) Sanoma shares
were traded on the NASDAQ OMX Helsinki. Traded shares accounted for
27% (35%) of the average number of shares for the period. Sanoma's
total stock exchange turnover was EUR 428.2 (960.2) million.

In January-June, the volume-weighted average price of a Sanoma share
was EUR 9.76, with a low of EUR 8.02 and a high of EUR 11.87. At the
end of the review period, Sanoma's market capitalisation was EUR
1,778.4 (2,260.3) million and the closing price of the share was EUR
11.05 (14.07). At the end of June 2009, Sanoma had 20,924
shareholders, with foreign holdings accounting for 9.7% (10.9%) of
all shares and votes. There were no major changes in share ownership
during the review period and Sanoma did not issue any flagging
announcements.

During the period under review, the Board had an authorisation to
repurchase the Company's shares. No shares were repurchased in the
first six months of 2009 and the Company shares acquired in 2008 were
cancelled in the first quarter. During the first quarter, the number
of shares also changed because of shares registered with stock
options. There were no changes during the second quarter and at the
end of June, Sanoma had 160,943,658 shares and the registered share
capital totalled EUR 71,258,986.82.

Board of Directors and auditors

The AGM of 1 April 2009 confirmed the number of Sanoma's Board
members at ten. Board members Jaakko Rauramo and Sakari Tamminen were
re-elected, and Annet Aris was elected to the Board as a new member.
The Board of Directors of Sanoma consists of: Jaakko Rauramo,
Chairman; Sakari Tamminen, Vice Chairman; and Annet Aris, Robert
Castrén, Jane Erkko, Paavo Hohti, Sirkka Hämäläinen-Lindfors, Seppo
Kievari, Rafaela Seppälä and Hannu Syrjänen as members.

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

Board authorisations

The AGM held on 1 April 2009 authorised the Board of Sanoma to decide
on the repurchase of the Company's own shares. The authorisation is
effective until 30 June 2010.

A maximum of 16,000,000 of the Company's own shares can be
repurchased with the Company's unrestricted shareholders' equity, and
the repurchases will reduce the funds available for distribution of
profits. The shares will be repurchased to develop the Company's
capital structure, carry out potential corporate acquisitions or
other business arrangements, or to be transferred for other purposes,
retained as treasury shares, or cancelled. The shares can be
repurchased either through a tender offer made to all shareholders on
equal terms or in other proportion than that of the current
shareholders at the market price on the NASDAQ OMX Helsinki Ltd at
the moment of repurchase.

In addition, the Board has a valid authorisation to increase the
share capital. According to the authorisation issued by the AGM on 4
April 2007, the Board may decide, until the AGM of 2010, on the issue
of new shares, the transfer of treasury shares and the granting of
special rights entitling to shares. The authorisation does not
exclude the right of the Board of Directors to decide on a directed
share issue. With this authorisation, and as a result of the use of
special rights, the Board is authorised to decide on the issuance of
a maximum of 82,000,000 new shares and the transfer of a maximum of
5,000,000 treasury shares. In a directed share issue, a maximum of
41,000,000 shares may be issued or transferred. With this
authorisation, the Board is authorised to issue a maximum of
5,000,000 stock options as part of an incentive programme within the
Company. Under the authorisation, the Board decided on 19 December
2008 on the issuance of Stock Option Scheme 2008.

During the review period, the authorisation by the AGM of 1 April
2008 for repurchasing the Company's own shares was in force. The
authorisation was not used during the review period and its validity
ended on 1 April 2009.

Seasonal fluctuation

The net sales and result of Sanoma Magazines, Sanoma News and Sanoma
Entertainment are particularly affected by the development of
advertising. Advertising sales are influenced, for example, by the
number of newspaper and magazine issues published during 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 also
impacts the net 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.

Significant risks and uncertainty factors

Management of business risks and utilisation of the opportunities
associated with them is included in the daily responsibilities of
Sanoma's management. The management takes calculated risks in order
to ensure that the Company develops its business as successfully as
possible.

The most significant risks and uncertainty factors Sanoma is facing
are described in the Financial Statements, together with the main
principles of risk management. The most significant uncertainty
factors of the current year are related to the development of media
advertising and consumer spending, as well as the development of
currency exchange rates. Due to the uncertain general economic
situation, reliable estimates on, for example, the development of
media advertising in the Group's various markets are not available.
Sanoma expects media advertising to continue to decrease in 2009. A
rapid change in media advertising and consumer confidence would
affect the Group result.

Sanoma's stable business, strong balance sheet and current loan
agreements ensure the Group's financial position even if the
uncertainty in the financial markets continues.


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 June
2009. Sanoma Learning & Literature has started to capitalise
prepublication costs of learning material to intangible assets as of
1 January 2009. Previously, the principle was to include
prepublication expenses in acquisition cost of inventory. The change
in accounting policy does not have any material impact on Sanoma's
income statement or balance sheet. 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.


CONSOLIDATED INCOME STATEMENT 1-6/ 1-6/ 1-12/
EUR million 2009 2008 2008

NET SALES 1,333.2 1,452.8 3,030.1
Other operating income 33.5 55.8 97.1
Materials and services 591.3 642.8 1,367.4
Employee benefit expenses 351.0 349.8 702.8
Other operating expenses 257.2 272.5 588.8
Depreciation and impairment losses 81.2 72.4 231.9
OPERATING PROFIT 86.1 171.2 236.3
Share of results in associated companies -0.3 4.6 4.9
Financial income 15.5 6.6 18.9
Financial expenses 29.3 27.2 69.9
RESULT BEFORE TAXES 72.0 155.2 190.3
Income taxes -20.7 -35.5 -69.4
RESULT FOR THE PERIOD 51.3 119.7 120.8

Result attributable to:
Equity holders of the Parent Company 51.6 118.9 115.7
Non-controlling interests -0.3 0.7 5.1

Earnings per share for result attributable to
the equity holders of the Parent company
Earnings per share, EUR 0.32 0.74 0.72
Diluted earnings per share, EUR 0.32 0.73 0.72

STATEMENT OF COMPREHENSIVE INCOME 1-6/ 1-6/ 1-12/
EUR million 2009 2008 2008

Result for the period 51.3 119.7 120.8
Other comprehensive income:
Change in translation differences -14.7 14.5 -39.1
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 36.7 134.1 81.7

Total comprehensive income attributable to:
Equity holders of the Parent Company 37.4 132.8 77.5
Non-controlling interests -0.7 1.4 4.2




CONSOLIDATED BALANCE SHEET
EUR million 30.6.2009 30.6.2008 31.12.2008

ASSETS

NON-CURRENT ASSETS
Tangible assets 500.4 506.8 510.4
Investment property 9.4 9.8 10.2
Goodwill 1,487.7 1,504.1 1,491.6
Other intangible assets 397.1 380.1 379.7
Interests in associated companies 67.3 70.4 69.9
Available-for-sale financial assets 20.7 21.4 20.6
Deferred tax receivables 39.4 45.7 36.6
Trade and other receivables 38.8 42.2 41.0
NON-CURRENT ASSETS, TOTAL 2,560.8 2,580.5 2,560.0

CURRENT ASSETS
Inventories 152.7 196.1 173.2
Income tax receivables 28.2 42.2 24.9
Trade and other receivables 409.4 459.2 409.1
Available-for-sale financial assets 0.5 1.1 0.5
Cash and cash equivalents 59.3 90.2 110.9
CURRENT ASSETS, TOTAL 650.2 788.7 718.7

ASSETS, TOTAL 3,211.1 3,369.2 3,278.7

EQUITY AND LIABILITIES

EQUITY
Equity attributable to the equity holders of the Parent Company
Share capital 71.3 71.3 71.3
Share premium fund 187.6
Treasury shares -31.2 -37.5
Fund for invested unrestricted equity 192.7 0.0 192.7
Other equity 850.2 1,048.4 993.7
1,114.1 1,276.1 1,220.1
Non-controlling interests 13.4 21.0 17.0
EQUITY, TOTAL 1,127.6 1,297.1 1,237.1

NON-CURRENT LIABILITIES
Deferred tax liabilities 105.0 106.1 106.2
Pension obligations 36.8 43.7 37.9
Provisions 6.2 8.4 6.0
Interest-bearing liabilities 713.1 448.7 449.0
Trade and other payables 35.9 28.3 34.6

CURRENT LIABILITIES
Provisions 10.2 9.3 10.9
Interest-bearing liabilities 507.2 699.8 633.6
Income tax liabilities 19.9 29.2 11.7
Trade and other payables 649.0 698.6 751.7

LIABILITIES, TOTAL 2,083.5 2,072.1 2,041.6

EQUITY AND LIABILITIES, TOTAL 3,211.1 3,369.2 3,278.7




CHANGES IN CONSOLIDATED EQUITY
EUR million
Equity attributable to the equity holders of the
Parent Company
Fund
for Non-
inves- cont-
Share ted rol-
Share pre- Trea- unres- ling Equi-
capi- mium sury tricted Other inte- ty,
tal fund shares equity equity Total rests total
Equity at
1 Jan 2008 71.3 187.6 -51.6 1,138.6 1,345.9 18.3 1,364.2
Unregistered usage
of share -0.1 -2.4 -2.6 -2.6
options
Acquisition
of treasury -41.2 -41.2 -41.2
shares
Cancellation
of treasury 61.6 -61.6
shares
Registration
of
new shares 0.1 2.4 2.6 2.6
Expense
recognition
of
options 2.6 2.6 2.6
granted
Dividends -160.8 -160.8 -2.2 -163.0
paid
Change in
non-
controlling
interests -3.1 -3.1 3.5 0.4
Comprehensive
income for the 132.8 132.8 1.4 134.1
period
Equity at
30 June 2008 71.3 187.6 -31.2 1,048.4 1,276.1 21.0 1,297.1

Equity at
1 Jan 2009 71.3 -37.5 192.7 993.7 1,220.1 17.0 1,237.1
Unregistered usage
of share -1.8 -1.8 -1.8
options
Cancellation
of treasury 37.5 -37.5
shares
Registration
of
new shares 1.8 1.8 1.8
Expense
recognition
of
options 2.0 2.0 2.0
granted
Dividends -144.9 -144.9 -0.9 -145.8
paid
Change in
non-
controlling
interests -2.0 -2.0
Donations -0.5 -0.5 -0.5
Comprehensive
income for the 37.4 37.4 -0.7 36.7
period
Equity at
30 June 2009 71.3 192.7 850.2 1,114.1 13.4 1,127.6




INCOME STATEMENT BY QUARTER
EUR million 1-3/ 4-6/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
2009 2009 2008 2008 2008 2008 2008

NET SALES 636.0 697.2 683.1 769.8 778.6 798.7 3,030.1
Other operating income 14.1 19.4 38.1 17.7 14.8 26.5 97.1
Materials and services 286.4 304.8 309.4 333.4 352.0 372.6 1,367.4
Employee benefit 176.2 174.8 172.2 177.5 167.8 185.2 702.8
expenses
Other operating expenses 128.2 129.0 131.1 141.5 141.9 174.3 588.8
Depreciation and 38.4 42.8 35.8 36.6 37.7 121.9 231.9
impairment losses
OPERATING PROFIT 20.9 65.1 72.7 98.5 94.0 -28.8 236.3
Share of results in 0.3 -0.6 3.0 1.6 0.4 -0.1 4.9
associated companies
Financial income 6.7 8.8 3.5 3.1 6.1 6.2 18.9
Financial expenses 17.0 12.3 12.7 14.5 15.3 27.4 69.9
RESULT BEFORE TAXES 10.9 61.1 66.5 88.7 85.2 -50.1 190.3
Income taxes -3.2 -17.4 -12.2 -23.4 -24.1 -9.8 -69.4
RESULT FOR THE PERIOD 7.7 43.7 54.4 65.3 61.1 -59.9 120.8

Result attributable to:
Equity holders of the 8.3 43.3 54.5 64.4 59.0 -62.2 115.7
Parent Company
Non-controlling -0.6 0.3 -0.2 0.9 2.1 2.3 5.1
interests

Earnings per share for result attributable
to the equity holders of the Parent company
Earnings per share, EUR 0.05 0.27 0.34 0.40 0.37 -0.39 0.72
Diluted earnings per 0.05 0.27 0.34 0.40 0.37 -0.39 0.72
share, EUR




CONSOLIDATED CASH FLOW STATEMENT 1-6/ 1-6/ 1-12/
EUR million 2009 2008 2008
OPERATIONS
Result for the period 51.3 119.7 120.8
Adjustments
Income taxes 20.7 35.5 69.4
Financial expenses 29.3 27.2 69.9
Financial income -15.5 -6.6 -18.9
Share of results in associated companies 0.3 -4.6 -4.9
Depreciation and impairment losses 81.2 72.4 231.9
Gains/losses on sales of non-current assets -1.9 -27.8 -34.2
Other adjustments -28.7 -18.5 -40.1
Change in working capital
Change in trade and other receivables -0.5 -38.6 -18.5
Change in inventories -6.4 -15.5 -0.5
Change in trade and other payables, and -78.4 -43.7 3.6
provisions
Interest paid -24.6 -27.5 -53.4
Other financial items -0.2 4.4 -4.5
Taxes paid -19.1 -39.2 -70.2
CASH FLOW FROM OPERATIONS 7.5 37.3 250.3

INVESTMENTS
Acquisition of tangible and intangible assets -43.1 -49.9 -113.3
Operations acquired -17.8 -75.4 -162.3
Sales of tangible and intangible assets 2.7 9.7 12.7
Operations sold 0.0 39.6 49.2
Loans granted -2.1 -20.2 -19.8
Repayments of loan receivables 1.6 3.3 8.8
Sales of short-term investments 0.5
Interest received 3.6 1.5 7.4
Dividends received 3.1 5.9 7.5
CASH FLOW FROM INVESTMENTS -51.9 -85.5 -209.3

CASH FLOW BEFORE FINANCING -44.4 -48.3 41.1

FINANCING
Proceeds from share subscriptions 0.0 5.1
Minority capital investment/repayment of equity 0.0 1.0
Purchase of treasury shares -40.9 -48.2
Change in loans with short maturity 0.0 106.9 -53.8
Drawings of other loans 366.5 167.9 525.1
Repayments of other loans -245.1 -6.0 -264.6
Payment of finance lease liabilities -1.6 -1.3 -2.8
Dividends paid -145.8 -163.0 -164.3
Donations/other profit sharing -0.5 -0.5 -0.5
CASH FLOW FROM FINANCING -26.6 63.0 -3.1

CHANGE IN CASH AND CASH EQUIVALENTS
ACCORDING TO CASH FLOW STATEMENT -71.0 14.7 38.0
Effect of exchange rate differences on cash and -2.4 -0.5 0.1
cash equivalents
NET CHANGE IN CASH AND CASH EQUIVALENTS -73.4 14.2 38.1

Cash and cash equivalents at the beginning of 110.5 72.4 72.4
the period
Cash and cash equivalents at the end of the 37.0 86.6 110.5
period

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


NET SALES BY BUSINESS 1-3/ 4-6/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
EUR million 2009 2009 2008 2008 2008 2008 2008

SANOMA MAGAZINES
Sanoma Magazines 110.6 123.2 111.7 135.2 124.8 143.9 515.7
Netherlands
Sanoma Magazines 50.9 53.2 70.1 76.8 77.4 82.4 306.7
International
Sanoma Magazines Belgium 51.3 52.6 54.2 55.5 53.7 59.8 223.2
Sanoma Magazines Finland 50.3 48.0 50.7 51.9 49.1 53.9 205.6
Eliminations -1.0 -1.2 -1.3 -0.9 -1.0 -1.1 -4.3
TOTAL 262.1 275.9 285.5 318.5 304.0 338.9 1,246.8

SANOMA NEWS
Helsingin Sanomat 61.7 58.3 74.1 71.2 65.6 68.6 279.5
Ilta-Sanomat 18.4 19.8 20.5 21.9 20.6 20.2 83.2
Other publishing 22.9 23.8 23.9 24.9 23.5 25.8 98.2
Other businesses 36.2 35.9 37.9 37.5 36.5 38.2 150.1
Eliminations -31.7 -30.8 -35.5 -34.5 -32.7 -33.5 -136.2
TOTAL 107.7 107.1 120.8 121.1 113.5 119.2 474.7

SANOMA ENTERTAINMENT
TV and radio 23.5 23.6 22.6 24.5 18.0 23.8 88.9
Other businesses 17.3 17.4 18.0 16.7 16.8 17.9 69.4
Eliminations -0.5 -0.3 -0.1 -0.3 -0.1 -0.6 -1.1
TOTAL 40.3 40.6 40.5 40.9 34.7 41.0 157.1

SANOMA LEARNING & LITERATURE
Learning 30.6 81.6 27.8 87.5 105.9 52.2 273.3
Language services 8.3 6.2 6.2 5.8 7.5 9.3 28.8
Literature and other 24.6 17.0 27.8 20.4 23.3 29.7 101.2
businesses
Eliminations -2.6 -2.8 -3.4 -3.2 -3.5 -3.2 -13.3
TOTAL 60.8 101.9 58.3 110.5 133.2 88.0 390.0

SANOMA TRADE
Kiosk operations 91.1 106.6 94.6 102.5 103.8 108.6 409.4
Press distribution 49.6 55.5 58.2 60.2 61.8 61.3 241.5
Bookstores 27.3 19.7 31.0 24.0 36.9 47.3 139.2
Movie operations 23.6 18.0 24.4 19.4 23.8 26.7 94.3
Eliminations -3.8 -4.0 -5.5 -3.0 -4.8 -4.5 -17.8
TOTAL 187.7 195.7 202.7 203.2 221.4 239.3 866.6

Other companies and -22.7 -24.1 -24.8 -24.4 -28.2 -27.9 -105.2
eliminations
TOTAL 636.0 697.2 683.1 769.8 778.6 798.7 3,030.1



OPERATING PROFIT BY DIVISION
EUR million 1-3/ 4-6/ 1-3/ 4-6/ 7-9/ 10-12/ 1-12/
2009 2009 2008 2008 2008 2008 2008

Sanoma Magazines 15.5 30.2 48.2 46.6 31.6 -40.6 85.7
Sanoma News 6.0 3.5 17.9 14.7 15.2 9.4 57.3
Sanoma Entertainment 6.1 6.9 4.0 6.3 2.8 4.1 17.3
Sanoma Learning & Literature -6.9 25.1 -4.3 26.4 36.3 -12.7 45.6
Sanoma Trade 3.8 3.8 9.9 7.4 13.0 14.7 45.1
Other companies and -3.7 -4.3 -3.0 -2.9 -5.0 -3.7 -14.6
eliminations
TOTAL 20.9 65.1 72.7 98.5 94.0 -28.8 236.3



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 and broadband
business. Sanoma Learning & Literature business is mainly b-2-b
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. More detailed description of operating segments can be
found in note 2 in Financial Statements for 2008.

The adoption of IFRS 8 has not changed reportable segments because
also the segment information the Group has presented earlier has been
based on internal management reporting.

The accounting policies for segment reporting do not differ from
Group's accounting policies and have not changed due to the adoption
of IFRS 8. The decisions concerning assessing the performance of
operating segments and allocating resources to the segments are based
on segments' operating profit. The chief operating decision maker is
Group's Executive Management Group. The Group has not aggregated
operating segments to form the above mentioned reportable segments.
Segment's total assets do not include interest-bearing receivables
and tax receivables. Transactions between segments are based on
market prices.


Sanoma Divisions
1.1-30.6.2009
Lear- Unallo-
Enter- ning & cated/ Con-
Maga- tain- Lite- elimi- soli-
EUR million zines News ment rature Trade nations dated
External net sales 536.8 210.7 80.3 157.0 348.5 -0.2 1,333.2
Internal net sales 1.2 4.1 0.6 5.8 34.9 -46.6
NET SALES, TOTAL 538.1 214.8 81.0 162.8 383.4 -46.7 1,333.2
OPERATING PROFIT 45.8 9.6 13.0 18.2 7.6 -8.1 86.1
Share of results in
associated -0.5 0.0 0.1 0.1 -0.3
companies
Financial income 15.5
Financial expenses 29.3
RESULT BEFORE TAXES 72.0
TOTAL ASSETS 1,563.4 357.5 128.9 607.7 449.6 19.6 3,126.8



Sanoma Divisions
1.1-30.6.2008
Lear- Unallo-
Enter- ning & cated/ Con-
Maga- tain- Lite- elimi- soli-
EUR million zines News ment rature Trade nations dated
External net sales 602.3 238.1 80.5 162.9 369.0 0.0 1,452.8
Internal net sales 1.6 3.9 1.0 5.9 36.8 -49.1
NET SALES, TOTAL 603.9 242.0 81.4 168.8 405.8 -49.1 1,452.8
OPERATING PROFIT 94.7 32.6 10.4 22.0 17.3 -5.9 171.2
Share of results in
associated 4.3 0.0 -0.3 -0.1 0.2 0.4 4.6
companies
Financial income 6.6
Financial expenses 27.2
RESULT BEFORE TAXES 155.2
TOTAL ASSETS 1,644.1 369.9 121.0 638.7 458.6 28.3 3,260.6




CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 30.6.2009 30.6.2008 31.12.2008

Carrying amount at the beginning of 510.4 498.7 498.7
the period
Increases 26.2 37.9 81.2
Acquisition of operations 0.0 6.5 7.3
Decreases -1.1 -3.7 -7.0
Disposals of operations -0.2 -0.2
Depreciation for the period -34.1 -32.0 -66.4
Impairment losses for the period -0.2 -0.7 -0.7
Exchange rate differences and other -0.9 0.3 -2.6
changes
Carrying amount at the end of the 500.4 506.8 510.4
period

The Group had no commitments for acquisition of tangible assets at
the end of the reporting period. In the comparative period they
amounted to EUR 3.1 million.


EFFECT OF ACQUISITIONS ON THE CONSOLIDATED BALANCE SHEET
EUR million 1-6/2009

Acquisition costs 4.3
Fair value of acquired net assets 1.9
Goodwill 2.4
Negative goodwill in income statement -0.9
Change in goodwill 3.3

1-12/2008 1-12/2008
Nowa Era Other
Acquisition costs 62.5 128.2
Fair value of acquired net assets 7.8 39.4
Goodwill 54.6 88.8



CONTINGENT LIABILITIES
EUR million 30.6.2009 30.6.2008 31.12.2008
Contingencies for own commitments
Mortgages 26.4 23.2 23.7
Pledges 6.0 5.8 6.0
Other items 0.4 0.4 0.4
TOTAL 32.8 29.4 30.1

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 0.1 0.2 0.2
TOTAL 0.1 0.2 0.2

Other contingencies
Operating lease liabilities 256.0 261.1 263.8
Royalties 18.3 23.4 23.6
Other items 35.3 38.2 38.1
TOTAL 309.6 322.7 325.5

TOTAL 353.1 362.8 366.2

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


KEY EXCHANGE RATES
1-6/ 1-6/ 1-12/
Average rate 2009 2008 2008
EUR/CZK (Czech Koruna) 27.09 25.35 25.16
EUR/HUF (Hungarian Forint) 288.31 252.41 251.25
EUR/PLN (Polish Zloty) 4.48 3.49 3.53
EUR/RUB (Russian Rouble) 44.11 36.63 36.69
EUR/SEK (Swedish Crown) 10.86 9.41 9.66

Closing rate 30.6.2009 30.6.2008 31.12.2008
EUR/CZK (Czech Koruna) 25.88 23.89 26.88
EUR/HUF (Hungarian Forint) 271.55 235.43 266.70
EUR/PLN (Polish Zloty) 4.45 3.35 4.15
EUR/RUB (Russian Rouble) 43.88 36.95 41.28
EUR/SEK (Swedish Crown) 10.81 9.47 10.87



Helsinki

Board of Directors
Sanoma Corporation


Press Conference

Press and analyst meeting in Finnish will be held by Mr Hannu
Syrjänen, President and CEO of Sanoma at 11 am (Finnish time) at
Sanomatalo, Töölönlahdenkatu 2, Helsinki.

The conference call in English for analysts and investors will be
arranged at 3 pm (Finnish time). Mr Hannu Syrjänen will present the
result. To join the conference, please dial +44 20 3003 2666 (Europe)
or +1 866 966 5335 (US). The event can also be listened to at
Sanoma.com, either live or on demand at a later date.

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 third quarter 2009 results will be published on 6 November
2009 at approximately 8 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. 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 challenging and interesting
employment for over 20,000 people in 20 countries throughout Europe.
In 2008, the Group's net sales totalled EUR 3.0 billion.


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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