Notes to the consolidated financial statements
1. INFORMATION BY SEGMENT
Alma Media Group’s reporting structure was changed at the beginning of 2014. The reporting segments of Alma Media are Digital Consumer Services, Financial Media and Business Services, National Consumer Media and Regional Media. Segment information is based on internal management reporting, which has been prepared in accordance with IFRS. One change was implemented in segment reporting during the financial period. The Objectvision.se service, which was previously reported under Digital Consumer Services, was transferred to the Financial Media and Business Services segment as of 1 January 2013. The changes in segment structures have been dealt with retroactively in the financial statement reporting by Alma Media Group.
The Group has six operating segments as shown in the table below. The operating segments that offer similar services are combined to reportable segments due to their uniform profitability and other characteristics.
REPORTABLE SEGMENT: OPERATING SEGMENT:
Digital Consumer Services Marketplaces
Diverso
Financial Media and Business Services Financial Media and Business Services
National Consumer Media National Consumer Media
Regional Media Regional Media
Changes in segment reporting:
- In the Digital Consumer Services segment, the centralised digital support services for the entire Group have been moved to non-allocated items outside segment reporting.
- The name of Kauppalehti Group was changed to Financial Media and Business Services.
- The new National Consumer Media segment consists of the IL-Media operating segment, previously reported under the Newspapers segment.
- The new Regional Media segment includes the Alma Regional Media operating segment, previously reported under the Newspapers segment, as well as the Group’s printing and distribution company Alma Manu, previously reported under the Other Operations segment.
- Other Operations no longer constitutes a separate segment. Instead, the operations of the Group’s parent company are reported as non-allocated items.
- The Digital Consumer Services segment reports on the online classified services of the Marketplaces operating segment, which includes Etuovi.com, Vuokraovi.com, Monster.fi, Autotalli.com, MyyJaOsta.com in Finland, as well as Jobs.cz, Prace.cz, topjobs.sk, CV Online, Profesia.sk and MojPosao.net abroad. In November 2014, Alma Media sold City24, which was previously reported in this segment. The segment also contains digital consumer services such as Telkku.com, Kotikokki.net, E-kontakti.fi, and Meedio.fi included in the operating segment of Alma Diverso.

The Financial Media and Business Services segment specialises in the production of financial information as well as providing information and marketing solutions for businesses. Its best-known title is Finland’s leading business media Kauppalehti. The group also includes customer and media communications solutions providers Alma 360 group and Objektvision.se, which operates in Sweden. In February 2014, Alma Media sold BNS, a news agency and media monitoring unit that operates in all of the Baltic countries.

The National Consumer Media segment reports the various publishing services of IL-Media.

The Regional Media segment reports the publishing activities of more than 30 newspapers and the Group’s printing and distribution company Alma Manu. The segment’s best-known title is Aamulehti.
The segments’ assets and liabilities are items used by the respective segments in their business operations
The Group’s business is mainly divided between two geographical areas: Finland and the rest of Europe. Digital Consumer Services operates in Finland and seven other European countries, principally the Czech Republic and Slovakia. The Financial Media and Business Services segment’s business operations are located in Finland and Sweden. The National Consumer Media and Regional Media segments operate mainly in Finland.

The revenue of the geographical areas is presented according to the location of customers and their assets are presented according to the location of the assets. The following table shows a geographical breakdown of the Group’s revenue and assets in 2014 and 2013:
Revenue
MEUR 2014 Share of total, % 2013 Share of total, %
Finland 254.4 86.1 259.2 86.3
Other EU countries 40.1 13.6 39.7 13.2
Other countries 0.9 0.3 1.3 0.4
Total 295.4 100.0 300.2 100.0
Assets
EUR 1,000 2014 Share of total, % 2013 Share of total, %
Finland 227.8 88.9 240.3 88.8
Other EU countries 28.3 11.1 30.4 11.2
Other countries
Total 256.1 100.0 270.7 100.0
Revenue
MEUR Digital Consumer Services Financial Media and Business Services National Consumer Media Regional Media Segments, total Non-allocated items and eliminations Group
Financial year 2014
Revenue
External revenue 54.4 52.0 44.4 137.7 288.5 6.9 295.4
Inter-segment revenue 1.4 1.1 2.5 7.5 12.5 -12.5
Total 55.8 53.0 46.9 145.2 301.0 -5.6 295.4
Financial year 2013
Revenue
External revenue 52.0 56.3 48.0 139.9 296.2 4.0 300.2
Inter-segment revenue 0.6 0.6 0.9 7.2 9.3 -9.3
Total 52.6 56.8 49.0 147.1 305.5 -5.3 300.2
Profit for the period
MEUR Digital Consumer Services Financial Media and Business Services National Consumer Media Regional Media Segments, total Non-allocated items and eliminations Group
Financial year 2014
EBITDA 16.5 7.3 3.2 14.7 41.7 -5.3 36.4
Depreciation, amortisation and impairment losses 5.8 0.9 0.1 6.4 13.1 2.6 15.7
Operating profit/loss 10.7 6.5 3.1 8.3 28.6 -7.9 20.7
Share of results in associated companies 0.0 1.0 0.0 1.1 0.7 1.7
Net finance expenses -2.0 -0.8 0.0 -0.1 -2.9 0.1 -2.7
Income before tax 8.8 6.7 3.1 8.2 26.8 -7.1 19.7
Income tax -4.0 -4.0
Profit for the period 8.8 6.7 3.1 8.2 26.8 -11.1 15.7
Other expenses not requiring payment transaction, other than depreciation 0.1 -0.1 -0.2 4.0 3.8 -0.4 3.4
Impairments 0.2 0.5 1.3 2.0 2.0
Financial year 2013
EBITDA 23.0 8.5 4.8 14.5 50.9 -5.6 45.3
Depreciation, amortisation and impairment losses 5.3 0.7 0.1 10.3 16.3 1.9 18.3
Operating profit/loss 17.7 7.8 4.7 4.3 34.5 -7.5 27.0
Share of results in associated companies 0.1 -3.1 -1.4 -4.5 0.3 -4.1
Net finance expenses 0.5 -1.0 0.0 -1.2 -1.7 1.2 -0.5
Income before tax 18.2 3.8 4.7 1.7 28.4 -6.0 22.4
Income tax -6.4 -6.4
Profit for the period 18.2 3.8 4.7 1.7 28.4 -12.4 16.0
Other expenses not requiring payment transaction, other than depreciation 1.5 0.0 0.0 -3.7 -2.2 1.6 -0.5
Impairments 0.3 4.7 4.9 4.9
Assets and liabilities
MEUR Digital Consumer Services Financial Media and Business Services National Consumer Media Regional Media Segments, total Non-allocated items and eliminations Group
Financial year 2014
Assets 89.7 17.1 3.6 67.8 178.2 52.3 230.5
Investments in associated companies -0.1 17.9 0.1 17.8 7.8 25.7
Assets total 89.5 35.0 3.6 67.8 196.0 60.2 256.1
Liabilities, total 16.6 9.6 5.1 67.3 98.7 53.8 152.5
Investments 10.5 1.2 0.3 1.1 13.0 1.4 14.4
Financial year 2013
Assets *) 88.7 18.8 5.1 79.4 192.1 53.2 245.2
Investments in associated companies -0.2 17.9 0.1 17.8 7.7 25.5
Assets total 88.5 36.7 5.1 79.5 209.8 60.9 270.7
Liabilities, total 15.1 9.9 5.2 77.0 107.1 75.2 182.3
Investments 2.0 0.8 0.2 52.0 55.0 7.9 62.8
Assets not allocated to segments are financial assets and tax receivables.
Liabilities not allocated to segments are financial and tax liabilities.
*) Exchange rate differences for intangible assets have been adjusted in the 2013 financial statements data

Annual Review 2014

Financial Statements 2014

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