Alma Media’s business segments

Alma Media’s reportable segments are Digital Consumer Services, Financial Media and Business Services, National Consumer Media and Regional Media.

The Digital Consumer Services segment includes Alma Media’s Marketplaces, which are digital classified advertising services. The services are related to sectors such as housing (Etuovi.com and Vuokraovi.com), recruitment (Monster.fi, Jobs.cz, Prace.cz, Topjobs.sk, CV Online, Profesia.sk, MojPosao.net, Monster.hu, Monsterpolska.pl, Monster.cz and Jobote.com) and cars (Autotalli.com and Autosofta.fi). Other digital consumer services include Gofinland.fi, Kotikokki.net and E-kontakti.fi.

The Alma Diverso unit, which produced digital services for consumers, was closed down in 2015 and its employees were transferred to other business units. Diverso’s financial performance is still reported under Digital Consumer Services for the year 2015. 

At the beginning of 2016, Alma Media Marketplaces acquired a controlling interest in NettiKoti, a software company for ERP systems in new construction and renovation, and a minority interest in www.autojerry.fi, a marketplace for car maintenance services.

The Financial Media and Business Services segment is focused on the production of financial information, business information and marketing solutions. Its best-known product is Finland’s leading business paper, Kauppalehti. The segment also includes Kauppalehti Information Services and the business premises service provider Objektvision.se.

In 2015, Alma Media sold the custom media house Alma360, which was previously reported under the Financial Media and Business Services segment. Talentum’s business operations will be integrated into the Financial Media and Business Services segment in 2016.

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

The Regional Media segment includes the publishing activities of the approximately 20 newspapers of Alma Regional Media and the Group’s printing and distribution company Alma Manu. The segment’s best-known title is Aamulehti.

Online advertising sales up

Content revenue decreased by 4.9% to MEUR 104.7 (110.1). Content revenue declined due to the decline of print subscriptions and single-copy sales. Talentum’s effect on the increase in content revenue was MEUR 4.1.

Revenue from advertising sales increased by 0.3% to MEUR 146.9 (146.4). Advertising sales for print media decreased by 10.2% from the comparison period, to MEUR 66.2 (73.7). Online advertising sales increased by 11.0% to MEUR 80.7 (72.7). 

Service revenue totalled MEUR 39.9 (38.8). Service revenue includes items such as Kauppalehti Business Information Services, the operations of the custom publishing house Alma 360 divested in October, as well as the operations of E-kontakti and the printing and distribution services sold to customers outside the Group by Alma Manu. The increased revenues of Kauppalehti Business Information Services and Alma Manu were major contributors to the increase in service revenue.

More flexible and convenient services for advertisers

Alma Media restructured its national media sales organisation in 2015 in order to provide better service to advertisers. The Alma Media Solutions unit has strengthened Alma Media’s competitiveness and increased its advertising market share.

The Alma Media Solutions unit serves advertisers in the development, marketing and sales of media sales products at the Alma level. Its task is to apply itself to customers’ marketing communications challenges and also offer comprehensive solutions outside the boundaries of traditional media advertising. Alma’s products can be bought programmatically or under the traditional buying model.

Alma Media’s advertising and marketing solutions are designed to create growth for the customer’s business. Alma Media provides influential audiences as recipients for a company’s marketing, which allows the company to grow its customer base, accelerate sales, strengthen its brand and create a strong interactive relationship with the Finnish audience. Alma Media’s news media and digital services reach nearly 80% of all Finns in the 15–74 age bracket each week. Alma’s mobile websites, mobile applications and desktop give advertisers access to nearly 8 million browsers weekly (Mads, 2015).

For national marketers, Alma’s offering comprises national media such as Iltalehti and Kauppalehti, as well as websites that provide digital services in various areas of consumers’ lives, such as Etuovi.com, Autotalli.com, Kotikokki.net, Telkku.com and Monster.fi.  Alma Regional Media comprises the printed newspapers Aamulehti, Satakunnan Kansa, Pohjolan Sanomat and Lapin Kansa as well as their comprehensive websites, along with approximately 15 local papers and their websites. As the first choice of consumers in their respective areas, our media give marketers the opportunity to have a strong presence in the daily life of the consumer. 

Focus on the relationship with the reader

In publishing, which includes regional, local and city newspapers, the daily tabloid Iltalehti and the financial media Kauppalehti with their respective online services, business is based on a relationship with readers built through good journalistic content. As media develops, the reader relationship becomes a multidimensional customer relationship with a media brand. The strength of this relationship can vary from an occasional website visit to an ongoing newspaper subscription and the use of online services as a paid and registered user.

The reader relationship and the resulting reach in the desired target audience are the foundation of advertising sales. The total reach of Alma Media's brands has showed strong growth in recent years as website visitor numbers have increased. Media brands’ reader relationships and their strong regional visibility also enable the extension of brands to new areas such as digital services. 

In a media world that is undergoing a dramatic process of digitalisation, the newspaper continues to offer a unique media environment, emotional bond and reader experience. Local media continue to play a role alongside international and national media through strong insight into the local people as well as their product and media behaviour. Alma Media’s regional media closely monitor consumer behaviour and changes thereto, media consumption, trends and the effectiveness of advertising. They also maintain a continuous dialogue with readers.

In an increasingly complex world of content providers of various standards, there is a need for well-organised news put together by professionals. Local journalism and the social significance of journalism are important anchors for readers.

In order to offer better service for readers and advertisers, it is important to measure the reader relationship. Alma Media is developing a common audience measurement system through Media Metrics Finland, a joint venture established with Sanoma Media Finland, Yleisradio and MTV. The aim of the development venture is to better understand media consumption in Finland and to develop multi-channel audience measurement systems and industry-standard measurement practices to better meet the needs of advertisers, media companies, media agencies and advertising agencies. The aim of Media Metrics Finland is to create a common methodology and terminology for measurement and to promote the development of new media planning tools.

Alma Media’s printed products are read by 1.4 million people each week, while its online services are used by 2.5 million consumers weekly. Combined, Alma Media’s various services reach nearly three million different consumers each week, or nearly 80% of the Finnish population. TNS Atlas 1–6/2010, TNS Gallup Oy.

The revenue of Alma Media’s digital services (such as Etuovi.com, Autotalli.com, Monster.fi, Prace.cz, Telkku.com and E-kontakti.fi) is based on fees charged for classified advertising, display advertising, service sales as well as revenue streams from service content and/or advertising targeted at the users of the service. The customers of digital services include both businesses and consumers.

In the competition for market share, brand appeal is of crucial importance. Alma Media’s digital services are the best-known brands in their segments in Finland, the Baltic States, the Czech Republic, Slovakia and other countries the Group operates in. The popularity of these services among users is based on a high level of usability, unique content and, in many cases, the importance of the social or communal dimension. For advertisers, this opens up valuable opportunities to specifically target the businesses or consumers in a particular category.

Read more on Alma Media's business model of publishing operations and digital services here

Annual Review 2014

Financial Statements 2014

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