Linkedin reports revenues up 81%

February 12, 2013 — Fusion DigiNet

linkedin1LinkedIn has reported its financial results for the fourth quarter and full year ended December 31, 2012.

 

Read the full report here

Summary below

  • Revenue for the fourth quarter was $303.6 million, an increase of 81% compared to $167.7 million in the fourth quarter of 2011.
  • Net income for the fourth quarter was $11.5 million, compared to net income of $6.9 million for the fourth quarter of 2011. Non-GAAP net income for the fourth quarter was $40.2 million, compared to $13.3 million for the fourth quarter of 2011. Non-GAAP measures exclude tax-affected stock-based compensation expense and tax-affected amortization of acquired intangible assets.
  • Adjusted EBITDA for the fourth quarter was $78.6 million, or 26% of revenue, compared to $34.4 million for the fourth quarter of 2011, or 21% of revenue.
  • GAAP diluted EPS for the fourth quarter was $0.10; Non-GAAP diluted EPS for the fourth quarter was $0.35.
  • For the full year 2012, revenue increased 86% to $972.3 million from $522.2 million. GAAP diluted EPS increased to $0.19 from $0.11 and Non-GAAP diluted EPS increased to $0.89 from $0.35. Adjusted EBITDA increased to $223.0 million from $98.7 million.

“2012 was a transformative year for LinkedIn,” said Jeff Weiner, CEO of LinkedIn. “We exited 2011 having successfully revamped our underlying development infrastructure. Based on that investment, we said that 2012 would be a year of accelerated product innovation, and it was. The products we delivered throughout the year drove member engagement and financial results to record levels in the fourth quarter.”

Fourth Quarter Financial Details and Operating Summary

  • Talent Solutions: Revenue from Talent Solutions products totaled $161.0 million, an increase of 90% compared to the fourth quarter of 2011. Talent Solutions revenue represented 53% of total revenue in the fourth quarter of 2012, compared to 51% in the fourth quarter of 2011.
  • Marketing Solutions: Revenue from Marketing Solutions products totaled $83.2 million, an increase of 68% compared to the fourth quarter of 2011. Marketing Solutions revenue represented 27% of total revenue in the fourth quarter of 2012, compared to 30% in the fourth quarter of 2011.
  • Premium Subscriptions: Revenue from Premium Subscriptions products totaled $59.4 million, an increase of 79% compared to the fourth quarter of 2011. Premium Subscriptions represented 20% of total revenue in the fourth quarter of 2012 and 2011.

Revenue from the U.S. totaled $189.0 million, and represented 62% of total revenue in the fourth quarter of 2012. Revenue from international markets totaled $114.6 million, and represented 38% of total revenue in the fourth quarter of 2012.

Revenue from the field sales channel totaled $178.4 million, and represented 59% of total revenue in the fourth quarter of 2012. Revenue from the online, direct sales channel totaled $125.3 million, and represented 41% of total revenue in the fourth quarter of 2012.

GAAP net income for the fourth quarter was $11.5 million, compared to net income of $6.9 million for the fourth quarter of 2011. Non-GAAP net income for the fourth quarter was $40.2 million, compared to $13.3 million in the fourth quarter of 2011.

Adjusted EBITDA for the fourth quarter was $78.6 million, or 26% of revenue, compared to $34.4 million for the fourth quarter of 2011, or 21% of revenue.

Linkedin dominates professional networking on the Internet, and now has more than 200 million members

USA, Mountain View, CA

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Vitesse Media plc – trading update

February 7, 2013 — Fusion DigiNet

vitessemedia

Vitesse Media Plc, the AIM-quoted media business, has issued a trading update ahead of the announcement of its full year audited results to 31 January 2013.

 

The announcement is as follows:

The Company’s performance in the second half of the year improved, with the trading loss in the second half reducing considerably, both against the first half of the financial year and the corresponding period of the previous financial year.

Turning points have been reached in some of our key product titles. GrowthBusiness.co.uk, which was re-launched early in 2012, delivered like-for-like revenue increases in the final quarter of 13 per cent., compared to the same period the previous year.  WhatInvestment.co.uk, which was re-launched just before Christmas 2012, saw traffic increase 40 per cent. in January 2013 compared to January 2012, assisted by the improving stock market conditions.  In the Events division, our technology venture capital event, Investor All Stars, saw attendances reach a ten-year high.  This week we expect to complete the final stages of our investment programme, with the re-launch of the SmallBusiness.co.uk and Information-Age.com web sites.

During the last two years, our databases have been reconfigured into Sales Force, all four of our major web sites have been completely overhauled, all our titles have been digitised and there has been an investment in social media to extend our marketing capabilities.  Niki Baker was appointed CEO in September 2012 and the business was reorganised into four teams: SME Business, Technology, Investment and Events.  This has led to a greater focus on driving results.

Bookings for the first quarter of the financial year 2013/4 have stabilised and the plans to launch two new digital subscription products and two new events during the first half are at an advanced stage.

Despite the difficult trading conditions, the directors believe that the changes implemented over the past two years mean that the company is now fully positioned to develop as a growing digital, events and research business and view the outlook as encouraging.

UK, London

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Daily Mail & General Trust PLC – Interim Management Statement to 30/12/12

February 6, 2013 — Fusion DigiNet

DMGTDMGT has published its Interim Management Statement for the first quarter of their financial year, the three month period to 30th December, 2012.

It describes the Group’s financial position and performance during the period, updated to the latest practicable date.

Headlines

Trading in line with expectations; outlook for the year unchanged:

  • Revenue for the first quarter of £503 million, underlying# growth of 3% on last year
  • Continued good underlying# growth of 8% from the B2B businesses
  • Underlying# revenue decline of 4% at Associated Newspapers (now dmg media); improved profit margin driven by cost efficiencies
  • Further B2B bolt-on acquisitions
  • Disposal of Northcliffe Media effective 30th December, 2012
  • Commencement of share buy back programme
  • Outlook for the year unchanged

UBMDec12

Acquisitions

The principal acquisitions in the quarter were FirstSearch Environmental Information Network (FEIN), a £21 million bolt-on purchase by dmg information’s US propertyI nformation business, Environmental Data Resources (EDR) and the £5 million acquisition by Euromoney of an 87% stake in TTI/ Vanguard.

  • FEIN provides environmental professionals across the US with products that allow them to assess environmental contamination risks in respect of commercial real estate. The acquisition brings opportunities to upsell FEIN’s customers to EDR’s broader portfolio of products, improve EDR’s product offering and deliver cost synergies.
  • TTI/Vanguard is a private membership organisation for senior executives who lead technology innovation in global organisations. Enterprises subscribe to TTI/Vanguard’s conference series to explore the potential effects of emerging and potentially disruptive technologies. Euromoney has a successful record of acquiring events businesses and accelerating their growth globally and TTI/Vanguard is an expansion for Euromoney into the high-technology content sector.

Other acquisition payments in the quarter included £5 million for the remaining stake in RMS Japan; £2 million for Beat the GMAT, a bolt-on acquisition for Hobsons; £1 million for Renaissance, a bolt-on acquisition for Landmark, and earn-out payments in respect of historic acquisitions.

Disposals

Following dmg media’s November 2012 disposal of its central and eastern European digital consumer jobs and motors businesses, the remaining Hungarian print business, Lapcom, was sold in January 2013, completing dmg media’s exit from the region. In the year to September 2012, the disposed businesses contributed £4 million of profit before tax and £27 million of revenues. Disposal proceeds in the first quarter were £27 million and a further £62 million was received in January 2013 in respect of the disposals of Lapcom and Northcliffe Media.

Read the full announcement here

# See the full announcement for the definition of “underlying”

UK, London

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Gannett Co. reports strong fourth quarter financial results

February 5, 2013 — Fusion DigiNet

gannettGannett Co., the international media and marketing solutions company, has reported strong fourth quarter financial results. With company revenue growth of 9% and non-GAAP earnings growth of 20 Percent. Worse then expected advertising results meant that shares in Gannett fell more than 5 per cent in midday trading on Monday.

Summary

Total operating revenues for the company were $1.52 billion in the fourth quarter, a 9.4 percent increase compared to the fourth quarter last year. A substantial increase in Broadcasting segment revenues, higher Publishing segment revenues as well as the extra week in the quarter drove the increase.

The increase in Broadcasting segment revenues reflects a record level of political spending in the quarter. Higher circulation revenue drove the increase in the Publishing segment.

Advertising revenues in the publishing segment totaled $657.5 million compared to $670.7 million in the fourth quarter a year ago, a 2.0 percent decline. Excluding the extra week, advertising revenues were 6.5 percent lower.

Total television revenues were 45.7 percent higher and totaled $280.2 million compared to $192.4 million in the fourth quarter last year. The revenue growth was driven by $91.2 million in politically related advertising during the fourth quarter of 2012. First quarter 2013 year-over-year comparisons will be unfavorably impacted by the absence of $5.1 million in political revenue and the move of the Super Bowl from NBC to CBS.

Digital segment operating revenues were $187.2 million compared to $181.5 million in the fourth quarter last year. Solid revenue growth at CareerBuilder drove the increase.

Gracia Martore, President and Chief Executive Officer, said, “We are proud of our strong operating results this quarter with growth in revenue and margin expansion driving strong cash flow. This caps an extremely productive year in which we successfully implemented our strategy to position Gannett for success in the digital era. For the year, we achieved our first year-over-year increase in company-wide revenue since 2006. During the fourth quarter and for the full year, our Broadcasting business delivered record revenue and profitability. Our television stations significantly increased market share this year reflecting the value of their content and format in gaining new viewers while retaining their loyal base. Not to be outdone, local domestic publishing circulation revenue also increased for the third straight quarter driven by the success of our all access content subscription model. We are meeting or exceeding the revenue and operating profit goals we had for the all access content subscription model. Total digital revenue across Gannett increased 29 percent and represented 25 percent of total revenue. Our strategy is gaining momentum, our investments are bearing fruit and we are achieving the results we expected. We enter 2013 with our businesses performing well and poised for even greater success going forward. We remain confident we are well positioned to achieve our goals and to continue delivering on our promise to return increased value to shareholders,” Martore said.

Read the full report here

USA, McLean, VA

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Euromoney Institutional Investor PLC interim management statement for 4 months to January 30, 2013.

February 4, 2013 — Fusion DigiNet

Euromoney logoEuromoney Institutional Investor PLC , the international online information and events group, has issued its Interim Management Statement for the period from October 1, 2012 to January 30, 2013.

Announcement

Trading

Since reporting its 2012 results on November 15, 2012, trading has continued in line with the board’s expectations as set out in the preliminary results announcement.

As highlighted in this announcement, the challenging trading conditions experienced in the second half of financial year 2012 continued into the first quarter of financial year 2013.  Total revenues for the first quarter increased by 1% to £95.4 million, and by 2% at constant currency.

The group generates nearly two thirds of its revenues in US dollars and movements in the sterling-dollar rate can have a significant impact on reported revenues.  However, the average sterling-dollar rate for the first quarter was $1.61, against $1.58 last year, and the impact of exchange rates on revenues in the period was therefore not significant.

The following table summarises the year-on-year revenue changes for the first quarter at both headline rates and at constant currency:

Click on the table to enlarge it.

Euromoney results jan13d

The decline in subscription revenues was in line with the gradual decrease in growth rates experienced since the end of 2011.  The decline in advertising was consistent with the trend seen in the second half of financial year 2012, while the return to growth in sponsorship and delegate revenues largely arises from new events added to the portfolio.  The increase in other revenues partly reflects the settlement of content redistribution agreements in respect of previous years.  There was no significant change in the group’s adjusted operating margin during the quarter.

The performance of advertising, sponsorship and delegate revenues is closely aligned with the calendar budget cycle of most customers, which lags the group’s financial year by one quarter.  As the new calendar year starts, global financial institutions are continuing to take a cautious view of the outlook and managing their budgets for marketing, training and information buying accordingly.  The impact on the group’s revenues is difficult to determine so early in the calendar budget cycle, but recent sales trends suggest the outlook for advertising and delegate revenues will remain challenging, while the trends in subscription and sponsorship revenues are more stable.

Financial Position

Net debt at December 31, 2012 was £26.5 million, a decrease of £4.3 million since the year-end.  The first quarter is traditionally the one with the lowest operating cash flows because of the payment of annual profit shares and other incentives in December.  The only significant capital outflow in the period was the £5 million acquisition of TTI/Vanguard, the private membership forum for senior executives who lead technology innovation in global organisations (see RNS announcement on January 7, 2013).

The final dividend for financial year 2012, if approved by shareholders at today’s Annual General Meeting, is payable on February 14 2013 in the amount of £18.3 million.  This compares to a cash payment of just £4.8 million in February 2012 when a scrip dividend alternative was offered.

As reported at the time of the 2012 results, the first 50% of awards under the CAP, the group’s long-term incentive scheme, will vest on February 14 and be satisfied by the issue of approximately 1.75 million new ordinary shares and a cash payment of £7.5 million.

Outlook

Trading conditions have not changed significantly since the group announced its 2012 results.  The uncertainties over Europe and general concern in the financial services industry worldwide remain, while global financial institutions continue to cut costs, particularly people, and exit parts of their business in order to rebuild their balance sheets and satisfy tougher capital requirements imposed by regulators.

The board expects these challenging conditions to continue for the foreseeable future and will continue to manage the business tightly.  At the same time, the group will maintain its strategy of building a robust, tightly focused online information business with an emphasis on emerging markets, investing in new products and digital publishing to drive organic growth, and using its strong balance sheet and cash flows to fund further acquisitions.

The results for the six months to March 31 will be announced on May 16, 2013.  The company intends to issue a pre-close trading update on March 22.

UK, London

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Haynes Publishing Group announces interim results for the 6 months ended November 30, 2012.

February 4, 2013 — Fusion DigiNet

HaynesLogoAutomotive and motorcycle repair manuals publisher Haynes Publishing Group P.L.C. has announces interim results for the 6 months ended November 30, 2012.

Financial Highlights

  • Revenue of £13.3 million (2011: £14.3 million)
  • Operating profit of £1.2 million (2011: £1.9 million)
  • Profit before tax ahead of latest broker’s interim forecast at £1.2 million (2011: £1.8 million)
  • Basic earnings per share of 5.2 pence (2011: 7.5 pence)
  • Interim dividend declared of 3.5 pence per share (2011: 6.2 pence)
  • Overheads reduced by 5% (2012: £6.3 million vs 2011: £6.6 million)
  • Australian business half year revenue 32% ahead of 2011
  • HaynesPro half year revenue 17% ahead of 2011
  • Like for like net funds1 of £5.9 million (2011: £5.0 million)
  • Strong balance sheet and cash flow generation maintained

Business Highlights

  • Increased digital capabilities though continued development of Haynes multimedia platforms
  • Digital manual range extended to over 200 titles
  • Successful launch of over 40 new eBook titles
  • New Vice President of Sales hired to strengthen US business
  • Vivid rebranded as ‘HaynesPro’ broadening global commercial opportunities
  • New offices in Romania purchased to accommodate growing digital technical team
  • Strategic consumer-focused review on track for completion by June 2013

Rad the full statement here.

UK, Somerset & USA, Los Angeles, CA

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Future plc interim management statement for the period from 1 October 2012 to date

February 4, 2013 — Fusion DigiNet

Future plc, the international media group and leading digital publisher, has announced its Interim Management Statement for the period from 1 October 2012 to date, incorporating the Group’s first quarter for the three months ended 31 December 2012.

futureplc

Announcement

Trading Performance (Normalised*)

·      Digital revenues up 24%

·      Group revenues down 3% (UK down 1%)

·      US continues on track for EBITDA** profitability in 2013

Normalised revenues in the first quarter were down 3%, driven mainly by the continuing managed decline of print activities in the US. The UK-based business performed solidly with normalised revenues down 1% year-on-year.

In the first quarter, digital revenues grew 24% year-on-year and now represent 23% of normalised revenues, compared with 18% for the first quarter of FY12. Digital advertising has grown to represent 54% of total advertising revenues, up from 45% a year ago. Normalised digital circulation revenues on iPads and other tablets have averaged quarterly growth of 16% over the last year, and we now have over 40 of our brands on Google Play’s new Magazine Shop, which launched in December.

In the US, digital advertising now represents 74% of total advertising revenues (from 64% a year ago), reflecting the faster acceleration from print to digital platforms. First quarter losses in the US were lower than in FY12, as planned, and we maintain our expectation of EBITDA profitability in the US business in FY13.

Active Portfolio Management

Our active portfolio management has continued with the closure of certain print brands (PSM3 and Xbox World in the UK, and Nintendo Power and PlayStation – The Official Magazine in the US), and the launch of new digital brands (Gathered by Mollie Makes, tech., Photography Week and Football Week) as well as a new print title, Simply Crochet, which was launched on 10 January 2013. We will continue to manage the portfolio as the transition from print to digital progresses.

Financial Position

Net debt at 31 December 2012 was £16.8m, a reduction of 6% year-on-year, as expected. We expect to announce a new credit facility within the first half of the current financial year.

Outlook

We expect trading for the full year to be in line with our expectations. Print revenues remain challenging but we expect digital revenues to maintain a steady growth rate.

Mark Wood, Future’s Chief Executive, said: “We are pleased to have achieved steady growth in our digital revenues in the first quarter. We will continue to focus on generating new revenues from our large, global online audience of 50 million unique users. We now sell digital editions on all the major tablet platforms and, through content partnerships, we are able to enter new markets, as most recently demonstrated by our move into English Premier League Football with Football Week.”

UK, London

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Pearson trading update – continuing tough market conditions

January 22, 2013 — Fusion DigiNet

Pearson2Pearson has provided a January trading update. They will report preliminary results for 2012 on 25 February 2013.

See below:

In general, Pearson’s businesses continue to face tough market conditions and structural industry change which we see continuing into 2013. The company continues to gain share in key markets and to benefit from its investments in digital services and developing economies.

Market conditions remained weak, as expected, in the key fourth-quarter selling season for higher education, consumer publishing and corporate advertising. For 2012 as a whole we expect to report good revenue growth at constant exchange rates, operating profit of approximately £935m (broadly level at CER), adjusted earnings of approximately 84p per share and cash conversion of close to 90%. The 2012 results will reflect the absence of a profit contribution from FTSE International (£20m of operating profit and 2.2p of EPS in 2011) and the impact of the radically-changed trading environment for Pearson in Practice, which led to the recent decision to plan to exit that business.

Our North American education business will report modest revenue growth at constant exchange rates, indicating another year of significant market share gains in North America. 2012 was a particularly tough year for the US educational materials industry, with net sales for the combined US School and Higher Education publishing industries declining by 11% in the first 11 months of the year, according to the AAP. Our services and digital learning revenues continued to grow rapidly and we benefited from a strong performance from recent acquisitions and tight cost control.

Our International education business will report double digit sales growth at constant exchange rates as we continued to perform well in developing markets, assessment and English Language Teaching. School publishing markets remained generally subdued as a result of macroeconomic pressure and weak government funding in developed markets. Margins will be level with 2011 as we continue to invest to build scale, particularly in developing markets.

Our Professional education business will report operating profits significantly lower than in 2011. We have achieved good growth once again in professional testing but our UK adult training business, Pearson in Practice, faced a dramatic fall in demand with changes to the apprenticeships programme. We believe this business no longer has a sustainable model and therefore recently announced that we are planning for the exit or closure of Pearson in Practice. As previously announced, the cost of closure and impairment is expected to be approximately £120m and will be reported as a loss on disposal in Pearson’s 2012 statutory accounts.

The Financial Times Group will report good revenue growth for the full year, in spite of a slow fourth quarter caused by weaker advertising sales. Our digital and subscription-based revenues continued to grow well at both the FT and Mergermarket. The FT Group’s full-year profits will be significantly lower than in 2011, reflecting the absence of a contribution from FTSE International following its disposal and further actions to accelerate the shift from print to digital.

Penguin benefited from a good fourth-quarter publishing performance and traded in line with our expectations in its key selling season. It will report revenues in line with 2011 at constant exchange rates in spite of rapid industry change and tough conditions in the physical book retail market. Following Pearson and Bertelsmann’s announcement of their plans to combine Penguin with Random House, the two companies are seeking clearance for the proposed merger from appropriate regulatory authorities around the world. Though the timing of this process is inevitably uncertain, its completion will prompt significant restructuring as we demerge Penguin from Pearson and integrate it with Random House. We believe that the combined organisation will have a stronger platform and greater resources to invest in rich content, new digital publishing models and high-growth emerging markets.

For the full year, we expect our total interest charge to adjusted earnings to be approximately £50m (including a £12m pensions finance credit) and our effective tax rate to be around the low end of our guidance of 24-26% with our cash tax rate benefiting from the deferral of a tax payment into 2013.

Pearson generates approximately 60% of its sales in the US. The average £:$ exchange rate during 2012 was 1.59. The year end £:$ exchange rate was 1.63. A five cent move in the average £:$ exchange rate for the full year has an impact of approximately 1.4p on adjusted earnings per share.

UK, London

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Centaur Media PLC – half year trading update

January 11, 2013 — Fusion DigiNet

Centaur Media plccentaur, the business information, events and marketing services group, has issued a trading update for the six months to 31 December 2012.

The Group expects to report results in line with the Board’s expectations, with reported revenues 14% ahead of the same period last year and EBITDA margins increased to 10% from 6%. Underlying revenues across the Group as a whole declined by 3%.

The Group has continued to maintain good momentum in improving its revenue mix. Digital and events revenues now account for 39% and 28% respectively of total Group revenues, up from 32% and 22% in the same period last year. Over the same period, the share of total Group revenues generated in print format has reduced, as expected, to 31% from 45%.

The improving mix of revenues in favour of events and paid-for content has also increased levels of visibility into the second half of the financial year.  Deferred revenues at 31 December 2012 were approximately £15m, 30% ahead of the same period last year.

Growth in underlying revenues across the Business Information and Exhibitions divisions has been offset by weaker revenues across the Business Publishing financial and marketing communities. Reported revenues across the Business Information division are substantially up, reflecting the impact of recent acquisitions, despite the deferral of some corporate training engagements into H2.

Net debt at 31 December 2012 was £24.5m, representing leverage of approximately two times. The Group’s earnings and cash flows continue to be weighted towards the second half of the financial year and leverage is expected to fall rapidly in the next six months.

As anticipated, the Group will report exceptional costs for the first six months of the year related to reorganisation costs, IFRS3 earn-out charges and acquisitions.

Geoff Wilmot, Chief Executive, said:

“We have maintained momentum in improving the quality of our portfolio of activities as we continue to grow revenues from digital and events. We continue to focus on increasing margins and we have a strong pipeline of new product development initiatives which positions us well to deliver further growth in the medium term.

“We anticipate trading to be in line with our expectations for the current financial year, although the second half of our financial year continues to account for the large majority of our earnings.”

The Group expects to release its half yearly earnings report on 20 February 2013.

UK, London

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Mecom Group issues a pre-close trading update

January 11, 2013 — Fusion DigiNet

mecomMecom Group plc has issued a trading update for the year ended 31st December 2012, in advance of its final results which are scheduled to be announced on 21st March 2013.  

Trading highlights

Full-year results for the Group are expected to be in line with the guidance given in the Trading Statement made on the 6th June 2012, and confirmed in an Interim Management Statement on 18th October 2012 (the “October IMS”), with a preliminary estimate of on-going 2012 EBITDA of approximately €89 million. Taking into account the EBITDA of Edda Media for the period until its disposal in June 2012, total Group EBITDA is estimated to be €105 million. Year-end net debt was approximately €130 million (representing c.1.5 times on-going EBITDA). The Group expects adjusted earnings per share from on-going operations to be approximately 24 euro cents, and expects to propose a final dividend in line with its stated dividend policy of dividends being approximately three times covered by net adjusted earnings.

Key trading highlights of the year were as follows:

  • total revenue in 2012 was approximately 9 per cent lower than in 2011;
  • during the final quarter of the year, the Group continued to experience advertising revenue declines in all territories. Total advertising revenue fell by 17 per cent in the three months to 31st December 2012 (compared to a 20 per cent decline in the third quarter), resulting in a 17 per cent decline for the full year;
  • other revenues (including circulation revenue) for the full year 2012 displayed trends broadly consistent with those announced in the October IMS; and
  • total operating costs were approximately €70 million (7 per cent) lower in 2012 than in 2011, with the on-going restructuring programme contributing significantly to this reduction.

All trading performance figures and comparisons quoted in this statement are based on the Group’s on-going operations (i.e. excluding the Edda Media and Presspublica operations, which were sold in 2012 and 2011 respectively), except where stated otherwise.

Strategic Review

Following the Group’s announcement on 19th July 2012 that it would conduct a Strategic Review to examine potential options for maximising shareholder value, processes have been initiated in all of the Group’s territories to solicit expressions of interest and, in some cases, offers from potential buyers for certain of the Group’s assets.

The current status of these processes in respect of each of the Group’s operations is as follows:

·     As yet, no acceptable offers have been received for the whole of the Group’s operations in the Netherlands. The Group is exploring a number of indicative offers from parties interested in acquiring specific parts of the Dutch business, including some of its standalone digital operations.

·     In Denmark, expressions of interest have been received for the entire Danish operations, and the Group will invite a small number of potential buyers to conduct due diligence shortly.

·     In Poland, the Group has received a number of offers for the Group’s operations and is now in exclusive discussions with one party.

A further update on the Strategic Review will be provided at the time of the Group’s annual results announcement on 21st March 2013.

Refinancing

The Group is in discussions with its lenders to extend the term of the current bank facilities by one year, to 31st October 2014, and anticipates agreeing terms for this extension in the near future.

Dutch Competition Authority

On the 27th September 2012, the Group announced that the District Court of Rotterdam had determined that amounts payable by the Group’s Dutch subsidiary, Koninklijke Wegener N.V. (“Wegener”) to the Dutch Competition Authority (the NMa), in respect of alleged breaches of undertakings given by Wegener at the time of its acquisition of VNU Dagbladen in March 2000, should be reduced from the originally assessed amount of €20.6 million to a total of €2.2 million. Following further discussions between Wegener and the NMa, agreement was reached in December 2012 that the reduced fine would be paid in full and final settlement of the matter, and this was done prior to the year-end.

Dutch Management Change

As announced by the Supervisory Board of Koninklijke Wegener N.V. (the “Supervisory Board”) this morning, Truls Velgaard will step down from his position as Chairman of the Management Board of Wegener in mid-2013, consistent with Wegener’s understanding with him when he was appointed in 2010. A search process for his successor is underway and Truls will participate fully in an orderly transition.

Outlook

The Group expects earnings in 2013, on an on-going basis, to be influenced by continuing pressure in the Group’s advertising markets and continuing declines in single copy circulation sales in Denmark and Poland. These factors will be substantially offset by further benefits from the Group’s restructuring programme, which remains on track to deliver additional cost savings in 2013 as previously announced, and lower interest costs following significant debt reduction during 2012.

Commenting, Stephen Davidson, Executive Chairman, said:

“I am pleased that we expect to deliver 2012 results in line with the trading statement we made on 6th June 2012. During a period of sustained economic pressure and notwithstanding the additional demands of the Strategic Review processes, our people remain committed to the improvement and modernisation of our products and businesses. In 2013 we expect further benefits to come from restructuring initiatives and the launch of new subscription packages that provide our readers different and innovative ways to access our content.”

Norway, Oslo & UK, London

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