Media house Ilkka published its results for July–September on Monday.
The company’s turnover fell to 12.3 million euros in the third quarter from 13.3 million euros in the comparison period. The analysis house that follows the company Inderes predicts a turnover of 12.8 million euros.
Ilka’s adjusted operating profit from its own business was 0.5 million euros, compared to 0.4 million euros in the comparison period. Inderes expected EUR 0.3 million to be adjusted from the operating profit of its own business.
Ilka’s operating result rose to 0.2 million euros in July–September, while in the comparison period the result was a loss of 0.4 million euros.
Earnings per share in the third quarter were EUR 0.02, while in the comparison period last year it was EUR 0.01 in loss. Inderes anticipates EUR 0.0.
“The operating environment and the general economic situation continued to be uncertain and stagnant in the third quarter as well. Companies’ investments in marketing have continued to be cautious and decisions about investments have been postponed,” commented the CEO. Olli Pirhonen in the bulletin.
Expenses decreased by 8.4 percent as a result of the measures taken.
“This was particularly visible as a decrease in materials and services and personnel costs. The group’s adjusted operating profit for own operations also improved.”
The effect of the change negotiations is visible
The weak economic situation especially weighed on the development of the turnover of technology services, other services and marketing and communication services, which was reflected in a weakened operating profit.
The net sales of media services fell by 9.2 percent in the third quarter, and content revenues fell by 9.0 percent.
In order to control the cost level of media services, the company gave up the Sunday distribution of the regional newspaper Ilkka-Pohjalainen’s paper magazine last year.
“After the change, we estimate that we will receive annual cost savings of around one million euros. These savings started to be realized from Q4/2023 and they have been realized at a level in line with our goals.”
In addition, the effects of the change negotiations that ended last May were visible during the third quarter.
“As a result of these actions, the profitability of Media Services improved.”
Instructions unchanged
Ilkka kept his guidance unchanged, and estimates that the turnover of the group’s continuing operations will remain at the previous year’s level or decrease slightly. The adjusted operating profit of own operations is estimated to increase from the previous year.
In connection with the previous results announcement, Ilkka reduced the guidance it had previously given for the year 2024 in terms of turnover. In the previous guidelines, Ilkka estimated that the turnover of its continuing operations would remain at the previous year’s level or increase slightly.
In 2023, the turnover of continuing operations was 56.1 million euros and the operating profit was 0.4 million euros.
Due to the prevailing geopolitical situation and the uncertain economic situation, the prospects are uncertain.
“The European Central Bank’s interest rate cuts, which started in June, continued in September, which hopefully contributes to increasing the confidence of consumers and companies and supports the positive development of the economy. However, according to the latest forecasts, the economic recovery will be slower than previously predicted,” says Pirhonen.
Source: www.arvopaperi.fi
