Alma Media announces combination of business segment Alma News & Life and the Alma Regions.
M2 EQUITYBITES-March 22, 2018-Alma Media announces combination of business segment Alma News & Life and the Alma Regions
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Alma Media Oyj (HEL:ALN1V), a media company focusing on the service business and journalistic content, announced on Wednesday plans to combine the Alma News & Life business segment, which produces news and lifestyle services, and Alma Regions business segment, which focuses on regional and local media business, effective 1 April 2018.
With the completion of this business segment combination, Alma Media will comprise of the three business segments of Alma Markets, focusing on digital marketplaces and the recruitment business; Alma Talent, a provider of financial media and services aimed at professionals and businesses and the new unit, which will focus on the consumer media business.
Reportedly, the new business unit's pro forma revenues for 2017 were EUR151m and its pro forma adjusted operating profit was EUR16.6m. In 2017, the digital business accounted for 22% of the segment's revenue. Also, this new business unit will have approximately 600 permanent full-time employees and some 770 part -time paper deliverers.
According to the company, this combination of business segments will simplify its segment structure and improve operational manageability. The combination will also enable closer cooperation between different units and strengthen Alma Media's position in the consumer media and services market in Finland.
In addition, in conjunction with the combination of business segments, Alma Regions' current SVP and member of the Alma Media group executive team Kari Juutilainen will step down and retire.
This new business entity will be led by Kari Kivela, currently SVP of the Alma News & Life segment and the publisher of Iltalehti. In connection with the reorganisation, Kivela will step down from his position as senior editor-in-chief of Iltalehti. Perttu Kauppinen, editor-in-chief for News, will begin as acting editor-in-chief of Iltalehti.
Related to the change, Alma Media will initiate an integration process to combine the business segments. During this time, the practical measures related to the integration will be outlined in more detail and possible cost synergies created by the combination will be assessed.
Alma Media added that it will report according to the new segment structure starting from the second half of 2018 and will publish more detailed pro forma figures for the newly formed business unit in May 2018.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Mar 22, 2018|
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