Pentikainen_CMD 2009

Transcription

Sanoma News on the
Bridge to the Future
Mikael Pentikäinen
President and CEO, Sanoma News
Sanoma Capital Markets Day
12 October 2009
Wrong conclusion!
CMD 2009 / Mikael Pentikäinen
12.10.2009
2
Agenda
• Briefly on Sanoma News
• The Change in the News Business
• Key Themes for the Future
12.10.2009
3
Briefly on Sanoma News
Sanoma News is in the driver’s seat
#1 News publisher in Finland – both in print and digital
• Helsingin Sanomat is the largest daily newspaper in
the Nordic region.
– Helsingin Sanomat’s news site HS.fi has more than 1.2
million unique weekly visitors.
• Ilta-Sanomat is Finland’s largest tabloid newspaper.
– Iltasanomat.fi has more than 1.7 million unique weekly
visitors.
• Etelä-Saimaa, Kouvolan Sanomat and Kymen
Sanomat are the leading regional newspapers in their
region in South-Eastern Finland.
• The commuter free sheet Metro, published by
Sanoma Free Sheets, is the 4th most read Finnish
newspaper.
• Vartti is Finland’s largest city paper (free sheet) with
over half a million readers.
– ”Hyper-local” news site Vartti.fi
12.10.2009
5
Big in news but also in online marketplaces
In addition to our flagship brand news
sites, we have:
• Marketplaces (i.e. online classified ads):
–Oikotie.fi: Finland’s #2 in recruitment, #2
in real estate, #3 in cars
–Keltainen Pörssi: C2C and generalist
–Hintaseuranta.fi: Finland’s #1 price
comparison site
• Huuto.net is the #1 auction site
–>700,000 items on sale
–>470,000 unique visitors a week
–1.3 million registered users
• Rakentaja.fi (acquired in 2008), the
consumer service for construction, has
performed very well in spite of the
recession
• We also have online classifieds in the
Baltics: Auto24.ee and Kuldnebors.ee
12.10.2009
6
Strong position in the online ad sales
Market leader in online display ad sales
• Sanoma News’ online ad sales sells
also Sanoma Magazines Finland’s
online sites.
• Together these sites have 2.45
million unique visitors a week,
which is ~80% of the Finnish
online population.
• Our network has 2.5 billion ad
impressions to sell per month –
this is more than Google has in
Finland.
• Online display ad sales were
EUR 9.8 million in 2008 (#1 in
Finland) and grew 48% yoy.
12.10.2009
7
Sanoma News is profitable publisher
However the first half of 2009 was challenging
Net sales
500
450
M€
435.2
480.8
446.4
EBIT
474.7
80
457.1
(excl. non-recurring items)
M€
70.8
67.6
70
400
62.7
60
350
57.3
59.1
50
300
H1/08
250
214.8
200
40
H1/08
30
150
18.0
20
100
10
50
0
0
2004
2005
2006
2007
2008
H1/2009
2004
2005
2006
2007
2008
H1/2009
12.10.2009
8
The Change in the News
Business
Two storms hit us simultaneously
• Digital convergence strikes at the bedrock of the news media
business.
• The financial crisis and the slow-down of the real economy slash all
media spending.
• Both storms offer also many opportunities.
12.10.2009
10
The media continents continue to change
Internet is the main driver of the structural change
Newspapers
Television
Magazines
Internet
Books
Radio
12.10.2009
11
Ad market development has been grim
However, the decrease has not significantly accelerated during summer
Advertising
Advertisingsales
sales%
%change
change(month)
(month)
0101/
/008
8
0202/
/008
8
0303/
/008
8
0404/
/008
8
0505/
/008
8
0606/
/008
8
0707/
/008
8
0808/
/008
8
0909/
/008
8
1010/
/008
8
1111/
/008
8
1212/
/008
8
0101/
/009
9
0202/
/009
9
0303/
/009
9
0404/
/009
9
0505/
/009
9
0606/
/009
9
0707/
/009
9
0808/
/009
9
%%
40
40
30
30
20
20
10
10
00
-10
-10
-20
-20
-30
-30
Advertising
Advertisingsales
salestotal
total%
% Newspaper
Newspaperadvertising
advertising%
% Online
Onlineadvertising
advertising%
%
TNS
TNSGallup’s
Gallup’sonline
online
advertising
includes
advertising includesonly
only
display
and
classified
ads
but
CMD 2009and
/ Mikaelclassified
Pentikäinen
12.10.2009
display
ads
but
not
search
ads
not search ads
12
The big questions of today
1. How long and deep will the current
down-turn be?
2. What is the nature of the up-turn,
when it comes?
3. How does the economic crisis
affect media convergence?
4. To what extent will print revenues
return when the economy
recovers?
5. How to manage the
transformation to the New Media
World Order?
12.10.2009
13
Key Themes for the Future
Excellent starting point:
More than ⅔ of all Finns regularly
use Sanoma News’ products *
Sanoma
SanomaNews
Newsreaches:
reaches:
--70%
70%of
ofall
allFinnish
Finnishpeople
people
--92%
of
all
people
in
92% of all people inUusimaa
Uusimaaregion
region
--83%
of
all
20-29
year-old
Finns
83% of all 20-29 year-old Finns
* Source: TNS Atlas, 1-12/2008, 10+ yrs population. Not including all Sanoma News products and services.
12.10.2009
15
Another excellent starting point:
Against the odds, readership remains rather stable
Sanoma
SanomaNews'
News'titles
titles
Helsingin
HelsinginSanomat
Sanomat
HS
HSKuukausiliite
Kuukausiliite
HS
HSNyt-liite
Nyt-liite
Ilta-Sanomat
Ilta-Sanomat
Veikkaaja
Veikkaaja
IS
ISTV-lehti
TV-lehti
Etelä-Saimaa
Etelä-Saimaa
Kouvolan
KouvolanSanomat
Sanomat
Kymen
KymenSanomat
Sanomat
KMT
KMT
KMT
readership
KMT
readership
H2-2008
/
readership
H2-2008 / readership
H1-2009
2008
H1-2009
2008 Change-%
Change-%
965
965000
000
11268
268000
000
958
958000
000
11272
272000
000
0,7
0,7%
%
-0,3
-0,3%
%
207
207000
000
173
173000
000
187
187000
000
175
175000
000
10,7
10,7%
%
-1,1
-1,1%
%
63
63000
000
66
66000
000
-4,5
-4,5%
%
899
899000
000
711
711000
000
81
81000
000
70
70000
000
920
920000
000
734
734000
000
76
76000
000
72
72000
000
-2,3
-2,3%
%
-3,1
-3,1%
%
6,6
6,6%
%
-2,8
-2,8%
%
Source: KMT Lukija, H2/2008, H1/2009 all year 2008
12.10.2009
16
Our basis is a holistic view on media
”Taking news to the new era”
PRINTED
MEDIA
”DIGITAL
”DIGITAL
MEDIA”
MEDIA”
MUST-WIN
BATTLES
Online
Onlinemedia
media
advertising
advertising
(incl.
(incl.search),
search),
B2B
B2Band
andtranstransactional
actional
businesses
businessesin
in
2008:
2008:
~300
~300M€*
M€*
(…what we must succeed in…)
Market size in 2008:
~1350 M€*
CAGR est. 2010–12:
0-2%
STRATEGIC
RESOURCES
CAGR
CAGRest.
est.
2010–12:
2010–12:
5–10%
5–10%
(…what our success is based on…)
* Sanoma News estimate based on combined TNS Gallup 2009 and Finnish Association of Newspapers’ statistics and
Sanoma News’ estimate of a ”free float” margin as 6-7% share of the total Finnish eCom market of EUR 1,374 million. Source: ASML and Itella.
12.10.2009
17
Transformation:
Key strategic themes
HYBRID AD
FORMATS
TOP CLASS CUSTOMER CARE
CROSS-MEDIA
SALES TEAMS
VERKKOVOIMAA
IMPROVED TARGETING
CROSS-DATABASE
DATA MINING
eCOM
FEATURES
OMAVARTTI
Win back
the
market
No
share!
return to
Continuous
former
product
ways!
development!
Lay
foundation
for new
revenues!
(Expand to
(Expand to
services.)
11/09
11/09
LEADIND
DISPLAY
AD NETWORK
Trial
OK
OK
MULTILOCAL VIRTUAL NEWSROOMS
MULTI-CHANNEL
NEWSROOMS
USER-GENERATED CONTENT
PAID-FOR
HYBRID
PRODUCTS
IPR’S ON THE
”BUY SIDE”
eREADERS
12.10.2009
18
Transformation in media sales
• Crucial issues: mindset, products, pricing,
incentives, mgmt systems. All are under analysis
in the “New Start in Media Sales” initiative
11/09
11/09
• Both print and online media sales under joint
command
• Print sales people taking more active role in
cross-media sales
OK
Trial
OK
• Online self-service channels for print & online
media customers
• Integrated one-stop-shop approach to customer
service
• Hybrid ad services (e.g. web-to-print inserts)
• Targeting services in online ad sales
• Full control of CPA based online ad sales
(=price level) through Sanoma Outlet
• Leading (display) ad network
12.10.2009
19
Transformation in consumer sales
• New paid hybrid products including print
and online (e.g. HS24) and different brands
• Top-class and top-efficient customer
service
• New ways to earn from online and mobile
content
• New subscription system (SALS)
making hybrids possible
• Considering geographically differentiated
pricing
• Improving the identification of the
relevant target groups of each product
and service e.g. Heimo-project
– key competitive advantage through
improved product offering, more sales both in
circulation and targeted advertising
12.10.2009
20
Transformation of the newsrooms
• IS & HS: Editorial work flow reorganised and
multi-channel news publishing managed
through a centralised superdesk
• Lehtimedia: multilocal (virtual)
newsroom under construction
• Vartti & Metro: a major part of the content
UGC and crowd sourced
• IPRs in “buy side” (content
procurement) soon in order – more
flexibility in “sell side” (editorial product
development) in the future
• RSS feeds & news aggregation
12.10.2009
21
Transformations of products – continuously
Print
E.g. Ilta-Sanomat tabloid,
weekend supplements IS
Plus and NYT, Helsingin
Sanomat, all Lehtimedia
titles and local papers, free
sheet Vartti co-created with
online-readers
Online
New hybrid
products
(paid content)
E.g. 1H10 Iltasanomat.fi, local
news site concept ”OmaVartti”,
renewal of Oikotie.fi Realties and
Recruitment, new product and
service categories to Comparison
site, online payments in online
Auction site
12.10.2009
22
Restructuring supports transformation
Our cost-efficiency measures have been successful
• In order to compensate for the effect of the
plummeting advertising sales on EBIT,
Sanoma News launched a ”Bridge over the
recession” restructuring programme in
January 2009 and extended the programme
in May. The target is EUR 30 million
annual savings.
EUR -30 MILLION TARGET
EXPECTED TO BE ACHIEVED
AND EXCEEDED!
M€
400
– The programme proceeds as planned
2008
2009
• Costs have been cut throughout the
businesses
– The targeted 100–200 headcount decrease
from ca. 2,400 employees is exceeded
350
• Continuous focus on efficiency also in 2010
12.10.2009
23
M&A’s have also role in our transformation
Three focus areas in M&A
1.
Consolidation of the print media business
– Natural route in the saturated newspaper and print markets in case
opportunities arise
2.
Expansive acquisitions in digital
– New revenue streams
3.
Divestments
– Portfolio optimization in case opportunities arise
12.10.2009
24
A time of opportunities...
"A pessimist sees the
difficulty in every
opportunity; an
optimist sees the
opportunity in every
difficulty."
Winston Churchill
12.10.2009
25
Taking News to the New Era.
mikael.pentikainen@sanoma.fi

Pentikainen_CMD 2009

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