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financial statements 2011
market review
In 2011, demand for communications services grew
moderately. Advertising sales grew in Finland by about
4%)* and in Sweden by about 5%)**. Both in Finland
and in Sweden, most of this growth occurred during
the first half of the year. Towards the end of the year,
the growth slowed down. Throughout the year, de-
mand for traditional printed material declined and, as a
result, the market for the printing industry decreased
both in Finland and Sweden in 2011.
the edita group and changes in
group structure
The Edita Group comprises four business areas: Mar-
keting Services, Editorial Communication, Publishing,
and Print & Distribution.
In February, the Edita Group acquired ownership
of the Finnish company Gospel Communications Oy’s
entire capital stock. This company owned Paperjam
Oy, a digital communications agency, which also was
transferred to Edita in the acquisition. The acquired
companies were merged into Morning Digital Design
Oy, which changed its name to Citat Oy in April. In
addition, the business operations of Citat Finland Oy
were also included in the new company.
The streamlining of the group structure continued
in the merging and dissolution of small companies.
net revenue
In 2011, the consolidated net revenue was eur 105.8
million (eur 110.3 million). The net revenue in Finland
was eur 49.2 million (eur 55.6 million). The net revenue
in other EU countries was eur 55.5 million (eur 54.1
million) and exports outside the eu totaled eur 1.1
million (eur 0.7 million). The net revenue of Finnish
companies was 48% (52%) of the Group net revenue
and that of Swedish companies 52% (48%) of the
Group net revenue.
The
Marketing Services
business area’s net
revenue was at the level of the previous year, eur 20.3
million (EUR 20.4 million). The acquisition of Paperjam
Oy increased the net revenue of Finnish operations. In
Sweden, net revenue declined as customers invested
less in marketing communications, in digital communi-
cations in particular, towards the end of the year.
The
Editorial Communication
business area’s
net revenue was at the level of the previous year, eur
15.5 million (eur 15.6 million). The strengthening of the
Swedish krona boosted net revenue in euros.
The
Publishing
business area’s net revenue was
eur 14.2 million (eur 14.8 million), which is eur 0.6 mil-
lion down from the previous year. Net revenue was
undermined by austerity measures in the public sector
and the postponement of syllabus changes. In informa-
tion services and customer publishing, net revenue
developed favorably. In addition, the transfer of Edita
Press Oy’s business operations to Edita Publishing Oy
increased net revenue. Electronic products of the
company retained a healthy market position.
The
Print & Distribution
business area’s net
revenue was EUR 59.3 million (eur 64.1 million), which
is eur 4.8 million down from the previous year. The
shrinking of the printing markets and the continua-
tion of the fierce competition on price brought net
revenue down in Finland. Net revenue improved in
Sweden, owing to the strengthening of the Swedish
krona. If the strengthening of the krona is disregarded,
the net revenue was at the level of the previous year.
operating profit
The Group’s operating profit for 2011 was eur 2.2
million (eur 2.7 million), which is eur 0.5 million
down from the previous year. In addition to the low
demand for communications services and the tougher
price competition, the Group’s operating profit was
weakened by the broad adjustment measures carried
out in the Print & Distribution and Marketing Services
business areas, in which business operations were
revised to respond better to the increasing demand for
digital communications services. Total costs for those
measures were approximately eur 1.6 million (eur 2.4
million).
*) The Finnish Advertising Council (MNK) / TNS Gallup,
The media advertising sales 2011.
**) Institute for Advertising and Media Statistics (IRM), Sweden,
Revised advertising and media forecast, December 2011.
Board of directors’ report for
the financial year
January 1 – December 31, 2011