By Christo Volschenk
Finnish media group Alma Media published its financial results for the 4^th quarter 2011 and full year today. The results explain why the company has been in such a hurry to restructure lately.

It’s financial performance has been all but satisfying in the financial year 2011. Revenue dropped 1.6 percent, profit was down 7.1 percent and earnings per share dived 11 percent from 44c to 39c (all measured against 2010). More ominous, was the fact that the southward slide picked up steam towards the end of 2011. In the 4th quarter revenue was down 2.1 percent, profit was down 69.2 percent and earnings were down a massive 72.4 percent. (Read full financial release here.)

From this precarious position, Alma Media started restructuring energetically late last year, buying job portals (read here and here) and merging divisions (read here). The aim: to increase the revenue share of digital services.

In a media statement CEO and president Kai Telanne today said the strategy is to “increase the revenue share of digital services with in-house product and service development and acquisitions in and outside Finland”.

“Implementation of this strategy is progressing according to plan. The share of digital products and services in the Group’s revenue rose from 15.7 percent (in 2010) to 18 percent (in 2011),” he said.

This gain for digital can partly be ascribed to a weakening print performance (and partly to a strengthening digital section).

Revenue of the segment Marketplaces (including classified portals) grew by 10.2 percent to a new record high of €9.3 million (€8.4 million in 2010).  Revenue growth came mostly from the “favourable development in recruitment advertising and online home sales advertising”. Auto portal Autotalli.com and real estate portal Etuovi.com were opened to private advertisers in the course of 2011. (Until then only car dealers and estate agents were able to list.) This had a positive effect on revenue.

During a webcast conference Telanne said the company had “a low level of debt” and the financial position was generally “very healthy”.

The board proposed a dividend of 40c per share be distributed, down significantly from 2010’s 70c per share.

Shortly after lunch the share traded at €6.27, which was 4.3 percent below the opening. (Latest price here.)