Finland's Sanoma scraps outlook with ad sales set to drop (updated)
24/03/2020 16:39
* Sanoma says outbreak to hit ads sales
* Says ads sales dropped 17% after 2008 crisis
* Sees little impact on education materials unit
* Repeats long-term dividend, business targets
(Adds details, quotes, smaller rivals)
March 24 (Reuters) - Finnish publisher Sanoma SAA1V.HE
said on Tuesday it would scrap its 2020 outlook as the
coronavirus outbreak will hit advertising sales at its media
business but it was sticking to its long-term financial targets.
"The corona virus outbreak will have a material impact on
the net sales and profitability of Media Finland's B2B
advertising business as well as events business but it is too
early to make reliable and specific estimates of the size of the
impact," Sanoma said.
Sanoma, which publishes Finland's leading daily Helsingin
Sanomat among several other newspapers, said its advertising
sales fell about 17% after the financial crisis in 2008.
The Finnish firm said it did not expect any major impact on
its other main business unit which makes educational materials.
Sanoma said it would issue a 2020 outlook later in the year.
"In the current continuously and rapidly evolving situation
it is too early to make reliable and specific estimates for an
adjusted outlook," Sanoma said, adding its sales and
profitability in 2020 had developed according to expectations.
On Feb. 7, Sanoma said it expected 2020 sales to be stable
with an adjusted operating profit margin of about 15%.
Sanoma said it was sticking to its policy of increasing its
dividend yearly, and paying out 40% to 60% of annual free
cashflow and reiterated its targets for its main Learning and
Media Finland businesses.
Earlier on Tuesday, smaller local rival Punamusta Media
PUMU.HE started talks with its staff of 650 about layoffs due
to a sharp decline in the media and printing market. On Monday,
Ilkka ILK2S.HE scrapped the 2020 outlook it issued last month.
(Reporting by Tarmo Virki in Tallinn; Editing by Alison
Williams and David Clarke)
((tarmo.virki@thomsonreuters.com; +372 564 4562;))