Finnish magazine publisher Sanoma posts 5.2% drop in sales, loss in quarter, announces plans for layoffs
Publisher reports 239.6 million euro loss in quarter due to writedowns
The Finnish publisher Sanoma reported earnings today, reporting a 39.6 million euro loss in quarter due to write downs in the Netherlands and Russia. As a result, the company announced plans to close 32 of its titles, and cut up to 570 staff positions.
“New tehnologies are fundamentally changing the behaviour of media consumers. Consequently advertisers are following consumers. This implies a rapid increase in advertising in digital channels that enable targeting, measuring and performance-based pricing,” Harri-Pekka Kaukonen, President and CEO said in the earnings statement.
“We will focus on two strong business pillars: leading multichannel consumer media assets with growing digital media presence in Finland and the Netherlands; and uniquely positioned Learning assets in a number of chosen markets. Our consumer media assets in Russia & CEE and Belgium are under strategic review,” Kaukonen said.
“The contemplated cost savings are likely to result in redundancies, including today’s announcements regarding the contemplated changes to Helsingin Sanomat business unit (which includes Helsingin Sanomat, Nelonen news and Metro) and Dutch magazine operations,” Kaukonen said.
“Redundancies are unfortunate but are likely to be unavoidable in order for Sanoma to be able to invest and develop in innovation and growth also in the future.”