Alma Media Oyj (ALMA) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to Alma Media's Capital Markets Day 2022. My name is Elina Kukkonen and I'm responsible of the communications and brand here in Alma. We have -- it was a year ago, we held our last CMD, and a lot has happened since. We have taken solid steps progressing and taking forward our media services and digital marketplaces, but also the operating environment has changed. For today, we have prepared with our leaders of all the business segments a very thorough and well-prepared story and the progress and the plans going forward about each business segment. And we also have our Senior Vice President of Alma Media Solutions here today. So she will present the progress of our media sector and our media solutions. Alma is a strong media company today with the leading national media for financial media and consumer media. However, in today's event, we have decided to concentrate a little bit more on the progress and development of our digital services and marketplaces. And this is clearly practical -- for practical reasons that we can fit the whole story in 1 afternoon. If we look at the agenda and the presentations -- upcoming presentations, we have 1 deviation to the program today. We will begin with our CEO and President, Mr. Kai Telanne, opening the -- kicking off the afternoon and followed by our Senior Vice President, Vesa-Pekka Kirsi for Alma Career. We have a short break, and then we continue with Alma Consumer with Kari Kivela, Senior Vice President for Alma Consumer. And then Ms. Tiina Kurki from our Media Solutions about the digital marketing. Then we have a technical really short break, and then we are -- we will dive into the Alma Talent with the leader of Juha-Petri Loimovuori, the Senior Vice President of Alma Talent. The deviation for today's agenda is in here is that the -- unfortunately, our CFO, Mr. Juha Nuutinen fell ill and he is not able to attend today. So our CEO, Mr. Kai Telanne, will fill in Juha Nuutinen today, and he will do his best in this position. And then we move to the closing remarks. So in a nutshell, this is the agenda for today. We aim to finish at 4:30 p.m. this afternoon. And all the presentations and also the recording of this live stream will be available for you at the almamedia.fi after the event at the Alma Capital Markets Day page. And we also welcome all the questions after each presentation this time. So in between the presentations, we have reserved time for questions and answers and all your questions are more than welcome. We first take the questions here from the Alma premises, and then we move to the online questions. So you please use the online chat function for presenting online questions. So I think with this short introduction, we are ready onset to start, and I welcome you all here at Alma premises, and also you following us online. Hope you can keep up with us for the next 3 hours. And I also welcome Mr. Kai Telanne, CEO and President of Alma Media to present the digital journey of Alma Media going forward. On my behalf, thank you for coming today, and thank you for being online following us. Please, stage is yours, Kai.

Thank you, Elina. Good afternoon for everybody. It's great to have you here and online as well. It's time to recap -- have a recap of the achievements that we have had and delivered since the last CMD, especially concentrate on the strategy going forward. My presentation is about the digital journey and the overall strategy of Alma Media going forward. I try to give a backup for the coming presentations, where we will take a deeper dive into the different businesses, especially on the marketplaces and digital services this time, as Elina said. As we all know, this kind of complete transformation of business, it's a long journey as it has been for Alma Media as well. As you might remember, we started quite early. Now one might say that early enough, being in this position, when we started in the beginning of the decade, we had a small initiatives of digital businesses and revenues of EUR 17 million. And mainly, this is a company of print newspapers and local regional and national newspapers. During this journey, we have turned the business upside down, one might say. At the moment, most of the business, at least and actually 80% of our business are digital businesses, and we have less than EUR 50 million of healthy print businesses, mainly newspapers. It's been a really, really interesting journey that we have traveled with Alma personnel, and we have, of course, learned quite a lot. This journey has led to a really interesting and fruitful market position in the leading -- with the leading brands and in the key areas where we are. So we have decided to concentrate on Nordic countries and Central Eastern Europe. We are #1 in Central Eastern Europe recruiting business. We are present in 12 countries at the moment. We are #1 in housing premises, cars, [indiscernible] vehicles and machinery in Finland as well as financial and professional media. Commercial premises in Sweden and Finland as well. Alma Media is the biggest digital advertising network in Finland and Iltalehti.fi is the biggest news media, digital news media in Finland and with that, the biggest news advertising media in Finland as well. So at the moment, we have half of the revenues, about half of the revenue is coming from marketplaces and the other half from media and services. This has been also a very good journey for -- from a profitability perspective. Since 2014, with the transformation of print media to digital, the profitability has 5-folded from EUR 21 million to more than EUR 70 million. Of course, this has been also quite a good journey for the shareholders. Since 2015, our total shareholder return has 6-folded. And like you can see from this slide, since 2018, the journey has been also really good, especially compared to the peer group of different kind of media and marketplaces companies in the Europe and also compared to the index. So this was it until today, quite a nice journey, interesting journey, all has gone as expected. One might say that, okay, the transformation from print to digital in military terms, mission accomplished more or less 20% of revenues only nowadays from print sources. But the big question is, of course, that how to go on from this. We have decided to develop advanced digital platforms. And today, we will explain you what that means. What that means in recruitment, in houses and premises, in cars and other vehicles and as well as in business services. As said, in our minds, print media transformation has been done more or less. We are not concentrating any more on that. We are mostly today in digital media and services. The strategy is fully focused and concentrated on that and from now on, we will continue, of course, that, but we were moving more and more to advanced platforms with new initiatives. We are not forgetting the strategy that we have. It's quite simple. We have 3 main aspects. We will continue, of course, to transform the print that we still have the 20%. But we are more and more concentrating on transforming the current core digital businesses into new. All the investments that we have at the moment are actually going on to transforming and developing the current digital businesses to advanced digital businesses. We are developing market places to advance digital platforms. Of course, our play strategy is to use all the synergy inside the company, all the resources for the purposes of every business inside the company. The main idea here, of course, is the #1 to grow in digital. The growth comes from digital. We all know that the print businesses are still declining. So we accept that to happen, and we accept that. But we will grow in digital. We have had quite a nice growth during the last 5, 10 years. And even this year, we have had a nice organic growth that you can see from the figures that will come later on, on that. But the idea is to diversify and develop new revenue streams in current service areas and expand in the value chains in new business areas with the synergy benefits. And thirdly, we will continue internationalizing the business with the marketplace, especially in the recruitment business. Vesa-Pekka will tell you more about that later, which means that we will expand if only possible to new geographies or then grow to new service areas in our platforms in current geographies, which are quite interesting, meaning Central Eastern Europe. Okay. What we have created, we have created an engine as a combination of marketplaces, services and media with shared audiences, data, technology and sales. So synergy is the key here. We have a high reach of the audience in Finland, high reach in Central Eastern Europe of 80 million visitors, customers in the recruitment businesses. We are a leading player in national consumer and financial media and the biggest advertising network. So this is all a result of this combination of media and services media and technology and especially the data. You will hear more about this later with the upcoming presentations. What does then the advanced digital platforms mean. The overall view is that we are not anymore in this kind of classified advertising business only, which means that we are combining supply and demand in a platform or in a site like the old advertising, classified advertising forms. So we are moving from that more on to a transactional businesses like on recruitment side from search and apply signing a contract, building competencies, managing your career, which is quite a lot of broader service setup. And the same with the cars and homes from buying or renting or selling to paying to financing your buy to owning your property or car and different kind of adjacent services. So we are offering to our customers, digital touch points for all the important decisions they might have, which means that the expectations or the reason for this is more or less that the expectations for using this kind of services of our customers, they are in high consideration processes have grown, so the people, the customers, the users, they want to have more and more developed services in the digital platforms than before. And for the digital business solutions, the same applies. We are helping our business to business partners to better serve end customers throughout the full purchase process. So you will hear more today about this project. Okay. It's good to have, of course, also a view on the current and coming environment. This, of course, has an effect on our businesses or might have an effect on our businesses. I have taken 4 points here, 4 drivers that has to be taken care. You will hear more about the specific -- business-specific environmental drivers with the upcoming presentations. So I'm not concentrating that much on housing or recruitment or those. But it's good to have the view of the slow economic growth, of course. We know that we are heading to a decelerating economy. In all European countries, rising inflation, energy prices, high energy prices and increasing interest rates are weakening, of course, consumer confidence as we know and purchasing power. We have, as we are now in Finland, this kind of long-term structural challenges that has to be resolved or sold, somehow remains to be seen. Is this a severe development in our case? Well, we know that the GDP will a decline of the growth will slow down. But the current forecast for the unemployment range, for example, in Europe, are not that challenging. There are only minor decline or increase in the unemployment rates, which means that there's a very good base for good development of our services. So I would say that we are -- this is quite neutral development from that perspective. But of course, for advertising, the overall advertising market will decline with the declining market, but Tiina will tell you later more about the situation in our case, which is not that demanding. Well, the consumer behavior, of course, it is changing with the developing digital technology. And the change is permanent, Expectations were easy, time saving and safe digital experiences are growing. And of course, corporate responsibilities is 1 of the key elements. I will come later to that. Increase in regulation, it's also something we have to take into account. And then, of course, this political turbulence unfortunately, happening. We don't have businesses in Russia or Ukraine, so we don't have direct effects on that. But otherwise, that will affect on our businesses the underlying markets. So not that difficult in mind from our perspective, but some negative effects, of course. And then finally, a few notes from the sustainability. We take sustainability carefully. So we are very keen on developing sustainable businesses. We are 1 of the early adopters of these issues, as we know, among the first in the world, setting up science-based environmental targets. We've been quite lucky to achieve the targets earlier than anticipated. As you might know, we are -- we halved our CO2 emissions in 6 years. And now we have set up a new target to half the current emissions during next 8 years until 2030. All the Alma medias are incentivized with ESG targets. So we have a lot of development programs in the company to take care of the most important aspects of sustainability and of course, the relevant aspects of media business and especially our media. So we are coming into, of course, environmental targets I put but also the social responsibility and good governance issues are important for us. Privacy issues, of course, and the breach is 1 of the key targets, not to have those. That means 0 severe breaches, which is our target that we are well in line with the target at the moment. So that's it. This was this kind of introduction to today's agenda and a base for a deeper dive into the businesses that we have. I think, Elina, if there's any questions, we are prepared to answer those.

We can take questions now, and we can also return with the questions to you at the end, of course. I will be taking the last session also.

All right. Any questions so far?

That strategy. No? It's here. So [indiscernible] asking that can you please discuss the size of the potential target market for advanced digital platforms including new transactional services in your key markets. How much incremental revenue potential do you see compared to your current offering?

Market is huge.

Maybe we can return to this at the end the presentation .

We're talking about millions or tens of millions, of course. So we have quite heavy investments at the moment in those areas. So we are, of course, expecting interesting revenues.

Yes. And other question also from Pia. What are the main changes in regulation that you keep your eyes on currently?

No. I think maybe Tiina will come later to the -- but the privacy issues are the main issues. The legislation and the development of the legislation is partly unclear. So we have to follow carefully what kind of initiatives are coming up. But broadly, I would say that the privacy and cookie regulation is the most important ones.

Yes. And also the obligations coming from the corporate sustainable recording directive from EU and that's still in progress. Okay. Thank you, Kai. And now we move on to Alma Career, and I welcome Senior Vice President of Alma Career, Mr. Vesa-Pekka Kirsi, and he will tell the plans and the progress at the moment for building the most relevant recruitment partner in Central Eastern Europe. Welcome, Vesa-Pekka.

Thank you, Elina. Good afternoon, everyone. For the next 30 minutes, I'll take you through the Alma Career world and hope to basically speak to you of 3 topics. Number one, how is our business doing this year and what's going to be the end result. Number two, what's the outlook for the year to come? And number three, looking a bit longer term, what are we -- what are the key strategic thinking and actions that we are doing to push the envelope further and take -- they've received the further growth. So those are the topics. Let's get to the data and the slides. The graph on the left, showing you the current rolling 12-month figure for the year, ending at the September '22, already showing that this year will be the record year for Alma Career so far, the best ever -- following the best ever previous year and so forth. There's a healthy growth in all of our business KPIs this year. We will be growing sales in revenue, achieving the highest ever EBIT with the best ever EBIT margin. So when it comes to key indicators of our business, all of those are in good and healthy development. The growth that we are making there is basically -- is based on a growth of all of our countries and all of our operations in these countries. Both marketplace business as well as the services business, which are the 2 baskets in our business portfolio are growing. This year, our services business will again be around 10% of our full business and the marketplace business, we usually called a job board business is roughly 90%. In the Services business, just to remind you, we count in recruitment consultancy that we do in mostly Baltic region as well as in Bosnia Herzegovina, and in also then Corporate Education business, which we today run in Czech Republic, Slovakia and Poland, which was opened this year. So as a key outcome for the year, we are looking to have a very successful and a great year of 2022, following already growth that actually started in May 2020 in the middle of the pandemia. April 2020 was the darkest hour in the recruitment businesses. Everything was halted. Nobody knew what's going to happen. But already in May, companies started to reinvest in the personnel and reinvest in recruitment. And as you can see from the graph on the top, since that day, we've been growing in our sales month after month. It's the purple line in the graph. If you've been following Career, you know this, but those who don't, in Career invoicing, which is the sales and revenue follow each other with a little bit of a delay. Invoicing sales is done today, and we sell packages. We sell 3-, 6- or 12-month packages. These are sales today, but they are recognized as revenue with a delay in 3, 6 or 12 months. Therefore, what's happening in sales today happens in revenue with a slight delay. That's why there is a difference between the blue and the purple lines. But this business success is actually based on underlying service success, and that's what the table on the bottom of the picture tries to convey. This year, we will have the highest ever amount of unique visitors in our sites. The number now is from 9 months, and we will basically over do last year's figures. But what we are most proud of is our capability to turn our unique visitors into action, into identifiable users. And that's the second line users with job alerts. We are increasingly turning our traffic into identified traffic that we can utilize better in our services towards the companies. Business, of course, is built on paying customers for us, the advertisers. This year, we will have the highest amount of customers ever as advertisers producing the biggest number of paid job ads. So business success built on service success in all of these fronts. But what about next year? And what's the outlook of that? Actually, Kai already touched some of those points that are going to be my main key points on the next slide, but let me still walk you through. This is a slide of macroeconomics and a lot of numbers, but I will quickly walk you through the main ideas. Recruitment is connected obviously to company growth as well as then market dynamics in the labor market. These are somewhat related to what's happening the bigger macro scheme. And of course, then things like GDP inflation and absolutely unemployment are key figures for us. Irrespective which of the analysts you choose, numbers are relatively like this. GDP growth is already stalling down as we know, next year of '23 will be a hard year for GDP growth in all of our market areas. You see 0% to 1% growth at the moment, estimated for the Alma Career region and countries, but expected to really start picking up again in '24 and normalizing the situation and turning the region to growth. Inflation wise, the story is the same. The year '24 is the normal year back to normal, but the route there is a little bit different. Inflation this year has been very high in some of the areas, almost as high as 20% in some of the Baltic states. But from that high level, already halving it down to '23, pushing it down to normal level '24. So that's the expectation. Tough '23 already normalizing '24, and that's how it looks at the moment. But for us, the most interesting is the unemployment figure, what's happening in unemployment? Why? Unemployment number has a great dynamics into our business. If the market is -- sorry, if unemployment is high, there's obviously a lot of workforce free looking for jobs, but companies are not so much opening positions. So the dynamics for business are not that good. When unemployment is low, that's a very dynamic market. There's not many free resources in the market, but companies are wanting to find new talents and they need to compete with other companies trying to get the same talent. So there's a high competition for talent, and that's a great opportunity for companies such as us providing services to help companies and job seekers find each other. So the lower the unemployment better for us in terms of business. And if you take a look at the year '22 numbers of unemployment, and this has been for multiple markets, the lowest unemployment in time. Take a look at, for instance, the Career Central 2.8, which is Czech Republic unemployment, lowest -- one of the lowest in the whole of European Union, if not the lowest, keeps on staying that low. And if you take a look on the numbers year on '23 and '24, the unemployment, and this comes from multiple statitions again, is expected to stay in the same level than '22. Kai was hinting a little bit already into this. And this is from the macroeconomic point of view, it's very promising for us also for 2023. Companies are expecting to be fighting for talent still next year in the marketplace, irrespective of some of the other macro elements in the market. From our internal perspective, our own indicators, so presales discussion with the customers, movement in our marketplaces indicate the same. So from our own indicators, coupled with the market indicators, we still expect the year '23 to be very lucrative and interesting business year for Alma Career in the recruitment business in Finland and in the region of CEE. Well, that was point No.1 and 2, and now moving on to strategy and longer term. thinking. So how do we further strengthen what we have today in our position in recruiting. One slide about what's happening in the market in a larger sense. We, in recruitment business are not independent or free of the macro elements and there's a lot of macro drivers and phenomena that are causing challenges for job seekers as well as for employers. Some of them are noted down here, and I'll speak you through them. Macro drivers, labor shortage is already upon us in all the Western Europe, if not in the Western world. Labor shortage meaning all the generations leaving the job market and there's increasingly less and less people available for jobs. Technology is helping a bit. Robotics AI is taking some part of the job market. At the same time, increasing growth technologies also increasing the need for talent. Need for technically capable personnel to build systems to maintain them to use them is increasing the talent shortage still already exist for technically capable people. So we don't see this kind of a talent shortage or hard to hire segments to get any easier in the future. Political as well as economic unrest is increasing uncertainty as well as then growing social awareness or the environmental problems. All of these have their effect on employer market as -- employment market as well. Other phenomenas, younger generations coming into the job business are no longer the same than the older ones. Individual choice is willing to be able to have multiple different avenues for their life. And at the same time, knowing that once they get out of the universities of schools, what they actually will be trained doesn't apply into the job market in the next year's time. So to keep the capacity or need to constantly develop yourself and be a lifelong learner is already a necessity. Remote work was boosted to a totally different level because of pandemia opening up opportunities for companies as well as some job seekers pushing freelance work, pushing gig work and diversity and responsibility. So in the end of the day, what does this mean in practice for job seekers and companies are. New opportunities, wider network of employees for me and for my talent or at the same time for employees' capabilities to look for people from a larger geographical area. Those are all great opportunities, but at the same time, there are challenges. You're actually competing against different kinds of companies, even global companies, how do you actually have access to some pools in some distant country or for me as an individual, how do I get information of the opportunities available for me. So these are the areas where we come into picture. And these are the areas and challenges we, as Alma Career being a multi-country and regional player should be able to help companies and individuals to be able to portray themselves to a larger geographical area whether they are an employer or a job seeker. And that's in the next 2 slides to come, I will also try to show you concretely what we are doing there. Already last Capital Market Day, I hinted to this direction, but I wasn't able to announce it. We started basically in the beginning of the year, change the operations of Alma Career and to transform our existing operation. Alma Career was built by acquisitions over the past 10 to 15 years. And these acquired companies were locally well operating market leaders in their own business and they were carrying their own operations 100% when it came to market sales branding as well as the products and other supporting functions. And we were a great -- quite successful group operating this way until the 2019 and 2020. But already then we recognized that in order for us to keep staying in a market leader position and stay relevant for the companies and job seekers in these markets and others, we need to be able to push the envelope. So basically, for the past year, while doing a great business year, we also have been transforming our operation. And the transformation, what we call Alma Career United is seen on the right side of the picture. We basically have maintained all of those great operations we have locally. All of our services, all of our local brands, our local salespeople and local marketing people are operating in our local facilities, pushing our envelope there. We have taken our local common product development and development personnel and formed a common product development unit. This is a unit which we aim to be using for the full purpose of Alma Career instead of individual countries aiming to push our service development across the whole family and countries that we have today. In addition to those, we are providing common technology, human resources and finance operations across the whole group in a similar centralized fashion to be able to serve all of our countries, big and small with the same level and quality. With this transformation, which is now ongoing and will be taking us for the next couple of years to have all things in place, we basically aim to do 3 following things: we have been the market leader and it's our aim to be the market leader for years to come. So we aim this operation to maintain our relevancy as a recruitment partner for job seekers as well as companies. We combine our innovation and technological capacity together to actually benefit all of our countries and all of our services. So unleashing our full innovation power across the whole group. And this to enable us to continue faster than the market, while at the same time, improving our operative cohesion and effectiveness. So last slide and a lot of text, but hopefully to be showing some practical things that we do at the moment and in the next couple of years to come to deliver both the top line as well as the improving profitability. In this slide, you see on the left-hand side our current state. Also the numbers already quoted for the year '22 and our target state of '25, where we aim to be a unified international multichannel recruitment platform for across the CEE with continuous capacity for revenue growth and improving margin. This means for us to still keep on growing faster than the market, taking market share and gaining market quicker than it's growing itself. Investing continuously into renewed services as Kai was pointing to advanced platforms and what the market needs for us to stay relevant. We believe in strengthened local position. against the global competition that we have. That's a unique position to us. Our beloved brands, our access to market and our personnel there. There's an increasing opportunity and interest towards our market area outside of us in the Western Europe, an opportunity I will quickly speak you into that, while at the same time, pushing the efficiency envelope, working with shared products, shared functions to stay efficient and accelerating our time to market. In the middle of the slide, you have basically 6 must-win battles or key projects, whichever you want to call them, that we are pushing forward as we speak. I will start from number 6, organic growth. There's a lot to take in employment market in our existing markets. The job for job boards is not done, and the market is ready for growth. And this growth can be taken in a very -- you can say, traditional ways of business development, new customers; second, third, fourth product to these customers being clever with the price increases. These typical business development actions, these are 1 of the core areas of growth. Then point number one, we have a lot of products in our markets working today that are not available yet in our full geographical areas, expanding these products and expanding these features through our common product unit enables us to grow and find those growth pockets, which we know that are working in 1 market area where we are not yet implementing it into another. Point two, we've already, over the years been -- we've been having a steady flow of revenues from companies outside of our region, mostly Germany, France and U.K. We have not been building this offering as we have been operating country by country. Now that we are becoming more united, we are able to have more solid offering towards companies outside of our region. We are already testing this. We're already making revenue this year, and we keep on growing this opportunity, maximizing that potential the company is interested in the CEE region about having their residents outside of our area. I also mentioned earlier that the Education business, corporate education has been an increasing interesting area for us, and we see education becoming a second leg to Alma Career in addition to recruiting. Nowadays, we are present in 3 markets: in Czech Republic, Slovakia and Poland. Poland started this year, so we are there in an infancy. But we expect this operation to be expanded over the near years to multiple other countries inside our region and if possible, also outside. These all #1, 2, 3 and 6, pushing the top line revenue growth envelope. While at the same time, we keep working on unifying our operations first on the platform, on the product platform itself #4, unified Alma Career technology with also common function databases, meaning that we are combining our databases of users and of companies to be able to provide services cross-border that we aren't so well able today, at the same time, delivering efficiencies on the technical front. And point number five, outside of product, there's a lot for us to do to be unified in our processes, in our systems and solutions and in that sense, bring cohesion and operative efficiency to Alma Career for years to come. That's about my 20 minutes of explanation what's happening and why. I think there was actually an idea that we'll take some questions now, and there is actually a good time for questions and comments.

Let me hand over the microphone.

Maria Wikstrom from SEB. Very good presentation. I have a few things I wanted to clarify. -- regarding the growth strategy. So first of all, I think you talked about gaining market share. So I'm interesting to hear that which of the countries you currently operate, you see that there is opportunities to grow the market share -- and then you were talking about possible entering into new countries. So if you could discuss, I mean, what would be the ideal countries you could see Alma Career expanding next?

Thank you. There are markets where we are the market leader at the moment, maybe even the major market leader and the competition is small, countries such as Czech Republic or Slovakia. There, the main growth comes from us being able to basically grow the market ourselves, bringing new products and services to sell being able to help companies better to do their work. And then there are markets where we are competing with close competence like the Baltic states of Weston, Latvia and Lithuania. And there we are having a good fight with our friends on who's taking whose market share. And obviously, in these markets, we aim to gain market in the years to come. Then regarding new geographies, as Kai pointed out earlier, new geographies is, of course, can we expand our operations outside or do we take new services into existing geographies. We aim to take our existing services in 1 geography and expand that to other geographies inside Alma Career. A good example of such would be said towards the education platform. Now in 3 countries within Alma Career expectation is to take that almost as wide as Alma Career in the near years. The other example is selling our services outside of our region, like the international opportunity where the customers today, according to our analysis and our business are in Germany and in U.K., those are the countries so far where our customers have come the most. France and Spain, also interesting, but it looks to us that Germany and the U.K. have most interest into the region, especially Czech, Slovak, Poland.

If I may just have 1 more follow-up on the education part because this is a kind of like a new business to me. If you could explain a little bit more that what is your like target audience, target market, the market size? And what's your strategy there, please? Thank you.

The education platform, the name of it is Seduo that we have today. The target market is -- are small and medium-sized companies and local language training. So our content in our platform are always locally developed by locally acknowledge trainers and the information and the education is in local language. Therefore, we are not again competing against the global platforms, and we are having that niche where we are speaking to a right company audience with the right local information in local language. So that's the niche.

[indiscernible], Danske Bank. I have a couple of questions. Firstly, on the outlook for Career into next year, if we assume that the presented economic forecast hold, i.e., minimal growth and unchanged unemployment, is that an environment where you can still continue to grow top line and earnings? Or is it then going to be about protecting the results achieved this year?

In Alma Career, we aim to grow year after year. This is a growth business, and that's exactly our aim. Where -- if the situation turns sour, what will usually happen is that the small companies are the first ones to kind of shut down the recruitment and some signs of that we see, but small companies are not our key market group. Our key target group is midsized and especially large companies. Their strategy usually in this kind of situation is instead of buying a year's package, they buy half a year. And then once a situation, again, is more visible another. And at the moment, medium size and large companies are not scaling down their expectations for the year. Therefore, we are neither. I am in our budgeting for next year, looking to have a growth year on top line. definitely, we are also interested in protecting our already well gained profitability and also possibly improving that.

Okay. And then second question, on the business mix, share of services is now around 10% of revenues. Are you sort of expecting that share to grow going forward? And can you elaborate on the kind of margin difference between services and marketplaces?

We're pushing every possible business opportunity with the max. So I don't have a strategy where we have to push one or the other. The point is push all. Our Marketplace business is obviously the most profitable area of our businesses and the services business is less. The service business today runs around 30 plus percentage points as profitability. If that grows, obviously, there's a challenge for overall profitability, but we aim to be pushing still both of these businesses forward.

Seems that there's no questions online at the moment. So any more questions from here? More clear at this point. One more.

Maybe -- I mean, given that the economic outlook is not that clear for next year that -- can you discuss a bit that I mean, if we would enter a more of a recessionary environment that we would start seeing these medium and large-sized corporates also, I mean, stopping recruiting that -- what are the things, I mean you can do to save your profitability?

Well, we obviously will be flexible with our cost cautious from the beginning. We have already -- we're prepared to do some certain investments next year. We know that those investments will be so that we kind of are cautious with those. We have some OpEx costs that we are already able to scale down. And of course, we would need to be looking into also then are we well and rightly resourced to do what we need to be doing. So in us to be flexible with the cost, we've shown that in 2020, when the pandemia hit our capabilities of fine-tuning our cost accordingly was quick, and we are still able to be as quick now if needs be. This means that we are, obviously, even though we expect a great year cost-wise, we are cautious when it comes to next year. We are not extending our cost base, but we are cautious when it comes to that. Also thinking when either recruitments or other processes when they should start, but the capacity of our scaling down in cost rapidly is still there as it was in 2020. Anything else? Anything online?

No, not online at the moment. You have?

Petri Gostowski from Inderes. Just thinking about Seduo, and I think you've talked about it for a few years now. And to me, it seems you've had a bit of a slower start in the beginning, but it seems you get it going in some of the countries currently. Can you maybe share some lessons learned from the past few years Seduo and have you done some changes in how -- in your go-to-market strategy and...

Yes. First of all, as I mentioned, the market, what we've been trying to nail down is the key market for us, what is the right audience in terms of companies? What is the right content and how do you drive that most efficiently. And in that area, those choices have been made. We know a target market being the medium-sized companies and to low level of the large companies. Then content-wise, we know that our capacity to compete is with locally developed content in comparison with an English-speaking content for all the world. There's a great need, especially in the CEE countries locally developed with the local language content. And we've been very successful in that. This will be a skill of driving a good cost-efficient platform development with the same cost efficient but interesting content development. The competition will be not so much on the technical part, but on the content part to be relevant for the users in the content game. So in that sense, for our operations in Czech and Slovak, there the content, we've been well reusing our Czech content because the language is almost the same. And we have a good content library. For Poland, we are now creating our own and to be able to do that in a cost-efficient and yet interesting manner is 1 key component for scalability of the business. The technology itself scales from country to country with no limits in itself. And there, the investment is one. But when it comes to content, that investments will have to be country specific and to be very efficient in that country specific content creation and at the same time, renewable and interesting, I think that's going to be a key component in the scale, scaling the business.

Okay. Thank you. I think we are a little bit ahead of schedule, which is good, but now we have a short break. So we could continue like 10 past 2. So a short break here, and then we continue with the Alma Consumer and also the Alma Media Solutions. [Break]

Good afternoon, and welcome back to follow Alma Media's Capital Markets Day 2022. Now we will move forward to the Alma Consumer segment and our Senior Vice President, Mr. Kari Kivela, will present the Alma Consumer sorry, Alma Consumer progress. We've going forward now with the marketplaces and services turning to more transactional -- towards more transactional platforms. So please, Kari, the stage is yours.

Thank you, Elina. So as the headline says, this presentation of Alma Consumer will cover especially the remarkable evolution of marketplaces, evolution where they have a great possibility to move towards advanced platforms, advanced transactional services. However, before we go more deeply to that, some key fixtures about Alma Consumer today, operational environment, what it looks like for housing for cars and for media. And finally, some words about the role and growth strategy of our News Media. Rolling 12 months revenue of Alma Consumer at the moment is slightly over EUR 104 million. EBITDA slightly over EUR 20 million -- EUR 25 million. And on the right side, you will see how the revenue is split between media and marketplaces and services roughly 50% of revenues comes from media. So while this is the current situation, it's logical to ask for or question, what is the growth strategy in future? If we start from media, the strategies ensure the high reads of our news media not only by a good content, but also advanced digital solutions. A good example is front page -- personalized front page of Iltalehti based on data of habits of consumers, how they have used the media before. And that's a good example, which has gain -- helped us to gain a new reach and new customers and develop and deepness of the usage of the media. Also, the strategy in media is strengthened new revenue streams like digital subscriptions and marketing services. And if you look at marketplaces we focus firstly on big verticals, which operates in large addressable markets. And then as mentioned already before, this is a key point in our strategy, the strength in revenue streams from transactional services and develop new transactional services. We will have some concrete examples of new services today later on. It's a bit similar story also in comparison services, where we also focus on services, which operated in larger addressable markets. A good example is for example, Urakkamaailma with comparison helps consumers to find renovation, workers and companies. The renovation market of Finnish household is EUR 2.5 million, twice as big as the whole advertising market in Finland. And materializing the synergy between consumer media and consumer services is extremely important. It doesn't only mean a cost efficiency or cost synergy, it also mean synergy with FX market share and revenues. Concrete example is how we have started to combine and collect data from marketplaces and media. And the concrete example is, for example, car advertising, where we have gained the market share after the Nettix integration where we have combined data from marketplaces and media and then offer it in new ways to advertisers. A couple of words from our environment. It is fair of understanding that the relevant and common key industry trend in housing and mobility is digitalization of transactions, which is remarkable growth driver for us. Another trend is utilization of data, which is also industry trend in News Media. In a short term, it is a fact that overall economic situation, as we all know, is demanding and shapes our operational environment as well. However, in overall, the marketplace, it is important to understand that the number of listed apartments or listed with [ Charles ] does not correlate the trade numbers, the decreasing data numbers of, for example, for apartments. And overall, we believe that the big economy will affect if it affects, affects more to advertising income. What comes to advertising income, it's realistic to say that the overall market will suffer. But if you look behind the past periods, weak periods, we will find out that digital advertising has suffered least or even gained to grow or at least grow market share. Why is that? For example, it's more measurable, it's more scalable. The production costs are lighter. That's a valuable assets in tough times. So -- but we can move further on and look more concrete strategy, how listing services transform to transactional digital platforms. Some kind of red line is find out ways that make current processes more efficient for buyers and sellers. That's the red line. And then if we look more concrete, digital contracts or relevant data interfaces or online payments, elements which or examples how they make this profit more efficient. And what comes to marketplaces, they have a good starting point with largest selection, largest offers to be preferred partners. What they need to do, which is the next steps, it's making, for example, safer, more secured and smooth purchase process, have new partnerships and so on. And what it means for professional customers, for example, ad visibility features based on new data, they should lead, for example, faster inventory turnover. That's somehow a big picture of this development. Okay. Then we can go further on and go more concrete to our cars and mobility solutions. Word is -- first, it's word of note that we operate on multiple business model, which enable larger share of buying online. For example, tukkuautot.com is our industrial service while helpot kaupat helps consumers to sell other consumers, that used cars or other [indiscernible] If you look above, we announced today earlier this morning that we will launch also car auction service where consumers can sell their used cars directly to car dealers by auction model. This makes -- will make this process more efficient as well buyers and sellers. In overall, if you look at the common process of used cars sales process, we will find out that there are several steps that can be digitalized and which will make the process more efficient. For example, the valuation, the car choosing or applying the finance or setting transaction, making the contracts and so on. These are concrete steps that should be developed in transactional model. Before we go our concrete solutions, this is the starting point, the asset of marketplaces, which helps and encourage the transactional models. For example, we have today nearly 400 transactions between consumers annually and the cross market value of C2C transactions from consumers to consumers is EUR 2.8 billion in our [ Visa ] verticals. That is a starting point that has encouraged us to develop solution, call it, helpot kaupat, which offers identification, price estimation of the vehicle, digital contract from public official and then signing, payment, transfer of ownership and finally, the confirmation. All this has been digitalized. Alt out this solution is in kind of testing period and an improvement period this morning, there were 800 consumers using these services already. Our earnings loss is logic at the moment based on commissions of loans needed for financing those results or many transfer actions where money will move from consumers to consumer. What is interesting, so surprising is that typical users, early adapters, are people under 30 or under 40 digitally orientated consumers, which is, of course, a promising sign that process like helpot kaupat, but would be a standard of tomorrow. Another example is that a model which we informed earlier today, digital used car auction service, which we will launch in the first quarter of next year and this service will make a lot of easier to consume and to get real of their used cars, make the process more efficient. Important growth driver is that so-called trading model with used cars is gradually breaking down because some of the manufacturers don't take the used cars while selling new cars, the Tesla is a good example. And we must also remind that the current problems with the delivery times of new cars has encouraged to consumers to sell separately their used cars. Today, we have estimated that 4% of used cars sell from consumers are sold by auction model and we estimate that this market is growing all the time. And this is a good example where a large vertical marketplace has a very good competitive advantage because it has -- it is kind of a starting point preferred partner to consumers to move this kind of new service. Then if you look at the housing segment, housing unit, real estate unit, it is overall very similar processing here. We are also building several services for better trade processes, operate on multiple business models like in cars and mobility. Besides listing services, Etua and Vuokraovi, Muuttomaailma.fi will help arrange relocation and Urakkamaailma will help find renovation workers. To be more concrete and look at more deeply the common current sales process in apartment and housing, this shows that how our new OviPro software, which will be marked in the beginning of next year -- no, no, no, next 2024. So -- and DIAS operated by Alma Talent how they will make the whole process more efficient for sellers, for ordinary customers, consumers, but also for professionals like real estate agents. OviPro will help presale planning by property valuation, description of the property and so on, make the whole process more digital. It will help the relations agents with buyer management, source buyers, qualify them and so on. And finally, when we come to closing process, DIAS owned by Alma Talent has already renewed the signing process. And that's a good example, which is fully operating in 2024 and after that. We have a couple of minutes to look at News Media, which [ Common ] has told before, brings half of the revenues of consumers today, and it's important with the synergy also to our marketplaces. In overall, we have managed to grow with digital advertising based on our good reach and also the new services, new marketing services, which Tiina Kurki will open up later on. But also, if we remind that the first 25 years, digital intellect was dependent on advertising income even if they grow -- the growth of them was very good. So we started 18 months ago digital subscription service, which has started quite well later on we comp that. So -- but the role is also, as mentioned before, that we help our marketplaces with user acquisition and combine the data and collect the data and make better services for advertisers. Overall, this whole digital subscription market seems to be a growth market in the domestic media and at least the major brands has good possibilities to grow. Today, the print single copy of sales in Iltalehti are still a very profitable business. But as we all know, it's a decreasing trend. But if -- and as we believe our digital subscription will continue the growth. We believe that in coming years, we will totally cover those losses and decrease of our print operations. But we can now summarize the story and consumer views. We have told that there is an evolution of marketplaces towards transactional platforms. We have -- gave you some concrete examples of our services operating today and developing all the time. We have highlighted to starting point, the largest offer a good selection of those marketplaces, which help us to move those transactional services. And we have covered it also to common environment when there is a industry trend digitalize those transactional process, and that's a big opportunity for marketplaces to be in that process. That's the whole story. But we have also covered the coming weaker period, highlighted that the listings volumes, listings incomes doesn't correlate so much at least the weaker economy, but it might be a different story in advertising, but Tiina Kurki will come to that. So there is clearly time for questions and comments, if there are any.

Okay. [indiscernible], Danske Bank. Can you talk about the outlook for marketplaces within housing and cars going into next year? What is your assumption thinking of, for example, revenue development?

Let's start from the cars. We -- except that the volume of used cars is a bit same this year, it will gain the delivery problems of used cars, which will go on. We have seen development that there is a demand for better used cars, high-priced used cars and then we are expecting or targeting a little better revenues than this year when it comes to listing when it comes from car marketplaces. When it comes to housing I tried to open the logic that we see clear signs and evidence that the market will go down, but the listings volume doesn't correlate that. We have seen already months like September and October when the trade volumes has gone down, but our listings volume has been stable or even grown because there are more offers from real estate agents and so on. So those are pretty stable to revenues or if we have managed to grow our markets, there are possibilities to even grow.

Maria Wikstrom from SEB. Just curious, I mean you announced today that you will be launching this like consumer to the business car transaction, how do you...

Auction service.

Auction service. And then was it 2 weeks ago, we learned from [ ships ] that they went for launching a service where you have a like longer car rentals. So I'm just curious that did you ever consider this kind of a going into market where you would offer like longer car rentals through your sites? Or did you see it as an opportunity at all?

At the ownership of -- ownership models of cars, they are chasing all the time. I guess you mean some kind of subscription model of the cars, bigger rental times a year or so on. That's definitely 1 model. And -- but at the moment, we are -- we preferred this auction model and try to make it as good as possible. But let's see what happens. We are investigated several transactional models with marketplaces.

And if you could also clarify the -- how you plan to make the revenues out of this model. So I assume that it's coming from the corporates rather than the consumer.

Yes, yes, in this auction model. Yes.

And is that percentage of the transaction value or...

Yes. The percentage of the price of the car.

And then finally on that point as well because it's not completely new. We already have these kind of services available in Finland. So what -- why do you think that -- I mean your service will be successful compared to, I guess, I mean the ones that are currently on the marketplace and haven't really taken off that much?

Yes. First of all, it's important that at this stage, there are more operators because it helps to grow the overall market. Our advantage is the good access to consumers. Over 2,000 consumer listings by cars annually. And when we add this feature, this feature that you can also offer your car not only to other consumers, but also the professional buyers, we have a good advantage with this access to consumers and we can make it cost efficiency also the whole marketing because we have those consumers and sellers already.

Any other questions?

It's [ David Kandla ] from [ EQ ] Are you going to integrate all these different car service services to Nettiauto? Or will they be completely separated towards the consumer?

It's a good question about we have to utilize the access to consumers by Nettiauto, but also it should operate independently in some part ways. It should have an own brand, for example, and it will have a own brand.

Okay. And there's also questions from online. [ Mark Betner from Avaron Asset Management ], I assume. Also about the car auction model. So regarding the automotive segment, what is the expected take rate for those C2B transactions? Will it have a different pricing model than B2C or C2C?

Yes, it have a different pricing model, but we are expecting, as told before, the whole market grow. Best expectation, maybe it's conservative that 6% of cars sell by consumers, is using auction model next year. Maybe it's higher. And we are gaining remarkable market share right in the first year.

No more questions online. Is there any other questions from Alma House? Okay. Thank you, Kari. And we move on about Alma Media Solutions and the digital advertising in unpredictable times. Welcome Tiina Kurki, Senior Vice President of Alma Media Solutions.

Thank you, Elina. And good afternoon, everyone. For the next 20 minutes, I will go through Alma Media Solutions strategy for advertising. But first, I will go through a little recap how the market has evolved in globally, Nordics and in Finland as well. And why we see the digital markets as an opportunity for craze in digital still. And finally, I will summarize this up. So as we all know, the global ad spend historical change has been really fast and rapid and the structural change has actually happened almost in -- well, here is 20 years, but actually, the movements -- big movements have been inside 10 years. So the white line shows you how the print advertising has changed. You see that after financial crisis 2009, it started to decline heavily and has declined ever since in global level as well as in Finland and other countries in Nordics as well. So the red line is TV advertising, and it grew until 2014 and started to decline after that and has speeded up in last years. And we all know also that this is because of digitalization. The digital advertising market has grown very heavily social search, display, video advertising and so on. The same has happened in Finland. On the right side, you see how the digital advertising has overpassed all the other media segments. It surpassed newspapers and surpass television. Television actually 2014 and newspaper a little bit later than in global market overall 2016 and on the left side, you see the figures from this year for the first 9 months in Finnish advertising market when talking about the Finnish media players. And that tells us that the print advertising will decline. It has declined this year, it will decline and speed up probably next year when economy will go slightly down. So on those days during financial crisis during COVID and so when the times are not so good, the print advertising will speed up its decline. So it declined this year so far, 5% local and free printed papers, almost 9% and magazines almost 8%. And as you see, the television has come down 2% and online is growing nicely, still 7%. And out-of-home, especially digital out-of-home, has grown this year as well. but they came very heavily down during the COVID, obviously. Advertising spend difference in Nordic countries. So the digital advertising has been the largest media channel in the Nordics since 2013. But during the first half of this year, the Internet amount over half of total ad spend in all Nordic markets. But in Finland, it's different. As you see over there, when looking about the newspaper shares, the share of newspaper is in all the other Nordic countries except Finland between 6% to 8% and Finland, it's still 14%. So we assume that there is room that it will decline, and it's -- there's room for digital to grow. The other, which I want to point out is the search market. So it's already in Norway, almost 24%. It's share in Denmark, 35%, in Sweden, 42%, yet it's in Finland still 18%. So when there's room to grow for Google for search engine markets, certain optimization, we want to be a part of this ecosystem as well, and that is why we acquired Netello last year. I will come back to that later. So what's the winning strategy for Alma Media now and for coming years. Our journey from single brand sales to leading digital network with data-driven offering and expertise has been quite fast if you look at the past 10 years. So we started with brand-specific or we were in brand-specific sales in 2013, 2014, we build up our Alma digital network. And then ever since we have been building Alma Media Solutions. There have been integrations like talent, to Alma regional media sales, media partners sales, Nettix acquisition, Netello and also divestments like Alma regional media sales, of course, when there was a divestment of Alma regional of Media 2020. So we want to have a versatile digital advertising products for our customers in order to serve them in the best possible way and to take market share. We built up a really good and talented content marketing and production team. We have taken positioning on small and medium enterprise markets. This year, we have concentrated on digital customer experience development and we want to take a strong composition in this whole marketing ecosystem. We, of course, follow up new evolving forms of marketing, i.e. virtual influencers, metaverse video advertising is growing very fast, CTV, retail media is growing. We want to see what's happening over there. Amazon is growing and so on. And we follow up these new forums. Okay. The growth strategy of Alma Media Solutions. First, we see the need for different products and services for different customer segments. We see the need to optimizing sales cost also more effectively by grouping customers accurately and serving them in a productive way. When looking at the growth opportunities, this year, smaller media enterprises are in focus. Our strategy is to increase digital advertising among those small and medium enterprise prices, especially who are still using print advertising. So our position is quite unique and good since Alma's print advertising share is only 13% of our whole portfolio. So almost 90% is digital already. Second, our strategy is to grow in content marketing and we want to grow in commercial content production and concept, which enables this content marketing and native advertising growth. We find this area very interesting and it supports, as I told you, content marketing as a whole. We have a world-class video team and our storytelling hits excellent results. In a minute, I will show you an example of this. And third, we are a strong player in programmatic advertising, creating automated processes. However, this area is also changing due to evolving cookie-less world. and particles in this world. Users are not willing to give their consent to use personal data unless they benefit from it. So the advertising solutions will evolve to nonconsent and consent products. Open marketplace will, however, probably decline, and we will see more private deals, which also take into account sustainability using less electricity, for example, since open marketplace, there is so many techniques and so many middlemen in between publishers and advertisers. So Alma's offering covers programmatic open marketplace deals as well as nonconsent, consent products by using first-party data, contextual and behavior, we can target our media by time, place, targeting and registered users. So we have different solutions to serve our customers in a proper way. We are creating also next year a self-service channel, which enables a larger amount of smaller targeted campaigns sold effectively. And now a short example of our video team's production capabilities. So you get an idea what we are doing. [Presentation]

So this serves actually more larger companies, of course, larger customers and strengthens our position among those advertisers. Here is another way of looking at our strategy. So we can categorize our digital advertising for 4 different categories. They have their own roles. We have identified breadth areas and what's the value for customer. So first, advertising, which is our core role. And there, as I told, we want to broaden our customer base and take more smaller and medium enterprises to our customers. So value is connecting advertisers to relevant audiences in premium environments and provide modern advertising solutions to our partners powered with data and leading advertising technology globally. Creative Solutions, which I show you an example is in April for growth for delivering content marketing and native advertising and strengthening our position with midsized and larger companies and larger advertisers. And it's a growth area also. So data services for advertising serves its in April and growth area in April the advertising as well as gives us growth at itself. It's supporting advertisers to scale up personalized advertising, eg audience modeling, insight reports and targeted advertising. Optimization is an add-on product. The Netello I told you about. So it's a consulting and implementation company. We need a propos search engine optimization and search engine marketing and it helps our -- serve our local customers with advertising as well as different kind of marketing solutions. So how have we progressed with this strategy so far? Alma has gained market share since the divestment of regional media and integration of Nettix, and we have grown organically. On the right side, you see the online advertising by media companies in Finland for the first 9 months, and Alma's share is 38%. As over there below the chart says that Media Group's own advertising is included in the figures to the extent that is chargeable between units and segments. I have to remind you that Alma Media's figures does not include own media advertising. So hypothetically, if we would include our own figures over here, our market share would be over 40%. So it seems that our strategies work. Here are the categories which we find growth areas like programmatic, small and medium enterprises, creative marketing production, which in April's content marketing. And you see that we are well on track with the chosen strategy with the focusing on these areas. To summarize this up, the landscape is unpredictable. We do face weak GDP next year, there will be structural changes in advertising as a whole and in digital advertising as well. It's changing all the time, and we need to keep up with those changes and we will keep up. Our objectives are outpace digital market growth, increased customer engagement and broaden customer base, customer-driven product development. I'm very proud of the teams we have. They do a very good job by evolving our products in a proper way. So our customers will get their business going on. And the methods are versatile digital advertising products for each customer segment and automation, programmatic and broaden our customer base by going to small and medium enterprise segment. And now I think there is time for questions and answers if you have any. Any questions up here?

[indiscernible] Danske Bank. I have a question on the digital advertising market shares you were showing at the end of the presentation, can you still explain why you've been able to gain market share. Did you have acquisition tailwinds? Or is this purely organic growth? And what are kind of like the underlying reasons for you to sort of too much better than, for example, Sanoma?

Yes. Thank you for the question. We've grown 14% and some of that is coming by integrating Nettix to our portfolio, and some of it is organic. So we've grown over the -- more than the market organically as well. And it's based on the good production very good reach. We take care of as Kari told you, that enables the good -- the reach in April's baseline, and that's how we have been able to do products which serve our customers. And also, we are very good using the programmatic technologies and take out -- take the best out of that area. So those are the reasons.

And then secondly, if we were to include also the international players, how has the market share of kind of domestic providers developed recently. So have they lost market share to the global players in online?

Well, the global advertising takes around 65% of the whole Finnish advertising market. So like last year, it was a little bit over EUR 600 million The whole markets and Finnish players took around EUR 220 million of that market. So I'm not sure if it's 65% or 66% or 64% at the moment. We could get those figures later on.

And what is the trend? Because I think for quite a long time, domestic players were able to maintain their sort of combined position. But I think more recently, they have started to lose ground to global players.

Well, I don't see that happening at the moment, at least for Alma since we see that also if you think about the global players, the platforms Facebook is losing some advertising to Apple and also to TikTok and some other retail media players like, of course, Amazon and Walmart. So at the moment, I see that they are still growing. And there is, as I told you, room to grow for search markets here in Finland, but we have been able to grow in the same time with -- in Finnish market. Any other questions? Tina? Maria?

Yes. Maybe 1 on the -- I don't know if you call it segmentation, but if we think about like me looking at the Iltalehti site, I might have the different advertisement than Sami going to decide that like how far you are in kind of like optimizing the advertisement, I mean for the advertiser is that actually the maybe the stock months and the likes gets me as a reader and then the comments and the likes will get Sami as a reader. Or other way around, I'm not sure.

I'd say that we are in a very good position of doing personalized advertising. Even though there are the decline of third party -- there's a threat for third-party cookies. It's already affecting the whole market. We have already taken into consideration. We have built up our capabilities of doing targeted advertising, not based on third-party cookies. We use different kind of targeting methods with our -- in our production and they based on first-party data. They're based on registered users. They based on contextual targeting, we can target by other -- and many other things. So we are not dependent on the third-party cookie advertisement in order to do personalized advertising in future as well because there's already a situation that in open markets, only 50% of browsers is giving -- are able to be -- only in 50% browsers, you get the readers or customers known. So there's 50% unknown already because the Google is only 1 who is still using third-party cookies. The others have already -- don't allow third-party cookies to be followed. So -- and out of those 50%, which Google uses 40% of global customers declined to give their consent. So there's only 30% in open marketplaces to be -- who give their content, and that's to realize that we need to do in all countries and in all media houses, nonconsent products and consent products, and we've done that. So we are very good positioned for the coming years to use these different kind of targeting products for different segments.

Okay. And there.

1 question on the split you have on the advertising in Nordics. Why is it so different in Finland compared to other Nordic countries? The search split of -- in Finland, is 17.8% when in Sweden, it's over 40%. Is it more the consumer that is targeted differently in Finland? Or is it more that the companies are using different kind of advertising tools?

That is a very good question. I guess we come in many ways, always behind Sweden when we have been looking at the digital market evolution for 10 years. We always come a couple of years behind. Also, the newspaper is quite clear. It's more subscription based here in Finland and in Nordic countries. That kind of explains the difference in the newspaper segment. Does anybody else have a better answer to this certain market or optimization, why difference in Sweden and other countries from Finland?

Maybe the traditional media has a quite strong position in Finland also compared to the other countries. So we have a lot of history and a strong position still.

Okay. Any other questions for Tiina?

Well, thank you.

Okay. We thank Tiina.

Thank you.

And now we have time for a quick sort of like technical break. So 5 minutes, and we'll be back at 5 past 3. So feel free to have a short walk or quick cup of coffee, and we'll be back. Thank you. [Break]

Welcome back to follow Alma Media's Capital Markets Day 2022. We have 2 presentations left. And first, we dive into the Alma Talent, the leading business media and the profitable growth from digital information services will be presented by Mr. Juha-Petri Loimovuori, the Senior Vice President of Alma Talent. Welcome, Juha-Petri.

Thank you, Elina. Good afternoon on my behalf. I continue my story from last year's CMD with the same headline, actually. So I walk you through, first, Alma Talent in general, then Alma Talent Media, Alma Talent Services, and then I wrap it up with our longer-term targets as Kari and Vesa coded as well. And I need to thank you also, Tiina, for the excellent presentation on advertising because I don't need to go through advertising. So I have -- I can focus on subscription business, mainly on the media side then. That was a good presentation. So Alma Talent, today. Three different businesses, actually. We have business and tech media, which is based on subscription and advertising. We are the absolute market leader in B2B landscape in the Finnish media. Then we have digital information services, which are also based on subscriptions partly also on transactions where we have quite fine own refined data and also accrete copyrights of the suppliers of the data. And quite interesting and a good mixture of different type of contents and services in there compared to our competitors. And then we have direct marketing [ Mega ], which is a telemarketing operation. And last but not least, I need to mention that we have nice and very competent personnel at Alma Talent and also we rely heavily on Alma synergies on our operations, which is giving us great support. When you look at the figures, also Alma Talent has had 2 very good years behind. Actually, the COVID was quite good time to our businesses and we grew and we also did better profits. And right now, it is EUR 99 million revenue, EUR 19.8 million profit. And what is good to note also is the digital share, which is 57% from all our businesses right now, and it has been growing steadily. When we split this revenue media company is still the biggest 55% of all revenue but the services is growing, and it's 35%. And actually, the telemarketing operation is only 10% now. It's good to remember that we divested the Baltic operation this spring, actually. So probably the share will be even smaller in the future. Then back to the revenues bit. Last time I pressured very heavily the recurring revenue target and so on. And I'm happy to tell you that we have gone further. So the last time, the recurring part was 45% and now it's 47% and the nonrecurring was at that time 42%. So we are going on the right direction and implementing the strategy quite well. So I'm happy with that. Then going into the Talent media a bit deeper. And I guess that all the audience here at the Alma House know what we are doing in the media side. The biggest brand is Kauppalehti then we have 7 other brands. But for the audience, maybe from abroad, we are in the business and technology media and we have been in this quite a long time. We have quality content and so on. So our peers mainly like Financial Times and Wall Street Journal and stuff like that. So -- but here, I go straight to our strategic goals, which are not changed since last year, we want to digitalize the business without losing its scale. And maybe the pressure is in the -- without losing its scale because that will be quite kind of tough anyway. We have 2 business models. We have subscriptions and advertising and Talent subscription business is the biggest one. It's 2/3 of the total revenue and advertising is 1/3. And then it's growing as Tiina told. So -- but what we are doing, basically, we need to concentrate on content and quality content, quality journalism that create value to our audience. That's the only way to make subscription media today. And another important thing is that we need also to be able to acquire new audiences, new audience groups, maybe younger people, maybe female and so on. And that must be done by new content concepts tomorrow. So I will show you some initiatives on that later on. Yes. And then we go to this, and this is my favorite picture when I'm presenting Alma Talent Media. During the last years, we have been able to create quite nice subscription -- digital subscription business. Since the beginning of '19, we were able to triple the single subscription base. So the picture on left, that this number of subscription of single subscriptions which are mainly from consumers, of course, than if you subscribe by paywall or by telemarketing you are a consumer, whatever you may use as a payment method, maybe that's a company. So we tripled the maximum peak,what was 49,000 single copies and that was in the beginning of this year. Now the updated figure is 47,631 subscriptions that are now in the database. So we have come down slightly. But of course, this is now kind of affected by the environment. So what has happened from the beginning of this year. There's war, there's inflation there is stock exchange, which have gone down and so on. So actually, we do not have very big churn on our rate base, but we cannot sell so much than we used to do during the COVID years. So that's the point there. And now it's stabilizing. So the journey is quite low. Our price point is also quite high. So it's good to understand that there's a lot of value with this kind of subscription base. But then which I haven't shown before, it's the corporate subscription, which is on the right side picture. And this is not copies now. This is euros per month. So this is the revenue per month on our corporate subscription base, as you say. So from the same period of time, it's from 2019 beginning. So that is still growing steadily. So these 2 pictures make me pretty confident that our strategy concentrate on the digital subscription and good content is good. And then this will continue when the times are better again to grow. I'm pretty confident on that. And 1 day, Media, as digitalized business will be as good business as it used to be in the 90s and so on. So I told you about the new audience initiatives. Here are some of them, what we are going to do next year. Talouselama will be renewed. And now I mean the digital Talouselama, so there's also some kind of journalistic innovations like personalizing a magazine and then you can also make your weekly magazine on the digital content. We see, of course, published every day and every hour. So we try something new on that side and hope that, that will lead to good new product. We are going to launch something called Unelmasalkku, which is fantasy funds abroad. This is a game where you can invest your money risk-free. Of course, because, there is no money in the game. This has been done in Norway. This is done by 1 start-up in Norway, and they have been launched it already probably 3 years ago by [indiscernible] in Norway and then now [ Dagens ] Industry also has done it in Stockholm with very good success. And this is the way to get younger audience. So that is a really important opening to us as well. Actually, it's good to remember because if somebody is so old enough, when we started Kauppalehti, online 20 years ago or something like that. We had this kind of game, but not lately. And then the third one, it's really interesting. That is the Kauppalehti audience diversity program with FT strategy. So probably you know that financial time has had really good success with digital subscription, and they have found it their own consultants, which is called FT strategies. And now Google, our competitor is financing these kind of projects where we -- Kauppalehti and 5 other European newspapers are trying to find more diversity to their audiences. And our main target is to get more female readers to Kauppalehti. And maybe 1 interesting finding from that project already is that we have like 37% of female audience for Kauppalehti digital, but only 15% of them, only 15% of our subscribers are female. So actually, there's quite good potential for the future subscription business, if we succeed to get more female and young. So that was that. Then we move to services side and then the right information at the right time. This is not an easiest way our easiest thing to communicate, but I try. So here is our portfolio focus areas right now today. There is property data company information and legal information. These 3 are information services in our terminal. And then we have DIAS which is transaction and process services and then we have marketplace services, Objektvision and Kauppalehti, Toimitilat in Finland, Oikotie Sweden. So -- and then we have this kind of umbrellas these 3, first go nicely under 2 umbrellas business insight and compliance services. So that is what -- how the clients use them so they use it for to make their -- the system maker better or fulfilled their compliance needs. And then we have something that we call proptech probably half of that actually DIAS and commercial properties. And to understand the metrics better, I also put these DOKS there, which is our minority ownership. So that is actually purely compliance service, which our clients use for making their anti-money laundering and know your customer processes. So in that way, it's a process service. And actually, it's also a transactional business model because customers pay how much they use the service. So this is the metrics how we operate and the results are here. So our revenue last 12 months rolling is EUR 34.5 million, profit, EUR 7.1 million. And this is almost all digital business, as you see. And what we are now doing here, we are focusing heavily on corporate sales. We have 1 sales organization that takes care of all the clients in the information services, of course. Content DIAS is really different business and the marketplaces as well. And we are trying to make them to subscribe to our services which leads to increasing recurring revenue. And we see now that there's a trend actually Kai told you about the increase in regulation, which affects Alma. But of course, there is always some kind of positive side also on these things. So we benefit from the fact that the regulation increases, and we try to use that trend to sell more this compliance services most legal and company information type of services. Of course, then we have other calls as well. One very important is that DIAS market share grows really fast. We are now on the level of 40% of the used apartments here in Finland, but there is a lot of room to grow. Then our commercial property marketplaces we need to be in the better local position in the future in Sweden and in Finland. Do you now to be the champions of the broader market and we are making -- we are working together actually in there with the platforms and technology. We are aiming to do some new innovative data process well. I tell you something more later. And here, how we split this revenue information services, which was the 3 upper services accounts for 68% of the revenue then transactional, which is mainly DIAS is 12% and marketplaces are 20%. So maybe now you get a bit better picture what we are doing are aiming to do. And here are some new initiatives what we are going to do on this side. We are going to renew the legal information service as a whole. We have been following the Swedish peer, Danish-Swedish peer Karnov very tightly, and we are quite optimistic that we can concur the Finnish market in the future. So we are renewing that service property data, again, the regulation. European Union taxonomy here some needs for financial sector. And that need, of course, goes to real estate owner on not houses, but properties, sustainability and how energy consuming the buildings are, and maybe we can help these parties on this data, actually. This is a nice example of how we can combine Etuovi and our side of data and make good products for financial sector. And then I already talked about DOKS, which is our minority holding now, and we are having really good cooperation with them. So 2 minutes left for the summary. Leading business media, profitable growth from Digital Information Services. That's what we are now. And what we are going to be leading business media with 70% digital revenue. And this is now to 2025. And I look forward that our information and B2B services part would be a lot bigger and then more profitable 2025. I look for [indiscernible] set targets to me that it should be growing 5 years -- 5 percent per year and the profitability would be 25%. So that's the general Alma target to repeat. Alma Talent Media, what we are doing, we are digitalizing. We are acquiring new audience groups, as I told you. And then we capitalize these new audiences by advanced subscription model. We have talked about advanced platforms today, but there will be also advanced subscription models and also advertising models in the future, which is interesting. And then maybe we will tell you about the media again next year more. And then on the services side, focus on corporate sales, capitalized an increase in regulation trend, improve property marketplaces. We talked about the advanced platform. So there's plenty of room also in our property marketplaces to get better services and go into the deeper in the clients and real estate owners processes. Grow DIAS's market share, innovate new data process products and then last but not least, M&A, we are also looking for bolt on acquisition of digital information providers and property marketplaces as well. Thank you. 10 seconds over 20 minutes.

Okay. Now we have nicely time for questions and Maria to begin.

Yes, perfect. I think I mean you nicely talked about the digitalization for the presentation. I'm sorry for the question. But given that you still have the paper subscription, and we've seen the newsprint prices, I mean, going up very rapidly. So little bit like on your view that, I mean, what is happening in the newsprint prices and availability. And then also that you think you can reprice your product to mitigate the cost increases?

Very good question. I start with the last 1 first because we have already done quite aggressive price rates to the print products this year. And actually, that has already during the last quarter, mitigated the print revenue going down. So we have been quite good in pricing this year, and we are going to continue that as well next year because our target is to digitalize. So we can price print products quite well without fear, I would say. But then the printing prices, of course, there is pressure on paper prices actually because there's only 1 paper mill in Finland, who produces all the print paper. But I'm quite optimistic that we will find quite good agreements on that for next year. So the printing is not going to be much more expensive. The problem is the delivery. The Finnish post is giving us a gray hair. So they are chasing their service, and they are also raising their prices quite heavily, but we are still negotiating with them. So -- but it's good to remember that the digital growth has been compensating the print product decline, and then it will do that also hopefully next year and then Tiina was quite positive on the advertising of -- digital advertising. So I'm not too worried on that the cost.

And then the other question, as you mentioned the M&A I mean, in your strategy as well that -- do we now talk about M&A within the Finnish borders? Or could you see that this business can actually expand outside Finland as well?

Yes and no. But we are looking at the Nordic market as whole, if we think about going abroad. So as Kai mentioned, so the Nordic and Sweden, especially is interesting to Alma Talent because we are already there and we know something on the market, but also the other maybe Denmark, Norway, maybe but Sweden and Finland, mainly.

And then finally, what is there or -- and if they are, what kind of synergies you basically share with other divisions of the consumer and the recruitment?

Actually, we are quite a lot here in Finland. As I mentioned, something is that the tech side is that kind of operation that the know how to do everything on the tech side is common here in the mainland. So that is the main thing actually. We talked about how many developers do we have at Alma before this event. And then right now, 1/3 of our personnel of whole Alma developer so that kind of person. So I guess that we have 200 of them in Finland. And then of course, it's something to have bigger ecosystem of everything when you are growing digital. So there's a lot of synergies actually, which are not -- no -- we don't talk about them so much, but yes.

But also synergies in housing.

When we are going to the product level then, of course, as Kari told you, actually, he told about DIAS so that is the final of the housing transaction when we do the transaction on DIAS platform. And then why is it a talent is that the main clients are financial sector operators. And then we are used to play games with them. So -- but of course, it's a funnel of activities from the advertising in Etua [indiscernible] and then OviPro which Kari presented, which is the new system for real estate agents and then you go from OviPro straight to DIAS and so on. So that is quite nice synergy actually. But of course, DIAS is an open platform. It's not only Alma customers who can use it but everybody in Finland, the consumers who make housing transactions and all the other broker systems are also linked to DIAS.

And you have the real estate data?

Yes, yes.

Any more questions for Juha-Petri? Okay. There's no questions on line at this moment. So thank you, Juha-Petri.

Everything is clear?

Everything is clear so far.

And now we move on to the last topic of this AlmaMedia Capital Markets Day before the closing remarks. And the topic is the financials of Alma Media and about the strong cash flow and solid balance sheet. And today, our CEO, Mr. Kai Telanne substituting Juha, our CFO, Juha Nuutinen as unfortunately, he's ill. So best of luck, Kai.

Okay. So obviously, she thinks that I can't calculate. I guarantee I can. Yes. Actually, Juha Nuutinen CFO, unfortunately, is ill at the moment, he is feeling but okay. So no big worries, but he tried to summarize our digital journey so far in numbers. and I'm going to present his presentation here. And you, of course, have a chance to put some questions if you want. And if I can't answer those questions, I have to call to the friends, as you know, like in the TV programs and maybe Juha can then take the lead on those. But as you know, during the journey, we are quite happy with the events and the numbers and the results, the achievements altogether we have renewed with a strong hand the portfolio, as I said. And as I started, the main message is that we have, at the moment, quite a nice portfolio of a combination of media marketplaces and services. And as I said, the service and marketplace part is the growing part -- and we are mitigating the decline of print media with the nice organic growth of Digital Media, as Juha and Tiina told you before. So all are all set nicely. In addition to a -- I would say, thorough transformation of print business and organic growth, we have done quite a lot of different kind of transactions as you already know. From 2018 until today, we have spent more than EUR 335 million in new businesses. I might say, fully digital businesses. As you can see from the upper side of the graph here, and divested print businesses of which the biggest ones, of course, were the regional and local newspapers that we sold to Sanoma and other publishers in Finland. So the net investment during this period has been over EUR 200 million. Since my start as CEO, meaning 2005, we have made more than 70 transactions, investments and divestments giving you a picture of the high intensity of renewing or refining the portfolio, and we might expect that will continue. On the other hand, we don't have much to divest. So we are -- we have our eyes more on the acquisition side. As said, a nice balanced portfolio the blue graph here are the current operations. So if you take out of the gray part of those, which are the discontinued operations, we have had quite a nice bounce back in revenues and in profitability after the COVID-19. So the run rate of revenues at the moment, EUR 308 million, of which half -- around half are coming from marketplaces and the other half from media and services. And because of the good revenue growth and development we have had and witnessed a nice growth of EBIT as well from 2022, EUR 45 million to the run rate of more than EUR 70 million. We are closing to the target level of 25% of EBIT that we have set up. On the right side of this slide, you can see the cost split between different functions. Quite an interesting one here is that like before when we published a bunch of newspapers, the production and logistics costs were around 40% of the costs and in a media business, like close to 50%. And nowadays, the price increases that we just talked about doesn't play that vital role or part of the cost development of ours having only 9% share of the cost. But on the other hand, this kind of company is closing to a tech company, more or less, our technology and development costs as you have at we said before, they are remarkable in this context. So we are developing the businesses on tech side heavily and putting a lot of money on that. And as mentioned before, in all the presentation and also in my start, we have quite an intensive OpEx going on for the tech development at the moment. So that has to be reminded again. But on the other hand, we are waiting for those investments to be fruitful in the future and coming years as well. Of course, having done this kind of major investments before, like we did after the financial crisis, we invested EUR 140 million to our international businesses and our printing plant at that time. We took quite a lot of debt. We did that again after having digested the loan and the debt we invested again to 2015 to [indiscernible] and then, of course, the major investment to Nettix, 2020. And due to this, the balance sheet has had this kind of fluctuation and been in a different position during different times. But we have been carefully taking care, of course, our ability to pay the debt and to pay the dividends and invest if needed and wanted. At the moment, our net debt level is decreasing as expected or even as a little bit faster than we planned because of the unusually or better-than-expected cash flow that we have better-than-expected results -- our cash conversion rate is really high. And as you can see from the figures, the balance sheet is becoming really, really healthy quite fast. So in a couple of years, we are, again, in a net debt -- 0 net debt position for major investments. Having said that, the cash flow being good. The run rate on the right side of the slide, EUR 86 million, this year, this means that having the current idea of increasing dividends and the ability of paying the debt back. We have around EUR 30 million, EUR 40 million annually for new investments. And after 2, 3 years, we are in a position for new bigger steps again. Our long-term financial targets are here. As I said before, we aim at revenue growth above 5%. Of course, we have had quite a good period, the bounce back from COVID-19 and the investments that we did to Nettix operations. But on a yearly basis, in long term, we think that the revenue growth of above 5% with the profitability above 25% is quite good for the shareholders. We try to keep the net debt level under EUR 2.5 billion. That is quite a healthy level and situation for us. So that was Juha's presentation. Hopefully, I managed Okay. And if you have any questions, then don't hesitate to ask I try to...

Yes. Now we are a bit ahead of schedule, so we can maybe have also overall questions. Yes, Petri, go.

So you mentioned the heavy OpEx and we've talked long about the development. Can you talk about how normal is the current level? Do you have to sustain this current level going forward in order to stay competitive.

It's bigger than usual. As you might remember, our normal annual level of OpEx is about EUR 5 million. And at the moment, the run rate is about EUR 10 million. And that comes from the consumer side of this OviPro,the Housing premises renewal and the same from the cars from the B2B sector as well and from the recruitment side carrier as well. So in every segment, we have more than usual things going on to prepare for the future to go into the advanced digital platforms. So more than usual we have at the moment. So we are -- hope to come back later. And on this run rate, we will have more depreciations in coming years, a little bit more than we used to have. And that's, of course, stress a little bit the EBIT, but the EBITDA growth will be quite good.

Then thinking about M&A. And you said in a few years, you would have room for bigger acquisitions. What are the areas that you'd be looking into?

You mean geographic areas or business areas?

Both.

I think maybe the guys here try to -- to give you some ideas. So the focus areas of ours are houses and premises, cars, career in broad sense and business-to-business sector. So we are interested in growing in all those areas.

Two questions. Firstly, starting from digital investment level, and I'm talking about the operating costs you're having. Is the level sort of currently enough? Or do you think there will be a need to step up as you will be increasingly sort of looking at the platform place. So are you able to sort of enter that market with current spending level?

The current level is enough, we are not lagging of ideas or plans, but human resources. So that's the problem. So we are not investing more. So there's a huge task to have all the brokers that we have all the initiatives in place rather than having new ones in place. But we have a line of new initiatives coming in future years and months.

And then second question regarding these digital platforms. I think competitive landscape might look a bit different going forward, you will be increasingly competing against the international giants that have much bigger sort of R&D budgets. What is your thinking there? That there is the risk that I mean you've been sort of competing locally, but increasingly, it's going to be like an international competition you will be faced with.

Yes. We have had the international competition for years. And we have been able to keep the market share or even increase it with the local touch with the local heart with the local approach. So we have a totally different approach than the international giants with the international touch and the technology. And so you're right, they are tough competitors. They have a lot of room for new investments. And so -- but we have the customer relationships and the long tradition. So we think that, that is quite a good setup. But you're right, you have to be careful you happy to be aware of the international competition. On the other hand, our markets are not that big so that the biggest players are not that interested to come to Finland or play here as they are for U.K. or Germany or those. So we have quite a good playground. The same applies to Central Eastern Europe. They are really small markets for the big players and for the investment. So that's somehow a good position that we have chosen.

This is a bit more personal question to you, Kai. If we look at the -- like the history of company that you have carried out a like very successful transformation when it comes to the digital revenues, and at the same time, tripling the company EBIT. And I think a lot of the CEOs would basically, I mean, think that this is a job well done and now I leave. So maybe the question is more to you that, I mean, what makes you like stick for the next 3 to 5 years, that what excites you? And what more there is, I mean, for you to accomplish?

I'm a young guy, as you can see, full of energy. And so somebody might think that, okay, it's time for him to go. But we have a very, very good team here. So we have had this kind of organizational learning target from the beginning. It's been really enjoyable to -- enjoying to see how the organization has developed during these turbulent times, and it's really rewarding to see that we have a fantastic management team. So I enjoy being here a lot and then as you heard, the plans that we have, we have fantastic plans. So there's plenty of room to develop. We have a good position from here from this standpoint and excellent plans. And I'm pretty confident that we can improve -- so still improve from this. According to the targets that we had, the long-term targets. So we can improve the revenues and the profitability. So plenty of room to develop. So that gives me running. And of course, the Board, of course. And the shareholders.

Yes. Any more questions? Yes?

Sanna Perälä from Nordea. I have two questions. First, you have been as you have been making your business more efficient. You have been divested quite a lot. Is there still any parts of your business that you might consider divesting at the moment?

Not really. As said, we don't have much print businesses that might be on the divesting list, but not really. But in the long run, also the digital businesses have to be able to show the capability to improve. So it means that we might need to reengineer the portfolio, the digital portfolio in the long run. You might need to focus on something. And that's actually what we have already done. So we have sold some assets, digital assets that we didn't think belonged into the portfolio and we then possibly not the right owner or developer of those businesses. So you have to be able to release if you are not the best one.

And then the second question would be regarding your long-term targets, the financial targets, how do you view them at the moment? And do you think they are reachable in the coming years as well?

Yes. Yes, they are reachable. We haven't not really reviewed them. Because of the current situation, it's quite difficult to estimate and forecast but what is going to really happen next year and how the world is going to develop. But I'm pretty sure that during next year, during -- before the next CMD, we will do that. And as I said, I'm pretty confident that we can have a nice development of the profitability in the future, which, on the other hand, or in other words is meaning that, we can keep the profitability level with the plans that we have at the moment, easily.

No questions online. If there are any other questions for Kai at this point, you can also use this moment for any questions to the business leaders of our segments or to Tiina about Alma Media Solutions, if there is something not answered yet.

I can actually -- if we have time, plenty of time. So there was the question of the differences between the media markets in Nordic countries. So I thought that one answer for the differences might be the demographics. I mean, like in Finland, the population is split all over the place in Finland. Not evenly, but more than in other countries, we have 35 regional newspapers and 150 or even 200 local newspapers and those in quite distant places. And that has kept the share of newspaper advertising quite high, even it has declined heavily, but it's quite high compared to other places. Like in Sweden, there is almost no population above [ Oxelaor ] or that set. So they are really, really -- no, they are animals and a lot of reindeers and those. But most of the people are living in the south. It's much more concentrated, and that's one reason for the difference. There are other reasons as well. So the income per inhabitant and others, but we haven't actually made that specific analysis. So in that sense.

Roles international the external...

Exactly. So we are lagging behind in the internationalization of the businesses and the companies compared to Sweden or Norway or especially in Denmark. So the composition is a little bit different. Any other questions? No. Now you have a very good chance to pose some new questions for the business leaders as well if you forgot something.

It's not any at this point. Maybe we move to the closing remarks then. All right. You can continue.

To summarize all that you heard all the presentations I took here only the main points, the main information, as said, good business mix, as said before. And now we are in a new situation where we try to leave the print to digital transformation a little bit aside and concentrate on these advanced platforms, including the media digital transformation in business-to-business side and in consumer side as well. So new digital revenues on that side. Alma carrier, the carrier United project is really, really important. So there are room for profitability improvement, but also plenty of room for new revenue sources and a really good plan for that. If we only have possibilities to invest abroad and continue the internationalization to new geographical areas, we will do that. At the moment, we are going in the Balkan area, as you know. Those are quite small markets, but growing. We have experienced this in small markets growing rapidly like Croatia. On consumer side, of course, very, very intensive development programs in cars and other vehicles and houses and premises as well. So we have a very intensive time at the moment with the new products, services and technology, especially where we put quite a lot of money and effort and time, management time at the moment, like for Kari's, most of the time comes to lead the new initiatives. And that will be really nice. There we will see quite a lot of new things coming up and new revenue sources. And then on B2B side, Juha told you about the development of digital subscription base and site that we have a nice growth, a good development, and that's really important for us. And other recurring revenues as well, including the digital data-based services for different kind of customer groups and that is going nicely. And last but not least, the balance sheet, the company is at the moment in a very healthy situation. So if the times become rough, we can stand that. So we are not in that sense, in a difficult situation with the financing or other aspects. It's good to continue with the strategy that we have decided and that the plans are in place. The organization is really healthy at the moment. So the overall feeling pulse in the organization is at a record high level, which is, of course, very good standpoint if the times get rough as we know. So the people feel more secure and comfortable in a company that is healthy compared to a totally different standpoint. So that's the closing remarks. We try to give you a broad view and even a detailed view in more sense of the coming strategy. And of course, during next year and coming years, we will follow our achievements closely in the interim reports and you have time and possibility to push a little bit how do we really go on with the strategy and what kind of results we get with the current investments. All right. Thank you. Thank you very much for your attention. It was really nice to be here with you and ask your questions as well.

Yes. Before we close, there was one question. Obviously, it's clearing up. So regarding the car segment, could you explain how is it possible that Finland has 800,000 car transactions per year, given that there are only 2.5 million cars in Finland. But the figure that we presented in Mr. Kivela's presentation that included 800,000 included the motorbikes and the heavy machinery and caravans all vehicles. So that explains the higher figure.

Yes, in our services, yes. All the vehicles in our services, most of them are, of course, cars. But yes.

Yes, Okay.

It means that we have quite a high market share in the car industry. And of course, as Kari explained to you, why do we believe that the new initiatives that we have, like the auction service will be successful it's because of the customer base and the high intensity of the service used in our platform. So if we bring new add-on services, adjacent services into the current platform, which is market leader. It's much more easier, we think, to have to start the businesses than from scratch without the customers on a stand-alone basis. That's our idea. So the synergy is the key. All right. So thank you very much all for you here in our premises -- at our premises and also our viewers and visitors online. Maybe we'll see you Q4 interim presentation that will be on our gates here. Very good. Thank you very much. Have a nice rest of the week and rest of the year.