Nordic Morning business area 2017

Nordic Morning business area comprises: Nordic Morning Finland Oy in Finland and Nordic Morning Sweden AB, Ottoboni Sweden AB, Nordic Morning Data-Driven Content AB, Mods Graphic Studio AB and CountQuest Interactive AB in Sweden.

The business area’s net revenue was EUR 53.0 million (EUR 60.5 million). In Finland, net revenue increased from EUR 9.7 million to EUR 11.1 million. In Sweden, net revenue was weighed down by the closure of Nordic Morning Data-Driven Content AB’s offices in Malmö and Gothenburg.

The business area’s operating loss was EUR -2.9 million (EUR -14.1 million). This marked a significant improvement in the result, as the Group recognised a write-down of goodwill amounting to EUR 10.0 million in the previous year. The result was weighed down by EUR 2.2 million in restructuring costs arising from the discontinuation of Nordic Morning Data-Driven Content AB’s operations in Malmö and Gothenburg. Operating profit excluding non-recurring items was EUR -0.4 million (EUR -1.4 million). 

Net revenue (M€) 53.0 60.5
Operating profit/loss (M€) -2.9 -14.1
Employees (average) 307 374

Nordic Morning creates digital experiences that transform businesses. We drive change for the largest enterprises and brands in the Nordics by building and running their Digital Growth Engines. Our ways of working help companies become truly customer-centric by combining our capabilities within business transformation, service design, technology, data-driven marketing and content.

The business area was formed in 2017 by merging five agencies into one. CountQuest, KliKKi, Seed, Ottoboni and Sitrus came together to form Nordic Morning - a data-driven marketing and service design business.

Year 2017

The world is changing. Driven by digital transformation, industries and society are undergoing widespread transformation. This digitalization provides consumers with more information and choice, and increases the pressure on enterprises to increase their understanding and expectations of end users. Nordic Morning is perfectly positioned to create this understanding, and tailor digital solutions that cater to the needs and expectations of the end user.

2017 has been a year of amazing transformation and high-speed. We started the year by developing the position, strategy and offering of the joint agencies, and have gone on to swiftly implement this strategy. Highlights have included the formation of a Marketing & Business Transformation team whom offer services of driving change processes in large enterprises, the launch of the Nordic Morning brand and offering on September 18, and the subsequent move to a new office premises in Helsinki, Finland.

The demand for our services is growing. Transformation, Data and Marketing Technology solutions, Data Driven Content and Service Design are getting a lot of interest from our clients and the industry itself.

As a part of our own change journey, internal processes and ways of working have been developed to support our strategy. In many ways, harmonization has been the recurring theme throughout the year.

Outlook for 2018

The market we are in, the market of change, will continue to grow in 2018. The steps we’ve taken in 2017 to position Nordic Morning in this market will continue to benefit us in 2018.

The year will include continued efforts to provide supreme customer advice in digitalization from a marketing perspective. To continue to sharpen our delivery, we will look at refining our delivery process and harmonizing any organizational issues, all in order to further position the business for profitable growth.

Edita Publishing business area 2017

Edita Publishing business area comprises of Edita Publishing Oy in Finland.

The business area’s net revenue was EUR 14.9 million (EUR 13.0 million). Net revenue was particularly boosted by the strong growth of advertising sales and the positive developments in orders for learning materials.

The business area’s operating profit was EUR 4.5 million (EUR 2.4 million). The operating profit was particularly boosted by the strong growth of advertising sales and the positive developments in orders for learning materials.

Net revenue (M€) 14.9 13.0
Operating profit/loss (M€) 4.5 2.4
Employees (average) 78 77

The world is changing fast due to digital transformation. As a result, everyone needs to regularly update and refresh their knowledge. Life-long learning is a growing need in society as a whole. Edita Publishing is a knowledge company that provides smart learning and curated information services. We serve a wide range of customers in public, private and third sector organizations. Edita Publishing has a tight partnership and collaboration with the educational, legal and public sector.

Year 2017

The year 2017 has been very good for Edita Publishing. The major theme for 2017 has been the strategy work and process for Nordic Morning Group. This work is on-going. Part of the work is to increase the customer-centricity to influence everything we do and create improved customer experiences.

The Finnish educational sector is transforming. The curriculum in basic education has been renewed in 2014 and the migration will be done gradually during 2017 – 2019. In addition to the renewal of learning materials, the cultural change in schools has been supported by providing competence development programs for the educational personnel.

During the fiscal year, renewal and updating of the most significant digital services has started and the work will continue during 2018. Edita Publishing provides the most comprehensive legal information service - Edilex - and other digital legal services as well, such as, Credita service, that focuses on public tendering.

Edita Publishing is a partner for sharing official information. In 2017, there has been an increased demand for publishing the announcements of official information.

The year 2017 was the 100th year of Finland’s independency. Edita Publishing produced numerous historical web sites and books to celebrate this important date.

Outlook for 2018

As stated, the world is changing fast due to digital transformation. Life-long Learning is a growing need in society as a whole.

In Finland there will be a large reform of the vocational training that will change the whole education system. In addition, the digitalization in schools not only in Finland, but elsewhere, will also increase dramatically.

The year 2018 will also be a starting point for internalization of Edita Publishing. The changes taking place worldwide will create new opportunities for using Finnish pedagogy internationally. We are planning to initiate our first pilot project during Q2 and Q3. In general, the development forecast is optimistic.

Edita Prima Business Area 2017

Edita Prima business area comprises Edita Prima Oy in Finland.

The business area’s net revenue was EUR 26.7 million (EUR 31.0 million). Net revenue in Finland increased year-on-year. Net revenue declined in Sweden, where Edita Bobergs AB sold its printing business to the Swedish printing company Åtta.45 Tryckeri AB in September.

The business area’s operating profit was EUR 2.9 million (EUR 0.1 million). The result includes EUR 1.7 million (EUR 0.4 million) in net non-recurring items, mostly related to gains on the disposal of fixed assets and business operations. The result of the business area’s operations in Finland showed a substantial profit and a significant increase from the previous year. In Sweden, the operating profit excluding non-recurring items showed a loss, but the result was a substantial improvement from the previous year, as the divested businesses were sold during 2017.

Net revenue (M€) 26.7 31.0
Operating profit/loss (M€) 2.9 0.1
Employees (average) 122 158

Digitalization is creating new demands and requirements on companies and how they communicate with their existing customers. Increasingly, consumers expect truly personalized experiences and effortless dialogue whenever they engage with a brand. Simultaneously marketers are striving to respond to increased competition. The changes that companies are facing nowadays has generated more complexity than simplicity in many cases.

Edita Prima provides clear processes and automation for customer communication and sales support operations. We help our clients to eliminate inefficiencies and to increase customer delight.

Year 2017

In line with the overall Nordic Morning Group strategy, Edita Prima became one business area during 2017. The new strategy was created by co-working within the full Group. The strategy development process is still ongoing.

During 2017, Edita Prima captured growth in strategically important services based on data processing and high levels of automation. This helped us to exceed the full year turnover targets.

We noted the industry has had growing interest in new ways of executing and delivering marketing and communication. Efficiency and customer experience are recurring requirements that our clients are demanding. During 2017 we delivered several challenging assignments with redesigned processes and optimized workflow.

In recent years we have reduced the risks and recurring costs in the traditional print area. In 2017 we continued to improve our operational efficiency. Last year was an important milestone which proved that our chosen strategy has worked well. Growth came from new services. At the same time, we achieved low fixed cost level. Simultaneously, cost structure was balanced and well managed. In summary, this resulted in profitability.

In the Swedish market, the Nordic Morning Group sold the associated company Edita Bobergs Ab in August 2017. After this divestment, the remaining business area consists of Edita Prima offering services in the Finnish market.

Outlook for 2018

The marketplace continues to change rapidly. The number of traditional players is decreasing due to consolidation and we expect more liquidations to take place during 2018. We expect that new players, such as technology providers or consultancy companies, to enter into the arena of marketing and communication.

We will continue to strengthen our offering in order to reposition Edita Prima in a growing market. We will focus our efforts on people and competence development as it is an important part of our own change journey. 2018 will also require implementing the new strategy and further developing fundaments for sustainable growth.

Corporate governance principles

Board of Directors 31.12.2017