Good afternoon, ladies and gentlemen, welcome to Alma Media's Capital Markets Day 2022. My name is Elina Kukkonen, I'm responsible of the communications and brand here in Alma. We have, it was a year ago, we held our last CMD a lot has happened since. We have taken solid steps, progressing and taking forward our media services and digital marketplaces, 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. We also have our Senior Vice President of Alma Media Solutions here today. She will present the progress of our media sector and our media solutions.
Alma is a strong media company today, with the leading national 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. This is purely for practical reasons that we can fit the whole story in one afternoon. If we look at the agenda and the presentations, upcoming presentations, we have one deviation to the program today. We will begin with our CEO and President, Mr. Kai Telanne, opening and kicking off the afternoon, and followed by our Senior Vice President, Vesa-Pekka Kirsi from Alma Career.
We have a short break. Then we continue with Alma Consumer, with Kari Kivelä, Senior Vice President for Alma Consumer. Then Ms. Tiina Kurki from Alma Media Solutions about their digital marketing. We have a really short break. Then we will dive into Alma Talent with the lead of Juha-Petri Loimuvuori, Senior Vice President of Alma Talent. The deviation for today's agenda seen here is that unfortunately our CFO, Mr. Juha Nuutinen fell ill, and he is not able to attend today. Our CEO, Mr. Kai Telanne, will fill in Juha Nuutinen today, and he will do his best in this position. We move to the closing remarks. In a nutshell, this is the agenda for today.
We aim to finish at 4:30 P.M. this afternoon. 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. We also welcome all the questions after each presentation this time. 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. Please use the online chat function for presenting online questions. I think with this short introduction, we are ready and set to start. I welcome you all here at Alma premises and also you following us online.
Hope you can keep up with us for the next three hours. 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 then thank you being online following us. Please, stage is yours, Kai.
Thank you, Elina. Good afternoon, everybody. It's great to have you here and online as well. It's time to have a recap of the achievements that we have had and delivered since the last CMD and 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 small initiatives of digital businesses and revenues of EUR 70 million. 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 businesses are digital businesses, and we have less than EUR 50 million of healthy print businesses, mainly newspapers.
It's been a 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. We have decided to concentrate on Nordic countries and Central and Eastern Europe. We are number one in Central and Eastern Europe recruiting business. We are present in 12 countries at the moment. We are number one in housing, premises, cars, different kind of 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, that defines the biggest news media, digital news media in Finland and with that, the biggest news advertising media in Finland as well. At the moment, we have half of the revenues, about half of the revenues 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 fivefold it 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 sixfold it 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 marketplaces companies in Europe and also compared to the HEX index. 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% revenues only nowadays from print sources. The big question is, of course, that how to go on from this. That we have decided to develop advanced digital platforms.
Today, we will explain you 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. From now on, we will continue, of course, that, but we are 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 three main aspects.
We will continue, of course, to transform the print that we still have, the 20%. 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 marketplaces to advanced digital platforms. 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 number one to grow in digital. The growth comes from digital. We all know that the print businesses are still declining, we accept that to happen, and we accept that. We will grow in digital.
We have had quite a nice growth during last five, 10 years. Even this year, we have had a nice organic growth that you can see from the figures. We will come later on that. 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. Thirdly, we will continue internationalizing the business with the marketplace, especially in the recruitment business. Vesa-Pekka Kirsi 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 and 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. Synergy is the key here. We have a high reach of the audience in Finland, high reach in Central and Eastern Europe of 80 million visitors, customers, in the recruitment businesses. We are leading player in national consumer and financial media and the biggest advertising network. 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 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. We are moving from that more on to a transactional businesses like recruitment site from search and apply, signing a contract, building your competencies, managing your career, which is quite a lot of broader service setup. 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.
We are offering to our customers, digital touchpoints 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 these kind of services of our customers, they are in high consideration purchases have grown. The people, the customers, the users, they want to have more and more developed services in the digital platforms than before. For the digital business solution, the same applies. We are helping our business-to-business partners to better serve end customers throughout the purchase, full purchase process. 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 four points here, four 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. It's good to have a 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 all know, in Finland, this kind of long-term structural challenges that has to be resolved or solved somehow, remains to be seen. Is this a severe development in our case? Well, we know that the GDPs will decline, or the growth will slow down. The current forecast for the unemployment rates, 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. I would say that this is quite neutral development from that perspective.
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. The consumer behavior, of course, it is changing with the developing digital technology. The change is permanent. Expectations toward easy, time-saving and safe digital experiences are growing. Of course, corporate responsibilities is one of the key elements. I will come later to that. Increase in regulation, it's also something we have to take into account. Of course, this geopolitical turbulence, unfortunately, happening.
We don't have businesses in Russia or Ukraine, we don't have direct effects from that. Otherwise, that will affect on our businesses through the underlying markets. Not that difficult environment from our perspective, but some negative effects of course. Finally, a few notes from the sustainability. We take sustainability carefully. We are very keen on developing sustainable businesses. We are one of the early adapters 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 halved our CO2 emissions in six years. Now we have set up a new target to half the current emissions during next eight years until 2030. All the Alma Media are incentivized with ESG targets. We have a lot of developing 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. We are coming into, of course, environmental targets are important, but also the social responsibility and good governance issues are important for us.
Privacy issues, of course, the breaches are one of the key targets, not to have those. That means zero severe breaches, which is our target that we are well in line with the target at the moment. 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.
Very good.
Cause Kai will be taking the last, session also.
All right.
Okay.
Any questions so far?
I've got to stretch it in.
Online?
No.
No?
Please, here.
Okay.
Now we have. Pia Rosqvist-Heinsalmi is 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.
Yes. Maybe we can return to this—
Yeah, we can return to this.
Question later when you hear the presentations.
We are talking about EUR millions or EUR tens of millions, of course.
Exactly.
We have, quite, heavy investments at the moment in those areas. We are, of course, expecting, interesting revenues.
Exactly.
As well.
Yes. Other question also from Pia, that 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 ePrivacy issues—
Yes.
Are the main issues. The legislation and the development of the legislation it's partly unclear we have to follow carefully what kind of initiatives are coming up. broadly, would say that the privacy c ookie regulation are the most important ones.
Yes. Also the obligations coming from the corporate sustainable—
Okay. That's—
Reporting directive from the E.U.
Of course. Yeah.
That's still—
That's right.
In process.
Yeah.
Okay.
All right.
Thank you, Kai.
Thank you.
Now we move on to Alma Career. I welcome Senior Vice President of Alma Career, Mr. Vesa- Pekka Kirsi. He will tell the plans and the progress at the moment for building the most relevant recruitment partner in Central and Eastern Europe. Welcome, Vesa or Vesa- Pekka.
Thank you, Elina. Good afternoon, everyone. For the next 30 minutes, I'll take you to the Alma Career world and hope to basically speak to you of three topics. Number one, how is our business doing this year, what's gonna be the end result? Number two, what's the outlook for the year to come? Number three, looking a bit longer term, what are the key strategic thinking and actions that we are doing to push the envelope further and take receive the further growth? 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 2022. 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 in sales, in revenue, achieving the highest ever EBIT with the best ever EBIT margin. When it comes to key indicators of our business, all of those are in good and healthy development. The growth that we are making this year is basically, it's 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 two baskets in our business portfolio are growing. This year, our services business will again be around 10% of our full business. The marketplace business, they're usually called 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 and Herzegovina, also corporate education business, which we today run in Czech Republic, Slovakia, and Poland, which was opened this year. As a key outcome for the year, we're looking to have a very successful and a great year of 2022 following already a growth that actually started in May 2020, in the middle of the pandemic. April 2020 was the darkest hour in the recruitment business with everything was halted. Nobody knew what's gonna happen. Already in May, companies started to reinvest in the personnel and reinvest in recruitment.
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 three, six or 12-month packages. These are sales today, but they are recognized as revenue with a delay in three, six 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. 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 nine months, and we will basically overdo last year's figures. 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. Business success built on service success in all of these fronts. What about next year and what's the outlook of that?
Actually, Kai already touched some of those points that are gonna 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 2023 will be a hard year for GDP growth in all of our market areas.
You see 0%-1% growth at the moment, estimated for the Alma Career region and countries, but expected to really start picking up again in 2024 and normalizing the situation, turning the region to growth. Inflation-wise, the story is the same. The year 2024 is the normal year back to normal, 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. From that high level, already halving it down to 2023, pushing it down to normal level 2024. That's the expectation. Tough 2023, already normalizing 2024, and that's how it looks at the moment. For us, the most interesting is the unemployment figure. What's happening in unemployment? Why?
Unemployment number has a great dynamics into our business. Sorry. If unemployment is high, there's obviously a lot of workforce free looking for jobs, but companies are not so much opening positions. 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. 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. The lower the unemployment, better for us in terms of business.
If you take a look at the year 2022 numbers of unemployment, 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 the European Union, if not the lowest, keeps on staying that low. If you take a look on the numbers year on 2023 and 2024, the unemployment, and this comes from multiple statisticians again, is expected to stay in the same level than 2022. Kai was hinting a little bit already into this, and this is from the macroeconomic point of view, is 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 pre-sales, discussion with the customers, movement in our marketplaces indicate the same. From our own indicators coupled with the market indicators, we still expect the year 2023 to be a very lucrative and interesting business year for Alma Career in the recruitment business in Finland and in the region of CEE. That was a point number two and number one and two. Now moving on to strategy and longer term thinking. How do we further strengthen what we have today and 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. 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 older generations leaving the job market. There's increasingly less and less people available for jobs. Technology is helping a bit. Robotics, AI is taking some parts of the job market. At the same time, increasing role of technology is 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 that already exists for technically capable people.
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 growing social awareness or the environmental problems. All of these have their effect on employer market as employment market as well. Other phenomena, younger generations coming into the job business are no longer the same than the older ones. Individual choices, willing to be able to have multiple different avenues for their life. At the same time, knowing that once they get out of university, schools, what they actually were trained doesn't apply in the job market the next year's time. 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 pandemic, opening up opportunities for companies as well as job seekers, pushing freelance work, pushing gig work, and diversity and responsibility. 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, at the same time, they are challenges. You are actually competing against different kinds of companies, even global companies. How to 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?
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. In the next two 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 via acquisitions over the past 10 to 15 years.
These acquired companies were locally 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. We were a great, quite successful group operating this way until 2019 and 2020. 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. Basically, for the past year, while doing a great business year, we also have been transforming our operation and the transformation, what we call AlmaCareer 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 three following things. We have been the market leader. It's our aim to be the market leader for years to come. 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. This to enable us to continue faster than the market, while at the same time improving our operative cohesion and effectiveness.
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 multi-channel 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, 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 six must-win battles or key project, whichever you want to call them, that we are pushing forward as we speak. I will start from number six, organic growth. There's a lot to take in employment market and in our existing markets.
The job for job boards is not done and the market is ready for growth. This growth can be taken in a very, you can say, way, 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 one of the core areas of growth. Point 1. 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 one market area, but we are not yet implementing it into another. Point 2.
We've already, over the years, 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 are already making revenue this year. We keep on growing this opportunity, maximizing that potential to companies interested in the CEE region, but having their residence outside of our area. I also mentioned earlier that the education business, corporate education has been an increasing interesting area for us. We see education becoming a second leg to Alma Career in addition to recruiting.
Nowadays, we are present in three markets, in Czech Republic, Slovakia, and Poland. Poland started this year. We are then in an infancy. 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, number one, two, three, and six, 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, number four, 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.
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's actually a good time for questions and comments.
You know, we'll hand over the microphone. Thank you.
Yes, Maria Wikström from SEB. Very good presentation. I have a few things I wanted to clarify regarding the growth strategy. First of all, I think you talked about, I mean, gaining market share. I'm interesting to hear that which of the countries you currently operate you see that there is opportunities to grow the market share. You were talking about possible entering into new countries. 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 to better to do their work. Then there are markets where we are competing with close competitors like the Baltic States of Estonia, Latvia, and Lithuania. There, we are having a good fight with our friends on who's taking whose market share. Obviously, in these markets, we aim to gain market in the years to come.
Regarding new geographies, as Kai Telanne 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 one geography and expand that to other ex-geographies inside Alma Career. A good example of such would be Seduo, the education platform. Now in three countries within Alma Career, expectation is to take that almost as wide as Alma Career in the new years. The other example is offer 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 has come the most.
France and Spain, also interesting. It looks to us that Germany and U.K. have most interest into the region, especially Czech, Slovak, Poland.
If I may just have one 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.
Thank you. The education platform, the name of it is Seduo that we have today. The target market are small and medium-sized companies and local language training. Our content in our platform are always locally developed by locally acknowledged 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. That's the niche.
Okay. Sami Sarkamies, Danske Bank. 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 gonna be about protecting the results achieved this year?
In Alma Career, we aim to grow year after year. This is a growth business. That's exactly our aim. Okay, well, 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. Some signs of that we see. Small companies are not our key market group. Our key target group is mid-size and especially large companies. Their strategy usually in this kind of situation is instead of buying a year's package, they buy a half a year. Once the situation again is more visible, another. 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, you know, if possibly improving that.
Okay, thanks. 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? Can you elaborate on the kind of margin difference between services and marketplaces? Yeah.
We're pushing every possible business opportunity with the max. 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. Service business today runs around 30 plus percentage points as profitability. If that grows, obvious that there's a challenge for overall profitability, we aim to be pushing still both of these businesses forward.
Okay. Thanks.
Seems that there is no questions online at the moment. Any more questions from here? All clear at this point. One more.
Maybe, but I mean, given that the economic outlook is not that clear for next year, 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, 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 are prepared to do some certain investments next year. We know that those investments will be so that we kind of pick our courses with those. We have some OpEx costs that we are already able to scale down. 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. In us to be flexible with the cost, we've shown that in 2020 when the pandemic hit, our capabilities of fine-tuning our cost accordingly was quick, and we're 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 in recruitments or other processes when they should start. The capacity of us scaling down in cost rapidly is still there as it was in 2020. Anything else? Anything in online?
No. No on, no online at the moment. You have. Thank you.
Petri Aho from Inderes. Just thinking about Seduo, and I think you've talked about it for a few years now. To me, it seemed you've had a bit of a slower start in the beginning, but seems you've get it going in some of the countries currently. Can you maybe share some lessons learned from the past few years with Seduo and have you done some changes in your go-to-market strategy and?
Yeah. First of all, as I mentioned, the market what we've been trying to, you know, 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 we drive that most efficiently? In that area, those choices have been made. We know our target market being the medium-sized companies, and to low level of the large companies. Content-wise, we know that our capacity to compete is with locally developed content, in comparison with an English-speaking content for all of 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. In that sense, for our operations in Czech and Slovak, they're 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 one key components for scalability of the business. The technology itself scales from country to country with no limits in itself, and there, the investment is one.
When it comes to content, that investments will have to be country-specific, and to be very efficient in that content creation, and at the same time renewable and interesting, I think that's gonna be a key component in the scale, scaling the business.
Okay. Thank you. Good afternoon, and welcome back to follow Alma Media's Capital Market Day, Markets Day 2022. Now we will move forward to the Alma Consumer segment, and our Senior Vice President, Mr. Kari Kivelä, will present the Alma Consumer progress. We've gone far now with the marketplaces and services turning to more transactional, towards more transactional platforms. Please, Kari, the stage is yours.
Thank you, Elina. 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 pictures about Alma Consumer today, operational environment, what it looks like for housing, for cars, and then for media. Finally, some words about the role and growth strategy of our news media. The 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. 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.
While this is the current situation is logical to ask for or question what is the growth strategy in future. If we start from media, the strategies ensure the high reach 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. That's good example, which has helped us to gain a new reach and then new customers and development deepness of the usage of the media. Also, the strategy in media is strengthen new revenue streams like digital subscriptions and marketing services.
If you look at marketplaces, we focus firstly on big verticals which operates in large addressable markets. As mentioned already before, this is a key point in our strategy, to strengthen 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, which compares and helps consumers to find renovation workers and companies. The renovation market of Finnish household is two point half million euros. It's twice as big as the whole advertising market in Finland. 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 effects market share and revenues. A concrete example is how we have started to combine and collect data from marketplaces and media. A concrete example is, for example, car advertising, where we have gained 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 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 is, it is important to understand that the number of listed apartments or listed vehicles does not correlate the trade numbers, the decreasing data numbers of, for example, for apartments. Overall, we believe that the weak economy will affect, if it affects more the advertising income. What comes to advertising in income, it's realistic to say that the overall market will suffer. 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 markets. Why is that?
For example, it's more measurable, it's more scalable, the production costs are lighter. That's a valuable asset in tough times. 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. Then if you look more concrete, digital contracts or relevant data interfaces, or online payments, elements which or examples how they make this process more efficient. What comes to marketplaces, they have a good starting point with largest selection, largest offers to be a 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 a new partnerships, and so on. 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 big picture of this development. Okay. We can go further on and go more concrete to our cars and mobility solutions. First it's worth 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 their used cars or other vehicles.
If you look above, we announced today little 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 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 the 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 million in our vehicle verticals. That is the starting point that has encouraged us to develop a solution called 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. All told, this solution is in kind of testing period and in improvement period. This morning, there were 800 consumers using this services already.
Our earnings losses logic at the moment based on commissions of loans needed for financing those results or money transfer actions, where money will move from consumers to consumer. What is interesting, but not so surprising is that typical users, early adapters, are people under 30 or under 40, digitally oriented consumers, which is, of course, a promising sign that process like Helpot Kaupat would be a standard of tomorrow. Another example is that model which we informed earlier today, a digital used car auction service which be launched in the first quarter of next year. This service will make a lot easier to consumer to get rid of their used cars, make the process more efficient.
The important growth driver is that so-called trade-in model with used cars is gradually breaking down because some of the manufacturers don't take the used cars while selling a new cars. Tesla is a good example. 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. This is a good example where a large vertical marketplace has a very good competitive advantage because it is kind of a starting point, preferred partner to consumers to move this kind of new service.
If you look at the housing segment, housing unit, real estate unit, it is overall a very similar process in here. We are also building several services for better trade processes, operate on multiple business models like in cars and mobility. Besides listing services, 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 market in the beginning of next year. No, next 2024. 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 pre-sale planning by property valuation, description of the property, and so on, make the whole process more digital. It will help the real agents with buyer management, source buyers, qualify them, and so on. 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 Koman has told before, brings half of the revenues of consumers today, and it's important with this synergy also to our marketplaces.
I n 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, uh, if we remind that the first 25 years, Digitaalinen Iltalehti was, uh, dependent on advertising income, uh, even if they grow, the growth of them was, was very good-So we started eighteen months ago digital subscription service, which has started quite well. Later on, we come that. So— but the role is also as, 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 in decreasing trend. 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. We can now summarize the story and consumer views. We have told that there is a evolution of marketplaces toward transactional advanced 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, good selection of those marketplaces which help us to move those transactional services. We have covered also the 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. We have also covered the coming weaker period, highlighted that the listings volumes, listings incomes doesn't correlate so much at least to weaker economy, but it might be a different story in advertising. Tiina Kurki will come to that. There is clearly time for questions and comments, if there are any.
Okay. Sami Sarkamies, 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 accept that the volume of used cars is a bit same than 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 we are expecting or targeting a little better revenues than this year what comes to listing incomes from car marketplaces. What comes to housing, I tried to open the logic that we see clear signs and evidence that the market will go down. The listings volume doesn't correlate that. We have seen already months like September and October when the trade volumes has gone down. Our listings volume has been stable or even grown because there are more offers from real estate agents and so on.
Those are pretty stable, those revenues. If we manage to grow our markets, there are possibilities to even to grow.
Okay. Thanks.
Yes. Maria Wikström from SEB. Just curious as, I mean, you announced today that you will be launching this, like, consumer to business car transaction. I don't know how do you call it?
Auction.
Auction service. Then, was it two weeks ago we learned from Schibsted that they went for launching a service where you have like longer car rentals. So I'm just curious that did you ever consider this kind of 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 models of cars, they are changing all the time. I guess you mean some kind of subscription model of the cars, bigger rental times, year or so on. That's definitely one model. At the moment, we prefer this auction model and try to make it as good as possible. Let's see what happens. We are investigating several transactional models with marketplaces.
If you could also clarify how you plan to make the revenues out of this model. I assume that it's coming from the corporates rather than the con—
Yeah.
Consumers.
Yeah. Yeah, yeah. In this auction model. Yes.
Is that percentage of the transaction value or?
Yeah. Percentage of the price of the car.
Then, finally on that point as well, because it's not completely new, we already have these kind of services available in Finland. 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?
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 buy cars annually. When we add this feature that you can also offer your car not only to other consumers but also to professional buyers, we have good advantage with this access to consumers. We can make it co-cost efficiency also, the whole marketing, because we have those consumers and sellers already.
Okay. Any other questions? Here.
It's, David Sandström from DNB. Are you going to integrate all these different car services to Nettiauto or will they be completely separated in, towards the consumer?
It's a good question. We have to utilize the access to consumers by Nettiauto, also it should operate independently in some part ways. It should have a own brand, for example. It will have a own brand.
Okay. There is also a question from online, Markus Böttcher from Arejärvi Asset Management, I assume, also about the car auction model. Regarding the automotive segment, what is the expected take rates for those C2B transactions? Will it have a different pricing model than B2C or C2C?
Yes, it'll have a different price, pricing model, but we are expecting, as told before, the whole market grow. Best expectation, maybe it's conservative, but 6% of cars sold by consumers are using auction model next year. Maybe it's higher. we are gaining remarkable market share right in the, in the first year.
Okay. No more questions online. Is there any other questions from Alma house? Okay. Thank you, Kari.
Thank you.
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. 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 market as an opportunity for growth in digital still. Finally, I will summarize this up. 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. 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. The red line is TV advertising, and it grew until 2014 and started to decline after that and has speeded up in last years. 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 surpassed television, actually 2014, and newspaper a little bit later than in global market overall, 2016. In the left side, you see the figures from this year for the first nine months in Finnish advertising market when talking about the Finnish media players. 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. On those days during financial crisis, during COVID, and so on, when the times are not so good, the print advertising will speed up its decline. It declined this year so far 5% local and free printed papers, almost 9%, and magazines almost 8%.
As you see, the television has come down 2% and online is growing nicely, still, 7%. Out-of-home, especially digital out-of-home, has grown this year as well. They came very heavily down during the COVID, obviously. Advertising spend difference in Nordic countries. The digital advertising has been the largest media channel in the Nordics since 2013. During the first half of this year, the internet amount over half of total ad spend in all Nordic markets. 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%-8%, and Finland it's still 14%.
We assume that there is room that it will decline and there's room for digital to grow. The other which I want to point out is the search market. It's already in Norway almost 24%, its share in Denmark 35%, in Sweden 42%. Yet it's in Finland still 18%. When there's room to grow for Google, for search engine market, search engine optimization, we wanna be a part of this ecosystem as well, and that is why we acquired Netello last year. I will come back to that later. 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.
We started with brand specific, or we were in brand specific sales 2013. 2014, we built up our Alma digital network, ever since we have been building Alma Media Solutions. There have been integrations like Talentum, Alma Regional Media Sales, Media Partner Sales, Nettix acquisition, Netello, and also divestments like Alma Regional Media Sales, of course, when there was a divestment of Alma Media regional news media business 2020. We wanna have a versatile digital advertising products for our customers in order to serve them in the best possible ways and to take market share. We built up a really good and talented content marketing and production team. We've taken positioning on SME market.
This year we have concentrated on digital customer experience development. We wanna take a stronger position 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 wanna see what's happening over there. Amazon is growing, and so on. We follow up these new forms. 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 small and medium enterprises are in focus. Our strategy is to increase digital advertising among those small and medium enterprises, especially who are still using print advertising.
Our position is quite unique and good since Alma's print advertising share is only 13% of our whole portfolio. Almost 90% is digital already. Second, our strategy is to grow in content marketing, and we wanna 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. Third, we are a strong player in programmatic advertising, creating automated processes. However, this area is also changing due to evolving cookieless worlds and party consentless world. Users are not willing to give their consent to use personal data unless they benefit from it.
The advertising solutions will evolve to non-consent 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 publisher and advertiser. Alma's offering covers programmatic open marketplace deals as well as non-consent, consent products. By using first-party data, contextual and behavior, we can target our media by time, place, targeting, and registered users. 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. Now a short example of our video team's production capabilities, so you get an idea what we are doing.
This serves actually more larger companies, of course larger customers, and strengthens our position among those advertisers. Here is another way of looking our strategy. We can categorize our digital advertising for four different categories. They have their own roles. We have identified growth areas and what's the value for customer. First, advertising, which is our core role. And there, as I told, we wanna broaden our customer base and take more small and medium enterprises to our customers. Value is connecting advertisers to relevant audiences in a premium environment and provide modern advertising solutions to our partners, powered with data and leading advertising technology globally.
Creative solutions, which I showed you as an example, is an enabler for growth for delivering content marketing and native advertising and strengthening our position with the midsize and larger companies and larger advertisers. It's in growth areas also. Data services for advertisers is an enabler and growth area. It enables the advertising as well as gives us growth at itself. It's supporting advertisers to scale up personalized advertising, e.g., audience modeling, insight reports, and targeted advertising. Optimization is an add-on product. The Netello I told you about, it's a SEO consulting and implementation company. We need a growth for 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.
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 nine 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. Hypothetically, if we would include our own figures over here, our market share would be over 40%. It seems that our strategy is working.
Here are the categories which we find growth areas like programmatic, small and medium enterprises, creative marketing production, which enables content marketing. 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, increase 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. 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. Now I think there is time for questions and answers, if you have any.
Any questions for Tiina?
Sami Sarkamies, Danske Bank. I have 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 a acquisition tailwinds, or is this purely organic growth? What are kinda like the underlying reasons for you to sort of do much better than, for example, Sanoma?
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. 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 us, told you. That's enables the good the reach enables the 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 of, take the best out of that area. Those are the reasons.
Then secondly, if we were to include also the international players, how has the market share of kinda like domestic providers developed recently? Have they lost market share to the global players in online?
Well, well, the global advertising stake takes around 65% of the whole Finnish advertising market. Like last year it was around, a little bit over EUR 600 million, the whole market, and Finnish players took around EUR 220 million of that market. I'm not sure if it's 65% or 66% or 64% at the moment. We can get those figures later on.
What is the trend? Because I think for quite a long time domestic players were able to maintain their sort of combined position. I think more recently they have started to lose ground to global players.
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. 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.
Okay. Thanks.
Any other questions? Tiina? Maria?
Yeah, maybe one 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 a different advertisement than Sami going to the site. That like how far you are in kind of like a optimizing the advertisements, I mean, for the advertisers that actually the maybe the Stockmann and the likes gets me as a reader, and then the Kamux and the likes will get Sami as a reader. 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's a threat for third party cookies. It's already affecting the whole market. We've 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. They're based on first party data. They're based on registered users. They're based on contextual targeting. We can target by other and many other things. We are not dependent on the third party cookie advertisement in order to do personalized advertising in future as well.
There's already a situation that in open market, only 50% of browsers are able to be. In 50% browsers you get the readers or customers known. There's 50% unknown already because Google is only one who is still using third-party cookies. The others have already don't allow third-party cookies to be followed. Out of those 50% what which Google uses, 40% of global customers decline to give their consent. There's only 30% in open marketplaces to be, who give their consent and that's, to realize that, we need to do in all countries and in all media houses non-consent products and consent products. We've done that. We are very good positioned for the coming years to use these different kind of targeting products for different segments.
Okay. There, one question.
A 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 couple of years behind. Also, the newspaper is quite clear, it's more subscription-based here in Finland than in Nordic countries. That's kind of explains the difference in the, in the newspaper segment. Does anybody else have a better answer to this search engine market optimization, why it differs in Sweden and other countries from Finland?
Maybe the traditional media has a quite strong position in Finland also compared to the other countries.
Yeah.
A long history and a strong position still.
Yeah. Thank you.
Okay, any other questions for Tiina?
Well, thank you.
Okay. Welcome back to Follow Alma Media's Capital Markets Day 2022. We have two presentations left. 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 Loimovuori.
Thank you, Elina. Good afternoon on my behalf. I continue my story from last year's CMD with the same headline, actually. 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-Pekka as well. I need to thank you also, Tiina, for the excellent presentation on advertising, 'cause I don't need now to go through advertising. I can focus on subscription business, mainly on the media side then. That was a good presentation. 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.
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 agreed copyrights of the suppliers of the data. Quite interesting and, you know, good mixture of different type of contents and services in there compared to our competitors. We have direct marketing maker, which is a telemarketing operation. 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 two very good years behind.
Actually, the COVID was quite good time to our businesses and we grew and we also did better profits. Right now it is EUR 99 million revenue, EUR 19.8 profit. 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 the all revenue, but the services side is growing and it's now 35%. 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. Back to the revenue split.
Last time, I pressured very heavily the recurring revenue target and so on. I'm happy to tell you that we have gone further. The last time, the recurring part was 45%, now it's 47%. The non-recurring was that time 42%. We are going on the right direction and implementing the strategy quite well. I'm happy with that. Going into the Alma Talent a bit deeper, 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, we have seven other brands. For the audience, maybe from abroad, we are in the business and technology media.
We have been, you know, been in this quite long time. We have quality contents and so on. Our peers are mainly like Financial Times or The Wall Street Journal and stuff like that. Here I go straight to the our strategic goals, which are not changed since last year. We want to digitalize the business without losing its scale. You know, maybe the pressure is in the without losing its scale, 'cause that will be quite kind of tough anyway. We have two business models. We have subscriptions and advertising, and Talent subscription business is the biggest one. It's two-thirds of the total revenue, and advertising is one-third, and then it's growing as Tiina told.
But what we are doing, basically, we need to concentrate on content and quality contents, quality journalism that creates value to our audience. That's the only way to make subscription media today. Another, you know, 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. That must be done by new content concepts tomorrow. I will show you some initiatives on that later on. Yes. Then we go to this, and this is the, you know, 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 2019, we were able to triple the single subscription base. The picture on left, that is number of single subscriptions, which are mainly from consumers, of course. If you subscribe by paywall or by telemarketing, you are a consumer. Whatever you may, you know, use a payment method, maybe that's a company. We tripled the maximum peak, what was 49,000 single copies, and that was in the beginning of this year. The updated figure is 47,631 subscriptions that are now in the database. We have come down slightly, of course, this is now kind of affected by the environment.
What has happened from the beginning of this year, there is a war, there is inflation, there is stock exchange which have gone down, and so on. Actually, we do not have very big churn on our database, but we cannot sell so much than we used to do during the COVID years. That's the point there. Now it's stabilizing. The churn 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. The, which I haven't shown before, it's the corporate subscription, which is on the right side picture. This is not copies now, this is euros per month.
This is the revenue per month on our corporate subscription base, as you say it. From the same period of time, it's from 2019 beginning. That is still growing steadily. These two pictures make me pretty confident that our strategy concentrate on the digital subscription and good content is good. This will continue when the times are better again to grow. I'm pretty confident on that. One day, media as digitalized business will be as good business as it used to be in the nineties and so on. I told you about the new audience initiatives. Here are some of them, what we are going to do next year. Talouselämä will be renewed, and now I mean the digital Talouselämä.
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, publish every day and every hour. We try something new on that side and then hope 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, 'cause there is no money in the game. This has been done in Norway.
This is done by one startup in Norway, and they have been launched it already probably three years ago in by now Dagens Næringsliv in Norway and then now Dagens Industri also has done it in Stockholm with very good success. This is a way to get younger audience. That is a really important opening to us as well. Actually, it's good to remember because if somebody's so old enough when we started Kauppalehti Online 20 years ago or something like that, we had this kind of games, but not lately. Third one is really interesting, that is the Kauppalehti Audience Diversity Program with FT Strategies.
Probably you know that Financial Times has had really good success with the digital subscription and they have founded their own consultancy, which is called FT Strategies. Now Google, our competitor, is financing this kind of projects where we, Kauppalehti and five other European newspapers, are trying to find more diversity to their audiences. Our main target is to get more female readers to Kauppalehti. Maybe one interesting finding from that project already is that we have, like, 37% of female audience for Kauppalehti in digital, but only 15% of our subscribers are female. Actually, there's quite good potential for the future subscription business if we succeed to get more female and young. That was that.
We move to services side, the right information at the right time. This is not the easiest way or easiest thing to communicate, I try. Here is our portfolio focus areas right now today. There is Property Data, Company Information, and Legal Information. These three are information services in our terminology. We have DIAS, which is Transaction and Process Services. We have Marketplace Services, Objektvision and Kauppalehti Toimitilat in Finland, Objektvision in Sweden. We have this kind of umbrellas. These three first go nicely under two umbrellas: Business Insight and Compliance Services. That is how the clients use them. They use it for to make their decision maker better or fulfill their compliance needs.
We have something that we call PropTech, Property Data, half of that actually, DIAS, and Commercial Properties. To understand the matrix better, I also put this Docue there, which is our minority ownership. That is actually purely compliance service, which our clients use for making their Anti-Money Laundering and Know Your Customer processes. 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. This is the matrix how we operate and the results are here. Our revenue last 12 months rolling is EUR 34.5, profit EUR 7.1, and this is almost all digital business as you see.
What we are now doing here, we are focusing heavily on corporate sales. We have one sales organization that takes care of all the clients in the information services, of course, content. DIAS is really different business and then the marketplaces as well. We are trying to make them to subscribe to, you know, our services, which leads to increase in recurring revenue. We see now that there's a trend. Actually, Kai told you about the increase in regulation which affects Alma. Of course, there is always some kind of positive side also on these things. We benefit from the fact that the regulation increases, and we try to use that trend to sell more these compliance services. Mostly legal and company information type of services.
Of course, we have other goals as well. One very important is that the DS 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. Our commercial property marketplaces, we need to be in the better local position in the future in Sweden and in Finland to, you know, to be the champions of the both market. We are working together actually in there with the platforms and technology. We are aiming to do some new innovative data process. I tell you something more later.
Here, how we split this revenue information services, which was the three upper services, accounts for 68% of the revenue. Transactional, which is mainly DS, is 12, and marketplaces are 20. Maybe now you got a bit better picture what we are doing, aiming to do. Here are some new initiatives what we are going to do. You know, on this side, we are going to renew the legal information service as whole. We have been following the Danish, Swedish peer Karnov very tightly, and we are quite optimistic that we can conquer the Finnish market in the future. So, we are renewing that service. Property data, again, the regulation.
European Union Taxonomy gives some needs for financial sector. That need, of course, goes to real estate owner on 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 product for financial sector. I already talked about Docue, which is our minority holding now, and we are having really good cooperation with them. Two 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 20 to 2025.
I look forward that our information and then B2B services part would be a lot bigger and then more profitable 2025. I look for Kai's set targets to me that it should be growing five years, 5% per year, and the profitability would be 25%. 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 news 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. Maybe we will tell you about the media again next year more.
On the services side, focus on corporate sales, capitalize the increasing regulation trend, improve property marketplaces. We talked about the advanced platforms, so there's plenty of room also in our property marketplaces to get better services and go into the deeper into the clients and real estate owners' processes. Grow DS market share, innovate new data process products. 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.
Very good. Okay, now we have nicely time for questions. Maria to begin.
Yes, perfect. I think, you nicely talked about the digitalization for your presentation. I am sorry for the question. Given that you still have the paper subscription and we've seen the newsprint prices, going up very rapidly, little bit like on your view that, what is happening in the newsprint prices and availability, and then also that do you think, you can reprice your products to mitigate the cost increases?
Very good question. I start with the last one first 'cause we have already done quite aggressive price raises to the print products this year. Actually that has already during the last quarter mitigated the print revenue going down. We have been quite good in pricing this year and we are going to continue that as well next year 'cause our target is to digitalize so we can price print products quite well, without, you know, without fear, I would say. Then the printing prices, of course there is pressure on paper prices actually, 'cause there's only one 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.
The printing is not going to be much more expensive. The problem is the delivery. The Finnish Post is giving us gray hair. They are changing their service and they are also raising their prices quite heavily. We are still negotiating with them. It's good to remember that the digital growth has been compensating the print product decline, it will do that also hopefully next year and Tiina was quite positive on the advertising of digital advertising. I'm not too worried on that, the Post.
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. We are looking at the Nordic market as whole if we think about going abroad. As Kai mentioned, the Nordic and Sweden especially is interesting to Alma Talent 'cause we are already there and we know something of the market. Also the other, maybe Denmark, Norway, maybe, but Sweden and Finland mainly.
Finally, what is there or and if there are, what kind of synergies you basically share with other divisions, so the consumer and the recruitment?
Actually we share quite a lot here in Finland. I, as I mentioned, something is that the tech side is that kind of, operation that the know-how how to do everything on the tech side is common in here in the Alma Finland. That is the main thing actually. We talked about how many developers do we have at Alma before this event. Right now one-third of our personnel of whole Alma are developers, so that kind of person. I guess that we have 200 of them in Finland. Of course, it's something to have bigger ecosystem of everything when you are growing digital. There's a lot of synergies actually, which are not, you know, we don't talk about them so much, but, yeah.
Also synergies in housing.
Oh, yeah. Okay.
That you share. Yeah.
When we are going to the product level, of course, as Kari told you, actually he told about DIAS. That is the final of the housing transaction when we do the transaction on DIAS platform. Why is it at Alma Talent is that the main clients are financial sector operators, we are used to play games with them. Of course it's a funnel of, you know, activities from the advertising in Etuovi.com and then OviPro, which Kari presented, which is the new system for real estate agents, you go from OviPro straight to DIAS and so on. That is quite nice synergy actually. 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 then, and all the other broker systems are also linked to DIAS.
You have the real estate data.
Yeah, yeah. Sorry.
Any more questions? There's no questions online at this moment.
Okay.
Thank you, Juha-Petri.
Everything's clear.
Everything is clear so far. Now we move on to the last topic of this Alma Media's Capital Markets Day before the closing remarks. The topic is the financials of Alma Media and about the strong cash flow and solid balance sheet. Today, our CEO, Mr. Kai Telanne, is substituting Juha, our CFO, Juha Nuutinen, as unfortunately he fell ill. Best of luck, Kai.
Okay. Obviously she thinks that I can't, you know, calculate. I guarantee I can. I can. Yeah, actually Juha Nuutinen, our CFO, unfortunately he is ill at the moment. He's feeling quite okay, so no big worries. He tried to summarize our digital journey so far in numbers. I'm going to present his presentation here. You, of course, have a chance to put some questions if you want. If I can't answer those questions, I have to call to the friend, as you know, in the TV programs, and maybe Juha can then take the lead on those. As you know, during the journey, we are quite happy with the events and the numbers and the results, the achievements in all together. We have renewed with strong hand the portfolio as said.
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. As said, the service and marketplaces 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. All set nicely. In addition to a would say a thorough transformation and 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. One might say it's 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. 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 investments.
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. 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 profitability after the COVID-19.
The run rate of revenues at the moment, EUR 308 million, of which half, around half coming from marketplaces and the other half from media and services. Because of the good revenue growth and development, we have had and witnessed a nice growth of EBIT as well from 2020, EUR 45 million to the run rate of more than EUR 70 million. We are closing to the target level of 25% of EBIT as we have set up. On the right side of the 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%. 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 costs. On the other hand, this kind of company is closing to a tech company more or less. Our technology and development costs, as Juha-Petri said before, they are remarkable in this context.
We are developing the businesses on tech side heavily and putting a lot of money on that. 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. That has to be reminded again. On the other hand, we are waiting for those investments to be fruitful in the future and coming years as well. 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 2015 to Talentum and then, of course, the major investment to Nettix 2020. Due to this, the balance sheet has had this kind of fluctuation and been in a different position during different times. We have been carefully taking care, of course, the our ability to pay the debt, 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. As you can see from the figures, the balance sheet is becoming really, really healthy quite fast. In a couple of years, we are again in a zero net debt position for major investments. Having said that, the cash flow being a good run rate on the right side of this 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 40, EUR 30, EUR 40 million annually for new investments and after two to three years, we are in a position for new, bigger steps again. Our long-term financial targets are here. As 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 2.5. That is quite a healthy level and situation for us. That was Juha's presentation. Hopefully, I managed okay. If you have any question, don't hesitate to ask. I try to, you know.
Yes. Now we a bit ahead of schedule so w e can maybe have also overall questions. Yes, Patrick, go.
You mentioned the heavy OpEx—
Yeah.
We've talked long about the OpEx in development. Can you talk about how normal is the current level? Do you have to sustain this current level?
Yeah.
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. At the moment, the run rate is about EUR 10 million. That comes from the consumer side of this OviPro, the housing and premises renewal, and the same from the cars, from the B2B sector as well, and from the recruitment side Alma Career as well. In every segment, we have more than usual things going on to prepare for the future to go into the advanced digital platforms. More than usual we have at the moment. We are hope to come back later.
With this run rate, we will have more depreciations in coming years, a little bit more than we used to have. That, of course, stresses a little bit the EBIT, but the EBITDA growth will be quite good.
Thinking about M&A, you said, in a few years you would have room for bigger acquisitions.
Yeah.
What are the areas that you would be looking into?
You mean geographic areas or business areas?
Both.
No, I think the maybe the guys here, try to give you some ideas. The focus areas of ours are houses and premises, cars, career in broad sense, and business to business sector. We are interested in growing in all those areas.
Thank you.
Thank you.
Okay, two questions. Firstly, starting from digital investment level, 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 plays? Are you able to sort of enter that market with current spending level?
The current level is enough. And we are not lacking of ideas or plans, but human resources. That's the problem. We are not investing more. There's all, you know, huge task to have all the, you know, brokers that we have, all the initiatives in place, rather than having new ones in place. We have a line of new initiatives coming in future years and months.
Okay. Second question regarding these digital platforms. I think competitive landscape might look a bit different, you know, going forward. You know, you will be increasingly competing against the international giants that have much bigger sort of R&D budgets. What is your thinking there that, you know, is there risk that, I mean, you being sort of competing locally, but increasingly it's going to be an international competition you will be faced with?
Yeah, we have had the international competition for years. 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. We have 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. We have the customer relationships and the long tradition and so on. We think that that is quite a good setup. But you're right, you have to be careful, you have 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. We have quite a good playground. The same applies to Central and Eastern Europe. They are really small markets for the big players and for their investment. That's somehow a good position that we have chosen.
Okay, thanks.
This is a bit more personal question to you, Kai, as 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. I think a lot of the CEOs would basically, I mean, think that this is a job well done and now I leave. Maybe the question is more to you that, I mean, what makes you, like, tick for the next three to five years, and 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—
Mind.
Somebody might take or think that, okay, it's time for him to go. We have a very good team here. We have had this kind of organizational learning target from the beginning. It's been really enjoying to see how the organization has developed during these, like, turbulent times. It's really rewarding to see that we have a fantastic management team. I enjoy being here a lot. As you heard, the plans that we have, we have fantastic plans. There's plenty of room to develop. We have a good position from here, from this standpoint, and excellent plans.
I'm pretty confident that we can improve, so still improve from this. According to the targets that we had, the long term targets. We can improve the revenues and the profitability, so plenty of room to develop. That keeps me running. Of course, the board, of course, and the shareholders. Yeah.
Any more questions? Yes.
Hi, Sanna Pärssinen from Nordea. I have two questions. First, 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?
No, not really. As said, we don't have much print businesses that might be on the divesting list, but not really. In long run, also the digital businesses have to be able to show their capability to improve. It means that we might need to re-engineer the portfolio, the digital portfolio in long run. You might need to focus on something, that's actually what we have already done. We have sold some assets, digital assets that we didn't think to belong into the portfolio, and we weren't possibly not the right owner or developer of those businesses. You have to be able to, you know, release if you are not the best one.
Thank you. The second question would be regarding your long-term targets, the financial targets, how do you view them at the moment? Do you think they are reachable in the coming years as well?
Yeah, they are reachable. we haven't really reviewed them. Because of the current situation, it's quite difficult to estimate and forecast about what is going to really happen next year and how the world is going to develop. I'm pretty sure that during next year, before the next CMD, we will do that. As said, I'm pretty confident that we can have a nice development of the profitability in the future which on the other hand or the other words is meaning that yes, we can keep the profitability level with the plans that we have at the moment easily.
Thank you.
No questions online.
All right.
Is there 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 Tina about Alma Media Solutions if there is something not answered yet.
I can actually if we have time, plenty of time. There was the question of the differences between.
The markets.
The media markets in Nordic countries. I thought that one answer for the differences might be the demographics. I mean, like in Finland, the population is split over 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 Uppsala or that's it. They are really, no, they are, you know, animals and lot of reindeers and those.
But the 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. The income per inhabitant than others, but we haven't actually made that specific analysis so in that sense.
We are probably less international also.
Yeah, that's right.
C ompared to the—
Exactly.
Sweden or Norway.
Exactly. We are lagging behind in the internationalization of the businesses and the companies compared to Sweden or Norway or especially Denmark. The composition is a little bit different. Right.
Okay.
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.
Okay.
All clear.
If not any at this point.
Okay.
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. 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. New digital revenues on that side. Alma Career, the Alma Career project, is really important.
There are room for profitability improvement, but also plenty of room for new revenue sources, and really good plan for that. If we only have possibilities to invest abroad, continue the internationalization to new geographical areas, we will do that. At the moment, we are going into Balkan area as you know. Those are quite small, you know, markets but growing. We have experiences in small markets growing rapidly like Croatia.
On consumer side, of course, very intensive development programs in cars and other vehicles and houses and premises as well. 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, by most of the time comes to lead the new initiatives. That will be really nice. There we will see quite a lot of new things coming up and new revenue sources.
On B2B side, Juha told you about the development of digital subscription base and site. There we have a nice growth, a good development, and that's really important for us. Other recurring revenues as well, including the digital databased services for different kind of customer groups, and that is going nicely. Last but not least, the balance sheet, the company is at the moment in a very healthy situation. If the times come, become rough, we can stand that. 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. 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. The people feel more secure and comfortable in a company that is healthy compared to a totally different standpoint. That's, 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.
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.
There was—
Thank you.
Yes.
Thank you very much.
Before—
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. Ob viously needs clearing up. 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? The figure that we presented in Mr. Kivelä's presentation, that included the 800,000, included the motorbikes and the heavy machinery and caravans, so all vehicles. That explains the—
In our services.
The higher figure. Yes.
Yeah, in our services, yeah. All the vehicles in our services.
Yes.
Most of them are, of course, cars. yeah.
Yeah, definitely. Okay.
It means that we have quite a high market share in the car industry. 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. 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 or to start the businesses than from scratch without the customers on standalone basis. That's our idea. The synergy is the key. All right?
Thank you very much, all for you, here, in our premises, or at our premises and also our viewers and visitors online. Maybe we'll see you on our Q4 interim presentation that will be.
30th.
Okay, it's here. Very good. Thank you very much. Have a nice rest of the week and rest of the year.