Finland-based media company Alma Media which operates a number of job boards, reported revenue on Friday of €75.2 million in Q1 2023, a decrease of 1.3% when compared to last year.

Alma Media’s business performance in the first quarter was in line with expectations in spite of the slowing of economic growth and the disruptions caused by Russia’s war of aggression, the group said.

Excluding divested businesses, revenue was on a par with the comparison period. The group’s Baltic telemarketing business was divested in the spring of 2022.

Profitability was weakened by the decrease in media advertising sales and increased expenses. Measures to adapt costs and protect profit performance are under way, with good progress being made, the group added.

“The effects of these measures will become apparent particularly in the latter half of the year,” Kai Telanne, President and CEO, said.

The group said the effects of Russia’s war of aggression and dwindling economic growth were reflected in the operating environment in early 2023. The European economy continued to be adversely affected by sanctions, supply chain disruptions and problems associated with the availability of raw materials, among other things. High inflation continued, while market interest rates increased sharply year-on-year. Combined, these factors have put consumer confidence to the test and reduced the real purchasing power of households relative to the comparison period, it added.

Within Alma Career, revenue grew, but increased operating expenses weakened profitability. Demand for recruitment services increased revenue by 3.6% to €27.7 million. 

“Sales of recruitment services remained at a good level in the Czech Republic, Slovakia and Croatia. The continued high level of activity in the recruitment market is driven by intense competition for skilled labour,” Telanne said.

The Alma Consumer segment’s revenue decreased by 2.3% to 24.2 million. Profitability was reduced by lower advertising revenue, as well as increased product development, printing and delivery costs.

In Alma Talent, comparable revenue was on a par with the previous year. Profitability decreased due to the weaker performance of the media business.

Looking ahead, Alma Media expects its full-year revenue and adjusted operating profit of 2023 to remain at the 2022 level or to decrease from the 2022 level. The full-year revenue for 2022 was €308.8 million and the adjusted operating profit was €73.4 million.

The outlook is driven by an estimate that Alma Media’s revenue and operating profit will decline in the first half of the year as a result of declining advertising sales and increased costs in the recruitment business.

The outlook for the national economy is expected to improve in the second half of the year, the group added.

“We estimate demand for recruitment services to remain strong and advertising sales to rebound during the year. Operational efficiency measures initiated by the company will improve profitability in the latter half,” Alma Media stated.

Alma Media shares closed on Friday at €9.04, down 0.6% on the day. The company has a market cap of €731.42 million.