Nordic Morning
Nordic Morning business area comprises: Nordic Morning Finland Oy in Finland and Nordic Morning Sweden AB and Mods Graphic Studio AB in Sweden.
The business area’s net revenue was EUR 36.1 million (EUR 44.4 million). In Finland, net revenue declined from EUR 12.2 million to EUR 9.9 million. In Sweden, net revenue declined from EUR 32.9 million to EUR 27.2 million.
The business area’s operating loss was EUR -1.1 million (EUR -1.0 million). The result for the period was weighed down by lower net revenue as well as non-recurring termination provisions. Operating profit excluding non-recurring items was EUR -0.5 (-0.7) million. Operating profit excluding non-recurring items declined in Finland but improved in Sweden due to the excellent result of Mods Graphic Studio Ab.
| 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|
| Net revenue (M€) | 36.1 | 44.4 | 53.0 | 60.5 |
| Operating profit/loss (M€) | -1.1 | -1.0 | -2.9 | -14.1 |
| Employees (average) | 228 | 262 | 307 | 374 |
Nordic Morning creates digital experiences that transform businesses. We drive change for the largest enterprises and brands in the Nordics by building and running their Digital Growth Engines. Our ways of working help companies become truly customer-centric by combining our capabilities within business transformation, service design and development, technology, data-driven marketing and content.
The business area was formed in 2017 by merging five agencies into one: CountQuest, KliKKi, Seed, Ottoboni and Sitrus came together to form Nordic Morning – a data-driven marketing and service-design business.
2019
The demand for our services is growing, mainly driven by the increased usage of data and analytics for marketing purposes. This pushes our customers to rethink the way they work with sales and marketing, and also how they are organized. Clients are increasingly demanding transformational guidance and ways to combine data and marketing technology solutions, data-driven content and service design.
2019 was definitely the year that the usage of data and cross-collaboration between different disciplines and capabilities became increasingly important to clients. The transformational shift from “old school communication” to “data-driven marketing” shows a rapid change and has a big impact on how we sharpen our services, partner up with the best-of-breed tech companies and manage our competence shift.
During 2019, we focused on attracting and developing our talent, as well as further refining our organizational setup, in order to better position the business for further profitable growth. We also carried out significant efforts to develop a dynamic, collaborative and results-driven organizational culture, where everyone can perform at their best. The long-term target for this work is to enhance self-leadership on all levels.
Outlook for 2020
The market we are in, a market of change, will continue to grow in 2020. We will keep on driving our own development and continue our efforts to provide supreme customer advice in digital transformation from a marketing perspective.
Edita Publishing
Edita Publishing business area comprises of Edita Publishing Oy in Finland.
The business area’s net revenue was EUR 13.3 million (EUR 13.9 million). Net revenue decreased due to lower revenue from learning materials made-to-order products.
The business area’s operating profit was EUR 2.1 million (EUR 3.0 million). Operating profit was reduced by the negative development in revenue as well as increased expenses allocated to the development of new products and services.
| 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|
| Net revenue (M€) | 13.3 | 13.9 | 14.9 | 13.0 |
| Operating profit/loss (M€) | 2.1 | 3.0 | 4.5 | 2.4 |
| Employees (average) | 89 | 83 | 78 | 77 |
Edita Publishing provides learning services and legal information services for its clients. The company serves a wide range of public, private and third sector organizations. It also has a tight partnership and collaboration with the educational, legal and public sectors.
2019
The company succeeded well in providing learning materials for basic education and training for municipalities There was no growth in the Finnish basic education market because the school curriculum remained unchanged. However, we succeeded well and managed also to show some growth in this area in training services. In the fall, Edita Publishing won gold in the BELMA 2019 (Best European Learning Material Award) competition for the Finnish language and literature serial Satakieli 9, of which we are extremely happy and proud.
Our Legal business segment generated some growth in 2019. As part of our Edilex service, the digital library was launched in summer 2019. The amount of digital legal content will be continuously increased going forward.
At the beginning of 2018, Edita Publishing initiated the development of the new Organizations business segment. This was done to start piloting new services for a new type of client – companies, alongside our traditional content projects. In the fall of 2019, the decision was made to dissolve this venture and focus the business on our other two segments, Education and Legal.
Edita Publishing has long-term relationships with its clients and is recognized as a trustworthy partner with significant expertise. According to the latest client survey, 88 percent of respondents were very satisfied or extremely satisfied. We had an NPS score of 50, and the overall satisfaction score was 4.9 out of 6.0.
Employee satisfaction is measured with shorter pulse surveys several times a year. We also did a deep-dive survey to help us take the next steps on our ongoing change journey and to get input into where to focus our efforts. According to the results, we have a high level of enthusiasm and the work atmosphere scored 3.9 out of 5.0.
Outlook for 2020
The demand for learning materials in basic education is expected to decline in 2020 due to the ongoing curriculum phase. In 2021, however, there will be a new curriculum, and in 2020 we will initiate new product development efforts in order to drive growth in our Education segment.
Digitalization is fundamentally changing the way people learn and use information both in schools and at work. Learning has become a lifelong journey. Being able to develop in a profession requires continuous training and access to digital training tools with high-quality content. This has an impact on the market for traditional services, but it creates a lot of new business opportunities, using educational technology and artificial intelligence in combination with great pedagogical skills.
Edita Publishing is looking forward to a successful 2020 with the goal being to maintain its current profitability level.
Edita Prima
Edita Prima business area comprises Edita Prima Oy in Finland.
The business area’s net revenue was EUR 28.3 million (EUR 18.6 million). Revenue increased particularly due to new, more extensive customer agreements and postal delivery services included in them.
The business area’s operating profit was EUR 0.8 million (EUR 0.9 million). The lower profit was attributable to higher expenses.
| 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|
| Net revenue (M€) | 28.3 | 18.6 | 26.7 | 31.0 |
| Operating profit/loss (M€) | 0.8 | 0.9 | 2.9 | 0.1 |
| Employees (average) | 87 | 86 | 122 | 158 |
Edita Prima provides automated processes for customer communication management. We help our clients to eliminate inefficiencies and to improve the customer experience.
2019
Edita Prima is on a change journey from a declining print market to the growing market of customer communication management. The company had a very successful year in 2019. We won several new customer contracts, we had high growth, and we clearly exceeded our turnover targets. A substantial part of the company’s revenue was generated by accruals and continuous deliveries.
We are truly proud to work with our excellent clients. Many of them are recognized as leading players in the Finnish or Nordic markets. In our customer survey conducted in June 2019, we again received high scores from our clients. Edita Prima is recognized as a reliable and trusted service provider and a partner that delivers value to its clients. This was confirmed in the survey, where 90 percent of respondents were satisfied or extremely satisfied, the NPS score was 49 and the overall satisfaction rating was 4.8 out of 6.0.
As an essential cornerstone of our change strategy, we have placed a great deal of focus on our staff, learning and competence development. We have developed our capabilities in the new offering through training and workshops. We also recruited new colleagues within the strategic offering area in 2019. Employee satisfaction is measured with shorter pulse surveys several times a year. We also did a deep-dive survey to help us take the next steps on our ongoing change journey and to get input into where to focus our efforts. According to the results, our workforce has a high level of enthusiasm, and the work atmosphere scored 4.0 out of 5.0.
Outlook for 2020
Despite lower growth on a macroeconomic level, the changing requirements when it comes to managing customer communication continue to give us room for growth. We have already started to grow through our new offering, and we expect that growth to continue. In addition, we have succeeded in signing long-term contracts, which will help us going forward.
We are continuing to invest in people and technology to further develop our new offering. We have high expectations for reaching the next steps on our change journey and for showing further growth in 2020.
