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RPT-UPDATE 1-Sanoma cuts 2013 outlook on weak advertising market
(Repeats to additional Reuters clients)
* Sees 2013 core profit down 12-22 pct y/y
* Sees operative loss in Q1
* Writes down 35 mln euros of goodwill (Adds quote, background on Sanoma)
HELSINKI, March 22 (Reuters) - Finnish media group Sanoma cut its profit view for this year, citing a worse-than-expected outlook for advertising and falling circulations.
Sanoma, which publishes around 300 magazine titles in 11 European countries, expects adjusted operating profit to fall to between 180 million euros ($233 million) and 205 million this year, down 12 to 22 percent from 2012.
It had previously said profit would be in line with what it had earned in 2012.
Annual net sales would fall by between 2 and 4 percent from last year, it said On Friday, adding it expected to make a loss at the operating level in the first quarter.
"Advertising markets in Sanoma's main operating countries are more depressed than expected," the company said in a statement.
"In addition, price increases, bundles (or joint subscriptions for several titles) and digital offerings are not able to fully offset the decline in circulation sales."
Sanoma has been selling off some non-core assets, focusing instead on learning material and digital businesses. Its main markets are in Finland, the Netherlands, Belgium and Russia.
Last year, the group's core operating profit increased 4 percent with the help of the 2011 acquisition of TV company SBS in the Netherlands and Belgium.
The company also said on Friday it would take a non-cash goodwill writedown of 35 million euros in the Netherlands. ($1 = 0.7737 euros) (Reporting by Jussi Rosendahl; Editing by David Holmes)
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