Q1 media coverage analysis – less of spotlight for Nokia, good performances from Finnair and Neste
The results of the most recent M-Index, comparing the media coverage of 15 major Finnish stocklisted companies, revealed a shrinking difference between the volume of coverage of Nokia, and that of the rest of the benchmark companies. For the first time ever, the volume of coverage that Nokia received was less than double the amount of coverage of the second placed company in the comparison, Fortum.
Will there be a challenger for Nokia in terms of the volume of media coverage?
While major Finnish web publications wrote less about Nokia in January-March, the focus of attention was now more strongly on Fortum. Part of the increase in Fortum’s media presence was explained by the unfortunate flurry of attention that its former electricity distribution business, Caruna, was subjected to in January.
Examples of news that featured Fortum in a more prominent role included the company selling a power plant in Russia for a profit of 30 million euros, and Fortum CEO Pekka Lundmark demanding state subsidies to be removed from renewable energies.
It remains to be seen whether Fortum, Finnair or any other benchmark company will challenge Nokia’s position as the company basking in the spotlight of major Finnish web media. The change at the top seems unlikely to take place this year, although we are currently witnessing even stranger things – Leicester City is four games from winning the Premier League this season.
Positives for Finnair and Neste, and not only in financials
M-Index companies in descending order, based on the share of positive publicity in Q1 2016.
In January-March, Finnish companies continued to feature more often in connection with favourable than unfavourable financial news, although this metric did not show as good results as during October-December. Companies that did well on this account included Finnair, UPM-Kymmene, KONE, Neste and Stora Enso. Those at the wrong end of the financial news spectrum included Fortum and Metso.
In terms of the ratio of positive to negative publicity, Neste experienced a second consecutive successful quarter, and Finnair a third one. The media took note of Neste’s considerable improvement in its financial result in Q4, while also acknowledging the reductions in greenhouse gas emissions that the company’s renewable fuel has brought about. Finnwatch complimented Neste for openness when it comes to Neste’s suppliers of palm oil.
Finnair received positive media attention due to its financial result that exceeded expectations, as well as for being the sixth most punctual airline and in the top 20 of the safest airlines in the world. The company was also reported to have succeeded in increasing its passenger volumes.
A look at how a couple of competitors paired up
When looking at longer-term trends for a couple of competitors, the media fortunes of two mobile phone industry giants, TeliaSonera and Elisa, have taken different directions. During the last three quarters, Elisa has never attracted more than three per cent of negative publicity out of its total. By contrast, although for TeliaSonera January-March marked the company’s lowest share of negative coverage since the corresponding period a year ago, TeliaSonera still received a relatively high 15 per cent of unfavourable publicity.
Inside the forest industry, the fortunes of Stora Enso and UPM-Kymmene have developed more in tandem with each other. Both companies experienced very good results in October-December, with Stora Enso recording one third of positive coverage of its total. The share of favourable publicity in Q1 dropped slightly – to 15 per cent for Stora Enso and to 19 per cent for UPM-Kymmene. Yet these two companies continued to feature the most often out of all benchmark companies in connection with positive financial news.
By Topi Laakso, Senior Analyst at M-Brain
M-Index is a quarterly comparison of media coverage of 15 large Finnish stock listed companies. The metrics compared include potential volume of audience reached, tone of publicity and favourable/unfavourable core messages connected with the companies. The sources for M-Index are web publications of Helsingin Sanomat, Kauppalehti and Taloussanomat.
In case You would like to know more about M-Index or competitor and media analysis in general, You can contact Topi via e-mail: topi.laakso at m-brain.com.