10.03.2005

Another year of record profits for Egmont

Egmont’s pre-tax profit (excluding proceeds on the sale of IO Interactive) increased by 20% to EUR 70 million. This is the highest profit ever recorded by the media group.
Egmont’s pre-tax profit (excluding proceeds on the sale of IO Interactive) increased by 20% to EUR 70 million. This is the highest profit ever recorded by the media group.

The Egmont media group generated its highest profit to date in 2004. Egmont’s magazines, books, moving images, educational materials and other media generated a pre-tax profit for 2004 (excluding proceeds on the sale of IO Interactive) of EUR 70 million, an improvement of EUR 11 million compared with 2003. In addition, proceeds of EUR 12 million on the sale of the ownership share in the games producer, IO Interactive, brought pre-tax profit up to EUR 82 million.

The Group profit after tax was EUR 73 million against EUR 48 million in 2003.
Revenue amounted to EUR 1,070 million, a decline of EUR 37 million compared with last year. The reduction is attributable mainly to exchange rate movements, company divestments and lower sales of game consoles coupled with falling prices.
The result is satisfactory. All business sectors made a positive contribution to the overall profit.

The equity ratio increased to 45% by year-end, up from 21% in three years. A solid platform has thus been established for new investments in the form of organic growth and acquisitions.

President and CEO Steffen Kragh says: “We generated Egmont’s highest profit to date in 2004. This is not the result of any major single event, but rather reflects good profitability in our companies generally. The focus throughout the year was on developing companies, media and employees. One initiative was our investment in digitalization so that in addition to providing consumers with stories in print, Egmont can also play a key role in creating and supplying electronic screen content.”

Business areas
Egmont Magazines added 10 titles to its portfolio, which numbered 87 magazines at the end of 2004. Growth was generated by the launch of new titles as well as acquisitions. In parallel, considerable editorial and marketing resources were channeled into developing and strengthening the division’s publications. The profit is basically in line with that generated last year after adjustment for the profit on the sale of real estate in 2003.
Revenue 2004: EUR 183 million (2003: EUR 182 million).
Operating profit 2004: EUR 31 million (2003: EUR 35 million).

Egmont Kids & Teens supplies printed entertainment for children and young people and uses content and brands in electronic media and related games, activity products and merchandise. Egmont Kids & Teens bolstered its position in 2004 by focusing on new launches and digital media.
Revenue 2004: EUR 171 million (2003: EUR 167 million).
Operating profit 2004: EUR 20 million (2003: EUR 19 million).

Egmont Books develops, refines and publishes literary fiction and non-fiction that entertain, inform and enrich readers. The division sold more than 14 million books in 2004. The profit for 2004 was affected by the development and implementation of a new bookclub system and the generally unsatisfactory earnings recorded by the Swedish publishing company.
Revenue 2004: EUR 165 million (2003: EUR 157 million).
Operating profit 2004: EUR 2 million (2003: EUR 6 million).

Egmont Nordisk Film creates and tells stories through electronic media. During the year, the division was involved in productions and products that consumers embraced. Operational upgrading and sharper market focus also contributed to the positive results. Revenue 2004: EUR 289 million (2003: EUR 345 million).
Operating profit 2004: EUR 6 million (2003: EUR (5) million).

Egmont International publishes magazines, preschool products and books in 17 countries outside the Nordic region. In 2004, the division increased its circulation of several different products. The profit improvement was due to higher contribution margins and the long-term strategy of restructuring or selling off loss-making activities.
Revenue 2004: EUR 260 million (2003: EUR 254 million).
Operating profit 2004: EUR 17 million (2003: EUR 4 million).

The TV 2 Group, Norway generated revenue in 2004 amounting to NOK 1,776 million (EUR 212 million) and recorded a pre-tax profit of NOK 145 million (EUR 19 million), NOK 55 million (EUR 7 million) down on 2003. Egmont holds a 33.3% stake in the TV 2 Group. Egmont’s share of profit generated by the TV 2 Group, which is recognized under net financials, amounted to EUR 6 million for 2004.

The Charitable Activities
Since 1920, Egmont has provided support to numerous social, cultural and health initiatives, not only in the form of donations but also by developing innovative ideas and its own initiatives. In current value terms, a total of more than EUR 200 million has been donated. In 2004, EUR 5 million was donated to 16 projects in all, and direct financial support was provided to 302 families with children. The common denominator was the wish to improve the life quality of children and young people. The range of projects included new types of museum activities targeted at children, unconventional integration projects, and new inspiring approaches to teaching and communication.

Further information:
Sascha Amarasinha
Vice President Corporate Communications
Phone: +45 33 30 51 40
Mobile: +45 61 62 29 73
sas@egmont.com