Egmont had revenue of EUR 1.6bn in 2016 with organic growth in local currency of EUR 38m. With an additional EUR 250m in non-consolidated revenue from partly owned companies in growth areas such as e-commerce and digital marketing services, Egmont’s total business activities effectively generated revenue of EUR 1.8bn.
Nordisk Film, Egmont Publishing, and Egmont Books all reported earnings growth. TV 2 in Norway put in a good commercial performance and continued its strong digital growth, but higher costs for sports rights and restructuring adjustments to future-proof the organisation impacted the division’s results. All four divisions continued to adapt their business with the increasingly digital consumer behaviour. Profit before interest, depreciation and amortisation (EBITDA) totalled EUR 170m. Pre-tax profit (EBT) amounted to EUR 70m.
“I am delighted that we delivered solid results while continuing to invest in the future media market. The focus of our strategy Grow with the Modern Consumer is to ensure that Egmont builds a strong alignment between media content, consumer behaviour and technology. We’re strengthening content in our core business in TV, film, magazines and books, we’re investing in fast-growing, new business areas such as e-commerce, gaming, and digital marketing services, and we’re using technology to strengthen our subscription models and increase direct consumer relations,” says Egmont President and CEO Steffen Kragh.
Highlights from Egmont’s divisions:
- TV 2 achieved an increase in share of viewing thanks to strong programming and had the most-watched channels in the 20-49-year viewing group. The streaming service TV 2 Sumo and the technology business Vimond delivered strong growth.
- Nordisk Film generated record revenue and produced a number of commercial and artistic successes, including the Danish film Land of Mine and the Swedish co-production A Man Called Ove which both achieved Oscar nominations. The cinemas in Denmark and Norway sold a total of 9.7m tickets, and PlayStation sales in the Nordic region exceeded expectations.
- Egmont Publishing’s weekly and monthly magazine business delivered strong results in an otherwise challenged market. The Russian operation was sold due to legislative changes. The portfolio of digital marketing services and e-commerce companies was expanded further.
- The publishing houses Lindhardt og Ringhof and Cappelen Damm published major new books and strengthened their leading positions in e-books and audiobooks through acquisitions and digital development.
“Journalism, drama and entertainment on TV, film, and in print remain Egmont’s core business, but we are increasingly also a technology business, because content and technology go hand-in-hand in the modern media market. As a commercial foundation, we invest long-term in the development of the business, but we have also donated EUR 13m to help vulnerable children and young people and support film talent,” says Steffen Kragh.
Egmont’s equity amounted to EUR 833m in 2016 with an equity ratio of 51%. Egmont is free of debt.
Egmont donated EUR 13m in 2016 to help vulnerable children and young people and to support film talent through the Nordisk Film Foundation. The year saw particular focus on the youngest children, and the Egmont Report documented that the first thousand days of a child’s life determine how it will cope in life later. Through the signature project Learning for Life, almost 300 children and young people placed in care have now participated in intensive learning camps and been assigned a personal mentor. Since 1920, Egmont has made donations totalling EUR 370m.
Key figures in mEUR
|Profit before interest, depreciation and amortisation (EBITDA)||170||190|
|Pre-tax profit (EBT)||70||102|
For further information:
Head of Press, Communications & Public Affairs
Vice President, Communications & Public Affairs