Profit before tax was EUR 15 million (EUR 65 million). Profit was negatively impacted by exchange rate adjustments, impairment of goodwill and non-current assets as well as the cost of profitability programs, while a non-recurring gain from the acquisition of Hjemmet Mortensen made a positive contribution.

In 2008 Egmont donated EUR 6 million in support of social and cultural initiatives.

The highlights of 2008 include the acquisition of the remaining 40% stake in Norway’s largest magazine publisher, Hjemmet Mortensen, and the acquisition of 50% of Zentropa. Both acquisitions have bolstered Egmont’s position in the Nordic magazine and film markets, respectively. A number of online businesses have been launched, including klikk.no, kino.dk and tv2.no. RiksTV, which operates the Norwegian digital terrestrial TV network, enjoyed growth. Co-owned by TV 2 in Norway, the company had 320,000 customers at year-end.

“In 2008 revenue rose 5% to EUR 1,565 million, and we recorded profit before interest, depreciation and amortization of EUR 100 million, on a par with expectations. Profit before tax, which was affected by falling exchange rates, impairment of goodwill and restructuring costs, failed to meet expectations. To counter the economic trend and sustain our future investments, in the course of 2008 we launched profitability programs aimed at bringing down annual costs by about EUR 60 million. 2009 will be an exceptionally challenging year, even with the precautionary steps taken in 2008. Advertising sales constitute the main element of uncertainty in 2009,” says President and CEO Steffen Kragh.

Profit after tax amounted to EUR 3 million (EUR 52 million). Egmont’s equity amounted to EUR 382 million (EUR 436 million), corresponding to an equity ratio of 34.4%.

Egmont Magazines
Revenue: EUR 276 million (EUR 203 million); Operating profit (EBIT): EUR 21 million (EUR 22 million).
In 2008 Egmont Magazines acquired the remaining 40% shareholding in Norway’s largest magazine publishing company, Hjemmet Mortensen, thus significantly strengthening the division’s position in Sweden and Norway. 2008 brought numerous magazine launches as well as heavy investment in digital media, the klikk.no site, for example.

Egmont Kids Media
Revenue: EUR 479 million (EUR 493 million); Operating loss (EBIT): EUR -7 million (profit of EUR 31 million).
In 2008 Egmont merged two divisions, Egmont Kids & Teens and Egmont International, to form Egmont Kids Media, which ranks overall among Europe’s largest children’s publishers. A number of companies were restructured or phased out in connection with the merger. The start-up of the Egmont publishing house in the USA is going according to plan, with the first children’s book list slated for launch in September 2009. The division increased its shareholding in the Australian joint venture Hardie Grant Egmont to 50%. In Norway Kids Media bought 45% of the youth site biip.no and 34% of the leading film portal Filmweb AS. The restructuring initiatives have affected performance.

Egmont Books
Revenue: EUR 165 million (EUR 176 million); Operating loss (EBIT): EUR -1 million (profit of EUR 6 million).
Cappelen Damm cemented its market position just one full year of operations after the Cappelen and Damm publishing companies merged, and a large number of merger projects have generated positive results. Since the merger in fall 2007, Lindhardt og Ringhof has concentrated on integrating the two former companies. The process has proved more challenging than anticipated, and results have fallen short of expectations. The division’s performance should be seen in light of the non-recurring gains in 2007.

Egmont Nordisk Film
Revenue: EUR 472 million (EUR 449 million); Operating profit (EBIT): EUR 5 million (EUR 18 million).
The distribution, TV production and movie theater businesses are contributing positively to the division’s market position and the extended rights portfolio. The post production companies and a number of creative partner companies experienced a turbulent year. Egmont Nordisk Film acquired 50% of Zentropa in 2008. The revenue increase was driven chiefly by the PlayStation business, while the drop in profit is due to non-recurring gains in 2007, impairment of goodwill and other non-current assets held by the post production business and certain creative partner companies.