The Egmont media group achieved its best year ever in 2014. Calculated in local currencies, revenue increased 10% to EUR 1.6 billion. The record pre-tax profit is EUR 127 million, an increase of 36% over last year. Keys to success are strong content and technological innovation that strengthens Egmont on new media platforms. Egmont donated more than EUR 10 million in 2014 supporting children and youth.
In 2014 Egmont recorded the best year in its 136 years of existence. All Egmont’s business areas attained commercial success: TV 2 Norway increased both its viewing shares and number of TV subscriptions, Egmont Publishing gained market shares and merger synergies, Nordisk Film enjoyed record sales, the book publishing companies performed strongly, and the intensified focus on digital development and innovation generated growth. Screen-based media now account for 58% of Egmont’s revenue.
In 2014 revenue increased to EUR 1,552 million, an improvement of 10% calculated in local currencies. Egmont’s share of revenue generated by joint venture companies is no longer recognized in the revenue owing to changes in the IFRS accounting rules. Total revenue including joint venture companies amounts to EUR 1,689 million.
Profit before interest, depreciation and amortisation (EBITDA) increased by 34% (local currencies) to a record high of EUR 237 million. Pre-tax profit (EBT) amounted to EUR
127 million against EUR 99 million in 2013 – representing 36% growth (local currencies). The profit includes a net gain of EUR 10 million resulting from the positive effect of a pension restructuring initiative in TV 2 and extraordinary rights write-downs.
“We are proud to have increased our revenue by 10% and recorded our highest profit to date. We adapt our activities to new consumption patterns in a challenged media market, and continually technologies and content bolster our business. Egmont’s screen-based media now account for 58% of Egmont’s revenue. Our 650 employees dedicated to technology and digital business have joined their 5,700 colleagues in making exceptional efforts to create our unique products,” says President and CEO Steffen Kragh.
All Egmont’s divisions recorded improvements in their underlying operations. TV 2 Norway’s eight channels enjoyed great success with such sports events as the Winter Olympics in Sochi and the World Cup football championship in Brazil. The streaming service, Sumo, saw record growth. TV 2 is now Norway’s largest channel for viewers in the 20-49-year group and the largest multimedia company measured by daily time consumption. TV 2 recorded 66% growth on mobile platforms.
Nordisk Film enjoyed a number of film successes, grew its market share in cinemas in Denmark and Norway and delivered record sales of PlayStation 4, while its digital business grew with the acquisition of Gavekortet.dk and the creation of Airmagine, which is digitizing the advertising market at Copenhagen Airport.
Egmont Publishing increased its market share in a tough market. Forma Publishing was acquired in Sweden, where, as in Denmark, Egmont is now the second-largest magazine publisher. It heads the market in Norway. Minecraft was a runaway hit in the English-speaking countries. In Russia and Ukraine, the crises in the region negatively impacted Egmont Publishing, but these markets account, however, for only 5% of Egmont Publishing’s activities.
The book publishers Lindhardt og Ringhof in Denmark and Cappelen Damm in Norway delivered growth and excellent results underpinned by a number of strong titles, record sales of textbooks and growth in digital educational media.
“Our strategy is to invest in content and technology. Technological innovation has streamlined our production processes and brought us closer to consumers on the many new platforms. Although the key to consumer favor is to produce films, journalism, literature and entertainment that appeal, we must be able to provide this content via mobile screens as well as through the traditional formats,” says Steffen Kragh.
Egmont’s equity amounted to EUR 704 million at end-2014, and the equity ratio came to 45.4%. Egmont is free from debt.
In 2014 Egmont donated EUR 11.2 million to projects targeted at vulnerable children and youth, for example, in the form of help to cope with life crises such as grief and divorce and through the signature project, Learning for Life. In 2014, 100 children and young people in care took part in intensive learning camps, with each being assigned a personal mentor to help pave the way to a youth education program. Since 1920 Egmont has made donations for EUR 344 million.
|Key figures, EUR million||2014||2013||Growth in local currency *|
|Profit before interest, depreciation and amortisation|
|Operating profit (EBIT)||131||102||+37 %|
|Pre-tax profit (EBT)||127||99||+36 %|
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Communications & Public Affairs
Communications & Public Affairs