RSS Print

Egmont achieves best-ever performance

In 2011 Egmont recorded pre-tax profit of EUR 94 million, a 24% increase over 2010. It is the media group's best-ever performance. Consumers now view half of Egmont's media products on screens. The acquisition of TV 2 Norway brings Egmont's revenue generated by television up to 25%.

Egmont improved its pre-tax profit to EUR 94 million, up from EUR 75 million in 2010 – a 24% increase despite a tough media market. Profit after tax rose to EUR 74 million from EUR 50 million in 2010. Contributory factors to the profit improvement include the record profit from TV 2 and the strong earnings generated by the Nordic magazine and Kids Media businesses.

"Egmont delivered a solid performance in 2011 – our best to date. The record profits are based on the positive contributions made primarily by TV 2 and magazines as well as strong and creative media products. In recent years we have strategically developed Egmont to make media products consumed on screens the source of half of our revenue," explains President and CEO Steffen Kragh.

Egmont's total revenue amounts to EUR 1.386 million against EUR 1.423 million in 2010. The magazine business and TV 2 increased advertising revenue while TV 2 boosted income generated from distributors and user-paid services. The Nordisk Film distribution business experienced a decrease after a solid year in 2010. The divestment of book clubs and the music business contributed to lower revenue. At the beginning of 2012 Egmont acquired the remaining 50% of the Norwegian Broadcaster TV 2, an acquisition that will increase Egmont's revenue in 2012 by approx. EUR 205,000. This means that 25% of Egmont's revenue will subsequently come from TV. Film, games and online content comprise a further 25%, and screen media products will thus account for half of Egmont's revenue.

Profit before interest, depreciation and amortisation (EBITDA) amounted to EUR 150 million, equivalent to a 10.8% EBITDA margin. EBITDA was reduced by EUR 16 million compared with the previous year, primarily as a result of a lower activity level on the part of Nordisk Film.

Operating profit (EBIT) rose to EUR 88 million from EUR 82 million in 2010.

Egmont's net balance (cash, cash equivalents and securities) increased to EUR 105 million compared with EUR 76 million in 2010. After acquiring the remaining 50% of TV 2 for EUR 274 million, Egmont continues to have a low debt ratio.

Egmont's equity rose to EUR 506 million in 2011 compared with EUR 461 million in 2010. Return on equity was 15.2%.

The profit reflects the great creativity and willingness to change of Egmont's 6,400 employees, who have put in great efforts,' adds Kragh.

In 2011 Egmont adopted IFRS (International Financial Reporting Standards), which are mandatory for all listed Danish companies. All comparative figures have been restated accordingly.

In 2011 Egmont donated EUR 6.7 million to charitable activities focusing on helping to give children and young people a good life.

Egmont Magazines

Revenue: EUR 296 (284) million.
Operating profit (EBIT): EUR 33 (25) million.

With more than 100 titles, Egmont Magazines is among the leading publishers of magazines and weeklies in the Nordic region. Increased revenue in 2011 derived in part from positive developments in advertising income from print and digital publications in all countries. The high earnings are based on strong magazine portfolios in all countries, improvements in Sweden and efficiency-enhancing initiatives. Higher subscription sales in all three countries served to raise the magazine market share. Investments in digital activities continued throughout 2011. The division has developed a range of internet services that recorded high growth in traffic in 2011. One example is the website klikk.no, which, after massive growth, attained a ranking as Norway's 15th largest internet universe.

Egmont Kids Media

Revenue: EUR 395 (415) million.
Operating profit (EBIT): EUR 25 (21) million.

Egmont Kids Media is a leading provider of early reading experiences for children in more than 30 countries. The European crisis affected the Central and Eastern European markets, lowering consumers' incentive to buy. Nevertheless, the division as a whole improved its profits by making adjustments and successfully launching new products. The Chinese company continued to grow. The division focused on both maintaining and developing its core business and on developing new business models for new media platforms. The division invested in e-publications and learning platforms. These included the launch of the Petzi's World online universe, which has topped the iTunes Nordic children's list every weekend since its introduction in April of 2011. The Donald Duck magazine made its Nordic debut as an app, and in Eastern Europe Egmont secured the important rights to Marvel, Transformers and Generator Rex, among others. 2011 also saw the launch of the edutainment portal, Pluszaki.

Egmont Books

Revenue: EUR 146 (156) million.
Operating loss (EBIT): EUR 0 (3) million.

The book company Cappelen Damm delivered its best performance to date. Cappelen Damm comprises Norway's largest book publisher and the bookstore chain Tanum. The publishing company maintained its position as market leader in children's literature, fiction, non-fiction, documentaries and school textbooks. In 2011 the publishing company acquired Høyskoleforlaget, an acquisition intended to strengthen its position in academic literature. Cappelen Damm is co-owned equally by Egmont and Bonnier. Lindhardt & Ringhof in Denmark delivered an unsatisfactory performance. A change in leadership and other adjustments were made in 2011: the book clubs were sold. The literary fiction profile was strengthened while in non-fiction, market-leading positions in cookbooks, lifestyle, history, society and culture were maintained and improved. At the end of 2011, Alinea was Denmark's largest supplier of primary-school books and among the leading publishers of digital learning media.

Egmont Nordisk Film

Revenue: EUR 334 (390) million.
Operating profit (EBIT): EUR 10 (18) million.

Egmont Nordisk Film is a leading developer, producer and distributor of creative content in moving images and interactive games in the Nordic region. The development in revenue is partly attributable to the sale of the music business and a downturn in the distribution business following the solid performance of 2010. PlayStation had a good year in 2011, with sales exceeding 300,000 PS3 consoles in the Nordic countries and a market share of over 45%. Nordisk Film distributed roughly every one in six cinema films shown in the Nordic countries. In 2011 Nordisk Film Cinemas began the final stages of the transition from analogue to digital film screening, expected to be completed in May 2012. Strong film titles drove the improvement in the film production business: Nordisk Film was involved in two of the most-viewed films in Denmark, Klassefesten and Dirch, as well as the most-viewed Norwegian film, Headhunters. The partly owned company Zentropa improved performance and garnered several awards for Lars von Trier's Melancholia and Susanne Bier's In a Better World.

The TV 2 Group, Norway

Revenue: EUR 210 (173) million.
Operating profit (EBIT): EUR 27 (21) million.

The accounting figures shown for TV 2 comprise 50% of revenue and operating profit for the television business.

Egmont owned 50% of the TV 2 Group in 2011 but became sole owner on 1 February 2012. TV 2 is Norway's largest commercial media house and a leading provider of news, sports and entertainment through television, the internet, mobile telephony and tablets. In 2011 TV 2 achieved another record profit, a result based on increased advertising revenue and a stronger pay-TV business. TV 2 retained its high overall viewer share in 2011. Once again TV 2 Nyhetskanalen raised its viewer share, this time to 2.2%. TV 2 Sumo, the largest commercial distributor of internet television in the Nordic region, increased its subscriber numbers by 50% in 2011. TV 2.no's traffic grew by 37%, and the website became the 7th largest in Norway. TV 2 acquired the rights to the 2014 Winter Olympics and the 2016 Summer Olympics.

Egmont's Charitable Activities

Since 1920, under the aegis of the parent company, the Egmont Foundation, Egmont has donated more than EUR 240 million to support social and cultural initiatives. In 2011 the Foundation provided financial support totalling EUR 6.7 million to charitable projects, including EUR 0.6 million to single parents with children and EUR 0.5 million to film projects through the Nordisk Film Foundation. The Egmont Foundation's charitable vision is to help give children and young people a good life by supporting their active and committed participation in society. The Foundation provides support to both individuals and projects. The projects either incorporate a learning perspective or aim to better equip children and young people to handle life crises. One example is the support granted to Mødrehjælpen's counselling service for women and children who have been subjected to violence.

For more information, please contact:

Mikkel Løndahl
Media Relations Manager
Corporate Communications
+45 21 15 49 25

Mika Bildsøe Lassen
Vice President Corporate Communications
+45 20 55 26 55