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Egmont records impressive results

In 2009 the Egmont media group recorded an impressive operating profit of EUR 125 million and a profit before tax of EUR 47 million. The Group improved on its 2008 performance despite a financial crisis that took its toll in the media industry. Strong media products and rapid cost adjustment drove the upturn.

In 2009 Egmont improved its profit before interest, depreciation and amortization (EBITDA), recording its best operating profit to date, EUR 125 million against EUR 100 million in 2008. Egmont's pre-tax profit amounted to EUR 47 million against EUR 15 million the previous year.

'Egmont has managed to adapt to economic trends swiftly and maintain the development of our media products in a positive direction. Even though advertising income from our magazines and TV 2 in Norway plunged in 2009, we have nevertheless generated a high profit and strong cash flows,' says President & CEO Steffen Kragh.

'With numerous solid media positions in 30 countries and modest debt, Egmont is well equipped to continue developing its media in 2010. We believe 2010 will be another challenging year for the media industry, and we will continue to focus on increasing efficiency, developing new products and strengthening our digital business,' adds Steffen Kragh, president and CEO.

Revenue amounted to EUR 1,440 million against EUR 1,565 million in 2008. More than half the decline in revenue is attributable to the conversion of unchanged foreign revenue at lower exchange rates. The remaining drop in revenue is due mainly to lower advertising income.

Profit after tax amounts to EUR 50 million (EUR 3 million in 2008). Egmont generated solid cash flows from operating activities of EUR 140 million (EUR 93 million). Net interest-bearing debt at end-2009 amounted to EUR 29 million (EUR 143 million). Egmont's equity totals EUR 415 million (EUR 382 million), corresponding to an equity ratio of 35.0%.

In 2009 Egmont donated EUR 6 million to social and cultural initiatives focusing on disadvantaged children and young people. Project donations include a Norwegian bereavement centre researching how children and young people deal with grief and a school project at Dannerhuset for children exposed to domestic violence.

Egmont is one of Scandinavia's leading media groups. Egmont's media world spans magazines, books, educational materials, films, cinemas, interactive games, game consoles, music, TV and a range of digital media. Egmont publishes media in more than 30 countries, has 6,800 employees and generates revenue amounting to EUR 1.4 billion.

EGMONT'S BUSINESS AREAS

Egmont Magazines

Revenue: EUR 263 (276) million; profit before interest, depreciation and amortization (EBITDA): EUR 27 (34) million.
Egmont Magazines publishes more than 100 titles in Denmark, Norway, Sweden and Finland and is Norway's largest magazine publisher. The division's market position in Sweden grew stronger with the merger of Egmont's two magazine companies there. In Norway Egmont Magazines captured market shares in the advertising market. In Denmark the division boosted its share of the market for weekly magazines, while ALT for damerne remains the strongest advertising medium in the market for weeklies and other magazines. In Norway and Sweden Hjemmet and Hemmets Journal maintained their positions as largest family magazine and largest weekly, respectively. Egmont Magazines published largely the same number of magazine titles although impacted by cost reductions and a pronounced drop in advertising income. Overall, the profit before interest, depreciation and amortization has been maintained at a solid level. Egmont Magazines continued to invest in digital activities in all countries.

Egmont Kids Media

Revenue: EUR 429 (479) million; profit before interest, depreciation and amortization (EBITDA): EUR 23 (11) million.
Egmont Kids Media, which publishes media in more than 30 countries, emerged from 2009 in a stronger position. The year saw the continuation of the integration process initiated when Egmont International and Egmont Kids & Teens merged at the end of 2008, with a strong focus on cost-cutting and efficiency-enhancing programmes. Egmont's Chinese company outdid all other growth markets, increasing its revenue by over 30%. Egmont's Turkish company also enjoyed an excellent year thanks to a number of bestseller successes. Egmont's American book publisher launched 15 book titles in its first year of business.

Egmont Books

Revenue: EUR 156 (165) million; profit before interest, depreciation and amortization (EBITDA): EUR 9 (5) million.
Norway's largest book publisher, Cappelen Damm, in which Egmont holds a 50% stake, improved performance in all business areas: book publication, book clubs, distribution, e-business and the bookstore chain Tanum. Lindhardt og Ringhof enhanced profitability in 2009. The book publisher acquired the digital book distribution company Publizon together with Gyldendal. The children's publisher Carlsen became Denmark's largest producer of children's books after taking over both the Egmont publisher Litas and DR's portfolio of children's titles. Schoolbook publisher Alinea invested significantly in digital learning media.

Egmont Nordisk Film

Revenue: EUR 445 (472) million; profit before interest, depreciation and amortization (EBITDA): EUR 53 (34) million.
Nordisk Film bolstered its market position and profit in 2009. The profit includes a gain amounting to EUR 16 million realized from the sale of Nordisk Film TV. The improvement in underlying operations is largely attributable to film-related business, which comprises film distribution and production as well as cinema operations. Nordisk Film Biografer recorded 6.2 million in box office sales in Denmark – the highest ever. Selling 6.5 million tickets, the Millennium trilogy was a major Nordic distribution success. Post-production companies and partner companies in the film segment underwent a challenging year. Nordisk Film Interactive maintained a high sales volume, retailing about 300,000 PlayStation consoles in 2009. Denmark's largest film site, kino.dk, registered more than 390,000 monthly users. Dansk Reklame Film became a wholly owned company.

TV 2, Norway

Revenue: EUR 139 (166) million; profit before interest, depreciation and amortization (EBITDA): EUR 15 (19) million EUR. Ownership share: 50%.
In 2009 TV 2 maintained its position as Norway's leading commercial broadcasting company. The financial crisis caused a downturn in advertising revenue, which prompted a significant reduction in costs. A growth rate of 72%, measured in terms of unique users, strengthened TV 2's market position on the net in the shape of tv2.no. RiksTV, which TV 2 co-owns, once again achieved high growth rates, with the number of subscribers rising from 320,000 to 450,000.

Egmont's Charitable Activities

Since 1920, the Egmont Foundation has donated more than EUR 240 million in present value to support social, cultural and health initiatives. In 2009 Egmont's financial support amounted to EUR 6 million, of which EUR 0.4 million was donated via the Nordisk Film Foundation. Projects that have benefited from Egmont's donations in 2009 include a Norwegian bereavement centre researching how children and young people deal with grief and a school project at Dannerhuset for children exposed to domestic violence.

Press cantact:

Mika Bildsøe Lassen,
Vice President,
Corporate Communications
Mobil: +45 20 55 26 55
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Mikkel Løndahl,
Media Relations Manager
Mobil: +45 21 15 49 25
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