Quarterly report first quarter 2006

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Overall:

The Norges Handels og Sjøfartstidende (NHST) Group’s pre-tax profit for the first quarter was MNOK 12.9 as against MNOK 8.4 last year (+ 53 %).The operating profit improved from MNOK 7.3 to MNOK 12.1 during the quarter (+ 65 %)

The NHST group turnover increased in the quarter by 20 % to MNOK 206.2. The growth in turnover is considered to be higher than the market growth, which shows that the forced commercial and editorial measures of autumn 2005 have had an impact. Market conditions are still good on the whole, both in Norway and in the three global niches: shipping, oil and seafood. The increased turnover from advertisements is the major reason for the growth in turnover, but there is also good growth in circulation revenues.

The increase in the NHST newspapers’ circulation revenues is good. The Board believes this to be due to exceptionally competitive concepts and faith in investing in newspapers. The improvement on the advertisements side is both within Vacancies and in more general profiled advertisements. NHST is also experiencing strong growth in both advertisements on the internet and in traffic on the internet in general.

This report has been compiled according to NGAAP – as in previous periods.

Publication by publication

Dagens Næringsliv (DN) increased its operating profit by 80%, to MNOK 16.7 in the quarter. Total revenues increased by 22 % in the quarter to MNOK 121.8. Circulation revenues increased by some 8%, and advertisement revenues increased by approximately 40%. In terms of circulation and advertisements, the trend shows DN to be capturing market share in the readership and advertisement markets respectively. The good circulation and readership figures that were presented in connection with the last quarterly presentation have enhanced this long-term trend..

DN Nye Medier. Turnover increased in the quarter by 34 % to MNOK 9.5. The growth in traffic is more than 30%. The operating profit in the quarter was MNOK 1.0 as opposed to a loss of MNOK 0.6 last year. Greater intensity in the competition is expected in the coming months. Since autumn 2005 there has been a forced development activity in dn.no. This will be strengthened further in the coming months. Investment in Web TV and in Companies Search, and dagensit.no, has been mentioned before. More journalists are being recruited to dn.no, increased functionality and enhanced design are being implemented now, and there is increased spinning with the newspaper Dagens Næringsliv. Emphasis is primarily on the qualitatively correct readers on dn.no rather than quantity.

TradeWinds has improved its operting profit to MNOK 1.5 from MNOK 0.7 last year. However, the turnover fell by 2% to MNOK18.7, which was due to a lower conference activity and weaker rates of exchange. The circulation of 7,794 is the highest ever, and advertisement revenues are rising. Particularly Vacancies are increasing a great deal at TradeWinds. As regards circulation, it is still the growth in China and Greece that is contributing the most.

Upstream had an operating loss of MNOK 1.0 as against a loss of MNOK 0.6 in the first quarter last year. The operating setback is due to a relatively greater cost item for the period related to the internet. Turnover increased by 11 % to MNOK 13.0. The turnover from advertisements is continuing to growth considerably for Upstream. Moreover, circulation is continuing to rise to 6,227. It is the growth in the US and Asia that is contributing the most to the turnover growth. As is the case with TradeWinds, weaker rates of exchange compared with 2005 are having a negative effect on comparable figures.

IntraFish Media had a growth in turnover of 14 % in the quarter to MNOK 11.5. Turnover from advertisements is increasing significantly, particularly advertisements from Continental Europe and the US. This also reflects the increased industrialisation in the industry and the series of new operators and products in the market. The operating loss was reduced from MNOK 1.8 last year to MNOK 1.1 this year.

Nautisk Forlag has a 13% growth in turnover – to MNOK 24.1 - in the quarter. The operating profit was MNOK 2.0, which was a reduction of MNOK 0.7 compared to last year. New activities are building up at a considerable rate at the world’s yards. This will have a positive effect on the market for Nautisk in the coming years, while at the same time Natuisk is expanding in Asia. Competition intensity is also increasing, however, both on the part of existing operators and from electronic alternatives to physical charts

Europower grew by 55 % in the quarter, to MNOK 2.6. The operating result, however, has dropped by MNOK 0.8 to MNOK –1.3.

TDN Nyhetsbyrå had a growth in turnover of 14 % to MNOK 2.8. This was due to good market conditions and a strong competitive position. The operating profit improved from MNOK 0.1 to MNOK 0.3. The progress is expected to continue in the coming quarter.

Other activities (IT, Web TV and Search). Total income in this sector amounted to MNOK 3.5, with operating expenses amounting to MNOK 3.5, producing operating expenses of MNOK 5.5. Similar activities did not exist last year. These are activities that are strategically important to NHST because they represent new investments within the strategic core of the Group. Several of these activities will become separate companies or be incorporated into other companies when the development activities are ready for it.

In conclusion

The first quarter passed successfully with good progress having been made, and in line with last quarter’s indication. There is a good order reserve for the short term. The business cycles are good and the publications have good market positions. In the short term, therefore, progress is expected.

Oslo, 24 April 2006

The Board of Directors

Norges Handels og Sjøfartstidende