Quarterly report second quarter 2006

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Overall

The Norges Handels og Sjøfartstidende (NHST) Group`s profit before tax for the second quarter amounted to MNOK 44.3 as against MNOK 35.8 last year (+ 24 %). The operating profit improved by 27% to MNOK 45.2 (MNOK 35.5). After the six months to 30th June, the profit before tax was MNOK 57.1, which is a 29 % improvement on last year (MNOK 44.2). The operating profit improved by 34% to MNOK 57.3.

NHST`s group turnover increased by 15% during the quarter to MNOK 221.6. The growth in turnover is considered to be greater than the market growth, which means that the positive sales trend which has been typical for NHST during the last 12 quarters, is continuing. After the first six months, turnover is up 17% to MNOK 427.8 compared with last year. On the whole the market situation is still good, both in Norway and in the three global niches shipping, oil and seafood. The main reason for the growth in turnover is the increase in the turnover of advertisements, but there is also good growth in the circulation revenues.

The good circulation trend is continuing for NHST`s newspapers and, with the exception of the newspaper Fiskaren, the circulation for all the newspapers has reached an all time high. In the Board`s opinion this is due to competitive concepts and a will and an ability to invest in newspapers. The progress on the advertisements side is both in ”Appointments” and in more general profile-promoting advertisements. Moreover, NHST`s websites had a growth of between 40 and 70 per cent in advertisements. The increase in internet traffic is also at about that level. There is extensive business development work going on in both existing publications and in connection with new activities. Several new internet-based services will soon be launched. The conference activity has now been hived off as a separate company – NHST Events, which is being managed from NHST`s London office.

This report has been drawn up according to the “NGAAP” accounting system – as in previous periods.

Publication by publication

Dagens Næringsliv (DN) improved its operating profit by 26% to MNOK 39.1 during the quarter. Total income increased by 13% in the quarter to MNOK 131.4. Revenues from circulation increased by about 11 % and revenues from advertisements increased by about 16%. “Appointments” adverts and profile-promoting business advertisements grew the most. There is currently a boom in Norway, and DN is capturing market share in readership and advertisements. For the first six months, DN had a turnover of MNOK 253.1 – which is up 17%. The operating result is up 39% to MNOK 55.8.

DN Nye Medier. The DN Nye Medier turnover increased by 49% to MNOK 10.1 during the quarter. Traffic grew by more than 30%. There was an operating profit of MNOK 1.8 for the quarter as against a profit of MNOK 0.8 last year. The advertisement and readership market is growing considerably on the internet, while at the same time the intensity in competition has increased in that several competing websites were established during the quarter. It is therefore very satisfying to see that dn.no`s growth in turnover is increasing, which shows that dn.no`s competitive power is good. After the first six months there was an operating profit of MNOK 2.8 as against 1.4 last year. Turnover increased by 42% to MNOK 19.6.

TradeWinds had an operating profit improvement to MNOK 2.4 for the quarter, from MNOK 1.7 last year. Turnover increased by 4 % to MNOK 18.8. The growth in turnover is first and foremost comes from the “Appointments” area. Circulation is the highest ever at 7,837. The growth from China and Greece is still contributing the most. After the first six months the operating profit was MNOK 3.9 as against MNOK 2.3 last year. Turnover is up 1% to MNOK 37.5.

Upstream had an operating profit of MNOK 1.7 as against MNOK 1.6 in the second quarter last year. The operating profit improvement is primarily due to increased advertisement revenues. During the quarter turnover was up 12% to MNOK 16.9. For the six months to 30th June, turnover was up 12% to MNOK 29.9, while the operating profit for the first six months was marginally down from MNOK 1.0 to MNOK 0.8. Circulation is the highest ever at 6,312. The growth from the US has contributed the most to the growth in circulationr. As with TradeWinds, the weaker currency trend now has a negative effect on comparable figures as opposed to what was the case in 2005.

Intrafish Media had a growth in turnover of 18% during the quarter to MNOK 13.2. The turnover from advertisements rose significantly, particularly advertisements from Continental Europe and the US. This also reflects the increased industrialisation in the industry, and the increasing optimism. The operating profit reached MNOK 0.9 as against MNOK 0.4 last year. After six months there is an operating result of MNOK – 0.3 as against MNOK – 1.4 last year. Turnover increased during the period by 16% MNOK 24.7. The number of Intrafish subscriptions is increasing solidly, whereas the newspaper Fiskaren saw a marginal decline in circulation.

Nautisk Forlag had a turnover of MNOK 22.3 in the quarter – which is a 3% decline. The operating profit reached MNOK 1.8 as against MNOK 2.5 last year. As mentioned earlier, the decline is due to changes in the accrual principles between the quarters. Turnover for the first six months increased by 5% to MNOK 46.4. The operating profit fell by MNOK 1.5 to MNOK 3.7.

Europower`s turnover increased by 73% during the quarter to MNOK 3.0. The operating result for the quarter, however, dropped by MNOK 0.5 to MNOK – 0.6. Accumulated for the year, the operating result was MNOK – 1.9 as against MNOK – 0.7 last year. Turnover increased during the equivalent period by 64 % to MNOK 5.6. There is intensive work going on involving profit-improving measures. As reported earlier, it is expected to take several quarters before a positive operating result can be realised.

TDN Nyhetsbyrå had an 18% growth in turnover to MNOK 2.9 during the quarter. This was due to good market conditions and a strong competitive position. The operating profit improved from MNOK 0.5 to MNOK 0.9. Accumulated turnover increased by 16% to MNOK 5.6, and the operating profit doubled to MNOK 1.3.

Business developments:

Total income amounted to MNOK 4.5, the operating expenses being MNOK 5.2. Equivalent activities did not exist last year. These are strategically important activities for NHST because they represent new investments within the Group´s strategic core. These activities are expected to have a rapidly increasing scope. Several of the activities will become separate companies or become incorporated in other companies when the development activities are ready for it. These activities accounted for a turnover of MNOK 8.0 with expenses amounting to MNOK 10.7

Conclusion:

The second quarter passed satisfactorily, with very good progress and in line with last quarter`s indication. The boom is continuing and the order situation is good, and the publications are well placed in the market. Business is therefore expected to continue improving.

22nd August 2006

The Board of Directors of AS Norges Handels og Sjøfartstidende