Quarterly report fourth quarter 2006

^{* financial data not final}

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Overview

The provisional profit before tax for the Aktieselskapet Norges Handels og Sjøfartstidende Group (NHST) for the fourth quarter was MNOK 1.9 against MNOK 0.7 last year. As for last year, the quarterly result was influenced by a substantial increase in sales and editorial activities. A range of new developmental activities were also carried out. The increase in activity and the many new development projects are a result of good market opportunities. The effects of the marketing measures in particular are expected to be felt already during the first quarter of 2007. Turnover increased in the fourth quarter 2006 by 14 percent to MNOK 234.5. The larger part of the increase in turnover is a result of increased advertising revenues. The greatest growth is in Internet advertising generally and the Situations Vacant category both in newspapers and on the Internet. The lowest increase in advertising is within the more consumer-oriented advertisements. Good growth continues in circulation revenues, and almost all newspapers in the NHST Group have shown circulation growth.

Profit before tax for the 2006 year (provisional accounts) is MNOK 65 against MNOK 43 in 2005. During 2006 turnover increased by 16% to MNOK 861 (MNOK 741 in 2005). Nearly all the growth is organic and it turns out that the NHST Group’s publications captured considerable market share in 2006. The Board of Directors considers the progress to be a result of sound concepts and good implementation capability.

There was economic growth throughout 2006 both in Norway and within the three global market segments in which NHST operates. In parallel, two structural changes are going on. The first is associated with consolidation within traditional newspaper media and the second - clearly the greater change - is the strong development in the Internet. For example it was during 2006 that Web TV achieved its breakthrough.

Substantial innovation and growth is going on in NHST. New digital activities launched since the last interim report include DNTV - where editorial Web TV expertise is being concentrated, DNSøk – where the business information search activities are being concentrated, LNGunlimited – a globally oriented specialist website for gas, and a fortnight ago DNEnergi was launched – the specialist website for oil and gas associated with Norwegian matters. Globally oriented conference activities are being strengthened and the conference activities are now grouped in the NHST Events company. In addition, globally oriented activities have been developed in Singapore, Shanghai and New Delhi. As a result of NHST's growth and development, NHST is now carrying out its own "rebranding" regarding its name and presentation. Accordingly the Board of Directors will propose to the next General Meeting that "NHST Media Group" be adopted as the new all-embracing name for the Group.

Publication by publication

Dagens Næringsliv (DN) has improved its operating profit by 69 % to MNOK 18.2 in the quarter. Total income increased by 12% during the quarter to MNOK 139.1. Circulation revenues increased by about 3% and advertising revenues increased by over 20%. Several major marketing activities have been carried out with good results both for circulation and advertising. Mediebedriftenes Landsforbund (the Norwegian Media Businesses' Association) will publish final circulation figures on 12 February - provisional circulation figures show circulation growth of more than 2000 for DN to almost 77,000. This is the highest circulation ever. For the year as a whole DN had turnover of MNOK 508.3 - up 16%. Operating profits were up 53% to MNOK 83.4.

DN Nye Medier has operating profits for the quarter of MNOK 1.7 against MNOK 1.4 last year. Turnover in DN Nye Medier increased during the quarter by 28% to MNOK 12.2. Improved development underlies the development of both the profits and the turnover. Growth in traffic is about 30%. For the year as a whole operating profits are MNOK 4.1 against MNOK 2.1 last year. Turnover is up 34% to MNOK 39.5. Comprehensive technical, editorial and marketing development continues. There is strongly increasing Internet traffic on the vertical Internet services such as dagensit.no and DNenergi.no.

TradeWinds has operating profits of MNOK 1.3 against MNOK 0.6 in the fourth quarter last year. Turnover has increased by 19% to [MNOK] 22.4. Turnover growth is coming particularly from the Situations Vacant area. Circulation has grown to an all time high of 8005 at the end of the year. The greatest growth in circulation is from China and India - and that also shows that the conference activities complement the publication very well. Operating profits for the year are MNOK 5.4 against MNOK 3.0 last year. Turnover is up 8% to MNOK 76.2.

Upstream has an operating loss of MNOK 0.8 against profits of MNOK 0.2 in the fourth quarter last year. Comprehensive marketing projects have been carried out during the period including a special daily newspaper during Gastech in Abu Dhabi. For the quarter, turnover is up 14% to MNOK 16.0. For the year as a whole operating profits are MNOK 1.7, level with last year. Turnover is up 15% to MNOK 63.1. Situations Vacant advertising growth has particularly contributed to advertising growth, which was 42% in volume for the year. Growth in advertisements in the final quarter seen in isolation was up 64% from last year. News streaming on Upstreamonline.com is now available for open access, with major increase in traffic as result. Circulation increased by more than 300 subscribers or 5% during 2006, to 6,449.

Intrafish Media has an operating loss of MNOK 0.6 against MNOK -0.9 in the fourth quarter of last year. Growth in turnover during the quarter was 11% to MNOK 13.3. It is particularly advertising turnover that has strong growth, and this goes for internationally oriented and Norwegian language oriented publications. For the year as a whole the operating loss is MNOK 1.6 against MNOK -3.6 last year. The Fiskaren newspaper had its best result ever, i.e. MNOK 1.3. Intrafish’s total turnover increased by 14% to MNOK 50.0.

Nautisk Forlag has an operating loss of MNOK 0.6 for the quarter against a result of MNOK 0.0 last year. Turnover is up 25% to MNOK 23.1. Work is being done on expansion of the global sales network in Shanghai, Singapore and Dubai. Various digital projects are also in train. A comprehensive logistics project has also been carried out during the year. All these activities have involved increased costs for the company. For the year as a whole the operating profit is MNOK 5.0 against MNOK 5.9 last year. Turnover increased by 8% to MNOK 91.2.

TDN Nyhetsbyrå has operating profits of MNOK 0.3 against MNOK 0.2 for the quarter last year. Turnover growth is 2% to MNOK 2.9. For the year, development is very good with number of new customers while established customers have become bigger buyers of the service. For the year as a whole the operating profit is MNOK 2.3 against MNOK 1.2 last year. Turnover increased by 12% to MNOK 11.6.

Europower has an operating loss of MNOK 1.1 for the quarter against MNOK -1.6 last year. Turnover for the quarter increased by 5% to MNOK 2.7. For the year as a whole the operating loss is MNOK 3.9 against MNOK -3.1 last year. Turnover increased by 10% to MNOK 10.8.

New business activities. Here we have grouped the many new activities in Web TV, search, database development, IT etc. For most of these activities the basic concepts are now clear and therefore separate companies are being formed for this. The biggest is Smartcom - Web TV - which has grown from MNOK 6 in turnover in 2005 to MNOK 14 in 2006.

Conclusion

The core of NHST's strategy is to be best in business news in Norway and a world leader in shipping, oil and seafood. Combinations of economic growth and strengthened market positions lead to expectations of further progress in 2007. NHST will maintain a high level of development activity. The development activities will be linked to the strategic core.