Quarterly report first quarter 2007

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Overall:
The NHST Media Group’s pre-tax profit for the first quarter 2007 was MNOK 15.9 as against MNOK 12.9 last year. Turnover grew by 15 % to MNOK 236. The growth in turnover is considered to be clearly higher than the growth in the market, and the revenues from both advertisements and circulation show that good progress has been made. The greatest growth is within internet advertising in general and within the Situations Vacant category both in newspapers and online. The growth in circulation revenues is increasing and consequently the Group’s newspapers are continuing the positive trend we have seen for many years now. Sixteen of the last seventeen quarters have seen growth in turnover and operating profits. Market conditions are still good on the whole, both in Norway and in the three global niches within which NHST is operating.

As in the preceding quarters the quarterly profits are characterised by profit improvement in established companies, and a number of new initiatives. New internet and web TV activities are the most comprehensive new initiatives that have been going on for a while and they were strengthened during the quarter through the launch of DNtv among other things. During the quarter it was decided to invest substantially in a Friday supplementary of DN as from late autumn. The supplementary is to feature lifestyle, the purchasing of the majority of the shares in the Finnish software company Intstream OY in order to strengthen Europower, and the purchase of 50% of the shares in an Indian conference company that will be called NHST Monde?? Extensive product and market development is going on within all companies in the Group, and NHST has now also established an office in Dubai Media City. Following a trial period the LNG production LNGUnlimited is now being launched in the market. This is a co-operation project between TradeWinds and Upstream.

Publications

Dagens Næringsliv (DN) had an operating improvement of 22 % to MNOK 20.3 during the quarter. Total revenues increased by 11 % in the quarter to MNOK 135.7. Circulation revenues increased by approximately 6%, and advertising revenues by 16%. Several major market-related activities were carried out with good results both as regards circulation and advertising. The National Association of Media Companies (Mediebedriftenes Landsforbund) published their final circulation figures on 12th February, which showed a growth in circulation of 2,336 for DN to 76,584 for 2006. This is the highest ever circulation for DN, and the growth is up until now this year at approximately the same speed. As mentioned above, DN will launch a new Friday magazine directed at lifestyle this autumn This will lead to greater costs in the coming quarters. The investment will be long term.

DN Nye Medier had an operating profit during the quarter of MNOK 1.0, which is 6% better than last year. During the quarter, turnover at DN Nye Medier increased by 25% to MNOK 11.8. The growth in traffic – unique weekly users make up between 25 and 30%. There is a total of approximately 290,000 unique users a week. There is a strongly increasing online traffic on the vertical internet services. All in all there are approximately 290,000 users a week. There is strongly increasing online traffic on the vertical internet services like dagensit.no and DNenergi.no. What is more, many small development projects were carried out during the period – including also new design.

TradeWinds had an operating profit of MNOK 1.6 as against MNOK 1.5 last year. Turnover has increased by 4 % to [MNOK] 19.4. The growth in turnover largely stems from the Situations Vacant area. Circulation has risen to an all time high and to 8,005 at the end of the first quarter. The circulation in China and India is seeing the highest increase. This also shows that the conference activities are supplementing the publication well.

Upstream had an operating profit of MNOK 1.0 as against a loss of MNOK 1.0 last year. Extensive marketing projects were carried out during the quarter, such as for instance the publication’s own daily during an oil conference in China, and increasing the number of issues of a Chinese (Mandarin) language newsletter. The turnover went up by 27 % to MNOK 16.5 during the quarter. The circulation has risen by 6,530 to an all time high.

Intrafish Media had an operating loss of MNOK 0.8 as against a loss of MNOK 1.1 in the first quarter of last year. There was an 11% growth in turnover for the quarter, to MNOK 12.7. It is particularly the turnover from advertisements that has grown and this applies to both the internationally-oriented as well as the Norwegian language-oriented publications.

Nautisk Forlag had an operating profit for the quarter of MNOK 2.3 as against MNOK 2.0 last year. Turnover is up 23% to MNOK 29.7. The global sales apparatus has been strengthened in Singapore and Shanghai. In addition, various digital projects are in progress.

TDN Nyhetsbyrå had an operating profit of MNOK 0.7 as against MNOK 0.3 for the first quarter of last year. Turnover increased by 18% to MNOK 3.3. For the year as a whole, the trend is very good, with a number of new customers, while the established customers have become bigger buyers of the service.

Europower had an operating loss for the quarter of MNOK 0.4 as against a loss of MNOK 1.3 last year. Turnover increased by 36 % to MNOK 3.5 in the quarter. As mentioned, Europower acquired 75 % of the shares in the Finnish software company, Intstream OY, in March, including the right to buy 100% at a later date.

New business activities. The new activities in web TV, Search, database developments, and IT are included here. The biggest activity is Smartcom, the web TV company. In accumulation, these activities saw a loss of MNOK 5.8 during the quarter, as against a loss of MNOK 2 last year. Turnover is up 65% to MNOK 5.8.

In conclusion
The core of NHST’s policies has been to be best in business news in Norway, and to be world leader on shipping, oil and seafood. The combination of an economic boom and strengthened market positions means that further progress is expected in the coming quarters. NHST will continue to maintain a high development activity both in digital and paper-based publications. The development activities will be linked to the strategic core.

25 April 2007

NHST Media Group AS’ Board of Directors