Quarterly report second quarter 2007

Keyfigures

The NHST Media Group’s pre-tax profit in the second quarter was MNOK 53.9 as against MNOK 44.3 last year (22 %). Turnover grew by 21 % to MNOK 267.1 (221.6). The greatest growth in turnover was within new areas like webTV, but there were only a few activities with less than 10% in growth in turnover. On the whole, this shows that NHST’s established business areas are capturing market share, and that new initiatives are rapidly developing. Seventeen of the last eighteen quarters saw profit improvement, and the quarter’s growth in turnover reached an all time high.

At the end of the first half of the year, profits before tax were up 22% to MNOK 69.8 (57.1), and turnover was up 18 % to MNOK 503.2 (427.8). As reported earlier, NHST is experiencing a relatively extensive business development. The internet in general, and web TV, continue to be the areas in which new initiatives are being introduced. The biggest new initiative is related to the development of a new Friday lifestyle supplementary to go with Dagens Næringsliv. The magazine is expected to be launched during the fourth quarter. Circulation developments continue to be good for the Group newspapers, and most of them are experiencing their highest circulation ever. The growth in traffic on the internet varies from 14 – 40 %. Market conditions are still good in the territories and segments in which NHST is operating – although there are some variations. Within advertisements, the Situations Vacant category is seeing the greatest growth.

NHST has, as a consultative body, given a statement against the formation of Media Norge because of the extremely high market share the Schibsted Group would get as a result. The Media Supervision Authority has placed a prohibition on Media Norge, but the case has been appealed and consequently is not yet decided yet.

Other highlights:

"Good growth in conference activities (in terms of the number of conferences and the extent of participation)

"Activities in China and Brazil are being enhanced

"A relativly large number of new recruitment of co-workers has been carried out or is ongoing

"A high level of intense competition – particularly on the internet

"A Comprehensive development of products and markets is going on in all the companies of the Group

Publications and activities

Dagens Næringsliv

Dagens Næringsliv (DN) had an operating profit improvement of 8 % to MNOK 42.1 during the quarter. Total income increased by 14 % in the quarter, to MNOK 149.6. Circulation income increased by some 12 % and income from advertisements increased by 16 %. Several major market-related activities were carried out with good results both for circulation and advertisements. Circulation was approximately 3,000 higher than the corresponding level last year. This is the highest circulation ever for DN and it was continuing to rise. For the year as a whole, DN had an operating profit of MNOK 62.4 as against MNOK 55.8 last year. Accumulated circulation growth was 13 %, to MNOK 285.2 (253.1). 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, some of which have already accrued and been carried to expense.

Other Norwegian/Nordic publications and activities

DN Nye Medier had an operating profit of MNOK 1.1 for the quarter, which is MNOK 0.7 less than last year. DN Nye Medier’s turnover increased by 7 % to MNOK 10.8 during the quarter. Growth in traffic – unique weekly users increased by 14 %. On average DN.no has approximately 200,000 unique users a week. Vertical internet services like dagensit.no and DNenergi.no are seeing the greatest increase in online traffic. In addition, many small development projects were carried out during the period. This, together with the increase in personnel costs, is the reason for the 18% growth in costs during the quarter. The accumulated operating profit was MNOK 2.1 as against MNOK 2.8 last year. There was a 16% growth in turnover, to MNOK 22.6 (19.6).

TDN Nyhetsbyrå had an operating profit of MNOK 1.0 as against MNOK 0.9 during the corresponding quarter last year. There was a 12% growth in turnover to MNOK 3.2 (2.9). The accumulted operating profit was MNOK 1.7 as against MNOK 1.3 last year. The accumulated growth in turnover was 15 %, to MNOK 6.5 (5.6). For the year as a whole, there was a good trend, with a number of new customers, and established customers became bigger buyers of the service

Europower had an operating result of MNOK 0.0 as against a loss of MNOK 0.6 last year Turnover in the quarter increased by 50 % to MNOK 4.5 (3.0). As mentioned in the last quarterly report, Europower purchased 75 % of the shares in the Finnish software company Intstream OY in March, and part of the growth in turnover was due to the acquisition effect. The accumulated operating loss for the year was MNOK 0.5 as against a loss of MNOK 1.9 last year.

Global publications and activities

TradeWinds had an operating profit of MNOK 5.5 for the quarter as against MNOK 2.4 last year. Turnover increased by 46 % to 27.5 (18.8). The growth in turnover was mainly due to conferences, the Situations Vacant area, and the internet. Circulation grew to an all time high, and to 8.128 at the end of the second quarter. The circulation in China, India and the USA is seeing the greatest increase. The accumulated operating profit for the year was MNOK 7.1 as against MNOK 3.9 last year. The accumulated turnover was 25 %, to MNOK 46.8 (37.5).

Upstream had an operating profit of MNOK 5.4 during the quarter, against MNOK 1.7 last year. Turnover increased by 32 % to MNOK 22.3 (16.9). The growth in turnover is basically from advertisements like Situations Vacant, and the internet. Circulation has risen to 6,673, which is an all time high, and with the highest growth from Asia. Accumulated for the year tje operating profit was MNOK 6.3 as against MNOK 0.8 last year. There was a 30% accumulated growth in turnover to MNOK 38.8 (29.9).

Intrafish Media had an operating income of MNOK 1.4 as against MNOK 0.9 in the second quarter. The growth in turnover for the quarter was 1%, to MNOK 13.3 (13.2). The growth in turnover was greatest within the Situations Vacant and the internet. The accumulated operating profit was MNOK 0.5 as against a loss of MNOK 0.3 last year. The accumulated increase in turnover was 5 %, to MNOK 26.0 (24.7).

Nautisk Forlag had an operating profit for the quarter of MNOK 3.5 as against MNOK 1.8 last year. Turnover was up 34 % to MNOK 30.0 (22.3). The global sales apparatus has been strengthened in Singapore and Shanghai. Various digital projects are going on. The accumulated operating profit was MNOK 5.8 as against MNOK 3.7 last year. There was an accumulated growth in turnover of 29 %, to MNOK 59.7 (46.4).

New business activities

Here are all the new activities within web TV, TV search, database developments, IT and other activities. The biggest activity is Smartcom, the web TV company. New activities saw an operating loss of MNOK 0.7 for the quarter, which is in line with that of last year. Turnover in the same areas increased by 209 % to MNOK 14.0 (4.5) in the quarter. Accumulated for the first half year the operating loss was MNOK 6.5 as against a loss of MNOK 2.7 last year. The accumulated turnover was up 146 % to MNOK 19.8 (8.0).

In conclusion

NHST’s strategy is to be best in business news in Norway, and to be world leader on shipping, oil, seafood, and leader on maritime chart services. The combination of an economic boom, strengthened market positions and fresh initiatives means that further progress is expected. However, the economic situation is expected to deteriorate somewhat in the coming quarters compared to the preceding quarters. NHST will continue to maintain a high development activity both in digital and paper-based publications.

24 August 2007

NHST Media Group AS’ Board of Directors