Quarterlyreport first quarter 2008

Download Key figures

Overall

NHST Media Group had a provisional loss before tax of MNOK 1.6 for the first quarter 2008 as against a surplus of MNOK 15.5 in 2007. Turnover grew by 12% to MNOK 264.7compared with the same quarter last year. The growth in turnover is both the result of continuing good organic growth (9%) and the effect of last year’s acquisition and merger at IntraFish Media. Similarly, IntraFish changed situation impacted on costs. All in all, IntraFish Media is now the Group’s second largest single activity. The fall in NHST’s profits is due to the effect of Easter being in March in 2008 instead of in April as it was last year, the introduction of D2 on to the market, the growth in salary/pension costs, and other input factors such as distribution and USD.

All of the companies further consolidated their positions in the market during the quarter. This goes for circulation, traffic and advertisements. NHST Media Group has continued focusing on developing a number of the Company’s activities – by means of D2, the Company’s activities online, and the integration of Highway into IntraFish Media as the most visible examples. In addition, several of the companies are working on programmes in order further to improve their productivity.

Whereas the Group has maintained a high growth rate overall, the macro-economic uncertainty has led to somewhat greater diversification in the various companies’ development than in previous periods. The global economic picture and the ”financial crisis” have meant that particularly the advertisements market seems rather more uncertain than before, and advertisement trends differ from one segment to the next.

Publication by publication

Dagens Næringsliv (DN) increased its turnover during the quarter to MNOK 147.4 as against MNOK 135.7 last year – which means a 9% increase. The operating profit for the quarter amounted to MNOK 10.8 as against MNOK 20.3 last year. The fall in operating profit is due to planned costs linked to the investment in D2 and operating cost increases. The level of circulation growth experienced in previous quarters continued unabated for DN during the quarter. Mediebedriftenes Landsforbund (the Norwegian Newspaper Publishers’ Association) named DN Norway’s fastest growing newspaper in 2007 – for the third year in a row.

DN Nye Medier improved its operating profit in the quarter to MNOK 1.1 as against MNOK 1.0 the year before. Turnover grew by 12% to MNOK 13.2 (MNOK 11.8). Traffic grew by between 25 and 30%. The Company is getting a good effect from the continuous focus on developing new services. In March DN Nye Medier successfully launched a cooperation arrangement with NRK on providing financial news to NRK’s online channels, Text TV, and Flytoget (the Airport Express Train).

TradeWinds’ turnover for the quarter remained stable at MNOK 19.0 compared with MNOK 19.4 last year, whilst the profit was reduced to MNOK 1.0 as against MNOK 1.6. The good circulation trend continued at a record level of 8,395 issues. The Company’s online activities also experienced strong growth and development. The turnover and the profit are marked by a weaker USD and towards the end of the quarter the advertisements market was also weaker – particularly the Situations Vacant category.

Upstream increased its turnover to MNOK 18.5 as against MNOK 16.5 last year, which meant a 12% increase. The profit reached MNOK 0.7 as against MNOK 1.0. Upstream now has more than 7,000 subscribers. At the same time the Company is really focusing on developing its own online activities, which have seen a good growth in traffic and advertisements over several quarters. Upstream’s turnover and profit have also been affected adversely by a USD in serious decline.

Intrafish Media’s turnover was MNOK 27.1, which is an increase of 113 per cent over the same quarter last year (MNOK 12.7). Due to the acquisition of London-based Highway Publications and the merger between Fiskaren and Fiskeribladet, the operation has more than doubled. During the quarter, focus has been on operating control and integration of the enterprise in London, and on facilitating matters for the merged Fiskeribladet Fiskaren. The Fiskeribladet Fiskaren website became operative in March, and the new joint newspaper is planned to be launched on 2 May 2008. The enterprise had a loss of MNOK 2 against a loss of MNOK 0.8. This must be seen in the context of integration costs and the Company’s increased activities in many areas.

Nautisk Forlag had a surplus of MNOK 1.3 for the quarter against a surplus of MNOK 2.3 last year. Turnover dropped 12% to MNOK 26.1 (MNOK 29.7). The reduced turnover is due to a lot fewer maps being launched during the period and this is expected to continue until the middle of the second quarter.

TDN had an operating profit for the quarter of MNOK 1.0 as against MNOK 0.7 last year. Turnover grew by 6 % to MNOK 3.5 (MNOK 3.3).

Europower increased its turnover by 85% to MNOK 6.5 (MNOK 3.5). The magazine Energi made considerable progress both in terms of circulation and particularly in terms of advertisements. The Company had a deficit of MNOK 0.7 in the quarter as against a deficit of MNOK 0.4 in 2007.

Smartcom increased its turnover by 16% to MNOK 4.9. The profit went down by MNOK 0.2 to MNOK -0.4. The improved turnover was due to good demand in the market. The reduced result is due to considerable organisational and technological development.

Other activities. Here many new activities are gathered under Web TV, Search, database development, IT, etc. There was a MNOK 11.6 deficit in the first quarter as against a MNOK 8.7 deficit in 2007. Turnover from ”Other activities” increased by 2 % during the quarter, to MNOK 17.2 (MNOK 16.8).

In conclusion

NHST’s top policy is to be best on business news in Norway and to be world leader on news to the shipping, oil and energy, and seafood sectors, and to further develop a leading chart business. In recent years, NHST has displayed strong will to establish and further develop market leading positions both in Norway and globally. The Group will continue to develop its business on that basis. Greater macro-economic uncertainty means that NHST Media Group is prepared for the eventuality that the business, particularly advertisements. At the same time, NHST’s competitive position has been strengthened and that makes NHST decidedly stronger in a more turbulent market.

Oslo 28 April 2008

The Board of Directors of NHST Media Group