Quarterly report for the third quarter 2008

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Turnover increased by 10% to MNOK 249.6 compared with the same quarter last year. The growth in turnover is the result both of god organic growth, particularly in the global publications, and the effect of the acquisition last year of IntraFish Media. Group profits before tax dropped from MNOK 5.8 in the third quarter 2007 to MNOK -18.5 in the third quarter 2008.

The fall in profits was primarily due to a combination of a slower development in advertisements income and the previously reported development projects, which are numerous and cost-intensive. It is clear that the situation in the global financial markets considerably impacts on the advertisements market, first of all in Dagens Næringsliv. The increased printing and distribution costs have also impacted negatively on the results. Strong measures are being implemented to improve profitability in a number of areas.

At the same time, globally directed activities are still making sound progress, traffic on the web is rising considerably on all websites, and all newspapers in the Group have a record number of subscribers. As at the third quarter 2008, NHST Media Group’s turnover increased by 10% to MNOK 805,1 compared with the same period last year. Profit before tax was MNOK 18.1 as against MNOK 77.1 in 2007.

1) Net financial items and Profit before tax for Q3 2007 were adjusted marginally in relation to what was reported on 25 October 2007 to take into account last year’s change of minority interests in the quarterly report. The figures are comparable.

Publication by publication

Dagens Næringsliv increased its turnover by 3% during the quarter, to MNOK 135.5 as against MNOK 132.1. There was an operating loss of MNOK 1.3 in the quarter as against a profit of MNOK 11.6 last year. The fall in operating profit was mainly due to the weaker development in advertisements income, combined with increased costs particularly related to printing, distribution and increased editorial activities. The increase in circulation continued. There is a positive trend for D2 both when it comes to advertisement and circulation income.

Accumulated income increased by 6% to MNOK 444.2 whereas operating income dropped from MNOK 74.0 last year to MNOK 44.6.

DN Nye Medier’s turnover rose by 12% to MNOK 10.2 due to a considerable increase in traffic and constant focus on the development of new services. DN.no has a substantial increase in unique users and direct reading of the front page during the quarter compared to the same period last year. DN.no increased its market share during the period. The operating result during the quarter fell to MNOK –2.2 as against MNOK -1.4 the year before. All in all, revenues rose by 14% to MNOK 36.1, and the operating profit was MNOK 0.1 as against MNOK 0.7 last year. The fall in profits was first of all due to costs related to development activities and increased editorial focus during the first half of the year.

TradeWinds’ turnover during the quarter increased by 18% to MNOK 20.3, and the profit rose from MNOK 0.9 to MNOK 3.9. The good trend in circulation continued together with a strong increase in advertisement income, which was especially high during the quarter due to major fair and conference activities and in addition the trend in Job Vacancies advertisements is very good. TradeWinds.no is developing positively after the turnaround in June 2008. Altogether revenues increased by 6% to MNOK 61.9, whilst the operating profit was MNOK 9.7 as against MNOK 7.5 last year.

Upstream increased its turnover by 18% to MNOK 22.1, and advertisements in particular are progressing well, one reason being major conference activities. Operating profits increased from MNOK 2.0 to MNOK 3.6. The focus on web activities is showing results and the development is very positive both as regards traffic and revenues. Altogether revenues increased by 12% to MNOK 64.1, whereas operating profits increased from MNOK 8.3 to MNOK 9.1.

Intrafish Media’s turnover was MNOK 25.1, an increase of 103% compared with the same quarter last year. The increase is first of all due to last year’s acquisition of Heighway Publications and merger with Fiskeribladet. Intrafish Media is the global leader in news on seafood.

The organisation saw a loss of MNOK 4.4 during the quarter, whilst there was an operating loss of MNOK 0.2 last year. All in all, income increased by 101% to MNOK 76.9, and the operating loss was MNOK 9.2 as against a profit of MNOK 0.3 last year. The decline is due partly to recruitment and integration costs and partly a weak trend in the advertisements market.

Nautisk Forlag’s turnover dropped 6% to MNOK 23.5. The operating profit fell to MNOK 0.5 during the quarter as against MNOK 2.1 last year. Altogether income fell by 9% to MNOK 77.2, whilst the operating profit was MNOK 4.7 as against MNOK 7.9 last year. The drop in turnover is basically due to fewer charts being published by the British Admiralty.

TDN’s turnover increased by 10% during the quarter to MNOK 3.6. The operating profit was MNOK 0.9 as against MNOK 1.0 last year. Altogether turnover increased by 9% to MNOK 10.7, whereas the operating profit was MNOK 3.0 against MNOK 2.7 last year.

Europower’s turnover dropped by 21% to MNOK 3.9. The Company had an operating loss of MNOK 1.9 as against MNOK 0.1 last year. The drop in the quarter was due to delays until November with the publication of the book project, Norske Dammer. Altogether income increased by 19% to MNOK 15.3 whilst there was an operating loss of MNOK 3.8 as against a loss of MNOK 0.4 last year. Structural changes will be made.

Smartcom’s turnover fell by 19% to MNOK 3.9 compared with last year and had an operating loss of MNOK 1.8 as against a profit of MNOK 0.1 last year. Altogether revenues fell by 4% to MNOKI 15.1, whereas the operating loss was MNOK 1.5 as against an operating profit of MNOK 2.8 last year. The fall in results was due to a greatly reduced turnover resulting from a weaker market as well as increased competition. Structural measures have been implemented.

Other activities. In addition to group costs, new activities have been gathered here, including Smartcom International, Web TV, and the development of search and databases. Turnover fell by 7% to MNOK 14.2 during the quarter. The operating loss was MNOK 11.7 during the quarter against a loss of MNOK 6.3 in 2007. Altogether revenues were more or less unchanged at MNOK 48.4, whilst there was an operating loss of MNOK 27.6 as against a loss of MNOK 17.0 last year. The increase in costs is due to the increased development and activity level.

Conclusion

In the current critical situation in the financial markets, NHST Media Group is prepared for difficult market conditions. The financial unrest is expected to further impact on developments in the advertisements markets, and the Group is expecting a weak turnover trend in the fourth quarter. Substantial measures are being introduced throughout the Group to compensate for the downturn in markets. The measures being taken have an assumed bottom-line effect of approx. MNOK 80.

20. October 2008

Board of Directors, NHST Media Group