Quarterly report for Q3 2009

* Included in the accumulated figures are: MNOK 16 of restructuring expenses in DN, non-recurring expenses related to moving the head office in Oslo and MNOK 17.4 related to the start-up of Recharge.

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Revenues during the third quarter fell by 8%, to MNOK 228.8, compared to the same quarter last year. The before tax result for the quarter was a loss of MNOK 27.4 against a loss of MNOK 18.5 in the same quarter last year. Accumulated revenues for nine months fell by 7 %, to MNOK 748.1, compared to last year. Accumulated for nine months the result was a loss of MNOK 45.5 against a surplus of MNOK 18.0 last year.

The development in revenues and results continue to reflect the demanding macroeconomic situation in Norway and globally compared to the same period last year and, in particular, continued sharply depressed advertising markets in Norway and internationally.

Revenue development continues to be volatile and varies between the companies. Dagens Næringsliv is now seeing signs that revenues are improving, having been the part of the Group most rapidly and dramatically affected by the economic downturn since the fourth quarter of 2008. The global businesses and DN Nye Medier – where the economic downturn did not have a full impact until the first quarter of this year – are however finding that revenue development remains negative with a negative impact on operating results. The Group's publications have maintained their market shares in difficult trading conditions.

The operating result so far in 2009 has been affected by restructuring costs, non-recurring costs related to the move of the Group’s head office in Oslo and the start-up of the news publication Recharge.

Measures to improve operating performance have been implemented within all operations and where necessary, further measures are ongoing. Operating expenses have been reduced by 5% during the third quarter compared to the previous year and are in line with the Group's previously announced profit improvement of MNOK 80 (annualised effect) in established businesses.

The Group's ongoing plans are based on expectations of continuing uncertain market conditions and revenue development, including lower order reserve than normal. The focus on cost control and resolving operating challenges continues. At the same time, the Group will continue to meet the industry's structural challenges through further development of profitable concepts and business models for editorial news content.

Results by business area

Since the beginning of this year NHST Media Group reports in line with four business areas organised according to main activities.

Dagens Næringsliv

Dagens Næringsliv is the leading Norwegian business newspaper.

Revenues during the quarter fell by 7% to MNOK 125.6 compared to MNOK 135.5 in the same quarter last year. As in the first quarter the reduction in revenue was a result of the fall in advertising income, whereas circulation revenue increased compared to the same quarter last year. The operating result for the quarter was a loss of MNOK 3.2 against a loss of MNOK 1.3 last year.

Accumulated for nine months, income fell by 12 % to MNOK 391.5 compared to the same period last year and the operating result was a profit of MNOK 7.9 against a profit of MNOK 44.6 last year. The accumulated result was affected by restructuring costs of MNOK 16 during the first half-year.

Even though revenue development is negative compared to the same quarter last year the reduction is considerably less than in previous quarters.

Digital & Nordic

The Digital & Nordic business area covers digital news and information services in the Nordic region and comprises the companies DN Nye Medier, Smartcom, Newsdesk, Europower and TDN.

Revenues increased by 6% to MNOK 26.1 compared to MNOK 24.6 in the same quarter last year. The operating result was a loss of MNOK 7.6 against a loss of MNOK 10.2 during the same quarter last year. For nine months the revenue increased by 9 % to MNOK 89.4, whilst the operating result was a loss of MNOK 12.0 against a loss of MNOK 15.8 last year.

There are major differences between the companies. Smartcom, Newsdesk, Europower and TDN have increased revenues and improved results compared to the same quarter last year. The first three of these companies now have in place new technical platforms that are being commercialised and will generate new revenues.

However, the largest company in this business area, DN Nye Medier, experienced declining revenues and a weakened result for the quarter, affected particularly by a weaker classified ads market. As a result of the reduced revenues DN Nye Medier is in the process of implementing new cost-saving measures. DN Nye Medier's turnover fell by 25 % to MNOK 7.9 compared to MNOK 10.5 in the same quarter last year. The operating result was a loss of MNOK 5.5 against a loss of MNOK 5.1 last year. The figures include DN Søk and DNtv which were merged with DN Nye Medier from the beginning of 2009 and have now been down-scaled. For nine months, turnover fell by 15 % to MNOK 31.6 and the result was a loss similar to last year's at MNOK 8.0.

Global

The Global business area embraces leading international news and information products within four industry segments: TradeWinds (shipping), Upstream (oil and gas), IntraFish (seafood) and - launched this year – Recharge (renewable energy).

Revenues during the quarter fell by 14% to MNOK 57.8 compared to MNOK 67.4 in the same quarter last year. The operating result was a loss of MNOK 8.4 against a profit of MNOK 1.6 during the same quarter last year. During the first 9 months income fell by 7% to MNOK 192.1 compared to last year, whilst the operating result was a loss of MNOK 16.6 against a profit of MNOK 6.3 last year.

The revenue development during the quarter is marked by substantially reduced advertising revenues in Upstream, Tradewinds and IntraFish. This has also contributed to the weakening of profits, in addition to Recharge, which with a weak revenue development so far has an operating loss of MNOK 17.4 during the 9 month period.

In all businessefurther profit improvement measures have been implemented, primarily in the form of cost reductions but also in the form of new marketing initiatives. The online services are primarily paid services and are putting more of the content behind passwords. FBFI.no became a payment service from 1 October and now has over 700 paying online subscribers.

Within the business area TradeWinds’ turnover fell during the quarter by 15% to MNOK 17.3, whilst the operating result was MNOK 0.7 against a profit of MNOK 3.9 in the same quarter last year. For Upstream, revenues fell by 22% to MNOK 17.3, whilst the operating result was a loss of MNOK 0.2 against a profit of MNOK 3.6 in the same quarter last year. For IntraFish, turnover fell by 11% to MNOK 22.3, and the operating result was a loss of MNOK 2.0 against a loss of MNOK 4.4 in the same quarter last year.

Nautical Charts

The Nautical Charts business area is the company Nautisk Forlag, which maintains the Group's traditions as a nautical chart supplier in Norway and internationally.

Revenues fell by 13% to MNOK 20.4 compared to MNOK 23.5 in the same quarter last year. The operating result was a loss of MNOK 0.8 against a surplus of MNOK 0.5 last year. During the first nine months of the year revenues increased by 2% to MNOK 78.8 whilst the operating result was a profit of MNOK 2.7 against MNOK 4.7 in the same period last year.

The decline in revenues during the quarter was due to falling demands caused by the economic situation in shipping. New cost reduction measures have been implemented.

Prospects

Profitability is expected to improve during the fourth quarter compared to last year, due to the fourth quarter of 2008 being significantly affected by the financial crisis, the increasing impact of the profitability improvement programme and revenue growth within select activities.

At the same time, the macroeconomic situation is expected to remain challenging and uncertain during the coming quarters, with differential impact on various parts of the business. It is expected that the strong market positions both in Norway and internationally will be maintained.