Quarterly report for Q1 2010

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Turnover in the first quarter increased by 8% to MNOK 267.3 compared to the same quarter last year. The profit before tax for the quarter was MNOK 3.6 against a deficit of MNOK 34.2 in the same quarter last year.

The improvement in income compared to last year reflects in particular a substantial increase in Dagens Næringsliv's advertising revenues. This has also been a significant contributor to the positive result. Lower costs have also contributed to income improvement following the cost reductions implemented during last year. Comparability with the same quarter in the previous year is affected by MNOK 12 in restructuring costs in Q1 2009.

Within the Group there remain major variations in results between the companies, in part a result of economic conditions being better in Norway than in international markets in which the Group operates. The market positions of the Group's publications have been maintained and in several areas strengthened - particularly in advertising markets.

At the end of Q1 the Group had cash reserves of MNOK 146 and the cash flow is satisfactory and improving.

NHST Media Group is expecting continued growth in the number of channels and formats of digital content publication and is continuously assessing its offerings to readers and advertising customers. The Group has readers who have, over time, shown great willingness to pay for the Group's business oriented quality journalism. The Group bases its future development on the view that its content will primarily to be offered in those distribution channels where there is a public willing to pay.

The Group's further plans are based on the expectation of higher economic growth both in Norway and globally in the time ahead and more normalised market trends.

Results by business area

Dagens Næringsliv
Dagens Næringsliv is the leading Norwegian business newspaper.

Turnover during the quarter increased by 18% to MNOK 148.5 compared to MNOK 126.2 in the same quarter last year. The increase is particularly due to advertising revenues increasing by over 40%, but circulation revenues also increased somewhat.

The operating result for the quarter was a profit of MNOK 14.0 against a deficit of MNOK 10.8 last year (Q1 2009 included MNOK 12 in restructuring costs)..

The increased advertising revenues partially reflect improved economic conditions, but also that Dagens Næringsliv has captured market share, in particular within display advertising. Both the paper and the Friday magazine D2 have seen substantial growth in display advertising during this quarter.

Digital & Nordic
The Digital & Nordic business area comprises the companies DN Nye Medier, Smartcom, TDN, Newsdesk and Europower.

Turnover during the quarter increased by 8 % to MNOK 35.6 compared to MNOK 33.0 in the same quarter last year. The operating result was a profit of MNOK 0.2 against a deficit of MNOK 2.2 during the same quarter last year.

The growth in turnover during the quarter results comes first and foremost from Newsdesk which grew by 63% during the quarter. The area's largest business– DN Nye Medier – had revenues in line with the same quarter last year and profitable. Most of the businesses improved their operating result as a result of cost reductions. The exception is Smartcom which experienced both lower revenues and higher costs.

Global
The Global business area covers the world's leading newspapers and websites within four industry segments: TradeWinds (shipping), Upstream (oil and gas), IntraFish (seafood) and Recharge (renewable energy).

Turnover during the quarter fell by 3% to MNOK 56.3 compared to MNOK 58.2 in the same quarter last year. The operating result was a deficit of MNOK 6.0 against a deficit of MNOK 11.8 during the same quarter last year.

The strengthened NOK compared to the USD and EUR has had a negative effect on revenues compared to the same quarter last year of about 5%. The revenue reduction from several of the businesses also reflects a continued poor economic picture internationally, where growth was low in several of the most important markets. Whereas global advertising revenues have fallen the circulation revenues have been maintained at the same level.

The fact that the operating result has improved despite falling revenues results primarily from substantial cost reductions in IntraFish, as well as the reduction in currency income being partially balanced by reduced currency costs. NHST is in the process of moving printing of all the international publications to new providers in the UK.

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

Turnover fell by 13% to MNOK 27.1 compared to MNOK 31.3 in the same quarter last year. Operating profits were MNOK 1.8 against MNOK 2.6 last year. The fall in turnover results from reduced demand for charts as a result of the situation in international shipping, but cost reduction measures partially compensated for this in the result.

Prospects
Higher economic growth is expected in the markets in which the Group is operating in the coming years, but conditions remain uncertain. Improved business cycles are expected to have a positive effect on the growth in the advertising market, particularly in Norway, and the Group has good opportunities to continue to gain market share. In the global markets the uncertainty is greater with regards to advertising development: Bookings for Q2 are healthy whereas there is greater uncertainty associated with the subsequent quarters. Circulation growth will remain a challenge in the coming quarters. Given continued macroeconomic uncertainty, the Group is continuing its close monitoring of operations and continuously assessing the need for further measures. The Group's strong market positions in Norway and internationally have been maintained and provide a good basis for future development.