Quarterly report for Q2 2010

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The Group increased revenues and improved profitability in the second quarter of 2010 compared to the same quarter last year. The development reflects both improved market conditions and implemented initiatives and this is the third consecutive quarter of significantly improved profitability. Revenues and result are at the level of the historical high for the Group.

Revenues

Revenues in Q2 increased by 5% to MNOK 285.9, compared to the same quarter last year.

The increase in revenues compared to last year particularly reflects increased advertising revenues from Dagens Næringsliv, but also to a growing extent increased revenues from digital activities.

Even though the overall trend is positive there are variations between the companies in the Group. This is partly because economic conditions are better in Norway than in many of the most important international markets in which the Group operates. The international business area Global had a negative development in revenues compared to the same quarter last year, mostly due to foreign exchange movements.

Profit

The result for the quarter before tax was a profit of MNOK 40.8 against a profit of MNOK 16.0 in the same quarter last year.

The increase in advertising revenues at Dagens Næringsliv has had a positive effect on profits for the Group.

Almost all of the Group's other businesses have improved profits compared to the same quarter last year, principally as a result of improved cost effectiveness and, increasingly, improved revenues. The profit-improvement programme with an annual effect of MNOK 80 million, announced in 2008 and implemented during 2009, has reached full effect in 2010.

Profitability for Q2 is as usual affected positively by the lack of salary payments in June in the Norwegian part of the business because of the national holiday payment scheme.

Cash flow and balance sheet

At the end of Q2 the Group had a cash holding of MNOK 159 and the cash flow is satisfactory.

Events during the quarter - Group

In light of the continued development in the newspapers' distribution platforms and business models the Group has carried out an assessment of the interaction between its business news operations in Norway - Dagens Næringsliv and DN Nye Medier (DN.no). It has been decided to give the businesses joint management under publisher Amund Djuve, to meet the need for increased coordination in the future. The operations are being maintained as separate companies.

The group is working on solutions for paid content on new digital platforms such as e-readers/tablets, with a view to launch during the second half of the year. In addition, a range of digital development projects are in progress within the Group.

The Group's publications and journalists have recently won a range of prizes in Norway and internationally.

Results and events by business area

Dagens Næringsliv

Dagens Næringsliv is the leading Norwegian business newspaper.

Revenues increased by 9% during the quarter to MNOK 152.3 compared to MNOK 139.7 in the same quarter last year. The increase is particularly a result of an increase in advertising revenues, flowing from substantially increased market share within display ads.

The operating result was a profit of MNOK 31.4 against a profit of MNOK 21.9 last year.

On 9 July Dagens Næringsliv signed a contract for Schibsted Trykk to print Dagens Næringsliv's circulation in Oslo and surrounding regions from 29 August 2011. The contract replaces the current contract with Dagblad Trykk. The new agreement has a fixed term of six years. Dagens Næringsliv has an options to extend that by up to a further nine years.

Digital & Nordic

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

Revenues increased by 17% to MNOK 35.1 compared to MNOK 30.0 in the same quarter last year. The increase in revenues during the quarter results from growth in DN Nye Medier (11%), Europower (18%) and Newsdesk (59%).

The operating result was a profit of MNOK 1.6 against a deficit of MNOK 2.2 during the same quarter last year. The profit improvements are the result of higher revenues as well as the effect of previously implemented costs reduction measures.

The largest business within the area - DN Nye Medier - experienced a continued growth in traffic compared to the same period last year.

Newsdesk has continued its growth in Sweden and expanded to Norway and Denmark.

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).

Revenues during the quarter fell by 8% to MNOK 69.6 compared to MNOK 76.1 in the same quarter last year. The decline in revenues is primarily a result of currency fluctuations but also reflects the economic situation globally which has affected advertising revenues and led to a somewhat weaker circulation development.

The operating result was a profit of MNOK 7.8 against a profit of MNOK 3.6 during the same quarter last year. The improvement in operating profits despite the fall in revenues is primarily a result of cost-effeciency measures implemented.

Upstream has been a leader in expert coverage of the oil spill in the Gulf of Mexico and the editorial staff have been used frequently as expert commentators in international media.

During the autumn Upstream and Recharge will increasingly reserve access to their web content for their their paying customers.

Nautical Charts

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

Revenues increased by 7% to MNOK 29.2 compared to MNOK 27.2 in the same quarter last year. Operating profits were MNOK 3.2 against MNOK 0.9 last year.

The improvement reflects increased sales in both the Norwegian and the Asian parts of the business.

Prospects

Higher economic growth is expected in the markets in which the Group is operating in the coming year, but conditions remain uncertain.

Improved macroeconomic conditions are expected to provide a positive effect on growth in the advertising market, particularly in Norway, and the Group ought to have good opportunities to continue to capture market share. In the global markets the uncertainty is greater with regards to advertising revenues, but the order pipeline currently appears satisfactory. There are still challenges in regard to circulation volumes.

The group is increasing its digital development activities in light of the increased use of alternative digital distribution channels for news content.

Given continued macroeconomic uncertainty the Group continues close monitoring of operations and continuously assesses the need for new measures. The Group's strong market positions in Norway and internationally have been maintained and provide a basis for future development.