Today, Egmont and A-pressen made an agreement with Schibsted concerning the purchase of its shareholding in TV 2 Gruppen for an amount of NOK 1,150 million. Egmont and A-pressen have agreed on long-term ownership of TV 2. The two owners take a similar view of the future challenges and opportunities for TV 2 and intend to contribute to further developing and strengthening its competitive ability.
Until today, Egmont, A-pressen and Schibsted each held approximately a third of the shares in TV 2 Gruppen. After today’s transaction, Egmont and A-pressen each will own one half of TV 2, this means that the two media groups will be equal partners in the ownership of TV 2. The minority shareholders (0.06%) will be offered the same price for their shares as Schibsted.
“As co-owners of TV 2, we have always focused on the company’s long-term development. Today, TV 2 is Norway’s strongest brand name, and the common goal of A-pressen and Egmont is for TV 2 to continue to command a strong position in the years to come. Together, we have assessed the market and the competitive scenario facing TV 2 over the next several years. What we see is an explosive development in TV and the Internet that will spawn a wealth of new opportunities for consumers and intensify competition. A-pressen and Egmont have a common wish to give TV 2 a long-term perspective, stability and freedom of action necessary to meet these future challenges,” say Alf Hildrum, Group CEO, A-pressen, and Steffen Kragh, President and CEO, Egmont, in a joint statement.
“The cooperation is based on two main considerations: our media groups and TV 2 complement each other well, and we have no business activities that overlap or compete with each other to any significant degree,” Hildrum and Kragh explain. In addition, TV 2 commands a strong presence in the Norwegian TV market.
Egmont has been a co-owner of TV 2 since the company’s inception in 1991, while A-pressen joined the ownership ranks in 1995.
The agreement to buy Schibsted’s shares is subject to the approval of the Board of Schibsted.
A-pressen’s CEO Alf Hildrum and Egmont’s CEO Steffen Kragh will answer questions at a press conference to be held at the Hotel Continental at 6 pm today. After the conference, queries may be directed to:
Contact persons:
A-pressen:
Alf Hildrum, Group CEO, tel. + 4722009030
Egmont:
Steffen Kragh, Group CEO, +4523330265
Information about TV 2 Gruppen
TV 2 was established in 1991 and started broadcasting in 1992 with Egmont and Schibsted among its original owners. Today TV 2 is owned by Schibsted (33.37%), Egmont (33.29%), A-pressen (33.27%) and other shareholders (0.06%).
TV 2 currently comprises the main channel, TV 2 AS (100%), the entertainment and sports channel TV 2 Zebra AS (55 %), TV 2 Filmkanalen (100%), the online services run by TV 2 Interaktiv AS (100%), the classified ads company TV 2 Rubrikk AS (100%), the radio station Kanal 24 (51.62%), the digital terrestrial network NTV (33.33 %) and TV 2 Invest AS (100%), which owns the private meteorological company Storm Weather Center AS (80.4%).
The profile survey of major Norwegian companies, “Store norske bedrifter”, conducted in 2006 concludes that TV 2 enjoys the best reputation of 116 Norwegian business enterprises.
TV 2 is Norway’s largest commercial TV channel, commanding approximately 30% of the total viewing market and approximately 65% of the commercial market. These market shares have remained relatively stable over the past five years. TV 2 has generated high revenue growth over the past four years (roughly 12% annually) and a high profit margin of about 12%.
In 2005, TV 2 Gruppen generated revenue amounting to NOK 1,944 million and a profit before tax of NOK 209 million.
The increasing digitalization of the TV market will lead to a dramatic growth in the number of TV channels. From 2009, the digital terrestrial network (NTV) will be able to offer about 20 channels, most of them based on pay-TV models such as cable TV. With a strong brand and a broad portfolio of channels (TV 2 recently launched its own film channel and is also planning a news channel), TV 2 is expected to be well-positioned in the competition for viewer favor.
The development of the digital terrestrial network will facilitate interactive services on TV and in some cases enable the integration of online services and TV. Once this integration is a reality, TV 2’s already compelling online portfolio will have an even stronger standing in the new media. TV 2 has invested heavily in new media in the past few years and has underpinned its position in many online arenas.
Information about Egmont
Founded in 1878, Egmont is one of the leading media groups in the Nordic region and has 3,600 employees. Egmont’s media universe encompasses weeklies, magazines, comics, books, films, TV programs, educational materials, games, music, content for mobile services and electronic entertainment. Egmont also produces films and TV programs through its subsidiary Nordisk Film, the world’s oldest film production company celebrating its centenary this year. Egmont’s primary market is Scandinavia, but its operations span 21 countries.
As a foundation, Egmont also supports social and cultural initiatives in addition to running media operations. Since 1920, Egmont has provided support amounting to over NOK 1.9 billion in current Norwegian kroner.
In 2005, Egmont generated revenue of NOK 9,867 million and a profit before tax of NOK 568 million.
Egmont in Norway
As well as its involvement in TV 2 Norge, Egmont has about 850 employees in Norway. The four best-known Norwegian Egmont companies are:
- N.W. Damm & Søn AS was founded in 1843. Releasing more than 1,000 new titles every year, the publishing company spans all genres from non-fiction to literary fiction and also publishes books and educational aids for schools and institutions of higher education. Damm has grown into Norway’s third-largest publishing company. In 2006, the Tanum chain of bookstores was added to Damm’s range of activities.
- Hjemmet Mortensen was founded in 1993 following a merger with Orkla and is Norway’s largest and broadest-ranging magazine publisher. Before the merger between Egmont’s Hjemmet and Orkla’s Mortensen, Egmont published its own magazines in Norway, a tradition dating back 101 years to the time when the first issue of Hjemmet saw the light of day. The year 2006 sees Hjemmet Mortensen as the publisher of 36 magazine titles in Norway and a company with high visibility on the Internet.
- Founded in 1906, Nordisk Film is the world’s oldest active film production company. In Norway, Nordisk Film distributes or markets living images via TV, DVDs, game consoles and movie theaters. Nordisk Film also gained a foothold in the Nordic music industry in 2006.
- Egmont Serieforlaget has been part of the lives of Norwegian children and teenagers for generations. First in the guise of Donald Duck, the American comic launched in the Nordic countries by Egmont in 1946 and for which Egmont now itself develops new stories. The past decades have brought a host of other characters in both print and digital media. Egmont Serieforlaget’s publishing spectrum in 2006 ranges from school calendars and Norwegian cartoon series like Nemi to mobile activities and such teen media as the Inside magazine.
Find more information about Egmont at www.egmont.com
Information about A-pressen
A-pressen is a media group with about 2,700 employees. The group has subsidiaries in Norway in the areas of newspaper operations, printing, TV, radio and electronic media. In addition, A-pressen holds minor stakes in newspaper and printing operations in Russia. A-pressen’s core competencies are the collection, planning, production and distribution of information. Our largest business activity is local newspapers, which enjoy a unique standing with readers and advertisers. A-pressen’s core competency provides the platform for establishing and developing companies in a rapidly growing Russian media market. Co-ownership of TV 2 and local TV stations makes A-pressen the largest commercial TV owner in Norway.
A-pressen AS is owned by Telenor Broadcast Holding (44.14%), Landsorganisasjonen and Fagforbund (44.52%), Stiftelsen Fritt Ord (9.87%) and A-pressen AnsattInvest (1.47%).
In 2005 A-pressen generated revenue of NOK 2,974 million and a profit before tax of NOK 259 million. In recent years A-pressen has achieved solid growth in turnover and results.
A-pressen’s business areas:
- Local media consist of 51 local newspapers, 43 online newspapers, eight local TV stations, 30 local radio stations as well as distribution and development companies. A-pressen’s newspapers account for 16% of national press circulation figures. Its newspapers play a dominant role in local news and advertising services. The multi-media strategy is continuously developed on the basis of this strong market position.
- National media consist of Zett.no, production companies, Telepress, SportMedia and TV 2 (33.3%). TV 2 is the most important strategic investment in this business area. A-pressen aims to contribute to consolidating and further developing TV 2 as the leading commercial TV channel in Norway. Since February 2006, A-pressen has been the sole owner of Zett.no, a classified ads portal.
- Printing consists of eight printing companies in Norway (with printing plants in 18 locations) and five Russian printing companies. In Norway, A-pressen’s primary activity is the publication of its own competitively priced quality newspapers. The printing plants also contribute to strengthening the newspapers’ position in local and regional markets.
- Russian media consist of three minority-owned newspapers and Komsomolskaya Pravda Publishing House (25%). Komsomolskaya Pravda is Russia’s largest national newspaper with a daily circulation of 800,000 and a weekly circulation of almost 3 million. A-pressen has forged business partnerships with some of Russia’s leading newspaper publishers.
Find more information about A-pressen at www.apressen.no
