The Danish Media Group Egmont reports an increase in revenues for 2002 of 5 % to EUR 1.200 million.
Profit before tax amounts to EUR 39.1 million in 2002 an improvement of EUR 35.1 million over 2001 which amounted to EUR 4.0 million in 2001.
Overall the 2002 result is satisfactory. The result reflects improvement in the underlying operations which, in view of a media market under pressure, is very satisfactory.
The Business Areas
In the Nordic area all business areas report progress. Outside the Nordic area a number of Egmont’s businesses have seen positive development although the result is negatively affected by restructurings and closing of a number of companies.
Egmont’s magazine division publishes more than 67 different consumer magazines and weeklies reaching over 5 million Scandinavians every week. The magazine division realized its best result ever in 2002 despite a difficult market especially for advertising. The improved result is mainly due to editorial focusing, increased market share and increased cost effectiveness.
Revenue: EUR 186 million (EUR 2001: 169 million)
Operating profit: EUR 28 million (EUR 2001: 21 million)
Egmont’s Kids & Teens division covers the children’s and young people’s media consumption in the Nordic market mainly through magazines, games and activity products. In addition the division is active within music, SMS, Internet and pc games. The improved result in the Kids & Teens division has been achieved through a strengthened market position from focus on existing products as well as from new launches.
Revenue: EUR 163 million (EUR 2001: 151 million)
Operating profit: EUR 18 million (2001: EUR 14 million)
Egmont’s book division reaches millions of readers across the Nordic area through book clubs, book stores and other retail channels. The book division covers all genres including the education market. All publishing houses report improved results for 2002.
Revenue: EUR 153 million (2001: EUR 142 million)
Operating profit: EUR 5 million (2001: 3 million).
Nordisk Film, Egmont’s film, TV and games division is the largest Nordic producer and provider of electronic entertainment. Nordisk Film has achieved an improved result but is still registering a loss. After the merger in August 2002 between the two sister divisions Egmont Entertainment and Nordisk Film the newly formed division is going through an adjustment process aimed at continued profit improvement.
Revenue: EUR 432 million (2001: EUR 399 million)
Operating profit: EUR (1) million (2001: EUR (8) million)
The Egmont International division comprises Egmont’s book and magazine publishing activities in Central Europe, the UK, Eastern and South Eastern Europe and Asia for children and young people. A number of the businesses register progress but the overall International result is heavily influenced by substantial restructurings particularly in Taiwan and in Germany.
Revenue: EUR 266 million (2001: EUR 277 million)
Operating profit: EUR (22) million (2001: EUR (13) million)
During 2002 the organisational focus has been on consolidating operations into fewer but larger units and on reducing the overall number of employees. In total the average number of employees has been reduces by 3 % from 2001 to 2002 to 3,756.
Furthermore, Egmont has initiated the development and implementation of improved management tools and IT systems and taken steps to exploit scale advantages in sourcing.
Management’s Comment
CEO Steffen Kragh notes: ”Overall the 2002 result is satisfactory. We have focused strongly on improving our operating performance and our profits rather that going for growth. At the same time we have taken steps during 2002 to resolve a number of our problem areas. In parallel we have continued our investments in creativity and the development of the companies in the Group.”
Background Information
Egmont is a Scandinavian Media Group which in 2003 celebrates the 125th anniversary. We create knowledge, experiences and entertainment. Egmont is a diverse company reaching consumers with products from high culture to popular entertainment, from in depth reflection to the fleeting perspective, from education to entertainment, and from paper to the plasma screen. Egmont’s main business is in the Nordic area. We have activities within film and TV, magazines and weeklies, books interactive entertainment products and Internet.
In Denmark Egmont is among other things known for magazines like Hjemmet, ALT for Damerne, Euroman, SIRENE and Anders And (Donald Duck), for the publishing houses Aschehoug and Lademann, for Nordisk Film with cinemas, feature films, TV and Sony PlayStation as well as many other media products.
Egmont is owned by a charitable foundation. The Egmont Foundation supports or initiates social, educational and cultural projects mainly with the aim of creating lasting improvements for children and young people. The Egmont Foundation has since its establishment in 1920 granted more than EUR 200 million to such projects.
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Further information
Lene Balleby
Vice President Corporate Communications
Phone: +45 33 30 51 40
Mobile: +45 40 16 24 26
balleby@egmont.com
