In 2005, Egmont generated revenue of EUR 1,173 million, an increase of 9.6%. Pre-tax profit amounted to EUR 67.5 million. This is the second-best profit ever recorded by the media group.
The Egmont media group increased its revenue by 9.6% in 2005, bringing it to EUR 1,173 million compared with EUR 1,070 million the previous year. The increase springs primarily from higher sales generated by Nordisk Film, particularly in interactive games, but all Egmont’s divisions recorded revenue growth.
Pre-tax profit amounted to EUR 67.5 million. The Group rounded off the year with a profit just below the record EUR 70.3 million profit realized in 2004, before income from the sale of the ownership interest in IO Interactive.
The profit is satisfactory. It reflects varying profit developments in Egmont’s divisions, but nonetheless ends on a high note viewed as a whole.
The Group profit after tax was EUR 45.2 million. In 2004, profit after tax came to EUR 73.2 million, which included, however, the tax-free gain realized on the sale of IO Interactive.
At year-end, equity amounted to EUR 368.5 million, and the equity ratio was 46.4%. Both figures have more than doubled over the past four years.
President and CEO Steffen Kragh said: “The profit for the year is satisfactory. Despite constant pressure on circulation figures and margins in the media industry, our earnings remained on a par with last year’s high level. We also stepped up investments in new launches and digital media in 2005. Egmont has established a good platform for new investments in the form of organic growth and acquisitions.”
Business areas
Egmont Magazines added 10 titles to its portfolio of weeklies and magazines in Denmark, Norway and Sweden, which now numbers 97 titles. Two Norwegian magazines and a Swedish magazine were acquired in 2005. Among several new launches were Kamille, a Norwegian bi-weekly for young women, and King, a Swedish magazine targeted at fashion-conscious men. The year’s investments also include a number of popular Norwegian magazines published exclusively on the Internet. A high profitability level was maintained throughout 2005.
Revenue 2005: EUR 192 million (2004: EUR 183 million).
Operating profit 2005: EUR 30 million (2004: EUR 31 million).
Egmont Kids & Teens maintained its market position in print media and invested in digital media for children and young people. In the process of developing about 50 Nordic websites, the division increased its staff numbers and its portfolio of rights relating to mobile services. Investments in 2005 included the acquisition of an 85% stake in Skandinaviske Skoledagbøker AS, a Norwegian company publishing school calendars and represented in 10 European countries and the USA. The profit was affected by the year’s investments and intensified competition in children’s and youth media.
Revenue 2005: EUR 175 million (2004: EUR 171 million).
Operating profit 2005: EUR 17 million (2004: EUR 20 million).
Egmont Books increased its revenue in 2005, selling approximately 19 million books in Denmark, Norway and Sweden. The division acquired the activities of L&R Uddannelse and took over the schoolbook publishers Mols in Denmark. Literary fiction is a growth area, with literary journals being added in Norway as well as new titles and rights in the general Nordic area. In addition to the impact of investments, the results were affected by the running-in of a book club system and changing customer patterns in this market.
Revenue 2005: EUR 179 million (2004: EUR 165 million).
Operating profit 2005: EUR (1) million (2004: EUR 2 million).
Egmont Nordisk Film – the world’s oldest surviving film company – focused on new digital activities. The year saw the launch of the portable entertainment system PSP and the Internet debut of the video-on-demand project “Sputnik Film”. Investments in 2005 included the acquisition of a 20% shareholding in Finland’s biggest film production company, Matilla Röhr Productions. Results were impacted by the fact that several companies, including the Danish TV production company, underwent structural adjustments to reduce fixed overheads and increase flexibility.
Revenue 2005: EUR 358 million (2004: EUR 289 million).
Operating profit 2005: EUR 4 million (2004: EUR 6 million).
Egmont International boosted its earnings in 2005, recording its best profit to date. Throughout the year, the division also intensified efforts to collaborate on the use of license products, own concepts and marketing platforms. The main markets are Great Britain and the German-speaking countries, but the profit improvement derives chiefly from the larger Eastern European countries.
Revenue 2005: EUR 266 million (2004: EUR 260 million).
Operating profit 2005: EUR 21 million (2004: EUR 17 million).
The TV 2 Group, Norway generated revenue of NOK 1,944 million (EUR 243 million) in 2005 and recorded a pre-tax profit of NOK 209 million (EUR 26.1 million), an improvement of NOK 64 million (EUR 8 million) over 2004. Significant growth in the advertising market and the increase in income from various forms of user-payment helped underpin TV 2 Gruppen’s operations.
Egmont’s share of TV2’s pre-tax profit for 2005: EUR 8.7 million (2004: EUR 5.8 million).
Charitable activities
Since 1920, Egmont has donated more than EUR 200 million in current value terms to numerous social, cultural and health initiatives.
Over the next three years, integration will be a theme of Egmont’s charitable activities alongside initiatives in numerous areas – the social and health spheres, culture, recreation and education. Last year, Egmont invited ideas for successfully integrating children and young people from other ethnic backgrounds into Danish society. A targeted advertising campaign established contact with new groups of institutions, associations and businesses, an initiative that resulted in new project proposals.
One of the year’s cultural donations was an amount of EUR 2 million to the Education and Knowledge Center at Statens Museum for Kunst. In 2005, Egmont donated EUR 4.5 million to 27 different projects and provided direct financial support to 377 Danish families with children.
About Egmont
Egmont’s four Nordic divisions produce weeklies, magazines, comics, youth magazines, games and activity products, books and educational materials. Egmont embraces films, TV programs, movie-theater and TV station operations, interactive games and game consoles. Starting this year, the product range will also feature music. Children’s media are the prime focus of Egmont’s International division, with companies operating in 17 countries outside the Nordic region. The act of creating and telling stories is the Egmont media group’s common denominator.
View Financial Highlights
Further information available from:
Sascha Amarasinha
Vice President, Corporate Communications
Telephone: +45 33 30 51 40
Cell phone: +45 61 62 29 73
sas@egmont.com
Photos and Egmont’s logo can be downloaded from Press Room.
