Egmont generated a pre-tax profit of EUR 59 million, an increase of 50% over last year. Return on equity was 24%. This is the highest profit ever recorded by the Group.
Egmont’s pre-tax profit for 2003 was EUR 59 million, an improvement of EUR 20 million compared to 2002. The profit after tax for 2003 was EUR 48 million against EUR 27 million in 2002.
Net revenues in 2003 amounted to EUR 1,107 million, a decline of EUR 93 million (8%) compared to the previous year. The reduction is attributable to exchange rate adjustments, the winding-up of loss-making activities and to lower sales of games consoles than in previous years, when new model launches and falling prices caused sales figures to peak. Exchange rate adjustments alone led to a decline in revenues of EUR 30 million.
The result, Egmont’s best ever, is satisfactory. The profit increase reflects improvements in core operations.
Steffen Kragh, President and CEO, comments: “We continued our focus on improving profitability in 2003 and have now established a good platform for Egmont’s future growth. The equity ratio had risen to 35 % at the end of 2003, an improvement from 21% in two years. The increase paves the way for further investment in creativity and the development of Egmont Foundation companies over the coming years - whether in the areas of magazines, books, educational material or moving images.”
Business areas
Egmont Magazines increased its portfolio of titles from 67 in 2002 to 74 in 2003. Growth was generated by the launch of new titles as well as acquisitions. More than five million Scandinavians read weeklies from Egmont Magazines every week. Egmont Magazines achieved another year of record profits in 2003 and strengthened its position in the Scandinavian market.
Revenues 2003: EUR 182 million (2002: EUR 186 million)
Profit before financial items 2003: EUR 35 million (2002: EUR 28 million)
Egmont Kids & Teens supplies printed entertainment for children and young people through strong brands and uses content and brands in electronic media and related games, activity products and merchandise. Egmont Kids & Teens strengthened its position in 2003 by focusing on new launches and digital media.
Revenues 2003: EUR 169 million (2002: EUR 163 million)
Profit before financial items 2003: EUR 19 million (2002: EUR 18 million)
Egmont Books sold more than 13 million books in 2003. The division maintained its strategy of integration in 2003, first and foremost by merging its Danish book publishers Aschehoug and Lademann. The continuing company, Aschehoug, is Denmark’s second-largest publisher, and includes Alinea, Denmark’s largest schoolbook publisher, which became a wholly owned Egmont company in 2003.
Revenues 2003: EUR 157 million (2002: EUR 153 million)
Profit before financial items 2003: EUR 6 million (2002: EUR 5 million)
In 2003, Egmont Nordisk Film reinforced the business and creative platform on which it builds its core areas of film, TV and games. Several productions were hits, and the core areas as a whole performed well. Egmont Nordisk Film was also heavily involved in other activities such as film laboratory operations and distribution racking. Increasing digitalization and changing market conditions made adjustments in these areas expensive for Egmont Nordisk Film. The lengthy process of adapting to new technologies and markets generated a further loss in 2003, which includes non-recurrent expenses in connection with business closures.
Revenues 2003: EUR 345 million (2002: EUR 432 million)
Profit before financial items 2003: EUR (5) million (2002: EUR (1) million)
Egmont International publishes books and magazines in numerous genres and formats in 18 countries outside the Nordic region. In 2003, several of the division’s products enjoyed an increase in circulation, due in part to the intensified focus on editorial development and marketing. Egmont International also concentrated on improving profitability by optimizing performance or selling off loss-making units. A solid platform for the future has now been established.
Revenues 2003: EUR 252 million (2002: EUR 266 million)
Profit before financial items 2003: EUR 4 million (2002: EUR (22) million)
I 2003, TV 2 Group, Norway generated revenues amounting to NOK 1,618 million (EUR 202 million) and achieved a pre-tax profit of NOK 200 million (EUR 25 million), an improvement of NOK 30 million (EUR 4 million) over 2002. Egmont holds a 33.3% stake in TV 2 Group, and Egmont’s share of TV 2’s profits, which is recognized as financial items, came to EUR 8 million in 2003.
The Charitable Activities
In 2003, the Egmont Foundation donated EUR 4 million to cultural and social causes through the Charitable Activities, which has supported projects and initiatives to improve the lives of children and young people since 1920. Several of the year’s projects focused on presenting important topics in an accessible and entertaining form. The projects are directed at children and young people, who increasingly expect learning processes to offer interesting, high-quality experiences, whether educational or recreational.
Download Financial Highlights from: http://www.egmont.com/financialhighlight
Further information:
Sascha Amarasinha
Vice President Corporate Communications
Phone: +45 33 30 51 40
Mobile: +45 61 62 29 73
sas@egmont.com
Photos and Egmont’s new logo may be downloaded from www.egmont.com/pressroom
