Strong TV viewing figures, box-office film successes, strong magazine and book performances and high digital income made 2013 a banner year for the Egmont media group. The underlying performance is even stronger because Egmont’s considerable Norwegian business has to be converted at a lower Norwegian exchange rate in 2013.
Revenue grew to EUR 1,621 million against EUR 1,617 million in 2012. With stable exchange rates the increase would have amounted to EUR 44 million, corresponding to 2.9% growth. This is Egmont’s highest revenue to date.
Profit before interest, depreciation and amortisation (EBITDA) rose to a record EUR 191 million from EUR 187 million in 2012, an underlying profit increase of 4.7% calculated in local currency. Pre-tax profit amounted to EUR 100 million against EUR 102 million in 2012. Representing an underlying profit increase of 1.6% calculated in local currency, this figure is therefore in line with the record year of 2012.
‘Egmont has maintained its strong financial performance in 2013. Our TV and film productions have achieved acclaim, while our magazine and book companies have managed both to publish strong products and to adapt to changing consumer behaviour. Egmont has passed a strategic milestone, with screen-based media now accounting for over half of our revenue,’ says Steffen Kragh, President and CEO.
Egmont continued its development of internet-based access to its media. For instance TV 2 reached 140,000 paying web-TV subscribers, and showed more than 100 million videos and more than 1.2 billion viewing minutes were shown on tv2.no. In Scandinavia Egmont’s magazines reached over 9 million users on print and digital platforms. The focus of Egmont’s book activities included developing digital learning material and programs. Among other things Nordisk Film was the largest supplier of digital films for the video-on-demand market in 2013.
‘Unique content and unique moments are central to Egmont’s strategy. Another key factor is our ability to provide content to consumers on their mobile screens. Creativity and technology will continue be the core drivers of our strategic transformation towards even more moving pictures and screen-based media,’ says Steffen Kragh.
In 2013 Egmont increased its donations to charitable activities to EUR 10 million. The donations go to projects that improve the lives of disadvantaged children and young people, including initiatives that help children and youth to cope with life crises and projects that foster their desire to learn. In 2013 the Egmont Foundation established its signature project, ‘Learning for Life’. Over a period of years, the project will donate a total of EUR 5.4 million to learning camps and on-going support to equip 1,000 children placed outside the home to complete a programme of youth education.
|Key figures, EUR million||2013||2012||Growth in fixed currency|
|Profit before interest, depreciation and amortisation (EBITDA)||191||187||+4,7 %|
|Operating profit (EBIT)||106||106||+2,8 %|
|Pre-tax profit||100||102||+1,6 %|
Egmont’s equity at end-2013 amounted to EUR 665 million, and the equity ratio came to 43%. The Group’s net interest-bearing debt amounted to EUR 96 million, corresponding to just half of the annual profit before interest, depreciation and amortisation (EBITDA).
Revenue: EUR 446 (445) million. Operating profit (EBIT): EUR 33 (36) million.
Measured by daily use, the TV 2 Group is Norway’s largest commercial media house, supplying news, sports and entertainment through television, the internet, mobile phones and tablet devices. TV 2’s main channel bolstered its position as the largest channel in Norway for the 20-49-year target group. TV 2’s coverage of the Norwegian election in 2013 struck new paths for the main channel, whose transmission generated the highest viewing figures ever for TV 2 election broadcasting. TV 2 Sport is an important element of the main channel’s programming, transmitting major international events such as the Olympic Games, the European and world football championships, the Tour de France and handball championships. As one of Norway’s largest supplier of internet-based TV, TV 2 Sumo achieved a 40% increase in subscribers to 140,000 paying viewers in 2013. TV2.no continued to grow, recording increases in web and mobile services of 21% and 84%, respectively.
Revenue: EUR 370 (339) million. Operating profit (EBIT): EUR 30 (18) million.
Nordisk Film develops, produces and distributes films in the Nordic region and operates cinemas in Denmark and Norway. Nordisk Film also manages Sony’s PlayStation business activities in the Nordic and Baltic regions. The profit for 2013 includes the earn-out from the sale of Nordisk Film TV in 2009. In April 2013 Nordisk Film acquired Norway’s largest cinema chain, Oslo Kino AS, from the Municipality of Oslo as part of its growth strategy for cinema operations in Denmark and Norway. In Norway, an associate film production company, Maipo, launched an animation, Jul i Flåklypa, which drew 880,000 Norwegians to the cinema. In Denmark the associate Zentropa was behind two major box-office hits in Denmark in 2013 and for the third consecutive year had a film nominated for an Oscar. Thomas Vinterberg’s The Hunt sold 672,000 cinema tickets, while Mikkel Nørgaard’s The Keeper of Lost Causes was among the year’s most popular films, selling 720,000 tickets. The Hunt was voted Best Film of the Year at both the Bodil and the Robert award ceremonies and nominated for an Oscar. Nordisk Film enjoyed great success with Sorrow and Joy by Nils Malmros, which recorded 260,000 ticket sales and won a Robert award. In 2013 Nordisk Film Cinemas sold 5.8 million cinema tickets in Denmark and 3.2 million in Norway. Venuepoint enjoyed 25% growth in number of transactions, while the partly owned website Kino.dk generated similarly favourable results. Nordisk Film annually handles a total of approx. 19 million ticket transactions in the Nordic region. In November PlayStation 4 was launched with resounding success, recording sales of 55,000 game consoles in the Nordic countries.
Revenue: EUR 660 (687) million. Operating profit: EUR 40 (55) million.
In November 2013 Egmont unified the leading global children’s publisher, Egmont Kids Media, and the most profitable magazine publisher in the Nordic countries, Egmont Magazines, to create a strong, integrated international publishing business. Egmont Publishing contributes 40% of Egmont’s total revenue. The new unit publishes over 100 weekly and monthly magazines for adults, hundreds of children’s magazines as well as children’s books and digital services. The division recorded a drop in operating profit in 2013, a decline chiefly attributable to the costs incurred from unifying the businesses and to challenges in the children’s media market. Magazines are a well-performing part of Egmont Publishing and make up 80% of earnings. In 2013 Egmont Publishing bought three Norwegian magazine titles in the housing and interior segment from Schibsted. A previous acquisition in this segment, the home and country living publication Lev Landlig, was the year’s top ranker in terms of circulation growth with a 40% increase. Launched in the UK in 2013, the Minecraft books achieved success with 300,000 copies sold.
Revenue: EUR 137 (139) million. Operating profit: EUR 8 (7) million.
Egmont Books consists of Norway’s largest publisher, Cappelen Damm, and Denmark’s second-largest publisher, Lindhardt og Ringhof. Egmont Books publishes fiction and non-fiction, children’s books, audiobooks, e-books and educational materials. In Norway Cappelen Damm further reinforced its market position in 2013. The publishing house commands a clear lead in the markets for general literature and upper-secondary school textbooks. In 2013 Cappelen Damm boosted its internet sales of physical and digital products, recording growth of over 30%. In Denmark Lindhardt og Ringhof increased its profit by 38% in 2013. Lindhardt og Ringhof acquired the publishing company Forlaget Per Kofod, thus adding several major writers such as Paul Auster and Siri Hustvedt to its portfolio. In 2013 the publishing company’s digital activities burgeoned, audio- and e-books in particular. The educational publisher Alinea remains Denmark’s largest supplier on the education market as a whole in 2013, and sales of digital learning media increased by 50%.
The Charitable Activities
The Egmont Foundation is a commercial foundation. A portion of its profits is invested in charitable activities with special emphasis on disadvantaged children and young people. Since 1920 the Egmont
Foundation has donated almost EUR 362 million in present value to support charitable initiatives. In 2013 the Foundation’s financial support amounted to EUR 10 million, almost EUR 0.5 million of which was donated via the Nordisk Film Foundation. In 2013 the Egmont Foundation focused on education, because education is the key means of combating a negative social legacy. For this reason, as its signature project for 2013, Egmont established the ‘Learning for Life’ organisation, earmarking EUR 5.4 million to finance an initiative to run learning camps and provide ongoing support to 1,000 children placed in alternative care. In 2013 the Egmont Foundation recast the traditional concept of ‘emergency assistance’ for society’s most vulnerable families, and in future help will be given through partnerships with social organisations in Denmark and Norway. From 2013-2016 the Egmont Foundation will invest EUR 8 million to help families whose lives are affected by illness and death, an area still shrouded in taboo that can isolate a family and cause loneliness in children and young people.
For further information:
- Mikkel Løndahl, Media Relations Manager, +45 21 15 49 25, email@example.com
- Line Aarsland, Vice President Corporate Communications & Public Affairs, +45 24 40 74 71, firstname.lastname@example.org