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Egmont achieved new record profit

In 2012 Egmont's revenue grew by 17%, rounding EUR 1.6 billion. Operating profit increased by 24% to EUR 187 million. This is Egmont's highest profit to date. Egmont became the sole owner of TV 2 Norway, screen-based media recorded progress, and the year brought an array of successful media products.

  • Egmont's flag

    Egmont's flag

All business areas of the Egmont media group contributed positively to the record performance in 2012. Income from screen-based media developed favourably, income flows from new digital business increased, the Group’s publications and productions generally enjoyed success, and Egmont became the sole owner of TV 2 Norway in February 2012.

Egmont’s growth in revenue from EUR 1,386 million in 2011 to EUR 1,617 million is due primarily to TV 2 and Nordisk Film.

Profit before interest, depreciation and amortisation (EBITDA) rose to EUR 187 million from EUR 150 million in 2011, an increase of 24%.

Pre-tax profit amounted to EUR 102 million against EUR 94 million in 2011. Moreover, in 2012 Egmont could carry special items of EUR 67 million to income, and when including these items, the pre-tax profit amounted to EUR 169 million.

‘Both profit and revenue are our highest to date. I am especially gratified to see the progress recorded by our screen-based media and the high level that our other media products have maintained. We have once more succeeded in creating truly engaging media products that consumers appreciate,’ says Steffen Kragh, President and CEO.

Egmont met consumers on numerous platforms in 2012. In Norway viewers spent an average of 45 minutes a day watching programmes shown on TV 2’s seven channels. Every week Egmont’s Scandinavian web services attracted many millions of unique users. Over six million customers bought tickets to see films in Nordisk Film Cinemas. The Oscar-nominated films Kon-Tiki and A Royal Affair sold 1.4 million tickets in their home markets. Over 200 apps for children were launched. Nordisk Film was the Nordic region’s largest supplier of digital films for the VOD market. In Scandinavia Egmont’s over 100 magazines and weeklies held a leading position, reaching eight million readers. TV 2 Sumo passed the 100,000 paying subscribers mark and is Norway’s largest internet-based provider of pay TV.

‘Our creative and commercial success is founded on the media products that our employees consistently innovate to give consumers powerful experiences,’ says Steffen Kragh.

Egmont increased its donations to charitable activities to EUR 8 million. The grants go to projects that help give vulnerable children and young people a good life. These projects include initiatives that help children and young people to cope with life crises and projects that foster their desire to learn.

Key figures in Egmont's 2012 Financial Statements:

  • Revenue increased to EUR 1,617 million from EUR 1,386 million in 2011.
  • Profit before interest, depreciation and amortisation (EBITDA) rose to EUR 187 million from EUR 150 million in 2011.
  • Operating profit (EBIT) amounted to EUR 106 million against EUR 88 million in 2011.
  • In 2012 special items amounting to EUR 67 million were recognised as income and are related to the positive net value adjustment of TV 2 (EUR 75 million) and the costs of closing printing offices (EUR 8 million).
  • Pre-tax profit amounted to EUR 101 million (EUR 169 million including special items) against EUR 94 million in 2011.
  • Post-tax profit amounted to EUR 84 million (EUR 151 million including special items) against EUR 73 million in 2011.
  • Egmont’s equity rose to EUR 676 million compared with EUR 506 million in 2011. The equity ratio at end-2012 was 42%.
  • Egmont’s net interest-bearing debt at end-2012 amounted to EUR 119 million. The debt to operating income ratio is a comfortable 0.6. 

TV 2

Revenue: EUR 445 (210) million. Operating profit (EBIT): EUR 36 (27) million.
As at 1 February 2012 TV 2 was consolidated 100% in Group revenue and operating profit. The previous figure was 50%.
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 computers. In February 2012 Egmont acquired A-pressen’s stake in TV 2, thus making TV 2 a wholly owned Egmont company. In 2012 TV 2 celebrated its 20th jubilee in grand style. TV 2 invested significantly in new local programme content and generated its highest revenue to date. TV 2’s main channel maintained its market share despite a sharp increase in the number of channels in Norway. In Bergen and Oslo, the most modern news studios in Europe gave the Group’s news programming a lift. As Norway’s largest commercial supplier of internet-based TV, TV 2 Sumo recorded over 100,000 paying subscribers. TV 2 succeeded in extending its exclusive rights to Barclays Premier League until 2016. The TV 2 SPORT channel was relaunched in June as a sports news channel. TV 2 Nyhetskanalen remained a leading news provider and a rallying point at major Norwegian events. Tv2.no grew in terms of both its web and mobile services. 

Nordisk Film

Revenue: EUR 339 (334) million. Operating profit (EBIT): EUR 18 (11) million.

Nordisk Film is the leading developer, producer and marketer of films in the Nordic region. Nordisk Film commands significant positions in the cinema and interactive game sectors. The profit growth is largely attributable to the favourable development in film and cinema business. In Norway Nordisk Film enjoyed a resounding success with its in-house production, Kon-Tiki, which sold over 900,000 tickets in its home market and was nominated for an Oscar along with A Royal Affair, produced by the joint-venture company Zentropa and selling half-a-million tickets in Denmark alone in 2012. Nordisk Film also produced two major hits, A Hijacking and All You Need is Love, and was linked to 17 Danish ‘Robert’ awards in 2013. In 2012 Nordisk Film distributed roughly one in every six cinema films shown in the Nordic countries. Nordisk Film Cinemas sold 6.1 million cinema tickets in Denmark. Nordisk Film was also the foremost supplier of digital films for the Nordic region’s growing Video-on-Demand market. PlayStation 3 boosted its market share to 50% despite a tough market. Nordisk Film Live got off to a good start, selling 60,000 tickets for the Hey Jude show. In 2012 Nordisk Film acquired Billetlugen, which handles ticket sales throughout Scandinavia. In aggregate kino.dk, Filmweb.no, Nordisk Film Cinemas and Billetlugen sold 15 million tickets in Scandinavia in 2012. 

Egmont Magazines

Revenue: EUR 296 (296) million. Operating profit (EBIT): EUR 33 (33) million. 

Egmont Magazines consists of Hjemmet Mortensen in Norway, Egmont Tidskrifter in Sweden and Egmont Magasiner in Denmark. With more than 100 titles, Egmont ranks among Scandinavia’s largest publishers of weeklies and magazines. In 2012 Egmont’s printing offices were closed, and the work was outsourced to external printing houses. Although this move caused a drop in revenue, it had a favourable impact on costs. In view of the challenging market, the division has returned strong results. Family magazines are an attractive part of the portfolio but experienced a decline in weekly circulation in 2012, down to about 700,000. The Norwegian Hjemmet recorded Norway’s highest circulation figures in 2012. Eurowoman and Alt for Damerne fared well in the competitive market for women’s magazines in Denmark, while Egmont generally commanded a strong position in magazines for men. Illustrated weeklies did well despite the decline in the category as a whole. Egmont Magazines invested in digital publication throughout the period, producing iPad versions of magazines, for example. In 2012 Egmont Magazines also acquired several popular internet services. 

Egmont Kids Media

Revenue: EUR 393 (395) million. Operating profit (EBIT): EUR 22 (25) million.

Egmont Kids Media produces learning and entertainment products aimed at developing children and young people, and sells magazines, books, digital learning media and games in more than 30 countries. In 2012 the division generated revenue on a par with the year before. The slight decline in profit is due to difficult market conditions, particularly in Central and Eastern Europe. Egmont Kids Media continued to focus on multiplatform publications in 2012. During the year Kids Media launched over 200 apps and also secured new digital rights from Disney, Hasbro, Mattel, Warner Brothers and others. The division also acquired a number of early learning apps called Fusentasterne, which have now been launched in 15 countries. Kids Media also bought Krea Medie, creator of one of Scandinavia’s strongest edutainment-brands, Pixeline/Josefine. The product will be further developed for more media platforms. 

Egmont Books

Revenue: EUR 139 (146) million. Operating profit (EBIT): EUR 7 (0) million.
Egmont Books consists of Cappelen Damm in Norway and Lindhardt og Ringhof in Denmark. Both companies are strong providers of general literature and schoolbook publishing. Egmont Books develops and produces books, audio books and e-books that entertain readers and give them insight and knowledge. In 2012 Egmont Books returned a profit in a challenging market. In Norway Cappelen Damm enjoyed another good year despite zero growth in the market as a whole. The company’s acquisitions of Høyskoleforlaget and Akribe strengthened its position as a publisher of books and electronic products for universities and the professional sector. In Denmark Lindhardt og Ringhof generated a profit after several loss-making years. L&R also acquired Denmark’s second-largest audio book publisher, Audioteket. In 2012 bold investments were made in the new development and consolidation of digital products. The schoolbook publisher Alinea was thus Denmark’s largest supplier of both analogue and digital learning media in 2012.

The Charitable Activities

The Egmont Foundation is a commercial foundation that re-invests its profit in developing the media business and by making donations to charitable activities. Since 1920 the Egmont Foundation has donated EUR 349 million in terms of 2012 Danish kroner to support social initiatives. In 2012 Egmont donated EUR 8 million to charitable work. The Foundation supports projects in four areas: caring, learning, individual support and filmmaking. In the field of caring, the Egmont Foundation supports projects that help children and young people handle life crises. In 2012 the Egmont Foundation turned the spotlight on divorce as a life crisis with potentially grave consequences for children. In the field of learning the Egmont Foundation supports projects that foster schoolchildren’s desire to learn. In 2012 children and youth placed outside the home were given special attention. The Egmont Foundation has developed a major new project, Learning for Life, which aims to support children placed outside the home by offering them summer schools, support workers and new knowledge that will ultimately enable them to complete a programme of youth education. Changes were made to the framework for the individual support area, where the Egmont Foundation provides financial support to vulnerable children and families. This means that in addition to money, families are also offered advice, therapy, social activities and other help. In the filmmaking field, the Nordisk Film Foundation donated EUR 0.5 million.

For further information:
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Mikkel Løndahl, Media Relations Manager, +45 21 15 49 25, ml@egmont.com
Mika Bildsøe Lassen, Vice President Corporate Communications, +45 20 55 26 55, mbl@egmont.com