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Egmont in top form

In 2007 the media group Egmont generated 21% growth and record revenue of EUR 1,492 million. The profit before net financials, depreciation and amortization (EBITDA) rose by 37% to EUR 119 million, another record. Profit before tax was EUR 65 million, up 22% on 2006.

Egmont, one of Scandinavia's leading media groups, generated record revenue of EUR 1,492 million in 2007, against EUR 1,236 million in 2006. Growth was driven by investments in wholly and partially owned companies and by a higher level of activity. The Egmont media group also expanded geographically. The Group now publishes media in over 30 countries and employs 4,400 people.

Profit before net financials, depreciation and amortization (EBITDA) amounted to EUR 119 million, an increase of EUR 32 million on the year before. The Group's profit before tax for 2007 amounted to EUR 65 million compared with EUR 53 million the year before.

President and CEO Steffen Kragh said: "Egmont has grown 21%. Practically all business areas made impressive contributions, which is highly satisfactory. We continued Egmont's international growth, strengthening the companies' market positions in the film, TV, magazine and publishing business."

The year's highlights include the establishment of Norway's largest book publisher, Cappelen Damm and the integration of Bonnier Forlagene in Egmont's publishing house Lindhardt og Ringhof, which also comprises Aschehoug and Alinea. Nordisk Film became co-owner of several film companies while Egmont's Nordic magazine business gained market shares despite keen competition. Egmont's Nordic children's and youth media business increased its market share. TV 2 Norway launched new TV channels and invested in the Norwegian digital terrestrial network through its co-ownership of RiksTV. Outside the Nordic region Poland's and Russia's significant expansion in particular brought higher revenue. Activities have also been initiated in the Ukraine and the USA.

"Egmont's goal is continued growth and constant innovation. We are enjoying success as a supplier of content for books, magazines, music, film and TV, and will stay on this track by focusing on rights and talent. We will also expand our TV broadcasting activities. Finally, we will continue developing Egmont's media business outside the Nordic region," Steffen Kragh concluded.

Egmont's equity amounted to EUR 436 million, a tripling in six years. Profit after tax amounted to EUR 53 million, an increase of EUR 7 million over 2006.

All of Egmont's business divisions made a positive contribution to the net profit for the year, with Nordisk Film and the books division improving their results. Kids & Teens and International performed on a par with 2006. The magazine division realized a high profit, although lower than in 2006 due to investments in Internet activities.

Facts about Egmont's divisions 2007

Egmont publishes media in more than 30 countries and has 4,400 employees.

Egmont is one of Scandinavia's leading media groups. We create and tell stories that span from print to plasma screens, from entertainment to education and from high to popular culture. Egmont produces magazines, books, films, TV, interactive games and music.

Egmont, also known for its charitable donations, was founded in 1878.

The Charitable Activities
Since 1920, Egmont has donated more than EUR 230 million in present value terms, supporting social, cultural and health initiatives. In 2007, Egmont donated EUR 5.2 million to 43 projects and supported more than 300 single-parent families. One of the year's donations supported research into the hardships of disadvantaged 15-24 year-olds, and another a study of the problems facing children of Danish prison inmates. The Nordisk Film Foundation also re-channeled EUR 0.5 million into the film industry by way of support for up-and-coming talents as well as awards to established personalities.

Business areas

Egmont Magazines publishes more than 100 different weeklies and magazines in Denmark, Norway, Sweden and Finland and hosts websites for families, women and men. In 2007, the Norwegian Elle and the home magazine rom 1∙2∙3 were added to the portfolio, with more new publication launches planned for 2008. In 2007 Egmont Magazines generated satisfactory profit in a competitive magazine market. Although circulation growth varied among the magazines, overall market share has risen, particularly in Norway and Denmark. Intensified competition and investments in Internet activities have contributed to profit. In Sweden, The Swedish Magazine Publishers Association pronounced Hemmets Journal's web community, hemmetsjournal.se, website of the year.

Revenue 2007: EUR 203 million (2006: EUR 196 million).
Operating profit 2007: EUR 22 million (2006: 29 million EUR).

Egmont Kids & Teens' media spectrum for children and young people in Denmark, Norway, Sweden and Finland ranges from comics and magazines to books, Internet activities and content for cell phones. In 2007, Egmont Kids & Teens purchased the rights to the Danish comic-book character Rasmus Klump and acquired Sudd AB, a company that runs websites for horse-loving girls. In partnership with TV 2 Norway, the division also develops websites targeted at children and young people.

Revenue 2007: EUR 193 million (2006: EUR 178 million).
Operating profit 2007: EUR 13 million (2006: EUR 10 million).

Egmont Books publishes literary fiction, non-fiction, audiobooks and books for educational purposes. In a highly successful bid to strengthen its market position, in 2007 Egmont Books formed the Norwegian publisher Cappelen Damm and a new Danish publishing company under the well-known name Lindhardt og Ringhof. These developments have enhanced the division's literary profile. The spectrum of publications has grown satisfactorily, ranging from Harry Potter in Norway to Libri di Luca, a debut novel by Mikkel Birkegaard, which has already been sold to 13 countries. Egmont divested the minor Swedish company Damm Förlag AB and sold its Nordic coupon catalog activities.

Revenue 2007: EUR 176 million (2006: EUR 200 million).
Operating profit 2007: EUR 6 million (2006: EUR (6) million).

Egmont Nordisk Film creates, refines and tells stories through the media of film, music, TV and interactive games. Intensifying its activities targeted at consumers, creative talent and business partners, the world's oldest filmmaking company succeeded in generating a significantly higher profit. The company's organization and internal procedures have also been optimized. The year's highlights included the launch of 52 feature films, the production of more than 1,000 hours of television programming and the successful introduction of PlayStation 3 in the Nordic countries. The music companies of MBO produced 39% of all Danish music sold last year. Several creative companies opened collaborative relationships with Nordisk Film, which became co-owner of six companies in 2007. In February 2008, Nordisk Film became co-owner of the Danish film company Zentropa.

Revenue 2007: EUR 449 million (2006: EUR 352 million).
Operating profit 2007: EUR 18 million (2006: EUR 4 million).

Egmont International, which covers Egmont's companies outside the Nordic region, is a principal European publisher of books and magazines for children and young people. The division publishes media in Europe, Asia and Australia. In 2007, the division opened up business in the Ukraine, and launched a book publisher in the USA in 2008. Egmont International noted particularly impressive performance from its Eastern European activities in 2007.

Revenue 2007: EUR 300 million (2006: EUR 277 million).
Operating profit 2007: EUR 18 million (2006: EUR 19 million).

TV 2 Group is Norway's largest commercial electronic media company, offering products and services through TV, the Internet and cell phones. TV 2 increased its overall market share in 2007. TV 2's revenue rose by 14% to NOK 2,555 million (EUR 319 million). Operating profit amounted to NOK 113 million (EUR 14 million) compared with NOK 97 million (EUR 12 million) in 2006. 2007 saw the launch of new TV channels (TV 2 Nyhetskanalen and TV 2 Sport), new Internet activities and extended digital TV distribution via the gatekeeper, the co-owned RiksTV. TV 2's new initiatives include closer cooperation with its owners, Egmont and A-pressen, regarding a number of online activities that supplement each other in the user-advertiser interface. At year-end, TV 2 entered into an agreement with SBS regarding the sale of Kanal24 (radio), after which TV 2 owns 23% of SBS Radio Norge, which also runs Radio 1.