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Strong year for Egmont

In 2010 the Egmont media group recorded its highest operating profit to date, EUR 136 million, and a profit before tax of EUR 60 million. The results are based on improvements in most business areas, stronger market positions and a number of solid creative media products.

In 2010 Egmont generated revenue of EUR 1,420 million against EUR 1,440 million in 2009. After adjustment for the sale of Nordisk Film TV at the end of 2009, this represents a minor increase in revenue.

Profit before interest, depreciation and amortisation (EBITDA) amounted to EUR 136 million against EUR 125 million in 2009. This is Egmont's best operating profit to date, with an underlying growth of 25% after adjustment to reflect the sale of Nordisk Film TV.

Profit before tax amounts to EUR 60 million against EUR 47 million the previous year.

'Egmont's profit improvement is satisfactory and due to greater advertising income, progress in many of our media, and the effect of ongoing efforts to raise efficiency and profitability. The higher profits, combined with our debt-free status, create a good platform for keeping up the pace of our investments in both traditional and digital media,' says President and CEO Steffen Kragh.

'In 2010 Egmont continued to develop digital media, for example, by streaming films and television online as well as publishing books and magazines in the iPad format. We aim to drive the transformation to the new media landscape at a reasonable speed while maintaining our focus on creative content and solid, relevant publications,' says Steffen Kragh.

Profit after tax amounts to EUR 37 million in 2010 against EUR 50 million in 2009. The decrease is due to the fact that a tax income was recorded in 2009 as a result of adjusting the value of the Group's deferred tax assets, while a tax expense was recorded in 2010.

Egmont generated solid cash flows from primary operating activities of EUR 167 (152) million. Debt was reduced from EUR 31 million in 2009 to a net interest-bearing debt of EUR 77 million. Egmont's equity totals EUR 441 (415) million, corresponding to an equity ratio of 35%.

In 2010 the Egmont Foundation donated nearly EUR 6 million to charitable activities to help improve the lives of children and young people in Denmark. Project donations include funds dedicated to a new four-year partnership with the Danish Red Cross Youth on seven projects aimed at helping disadvantaged children and young people.

EGMONT'S BUSINESS AREAS

Egmont Magazines

Revenue: EUR 284 (263) million. Profit before interest, depreciation and amortisation (EBITDA): EUR 38 (27) million.
Egmont Magazines publishes more than 100 titles in Denmark, Norway, Sweden and Finland and is Norway's largest magazine publisher. In 2010 revenue increased by 8% and profits were significantly improved despite a general fall in the magazine market. This is a result of a 10% increase in advertising income plus ongoing initiatives to increase efficiency and reduce costs. In 2010 several new titles were launched including BoligDrøm in Norway and Blossom in Sweden. A decision was also made to launch ALT for damerne and Fit Living in Norway for 2011. In 2010, Egmont Magazines was among the first to test iPad format magazines, introducing tablet versions of Euroman, MANN and Bonytt.

Egmont Kids Media

Revenue: EUR 418 (429) million. Profit before interest, depreciation and amortisation (EBITDA): EUR 28 (23) million.
Egmont Kids Media publishes media for children and young people in more than 30 countries. The increase in profits is due to satisfactory development of the core portfolio, turnaround of the Scandinavia business and investments in new launches and digital initiatives. In 2010 the opening of Petzi's World in Tivoli supported the successful relaunch of Petzi. In Eastern Europe, Kids Media enjoyed success with new sales channels such as newspapers and post offices, which in countries like Romania resulted in 3.5 million books sold. Egmont's Chinese company, Children's Fun Publishing, strengthened its market position as the second-largest children's publisher. In addition, the Australian joint venture, Hardie Grant Egmont, achieved 40% growth after successfully acquiring Little Hare Books.

Egmont Books

Revenue: EUR 157 (156) million. Profit before interest, depreciation and amortisation (EBITDA): EUR 8 (9) million.
Norway's largest book publisher, Cappelen Damm, in which Egmont holds a 50% stake, delivered a solid performance in all business areas: book publication, book clubs, distribution, e-business and the bookstore chain Tanum. Cappelen Damm consolidated its position in 2010 as a market leader in children's literature, fiction, non-fiction, documentaries and textbooks for primary and secondary schools. Digitalbok.no was launched with 500 e-book titles on the virtual shelves. Performance at Lindhardt & Ringhof was unsatisfactory. The flourishing educational publisher at L&R sharpened its focus on digital learning media and introduced courses for teachers and other educators. Nearly 1,000 of its titles were available for purchase as e-books. Book apps for both iPad and iPhone were developed and sold.

Egmont Nordisk Film

Revenue: EUR 383 (445) million. Profit before interest, depreciation and amortisation (EBITDA): EUR 38 (53) million.
Egmont Nordisk Film creates and tells stories through the media of film, music, TV, and interactive games. The decreased revenue and profits are largely attributable to the sale of Nordisk Film TV at the end of 2009. Film distribution and cinema operations have contributed positively to the 2010 result, and about every sixth cinema-released film in Scandinavia is produced and/or released by Egmont Nordisk Film. Nordisk Film Cinemas retained its high market share of 45% in Denmark and planned a new cinema in Næstved for 2010. The financial crisis has challenged film production through a number of partly-owned enterprises, which has made it difficult to raise funds for film-making. In 2010, Egmont Nordisk Film released Denmark's first 3D animation film The Olsen Gang Gets Polished and was responsible for film successes such as the Oscar-winning In a Better World and Clown – the Movie. Sales of PlayStation 3 consoles rounded one million units and boasted an increase of over 20%.

The TV 2 Group, Norway

Revenue: EUR 173 (139) million. Profit before interest, depreciation and amortisation (EBITDA): EUR 27 (15) million.
Egmont has a 50% ownership share of TV 2, Norway's largest commercial electronic media house. TV 2 is a leading network broadcasting news, sports and entertainment through television, the internet, mobile telephony and tablets, and achieved its best performance to date in 2010. The 2010 profits are largely attributable to increased advertising revenue and growth in user fee income from pay- and net-TV coupled with reduced expenses. The increased profits have given TV 2 additional financial momentum to invest in new TV channels and the Premier League games, for example, for pay-tv, which was introduced in August 2010. In 2010, TV 2 entered into an agreement with the Norwegian government to provide commercial public service channel services for five years. The TV 2 News Channel has grown to a market share of over 2%, which is a remarkable achievement from an international perspective.

Egmont's Charitable Activities

Since 1920, the Egmont Foundation has donated more than EUR 245 million to support social and cultural initiatives. In 2010 Egmont's financial support amounted to approx. EUR 5.8 million, of which EUR 0.5 million was donated via the Nordisk Film Foundation. In 2010, the Egmont Foundation focused its strategy on supporting projects aimed at equipping children and young people to better handle life crises as well as encouraging children and young people's desire to learn.

Press contact:

Mika Bildsøe Lassen
Vice President
Corporate Communications
Mobil: +45 20 55 26 55
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Mikkel Løndahl
Media Relations Manager
Mobil: +45 21 15 49 25
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