Record results from Egmont

News - International Friday, 15 March 2019

Scandinavian media empire, with book, magazine, TV and digital interests, reports €1.6bn turnover, up by €100m in 2018

Revenue grew from €1,515m in 2017 to €1,603m in 2018, and earnings before tax edged up from €78m to €81m.

According to the results statement: 'The media group’s revenue increased by nearly €100m to a record-high €1.6bn in 2018, driven by growth areas in e-commerce, gaming, marketing services, and TV streaming, and by outstanding content in movies, books and magazines, and on TV 2 Norway.

'Egmont’s total business activity, including its share of non-consolidated growth companies, generated revenue of €1.9bn. A quarter of all revenue is generated by new business areas built up in recent years as part of the growth strategy "Grow with the Modern Consumer". Egmont is now a majority or minority shareholder in seven leading Nordic e-commerce businesses, six gaming companies, and six marketing services agencies, all of which operate in growth markets with strong consumer appeal.'

'Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by around €30m to €190m, while earnings before tax (EBT) increased by €3m to €81m. These satisfactory results reflect Nordisk Film releasing outstanding movies that filled cinemas, TV 2 Norway gaining market share thanks to strong TV formats, sports and journalism, Egmont’s book publishers releasing many of the year’s bestsellers, and Egmont Publishing providing engaging print and digital content to millions of media users across the Nordic region.'

Steffen Kragh, ceo and president, said: "Egmont is home to ambitious and creative people with the right technological and commercial skills for us to succeed in building new business and developing our core activities. This is important, because we - like the rest of the media industry - are under considerable pressure in some areas. Our key focus is on becoming even more user and data driven to ensure that we are attractive to the modern media consumer, while retaining our publishing core and our vision of being the master storyteller. I’m proud of the excellent content we created in 2018 and pleased that our new businesses have grown strong. We expect our strategy to bring further growth in the coming years."

At Egmont Books revenue including Egmont’s holding in Cappelen Damm was €131m (€132m) whilst results excluding Cappelen Damm, which is not consolidated under IFRS rules were revenue: €52m (€48m) with operating profit of €2m (€5m).

According to the statement: 'Egmont Books comprises the part-owned Norwegian publisher Cappelen Damm and the Danish publisher Lindhardt og Ringhof. Both publish printed books, audio books, e-books, and educational materials. Lindhardt og Ringhof released around 600 new book titles in 2018 and now has more than 40,000 digital titles. The company saw growth in both revenue and earnings and was behind a number of the year’s most noteworthy books from the likes of Merete Pryds Helle, Knud Romer, Mich Vraa and Thomas Korsgaard, as well as the Danish version of the year’s biggest international memoir, Michelle Obama’s Becoming.

'SAGA, under Lindhardt og Ringhof, is Denmark’s largest digital publisher by far and is continuing to expand internationally into countries such as Norway, Sweden, Finland, Germany, the Netherlands, Spain, Portugal, and Poland. Earnings at Norway’s largest publisher, Cappelen Damm, were hit by a decline in the Norwegian book market, pressure on physical booksellers, and an upcoming school reform that had a negative impact on the company’s education activities.'

Pictured: Steffen Kragh

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