NHST Media Group - Quarterly Report 1st quarter 2019

The first quarter for NHST Media Group reflects the transition to improve profitability, secure future digital revenues and increase growth. The changes affect every part of the organisation, in addition to revenues and results. The changes to the business portfolio in 2018 added digital subscription revenues and international growth, in line with the strategy going forward. In the first quarter, the Group added several strategic processes to further define goals and the changes needed to reach them. The Group works towards increasing efficiency and reduce its structural cost base. Measures aimed at increasing digital revenues will improve profitability in the future.At the same time the Group continues to develop its products and product portfolio towards even greater user orientation and more customised products.

The Group’s operating result for the first quarter was down on the same period last year. The decline was caused both by increased operating costs related to initiatives in analytics and digitisation, and to costs associated with profit improvement measures and extensive strategic processes in several of the businesses.

On the revenue side, the underlying trend is stable. Adjusted for the effects of Nautisk Forlag and the SaaS company Mention, revenues in the first quarter were on level with the same period last year. Revenues from digital subscriptions in the media businesses grew, while Mention continued its growth pattern. Global publications achieved growth in adverting revenues for the second straight quarter, while advertising revenue in Norwegian publications fell.

Measures have been identified and implemented I all the businesses to reduce the costs base throughout the year and into 2020. The SaaS company Mynewsdesk is undergoing a major restructuring process aimed at reducing the cost base significantly as from the second quarter. This will affect both the top-line result and profitability in the coming quarters.

The Group continues to prioritise high-quality products. In the first quarter, Dagens Næringsliv won the prestigious Skup Prize (Foundation for a Critical and Investigative Press (SKUP)) for its revelation of manipulated ratings for the music streaming service Tidal. DNX was among the nominees for Agency of the Year in Norway in 2019 in the content marketing category.