NHST GROUP’S DEVELOPMENT IN THE FIRST QUARTER OF 2021

NHST Media Group continued its efforts to strengthen the group’s market positions in the first quarter of 2021, through a continued digitalisation of the revenues, supported by product improvements and new digital services.

The group’s operating revenues amounted to NOK 256.0 million for the first quarter, corresponding to a 9.0 per cent decrease from the first quarter of 2020. Adjusted for the sale of Morgenbladet in 2020, the decrease was 2.7 per cent. The reduction is mainly related to lower user revenues in the Software-as-a-Service (SaaS) segment, caused by strong competition and reduced demand following the Covid-19 pandemic.

User revenues from the group’s publications were on a par with the corresponding period of 2020, adjusted for the sale of Morgenbladet. Total advertising revenues from the group’s publications were also on a par with the first quarter 2020. The share of fully digital revenues was 52.9 per cent (45.8 per cent).

- “I am pleased that we experience strong growth in our fully digital editorial subscription-based products. We are also succeeding with both our advertising products and digital events”, says CEO Trond Sundnes.

Total profit from the media divisions showed progress compared with 2020. User revenues from the SaaS businesses fell compared with the first quarter 2020.

This decrease was caused by lower sales of new subscriptions during the second half of 2020 and into 2021 because of strong competition in combination with reduced demand following the pandemic. New sales did however develop positively during the first quarter.

- “Covid-19 has affected both our employees and the markets in which we operate. I am proud of how we have handled this crisis together, in a way that has strengthened us as a company and our relations to thousands of digital users in Norway and globally”, says Trond Sundnes.

Total operating expenses for the group exclusive of depreciation and amortisation came in 1.4 per cent lower than for the same period one year earlier, adjusted for the sale of Morgenbladet.

The group posted operating profit before depreciation and amortisation (EBITDA) of negative NOK 2.0 million, a reduction from NOK 3.6 million for the corresponding period of 2020. Profit before tax for the group was negative NOK 19.2 million, compared with a negative of NOK 83.5 million for the first quarter 2020.

The group has a satisfactory financial position with a cash balance of NOK 244.1 million at the end of the quarter, an increase of NOK 26.5 million from year-end.

The board of NHST Media Group has appointed Trond Sundnes (46) as new CEO. His main responsibility areas will be the Norwegian and global publications as well as group functions. Sundnes has held several positions in the group since he joined the company in 2007, and most recently he served as Executive Vice President for NHST Global publications. Sundnes took up the position as CEO on the 12th of April 2021.

Sundnes will also become chair of the board of Dagens Næringsliv. In his new role, he will focus on developing cooperation and synergies in NHST Media Group’s Norwegian and global publications.

Operationally, the SaaS companies Mynewsdesk and Mention Solutions will continue to report to the group CFO who in this role will report directly to the board of NHST Media Group.