NHST GROUP’S DEVELOPMENT IN THE FIRST QUARTER OF 2022

• Stable revenues in the media business segment.

• Underlying revenue growth for the SaaS segment, but a stronger NOK leads to lower reported revenues in the segment.

• The media businesses and the SaaS businesses are both investing in product and organizational development.

• Group EBITDA was minus NOK 8,7 million for the quarter.

• New organization structure for the media segment, implemented in 2021, shows promising effects for growth and business development across the publications.

• Increasing market uncertainty caused by the geopolitical situation.

The market situation for the NHST Group was increasingly challenging in the first quarter. The restrictions related to Covid-19 pandemic, which have had a significant impact on the business over the last two years, were wound down in most markets. But the geopolitical situation triggered by the war in Ukraine created new uncertainty with a negative effect on new business. The result for NHST was that advertising income was at the same level as the corresponding quarter last year.

Total revenues for the group were NOK 253.2 million, compared to NOK 256.0 million in the first quarter 2021. The media segment revenues were in total at the same level as last year, while revenues for the SaaS segment declined by NOK 3.0 million as a result of currency translation effects. Underlying revenues in local currencies for the SaaS companies were higher than last year.

Group operating expenses excluding depreciation and amortizations were NOK 261.8 million in the quarter, an increase from the first quarter 2021 of 1.5 per cent. The Group is experiencing increased inflationary pressure for most input factors, including salaries, labor intensive services and print and distribution services. Cost reduction measures have been implemented to counteract this cost pressure.

Group earnings before depreciation and amortization (EBITDA) were minus NOK 8.7 million in the quarter (2021: minus NOK 2,0 million) and the operating result (EBIT) was minus NOK 23,5 million (2021: minus NOK 17.7 million).

The Group continues to invest in production infrastructure and in new products and services. Capital expenditures in the first quarter were NOK 16.8 million (2021: NOK 10.8 million).

The Group had a good liquidity situation at the end of the first quarter with cash and bank balances amounting to NOK 305.6 million, up from NOK 293.2 million at year end 2021.