NHST GROUP’S DEVELOPMENT IN THE SECOND QUARTER OF 2021

Most of the NHST Media Group’s businesses saw a positive development in revenues and profit in the second quarter of 2021. The group’s most important markets showed improvement. Positive development in subscription revenues and increased advertising revenues in the media segment contributed to an increase in the group's operating profit before depreciation and amortisation (EBITDA). This progress was partly offset by a decline in results before nonrecurring itemsfor the SaaS businesses. EBITDA before non-recurring items for the group came in at NOK 26.0 million for the second quarter, compared with NOK 25.6 million in the second quarter of 2020.

In the second quarter, the group announced that work has started on a comprehensive reorganisation of the media units. The purpose of the reorganisation is to increase growth and ensure efficient use of resources across all the group’s publications. A joint management team in charge of all the media units has been established. The resources within sales, subscription follow-up and product development will be merged across all units in the group. A separate organisational unit will be established to pursue growth projects. The reorganisation is planned to be completed during the autumn of 2021.

- "We are experiencing good growth in digital user and advertising revenues, based on solid efforts in all parts of the media division. There is a growing need for agenda-setting journalism and insight - both in Norway and internationally", says CEO Trond Sundnes.

The group's media operations showed an increase in underlying* user revenues in the second quarter compared to the same period last year. The growth in digital user revenues continued, while both combination subscriptions and single sales revenues declined in the second quarter. Advertising revenues increased significantly compared with last year when these were negatively affected by the Covid-19 pandemic. The positive trend in revenue from digital events such as webinars and video production continued.

The Norwegian publications business area* and the Global publications business area both achieved a growth in digital user revenues of more than 22 per cent compared with the second quarter of 2020.

In the dispute between Dagens Næringsliv and Retriever, a settlement was reached and a new agreement was signed concerning Retriever's use of news material from Dagens Næringsliv. The settlement is recorded in the accounts for the second quarter under non-recurring items.

Operating revenues from the SaaS businesses fell by 12.5 per cent compared with the second quarter of 2020. This was mainly due to the fact that the sale of new subscriptions showed a relatively weak trend through much of 2020. This was also largely a result of the Covid-19 pandemic. However, the sale of new subscriptions developed better than in the second quarter of 2020.

The group's total operating revenues were NOK 274.7 million in the second quarter (2020: NOK 270.1 million) and NOK 530.7 million for the first half of the year (2020: NOK 551.4 million). The group's EBITDA including one-off items was NOK 39.5 million in the second quarter (2020: NOK 23.4 million) and NOK 37.5 million in the first half (2020: NOK 27.1 million).

The group's liquidity is good with a cash balance at the end of the second quarter of NOK 222.4 million.

At the company's annual general meeting on 6 July, the shareholder-elected board members Anette Olsen, Anne Britt Berentsen and Patrik Hofbauer were re-elected for a period of two years. James Lamont and Christian Must were elected as new board members, also for two years.

*Adjusted for the sale of Morgenbladet effective from 30 June 2020.