NHST Media Group - QUARTERLY REPORT FOR THIRD QUARTER 2020

NHST GROUP’S DEVELOPMENT IN THE THIRD QUARTER OF 2020

Several of the business units in NHST Media Group had a positive development of new digital products and services, but the Covid-19 pandemic and related uncertainty in the Norwegian and international economy continued to characterise the group’s results in the third quarter.

User revenues decreased 7 per cent in the quarter compared to the third quarter of 2019. Adjusted for the sale of Morgenbladet, which took place at the end of the first half of the year, the decrease was 0.7 per cent. User revenues consist of subscriber revenues and revenues from single copy sales. The systematic work to increase revenues from publication subscriptions continued during the third quarter. Overall, subscriber revenues were on par with the comparable period last year, despite a demanding market. Digital subscription in the media businesses continue to grow. However, both subscriber revenues in the Software-as-a-Service units and the single copy sales revenues in the Norwegian publications segment showed a decline. Advertising revenues were significantly affected by the Covid-19 pandemic and fell 31 per cent. In particular, paper-based advertising declined. Revenues from conferences and events were also lower than in the corresponding period last year.

In August, Dagens Næringsliv launched the concept DN Studio, a digital transmission of debates and reports on economic and political issues. In addition, several other initiatives, including DN Ledelse (about management), the newsletter DN Energi (about energy) and the investment fund game Fantasyfond, were also introduced to the market during the third quarter. In the Global publications segment, Upstream and Recharge joined forces to develop a new renewable energy newsletter - Accelerate - which was launched in August. Fiskeribladet was launched on a new digital publication platform and the number of conversions to digital subscripitions was record high. Mynewsdesk launched PR Impact, a product that provides the users with immediate insight into the impact of their PR using artificial intelligence. The market reception of the new product launches has been good. Several of the Group's units developed new revenue streams based on digital events.

- I am satisfied that we have succeeded in developing and launching new products and services that have become popular among users and strengthened our market position and revenue base in a period that is challenging for the entire media industry. Cost reductions are being implemented as planned, and I am proud of the organisation's ability to adapt to the demanding market conditions, says Hege Yli Melhus Ask, CEO of NHST Media Group.

The Group's operating profit before depreciation and amortisation (EBITDA) ended at NOK 19.4 million for the third quarter, compared to NOK 18.5 million (excluding non-recurring items) for the same period last year. The ongoing cost reduction programmes, which aim to save more than NOK 100 million in 2020, progressed as planned in the quarter. The Group's liquidity was good at the end of the quarter, with a cash balance of NOK 200 million.