NHST Media Group - Quarterly Report 4th quarter 2016

Main highlights in the quarter

• Revenues for the quarter increased by were MNOK 337 which is comparable with last year
• As in previous quarters there are significant variations between revenue types. Subscription revenue increased 13% while advertising revenue fell 15 % and media service revenues declined 7 %.
• There were also substantial differences between the segments with 16 % growth in Mynewsdesk and 7 % in Norwegian Publications, while Nautisk was down 24 % and Global Publications declined 7 %.
• The EBITDA for the quarter was a profit of MNOK 23, which was MNOK 19 up on the same period last year. EBITDA for the full year was MNOK 76, an improvement of MNOK 22
• The operating profit was MNOK 10 for the quarter, an improvement of MNOK 16. For the full year, the operating profit was MNOK 27, an increase with MNOK 14 over last year.
• The main reasons for the increase in the quarter were lower costs in Dagens Næringsliv and profitable revenue growth in Mynewsdesk. On the other hand, Nautisk increased their operating loss significantly in the quarter.

Other highlights

• The current development in the different revenue categories has led to subscription revenue comprising 56 % of total revenues, while media service revenue is equalling advertising revenue.
• Both print and digital advertising declined in the fourth quarter.
• The productivity improvement programme made a significant positive contribution to the increase in profitability. The goal of gross annual productivity gains of MNOK 75 by the end of 2016 was reached with cost reductions as of the fourth quarter and full effects in 2017.
• The Group continues to invest in digital product development and upgrades of digital platforms and systems to support of this development. Investments in the form of capitalised development costs amounted to MNOK 15 in the fourth quarter.
• Based on the improved profitability and cash position, and in line with the Group’s dividend policy, the Board of Directors will propose a dividend of NOK 3 per share, total MNOK 4, for 2016