NHST Media Group - Quarterly Report 4th quarter 2018

The fourth quarter showed a decrease in profits with an EBITDA of MNOK 11.4 (20.1) and an EBITDA margin of 3.4% (5.8%). The decrease is primarily due to the development in Mynewsdesk and Norwegian Publication, as well as the amortisation of goodwill related to the Mention acquisition.

Operating revenues in the fourth quarter were MNOK 331 (348.1), down 5% on the same period last year. There was a decrease of 4% in Norwegian Publications and of 1% in Global Publications, whereas the development in Mynewsdesk was stable, exclusive of the effects of Mention.

Subscription revenue amounted to MNOK 211.0 (197.8), 7% up on the same quarter last year. This is primarily due the revenue effects from Mention, but Norwegian Publications also saw a 2% revenue increase in the fourth quarter.

After growth in the third quarter, advertising revenue decreased by 9% in the fourth quarter, ending at MNOK 75.7 (83.4). Norwegian Publications accounted for the largest decrease.

Mention contributed with revenues of MNOK 18 and an operating profit of MNOK 0.6 from its ordinary operations in the fourth quarter. The preliminary Price Purchase Allocation analysis identified excess values of MNOK 195. Parts of these values are amortised and the negative effect on the fourth quarter result was MNOK 12. A further description of the PPA and its effects is shown in note 3.

The EBITDA performance before one-time effects were MNOK 4.3 (25.2), which does not include the profit of MNOK 7 from the sale of the Nautisk business.

The operating loss was MNOK 10.8 (operating profit of 4.8), including the effects of the Mention acquisition and the Nautisk sale.