Annual Report //
NHST MEDIA GROUP
2020
NHST MEDIA GROUP | KEY FIGURES | |
ANNUAL REPORT 2020 | NHST AT A GLANCE |
Contents
About NHST:
Key figures | 03 |
NHST at a glance | 04 |
Annual Accounts 2020:
Board of Directors' Report | 06 |
Profit and Loss Statement (P&L) | 15 |
Balance Sheet | 16 |
Cash Flow Statement | 18 |
Notes | 19 |
Auditor's Report | 34 |
Shareholder Information:
Shareholder Information | 37 |
Addresses | 38 |
2
BOARD OF DIRECTORS' REPORT 2020 ANNUAL ACCOUNTS | | 2020 | ||
Key Figures
Figures in NOK 1 000 | ||||||||||
GROUP | 2020 | 2019 | 2018 | 2017 | 2016 | |||||
Operating revenue | 1,088,794 | 1,199,278 | 1,293,456 | 1,311,874 | 1,325,408 | |||||
Operating profit/(loss) | (73,151) | (38,581) | (14,825) | 30,582 | 27,190 | |||||
Profit/(loss) before tax | (73,444) | (56,183) | (9,300) | 23,868 | 21,746 | |||||
Profit/(loss) for the year | (84,127) | (50,822) | (13,146) | 10,831 | 16,217 | |||||
Net operating margin (%) | (6.7%) | (3.2%) | (1.1%) | 2.3% | 2.1% | |||||
Net profit margin (%) | (7.7%) | (4.2%) | (1.0%) | 0.8% | 1.2% | |||||
Profit ratio (%) | (6.5%) | (4.6%) | (0.6%) | 2.1% | 2.2% | |||||
Total assets | 704,904 | 775,179 | 844,432 | 695,437 | 677,586 | |||||
Capital expenditure | 58,373 | 61,379 | 181,612 | 47,634 | 55,457 | |||||
Equity ratio (%) | 2.38% | 7.50% | 13.10% | 18.1% | 16.5% | |||||
Total Return on Capital Employed (%) | (9.6%) | (6.8%) | (0.9%) | 3.7% | 3.6% | |||||
Liquidity ratio | 0.71 | 0.64 | 0.68 | 0.70 | 0.71 | |||||
EMPLOYEES | ||||||||||
Average number | 599 | 680 | 729 | 744 | 762 | |||||
Average number of FTEs | 585 | 674 | 731 | 738 | 750 | |||||
Net operating margin (%) | Operating profit divided by operating income | |||||||||
Net profit margin (%) | Annual profit divided | by operating income | ||||||||
Profit ratio (%) | Profit | before tax + interest income divided by operating income | ||||||||
Equity ratio (%) | Equity divided by total capital | |||||||||
Total Return on Capital Employed (%) | Profit | before tax + interest income divided by average total capital | ||||||||
Liquidity ratio | Current assets divided by current liabilities | |||||||||
Employees and FTEs | Permanent employees | |||||||||
| NOK | |||||||||
TURNOVER | OPERATING PROFIT/(LOSS) | FTES | ||||||||
1,088 | (73) | 585 | ||||||||
NOK MILL | NOK MILL | |||||||||
3 |
NHST MEDIA GROUP | NHST AT A GLANCE | |||
ANNUAL REPORT 2020 | KEY FIGURES | BOARD OF DIRECTORS' REPORT 2020 ANNUAL ACCOUNTS | ||2020 |
NHST at a glance
Norwegian publications
The business area includes Norway's largest business newspaper, Dagens Næringsliv (DN), including the weekend magazines D2
and Magasinet.
Global publications
The Global publications business area includes
the international industry publications TradeWinds, Upstream, Intrafish and Recharge as well as the Norwegian publications Fiskeribladet and Europower.
NORWEGIAN
PUBLICATIONS
| NOK | ||||
NOK | |||||
TURNOVER | EBITDA | OPERATING PROFIT/(LOSS) | FTES | ||
547 | 43 | 36 | 191 | ||
NOK MILL | NOK MILL | NOK MILL | |||
GLOBAL
PUBLICATIONS
| NOK | ||
NOK | |||
TURNOVER | EBITDA | OPERATING PROFIT/(LOSS) | FTES |
280 | 27 | 21 | 168 |
NOK MILL | NOK MILL | NOK MILL |
SaaS
The Software-as-a-Service busienss area consists of two companies, Mynewsdesk AB, headquartered in Stockholm, Sweden, and Mention Solutions SAS, headquartered in Paris, France.
| NOK | ||||
NOK | |||||
TURNOVER | EBITDA | OPERATING PROFIT/(LOSS) | FTES | ||
254 | 21 | (1) | 192 | ||
NOK MILL | NOK MILL | NOK MILL | |||
4 | 5 |
NHST MEDIA GROUP | ||
ANNUAL REPORT 2020 | KEY FIGURES | NHST AT A GLANCE |
Board of Director's Report 2020
BOARD OF DIRECTORS' REPORT 2020 ANNUAL ACCOUNTS | | 2020 | ||
NNHST Media Group is a Norwegian group of companies that owns and operates business-oriented Norwegian and international publications, as well
as a digital PR and communications platform and media monitoring services. The company's headquarters is located in Oslo, Norway. The business is operated through subsidiaries in Norway and abroad.
Transfers of NHST Media Group AS' shares are registered on NOTC, a marketplace for Norwegian shares that are not listed on the stock exchange. The shares are freely trans ferable. However, in accordance with the company's Articles of Association, the Board of Directors must approve share transfers. The NHST Group businesses are organised into three business areas: Norwegian Publications, Global Publications and Software-as-a-Service (SaaS).
Our Business
NHST Media Group is a Norwegian group of companies that owns and operates business-oriented Norwegian and international pub- lications, as well as a digital PR and communications platform and media monitoring services. The company's headquarters is located in Oslo, Norway. The business is operated through subsidiaries in Norway and abroad.
Transfers of NHST Media Group AS' shares are registered on NOTC, a marketplace for Norwegian shares that are not listed on the stock exchange. The shares are freely transferable. However, in accordance with the company's Articles of Association, the Board of Directors must approve share transfers.
The NHST Group businesses are organised into three business areas: Norwegian Publications, Global Publications and Software- as-a-Service (SaaS).
Norwegian publicationsas of Q3 2020 comprises Dagens Næringsliv. Morgenbladet was sold effective 30 June 2020 as part of focusing the Group's investments on business-related products and services.
Global publicationsincludes the international industry publications TradeWinds, Upstream, Intrafish.com and Recharge as well as the Norwegian publications Fiskeribladet, Intrafish.no and Tekfisk. In 2020, the last three were organised under joint management in the Sjømat Norge unit.
Software-as-a-Service(SaaS)includes the companies Mynewsdesk and Mention. Mynewsdesk, headquartered in Stock- holm, Sweden, offers customers a digital PR and communications platform with associated services. Mention, headquartered in Paris, France, offers media monitoring services, primarily for social media.
Highlights of 2020
2020 was characterized by severe challenges as a result of the Covid-19 pandemic. The pandemic brought about major changes to the market situation for the majority of the group's publications and the need to comprehensively adapt internal work processes and operational practices.
NHST Media Group was successful in adapting to the change in market conditions. The increase in the market's demand for journalism and information has been met by the development of new digital products and services. A significant share of customers have converted their subscriptions from print to digital and the share of revenues from digital products in the Group is increasing. In Q4 2020, the fully digital portion of the Group's total subscription and advertising revenues amounted to 51 percent, an increase from 44 percent in Q4 2019.
Subscription revenues account for an increasing portion of the Group's total income, which is in line with the Group's strategy. In 2020 this portion amounted to an average of 73.5 percent (68.6 percent).
The Group's media business maintained production and distribution of news content, however, with challenges in print distribution for global titles. With offices all over the world in lockdown, several subscribers cancelled their print subscriptions. At the same time, all the Group's publications have seen significant growth in digital subscriptions, supported by product development, technology and journalism. The Group has also positioned itself in webinars and events.
At the start of 2020, the market outlook was assessed to be positive. However, the development of the pandemic caused a strong slowdown in the markets from the month of March. This greatly affected advertising revenues for the media companies and new subscription sales revenues in the SaaS companies.
The Group met this development through a comprehensive cost- cutting programme that included staff reductions, redundancies and other measures to reduce wage costs, as well as savings in the purchase of services. The program's goal was to reduce costs by more than NOK 100 million. The program was implemented from Q2 and gave the planned results.
To strengthen the Group's financial platform and preserve the ability to invest in the development of products and the organisation, a rights issue of new shares amounting to NOK 50 million was launched in June 2020. The issue was fully underwritten by a group of NHST Media Group's largest shareholders. At the same time, the loan agreement with the Group's bank was renegotiated and extended.
Morgenbladet was sold in June 2020 as part of focusing the Group on business-related products and services. Morgenbladet was bought by Mentor Media AS.
In the second half of the year, the Group experienced an improved market situation for both the media business and the SaaS companies. Together with the cost-cutting programme, this helped the Group achieve an operating profit before depreciation (EBITDA) for 2020 at the same level as the year before.
Group CEO, Hege Yli Melhus Ask resigned from her position in November 2020 with effect from 1 December 2020.
The Board of Directors of NHST Media Group appointed Trond Sundnes (46) as the new Group CEO, with main responsibility for NHST's Norwegian and international publications and group functions. Sundnes was previously Executive Vice President for
6 | 7 |
NHST MEDIA GROUP | |
ANNUAL REPORT 2020 | KEY FIGURES |
REVENUE PER TYPE
OMSETNING PER
INNTEKTSTYPE
MNOK | 1 500 | 112 | |
1 200 | 112 | 112 | |
95 | |||
900 | 193 | 274 | |
600 | |||
800 | 814 | ||
300 | |||
0 | 2020 | 2019 | |
Other revenues
Advertising revenue
Subscription revenue
NHST AT A GLANCE
REVENUE PER
OMSETNING PER
BUSINESS AREA
FORRETNINGSOMRÅDE
MNOK | 1 500 | ||
1 200 | |||
263 | |||
900 | 254 | ||
301 | |||
280 | |||
600 | |||
547 | 644 | ||
300 | |||
0 | 2020 | 2019 | |
SaaS
Global publications
Norske publikasjoner
BOARD OF DIRECTORS' REPORT 2020 ANNUAL ACCOUNTS | | 2020 | ||
The Group's operating expenses excluding depreciation and amortisation for 2020
amounted to NOK 1,020.4 million (NOK 1,170.6 million). Adjusted for the sale of Morgenbladet, operating expenses for the year showed a decline of NOK 106.5 million, corresponding to 9.7 percent.
Global Publications at NHST and has worked in various roles in the Group since 2007. Sundnes took on the new role on 12 April 2021.
Sundnes will be Chairman of the Board of Dagens Næringsliv, and in his new role will further develop the cooperation and synergies between NHST's Norwegian and international publications.
Operationally, the SaaS companies, Mynewsdesk and Mention Solutions, will continue to report to the Group CFO, who in this role reports directly to the Board of Directors of NHST Media Group.
Financial development
(Figures in brackets are for the same period in 2019)
The Group's operating revenue in 2020 amounted to NOK 1,088.8 million (NOK 1,199.3 million).
Total user revenues amounted to NOK 848.6 million in 2020 (NOK 880.2 million). Adjusted for the sale of Morgenbladet, this corresponds to a reduction in user revenues of NOK 2.0 million (0.2 percent). Both Norwegian Publications and Global Publications achieved significant growth in digital subscription revenues that made up for the fall in print subscriptions, while single copy sales revenues continued to fall. User revenues in the
of a more long-term and structural nature. These measures included permanent staff reductions, short-term redundancies, temporary salary reductions and a number of savings in the purchase of services.
The Group's EBITDA amounted to NOK 68.4 million (NOK 28.7 million). This includes net one-off costs in connection with staff reductions and other one-off items amounting to NOK 5.6 million, so that EBITDA before one-off items amounted to NOK 74.0 million (NOK 71.4 million).
Ordinary depreciation for the year amounted to NOK 61.0 million (NOK 67.2 million). Additionally, goodwill was written down by NOK 80.6 million in Q1 2020 related to the subsidiary, Mention Solution SAS. The Group's operating profit (EBIT) thus amounted to minus NOK 73.2 million (minus NOK 38.5 million) and the profit for the year to minus NOK 84.1 million (minus NOK 50.8 million).
During the course of 2020, ordinary investments in fixed assets were capitalized in the amount of NOK 42.3 million (NOK 40.4 million). These were investments in technology and new products, services and work processes.
The Group's cash flow from operational and investment activities totalled minus NOK 13.5 million (minus NOK 46.3 million).
Parent company and allocation of the year's profit/(loss)
The parent company, NHST Media Group AS, is primarily engaged in the sale of administrative and development services to the subsidiaries. The parent company's operating revenue amounted to NOK 92.2 million in 2020 (NOK 85.9 million). The parent company's operating profit amounted to minus NOK 27.8 ,million (minus NOK 34.4 million) and the net profit from financial items was NOK 44.9 million (NOK 22.6 million).
The profit/(loss) for the year amounted to NOK 16.7 million (minus NOK 2.1 million).
The Board proposes that no dividends will be distributed for 2020. It is proposed that NHST Media Group AS' profit for the year will be allocated as follows:
Allocated for dividends: | NOK 0 |
Transferred to other shareholder's equity | NOK 16,731,000 |
The business units in more detail
The Norwegian Publications business area included the newspapers Dagens Næringsliv and Morgenbladet until the end of second quarter. From the third quarter of 2020, it includes only Dagens Næringsliv.
new webinars. Revenues generated from in-person conferences and other events fell away, but new revenue streams were developed from digital conferences and meetings.
Operating revenues in Dagens Næringsliv totalled NOK 512.7 million in 2020, a decline of NOK 56.4 million from 2019. Subscription revenues improved from 2019 with growth in digital subscription revenue compensating for the decline in print subscriptions. Subscription revenue accounted for an average of
66.5 percent of the total revenues (58.9 percent). Single copy sales continued to fall, as is the general situation for the Norwegian media industry. Advertising revenue fell significantly in the second and third quarters as a result of Covid-19, but showed some improvement in the fourth quarter. Advertising revenues for the year fell by 26.4 percent compared to 2019.
Operating expenses for 2020 were reduced by 12.3 percent compared to 2019. This was a result of comprehensive cost-cutting measures implemented in Q2 2020, while costs in 2019 were affected by higher one-off restructuring costs.
The Global Publications business area comprises the international niche publications TradeWinds, Upstream, Recharge and Intrafish. com, as well as Sjømat Norge (including Fiskeribladet) and Europower.
SaaS companies declined somewhat from 2019.
Advertising revenues amounted to NOK 193.5 million in 2020, corresponding to 17.8 percent of operating revenue (NOK 273.8 and 22.8 percent). This represented a 29.3% fall from 2019 to
In June 2020, a rights issue of 312,500 new shares with a subscription price of NOK 160 per share was carried out. Together with renegotiation of the Group's bank loans, this contributed to good liquidity for the Group in 2020. At the end of the year the Group's cash and cash equivalents amounted to NOK 217.6 million
Norwegian publications | 2020 | 2019 | Global publications | 2020 | 2019 | |
Operating revenue | 547.5 | 644.1 | Operating revenue | 280.4 | 301.1 | |
EBITDA | 42.5 | 28.7 | EBITDA | 26.8 | 11.3 | |
2020, while for Q4 in isolation the reduction was 18.3 percent.
The Group's operating expenses excluding depreciation and amortisation for 2020 amounted to NOK 1,020.4 million (NOK 1,170.6 million). Adjusted for the sale of Morgenbladet, operating expenses for the year showed a decline of NOK 106.5 million, corresponding to 9.7 percent. The reduction in operating expenses was achieved through both short-term measures and measures
(NOK 183.1 million).
Group equity at the end of the year was NOK 16.8 million (NOK 57.8 million).
The Board finds that the conditions for a going concern assumption are present and the annual accounts have been prepared under this assumption.
During 2020, Dagens Næringsliv worked on strengthening its position in the Norwegian market for business-oriented journalism.
Key to this work is the development of journalistic content for digital distribution and the launch of new services. The products launched in 2020 include the stock market game Fantasyfond, the editorial initiative DN ledelse, an energy newsletter, and several
The Global Publications business area was also affected by the Covid-19 pandemic in 2020.
User revenue in total was at the same level as 2019, while advertising revenue was impacted by uncertainty resulting from the pandemic and the falling oil price which impacted the financial development for important customer groups.
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NHST Media Group AS published this content on 21 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2021 13:02:05 UTC.