ANNUAL REPORT | 2016 CONTENT Photo: Tyler E Nixon/Gettyimages Tyler Photo
Total Page:16
File Type:pdf, Size:1020Kb
ANNUAL REPORT | 2016 CONTENT Photo: Tyler E Nixon/GettyImages Tyler Photo: THIS IS NHST: NHST IN 2016 04 MESSAGE FROM THE CEO 06 OUR BUSINESS AREAS: NHST AT A GLANCE 12 NORWEGIAN PUBLICATIONS 14 GLOBAL PUBLICATIONS 18 MYNEWSDESK 24 NAUTISK FORLAG 26 ANNUAL ACCOUNTS 2016: REPORT OF THE BOARD OF DIRECTORS 32 PROFIT AND LOSS ACCOUNT 39 BALANCE SHEET 40 CASH FLOW STATEMENT 42 NOTES 43 AUDITOR’S REPORT 58 SHAREHOLDER INFORMATION SHAREHOLDER INFORMATION 62 CORPORATE GOVERNANCE 64 ADDRESSES 68 3 TO PREDICT THE FUTURE Predicting the future will never be an exact science. Whether one are remarkably accurate or surprisingly wrong – decisions create history. Knowledge is key to decision- making, forecasting and trend analysis. We will give you the insight you need and be your preferred partner in all our business areas. Together we can let tomorrow come. NHST MEDIA GROUP NHST IN 2016 ANNUAL REPORT | 2016 4 NHST IN 2016 NORWEGIAN PUBLICATIONS costs following the acquisition which incre- proved profitability. Significant focus has At year-end 2016 the organisation consisted ased ownership of the company to 90.1% been placed on continued product develop- of Dagens Næringsliv and Morgenbladet, of shares from April 2016. ment. In addition to new products, this re- where NHST is the majority shareholder. sulted in the launch of an improved main TDN Finans was sold during 2016, and GLOBAL PUBLICATIONS product, which integrates the media moni- NHST purchased additional shares in The trends influencing the global publicati- toring technology that became available Morgenbladet, increasing the ownership ons are in many ways concurrent with through the acquisition of Intermedium in percentage from 33% to 90.8%. those experienced by the Norwegian publi- 2015. Mynewsdesk experienced another cations, although digitisation has not yet year with revenue growth, with revenues The advertising market was challenging for reached the same level for specialised, totalling NOK 193 million. This was an im- traditional news media, where new adver- global niche publications. provement of 25%. The operating result tising formats based on programmatic was an operating loss of NOK 2 million, re- placement and distribution in social media There are also significant variations bet- presenting an improvement in profitability took significant market shares. Despite this, ween the publications, particularly with of NOK 8 million, driven primarily by the however, advertising in some of the print regard to advertising trends. Digitisation increase in revenues. products also experienced growth, but the surged ahead, but the print products conti- operating result was affected by an overall nue to be of great importance. Revenues NAUTISK decline in advertising income of 14%. There from the global publications were down 2016 was a challenging year for Nautisk is continued growth in the subscription 3% in 2016, to NOK 313 million. Adverti- Forlag. Revenues declined as a result of the revenues from readers – the number of sing revenues decreased by 8%, while market conditions in several areas of the digital subscriptions is growing rapidly and subscription revenues increased by 6%. shipping sector, but also as a result of price digital use continues to grow. As a result of this decline, advertising reve- pressure and increased digitisation. Digiti- nues now only comprise 33% of the reve- sation among the customer base is now In 2016, Dagens Næringsliv implemented nue base. The operating profit of NOK 16 progressing at a faster pace than before, staff reduction measures – the first since million was double the result for the previ- which resulted in a significant drop in the the financial crisis of 2008. The cost reduc- ous year, excluding profits from the sale of demand for print products and correspon- tion measures had an impact during the lat- the lease agreement in London in 2015. ding growth in digital products. Profitabi- ter half of the year, while the restructuring This improved profitability was a result of lity remains challenged during this transi- costs of NOK 15 million in June influenced operating cost reductions and positive cur- tion phase. Three years of growth were the profit for the year. Total revenues were rency effects. Further work is being under- succeeded by a decline in revenues of 9%, NOK 669 million, which is an increase of taken to utilise synergies between the orga- to NOK 132 million. Changes were made in NOK 22 million. Operating costs increased nisations in terms of technology, competence the logistics organisations in response to by 4%, and operating profit totalled NOK and resources. The resources based used in the reduced sales of print products, but this 46 million. business and product development and di- was not enough to offset the reduced reve- gitisation have been strengthened, and ef- nues. The operating result was a loss of Digitisation continued at an accelerated forts within several shared functions have NOK 12 million, down NOK 6 million from pace, including within the internal produc- been increased. 2015. The gross margins developed satis- tion processes, and several new products factorily. The weakened profitability was that create better reader experiences were MYNEWSDESK therefore a result of a decline in volume. launched. The development of new digital Mynewsdesk experienced a positive de- The Nautical segment also continues to in- products for readers and advertisers is velopment in 2016, both in the core market vest in digitisation, and the digital product rapid. Morgenbladet contributed NOK 50 in Sweden and in the market in general, portfolio will grow in 2017. million in revenues and NOK 49 million in resulting in both revenue growth and im- KEY FIGURES Figures in NOK 1 000 2016 2015 Operating revenue 1 325 408 1 271 925 Operating profit/(loss) 27 190 13 015 Profit/(loss) before tax 21 746 6 524 Profit/(loss) for the year 16 217 5 944 5 2016 2015 EBITDA EBITDA 76 54 OPERATING PROFIT OPERATING PROFIT 27 13 NUMBER OF FTES IN NORWAY NUMBER OF FTES IN NORWAY 412 428 NUMBER OF FTES NUMBER OF FTES INTERNATIONALLY INTERNATIONALLY 343 310 NHST MEDIA GROUP MESSAGE FROM THE CEO ANNUAL REPORT | 2016 6 MESSAGE FROM THE CEO NHST is entering 2017 with ambitious and exciting plans. We wish to be better – in particular digitally. We will continue our strong reader and market positions. Our skilled and competent staff are ready to deliver. Now it’s full steam ahead! The role of leading NHST is an exciting one. From the successful Tradewinds Shipowners forum in Dubai, March 2016. GUNNAR BJØRKAVÅG CEO NHST is entering 2017 with ambitious and nisational aspects and finally operating re- INCOME DEVELOPMENT exciting plans. We wish to be better – in sults. IN MILLION NOK particular digitally. We will continue our strong reader and market positions. Our REVENUES 1400 skilled and competent staff are ready to We have experienced growth in our biggest deliver. Now it’s full steam ahead! Our plans income category, circulation and reader 1050 251 237 253 305 332 will demand a lot from us, and quality, market revenues, where NHST’s publicati- tempo and innovation are central keywords ons are growing by 12%. There is a general 456 455 416 377 332 in this context. The Group will be strengthe- market decline within advertising, and 700 ned through improved operating results. NHST’s publications are also experiencing a We shall continually restructure and further decline of 12%. However, there is growth 350 develop the Group in order to ensure in- within the media services market, and 493 544 567 590 663 creasingly improved digital performance. NHST increased revenues by 8%. 0 In total, this increased the NHST Group’s In order to explain our logic, let me start by total turnover by 4% in 2016, to NOK 1,325 2012 2013 2014 2015 2016 taking at look back at 2016. We believe we million. The graph below illustrates the Subscription revenues Advertising revenues have had the ability to combine very diffe- same systematic development over several Service revenues rent trends and areas, with the most impor- years. We have been successful in thinking tant being our revenue stream, efficiency, long-term, and building our activities step the print versus digital dilemma, new orga- by step. 7 EFFICIENCY nisation, which enjoys the challenge of NHST has come a long way in this readjust- The whole organisation have undertaken im- healthy competition. Increasingly, our custo- ment process, and we expect the progress in portant work in this area. The efficiency pro- mers are also meeting us at conferences or profit and revenues to continue in 2017. gramme we have completed, with a fram- events that we have arranged. We expect higher digital revenues in 2017 ework for a gross improvement of NOK 75 as a result of the successful business and million, has been necessary to ensure both OPERATING RESULT product development measures we have profitability and a strong financial position. We experienced a weak first quarter in 2016 implemented in recent years. We expect This is measured as a cost-efficiency improve- due to a significant drop in advertising reve- to see the effects first within DN and My- ment of 5%, compared with 2015, like for nues. The Group’s revenues were down 3% newsdesk. For Global Publications it will like, based on income. This represents an im- in the first quarter, and the operating result take some time beyond 2017 before we see provement through better and improved use dropped from a profit to a loss of NOK 19 an effect on income. Nautisk is the organisa- of digital technology as well as changed com- million. In the second quarter, revenues tion in which we expect to see the greatest petencies. As part of the program, we have re- were up 12%, showing improvement also in relative change, with much more digital duced staffing in many areas, such as DN and the operating result.