Market announcement
AS Ekspress Grupp
Category
Management interim statement or quarterly financial report
Date
02.11.2007 09:30:24
Title
Results of operations of the Ekspress Group, first 9 months of 2007
Message
HIGHLIGHTS
3RD QUARTER 2007
- Sales revenue EEK 257.6 million (EUR 16.5 million) , year-over-year growth
19.2%
- Gross profit EEK 70.3 million (EUR 4.5 million), year-over-year growth 25.5%
- EBITDA EEK 35.6 million (EUR 2.3 million), year-over-year growth 57.5%
- EBIT EEK 26.8 million ( EUR 1.7 million), year-over-year growth 77%
- Net profit EEK 19.3 million (EUR 1.2 million), year-over-year growth 41.6%
FIRST 9 MONTHS OF 2007
- Sales revenue EEK 784.6 million (EUR 50.1 million), year-over-year growth
18.2%
- Gross margin 27%
- Operating margin 11%
- Net margin 9%
DELFI GROUP, SEPTEMBER 2007
- Sales revenue EEK 11.7 million (EUR 0.75 million), year-over-year growth 58.1%
- EBITDA EEK 5.1 million (EUR 0.33 million), year-over-year growth 89%
- EBIT EEK 4.7 million (EUR 0.3 million), year-over-year growth 88%
Over the first nine months of 2007, the consolidated net sales of AS Ekspress
Group totalled EEK 784.6 million (EUR 50.1 million) which is 18.2% higher than
in the same period of 2006. EBITDA totalled EEK 110.0 million (EUR 7.0 million).
On a comparable basis (excluding revenue relating to the sale of the share of
Linnaleht in the amount of EEK 3.4 million (EUR 0.2 million), it exceeds the
result of the comparable period of 2006 by 21.3%. Over the first 9 months of
2007, the Group's net profit reached EEK 70.5 million (EUR 4.5 million) which
(excluding the effect of Linnaleht) is 24% higher than in 2006. In the third
quarter, the consolidated net sales amounted to EEK 257.6 million (EUR 16.5
million) which is 19.2% higher than in the third quarter of 2006. EBITDA
amounted to EEK 35.6 million (EUR 2.3 million) and net profit amounted to EEK
19.3 million (EUR 1.2 million). As compared to the third quarter of 2006, EBITDA
growth was 57.5% and net profit growth was 41.6%.
OVERVIEW OF THE MEDIA MARKET
In the third quarter, strong growth of advertising revenue of periodicals which
had commenced in the first half of the year continued as compared to last year.
In the first 9 months of 2007, the advertising revenue of five leading national
newspapers increased by 32% as compared to the same period in 2006, totalling
EEK 332 million kroons. The areas of real estate and personnel search
advertising showed the highest volume growth. Also, automobile and tourism
advertising also increased significantly. Over the first 9 months of 2007, the
advertising volumes of five leading newspapers increased by 15% as compared to
the same period in 2006. The wide gap between the volume and revenue is
attributable to the significant volume growth of web-based advertising.
According to the opinion of media analyst Toomas Leito, advertising revenue
growth is expected to be somewhat more modest in the 4th quarter; however, the
year 2007 as a whole is expected to show excellent growth.
SALES REVENUE BY SEGMENTS
The growth drivers of the Group's sales revenue in absolute terms were primarily
the publishing of newspapers and magazines and the printing service. Fast growth
occurred also in the segment of information services and book sales. The online
media segment contributed to the sales growth in the third quarter.
On 03.09.2007, the shares of Delfi Holding OÜ (under the previous business name
of OÜ Interinfo Baltic) were transferred after the resolution adopted by the
Estonian Competition Board on 28.08.2007 allowing AS Ekspress Grupp to acquire
the parent company of AS Delfi.
AS Delfi with its subsidiaries manages 7 internet portals: Estonian and Russian
language portals in Estonia and Latvia, (http://www.delfi.ee, rus.delfi.ee,
http://www.delfi.lv and rus.delfi.lv), two portals in Lithuania
http://www.delfi.lt and http://www.centras.lt) as well as the news portal in the
Ukraine (http://www.delfi.ua). After the merger, the Ekspress Group has become
the market leader in the Internet advertising market of the Baltic countries.
From September 2006, the results of operations of the Delfi Group are included
in the financial statements of Ekspress Group. September 2007 was the most
successful month ever both in terms of usage as well as net sales (net sales EEK
11.7 million). As compared to September 2006, the sales growth totalled 58.1%
(2006: EEK 7.4 million). Management considers the year 2007 as a year of strong
growth: the sales forecast is EEK 124 million and EBITDA forecast is EEK 45
million. The sales growth as compared to 2006 was 37% and that of EBITDA was
44%. Management forecasts 30% sales growth in the upcoming years, as well as
continuation of 35-40% EBITDA growth. Management foresees great potential for
the synergy of revenue and expenses with the current areas of operation of the
Ekspress Group.
In the publishing segment, advertising sales continue to growth fast, the growth
over the first 9 months of 2007 was 23% as compared to the prior year, in the
third quarter it was even higher at 28.5%. The sales growth of periodicals
(subscriptions and single issue sales) was a decent 14%, based on the sales
growth of existing products as well as new magazines. The growth of single copy
sales in the third quarter was even higher at 20%, based on the growth of
magazines “Klubas” and “Naised” launched in the first half of the year. As new
products, Ajakirjade Kirjastus published special editions of magazines in the
third quarter of the year: Aed of Kodukiri, Raha-eri of Pere ja Kodu, Extra of
Saladused, as well as Kataloog of Ruum. Launching new products has increased
marketing costs. On a comparable basis (excluding revenue relating to the sale
of the share of Linnaleht in the amount of EEK 3.4 million kroons in 2006,) both
the increase of marketing costs as well as printing and distribution costs have
lowered the EBITDA margin from 13.7% in 2006 to 12% over the first nine months
of 2007.
In the segment of printing services, sales growth is limited by production
capacity which has been fully utilised by now. Therefore, the sales growth in
the third quarter of 2007 was a modest 4%; over the first nine months, the sales
growth of the printing company was a respectable 12% as compared to the same
period in 2006. This growth has primarily been achieved with regard to non-Group
Estonian customers and export products. However, the operating margin has been
reduced by higher paper prices and acceleration of labour costs (20%) as
compared to productivity. The magazine printing press Rotoman purchased in the
first half of the year which is expected to be fully operational next year will
enable to increase the production capacity of Printall by one third.
The 15% growth of book sales in the first nine months of 2007 as compared to the
same period in 2006 is a sign of a favourable market condition which has been
well utilised with the opening of a new store in Viljandi and the expansion of
commercial space in Viru Center.
Over the first nine months of 2007, the revenue of information services was
significantly (30%) impacted by the introduction of a phone catalogue in the
first half of the year and market share growth with regard to the telephone
information service. In the upcoming years, the potential of the segment of
information services will be positively impacted by the launching of the
subsidiary of Ekspress Hotline set up Bucharest in the first half of the year.
NET PROFIT
Over the first nine months of the year, the gross profit of the Ekspress Group
reached 27%, being at the same level as last year. The gross profit in the third
quarter increased to 27% as compared to 26% in the comparable period last year.
Over the first nine months, the gross profit reached EEK 209.7 million (EUR 13.4
million), increasing by 17.2% in a year.
The Group's marketing expenses increased due to the expansion of the Group and
the launching of new products. The growth over the first nine months was 34%.
Labour costs have increased by 29.7% as a result of hiring new employees as well
as raising their wages.
Over the first nine months of the year, EBIT reached EEK 84.7 million (EUR 5.4
million), increasing by 18.6% as compared to the same period last year. Over the
first nine months, the operating margin was 11% (9 months of 2006: also 11%). In
the third quarter, EBIT reached EEK 26.8 million (EUR 1.7 million), increasing
by 77% in a year. In the third quarter, the operating margin was 10.4% (3rd
quarter of 2006: 7%).
Over the first nine months, the Group's financial expenses reached EEK 13.4
million (EUR 0.9 million). A major part of the financial expenses was made up of
interest expenses in the amount of EEK 9.8 million (EUR 0.6 million). In the
upcoming years, the Group's interest expenses will grow due to the loan in the
amount of EEK 674.4 million (EUR 43.1 million) taken from the syndicate of SEB
Eesti Ühispank, Sampo Pank and Nordea Pank for the acquisition of Delfi and
Maaleht by the Ekspress Group in the third quarter. Interest expenses will also
increase as a result of the increase in Euribor.
Overall, the Ekspress Group earned EEK 70.2 million (EUR 4.5 million) in net
profit (after taxes and minority interest) over the first nine months of 2007.
Net profit increased by 19.4% as compared to the same period last year. In the
third quarter, the Group's net profit (after taxes and minority interest)
amounted to EEK 19.1 million (EUR 1.2 million). The growth was 45.9% as compared
to the same period in 2006.
BALANCE SHEET AND INVESTMENTS
As of 30 September 2007, the consolidated balance sheet total of the Ekspress
Group was EEK 1 688.8 million (EUR 107.9 million), increasing by 173% in a year.
The assets and liabilities included in the balance sheet have increased as a
result of the expansion of the Group.
Current assets increased by 41.9% in a year, reaching EEK 279.8 million (EUR
17.9 million) as of 30 September 2007. Of the current assets, the Groups trade
receivables increased the most, by 60%, reaching EEK 99.8 million (EUR 6.4
million). Short-term trade payables increased by 8.2%, reaching EEK 269.7
million (EUR 17.2 million) by the end of September.
As of the end of September, the Group's long-term borrowings reached EEK 870.9
million (EUR 55.7 million), increasing by 4.3 times. Of the long-term
borrowings, bank loans total EEK 724.8 million (EUR 46.3 million) and the
finance lease payable is EEK 143.1 million (EUR 9.1 million). Of the bank loans,
EEK 674.4 million (EUR 43.1 million) is made up of the loan contract entered
into with the syndicate of SEB Eesti Ühispank, Sampo Pank and Nordea Pank for
financing the acquisition of Delfi and Maaleht.
As of the end of September, property, plant and equipment stood at EEK 377.4
million (EUR 24.1 million), increasing by 26% in a year. A major part of the
increase of property, plant and equipment is made up of the cost of the new
printing press acquired by Printall in the amount of EEK 81.6 million (EUR 5.2
million). As of the end of September, intangible assets were EEK 1 016.6 million
(EUR 65.0 million), increasing by 8.5 times in a year. Of the increase of
intangible assets, EEK 831.3 million (EUR 53.1 million) is made up of the fair
value of trademarks, client relations and software of the Delfi Group as well as
goodwill which arose in the acquisition. The Ekspress Group acquired significant
control of the Delfi Group and includes it in its financial statements from 3
September 2007.
The fair value of the trademark of Maaleht and goodwill which arose in the
acquisition total EEK 38.2 million (EUR 2.4 million). On 17.09.2007, the shares
of AS Maaleht were transferred after the resolution adopted by the Estonian
Competition Board on 30 August 2007 allowing AS Ekspress Grupp to acquire AS
Maaleht. The date of obtaining significant control by the Ekspress Group and the
inclusion of the acquisition in the financial statements is 30 September 2007.
Management expects to manage Maaleht more efficiently, by improving the
newspaper's distribution and printing conditions and earning higher advertising
income, thereby increasing the Group's net sales and earning higher profit.
EMPLOYEES
As of the end of September 2007, the Ekspress Group employed 2 344 people (30
September 2006: 1 909 people). Over the first nine months, the average number of
employees was 2 089 (9 months of 2006:1 875). Over the first nine months of
2007, the employees of the Ekspress Group received wages and salaries in the
amount of EEK 162.5 million (EUR 10.4 million).
STRUCTURE OF OWNERS OF THE EKSPRESS GROUP
During the third quarter of 2007, the majority shareholder Hans Luik increased
his holding in AS Ekspress Grupp by acquiring additional 23 000 shares of AS
Ekspress Grupp through the company controlled by him, OÜ HHL Rühm. As of
30.09.2007, Hans Luik directly and indirectly owns 12 650 244 shares of AS
Ekspress Grupp, and his holding is 66.68 per cent. The clients of Skandinaviska
Enskilda Banken AB own 1 339 929 shares which makes up 7.063% of the total
number of shares. The remaining shareholders own less than 5% of the total
shares (18 971 081 shares).
--------------------------------------------------------------------------------
| SELECTED FINANCIAL INDICATORS (th EEK) | 9 month |
--------------------------------------------------------------------------------
| | 2007 | 2006 |
--------------------------------------------------------------------------------
| Accounting period | | |
--------------------------------------------------------------------------------
| Net sales | 784 647 | 663 641 |
--------------------------------------------------------------------------------
| Gross profit | 209 696 | 178 893 |
--------------------------------------------------------------------------------
| Operating profit | 84 693 | 71 396 |
--------------------------------------------------------------------------------
| Net profit for the period | 70 493 | 60 238 |
--------------------------------------------------------------------------------
| Net profit for the shareholders of the mother | 70 154 | 58 736 |
| company | | |
--------------------------------------------------------------------------------
| At the end of the period | | |
--------------------------------------------------------------------------------
| Total current assets | 279 760 | 197 112 |
--------------------------------------------------------------------------------
| Tota fixed assets | 1 409 028 | 420 905 |
--------------------------------------------------------------------------------
| Total assets | 1 688 788 | 618 017 |
--------------------------------------------------------------------------------
| Total liabilities | 1 140 552 | 412 522 |
--------------------------------------------------------------------------------
| Total equity | 548 236 | 205 495 |
--------------------------------------------------------------------------------
| Equity belonging to the shareholders of mother | | |
| company | | |
--------------------------------------------------------------------------------
| Performance indicators (%) | 9 month |
--------------------------------------------------------------------------------
| | 2007 | 2006 |
--------------------------------------------------------------------------------
| Sales growth (%) | 18% | 30% |
--------------------------------------------------------------------------------
| Gross profit margin (%) | 27% | 27% |
--------------------------------------------------------------------------------
| Net profit margin (%) | 9% | 9% |
--------------------------------------------------------------------------------
| Equity ratio (%) | 32% | 33% |
--------------------------------------------------------------------------------
| ROA (%) | 4% | 10% |
--------------------------------------------------------------------------------
| ROE (%) | 16% | 31% |
--------------------------------------------------------------------------------
| Operating profit margin (%) | 11% | 11% |
--------------------------------------------------------------------------------
| Liquidity ratio | 1,04 | 0,79 |
--------------------------------------------------------------------------------
| Debt equity ratio (%) | 172% | 125% |
--------------------------------------------------------------------------------
| Earnings per share (EUR) | 3,87 | 4,98 |
--------------------------------------------------------------------------------
| Financial leverage (%) | 68% | 67% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SELECTED FINANCIAL INDICATORS (th EUR) | 9 month |
--------------------------------------------------------------------------------
| | 2007 | 2006 |
--------------------------------------------------------------------------------
| Accounting period | | |
--------------------------------------------------------------------------------
| Net sales | 50 148 | 42 414 |
--------------------------------------------------------------------------------
| Gross profit | 13 402 | 11 433 |
--------------------------------------------------------------------------------
| Operating profit | 5 413 | 4 562 |
--------------------------------------------------------------------------------
| Net profit for the period | 4 505 | 3 849 |
--------------------------------------------------------------------------------
| Net profit for the shareholders of the mother | 4 483 | 3 753 |
| company | | |
--------------------------------------------------------------------------------
| At the end of the period | | |
--------------------------------------------------------------------------------
| Total current assets | 17 878 | 12 597 |
--------------------------------------------------------------------------------
| Tota fixed assets | 90 054 | 26 901 |
--------------------------------------------------------------------------------
| Total assets | 107 932 | 39 498 |
--------------------------------------------------------------------------------
| Total liabilities | 72 894 | 26 364 |
--------------------------------------------------------------------------------
| Total equity | 35 038 | 13 134 |
--------------------------------------------------------------------------------
| Equity belonging to the shareholders of mother | | |
| company | | |
--------------------------------------------------------------------------------
| Performance indicators (%) | 9 month |
--------------------------------------------------------------------------------
| | 2007 | 2006 |
--------------------------------------------------------------------------------
| Sales growth (%) | 18% | 30% |
--------------------------------------------------------------------------------
| Gross profit margin (%) | 27% | 27% |
--------------------------------------------------------------------------------
| Net profit margin (%) | 9% | 9% |
--------------------------------------------------------------------------------
| Equity ratio (%) | 32% | 33% |
--------------------------------------------------------------------------------
| ROA (%) | 4% | 10% |
--------------------------------------------------------------------------------
| ROE (%) | 16% | 31% |
--------------------------------------------------------------------------------
| Operating profit margin (%) | 11% | 11% |
--------------------------------------------------------------------------------
| Liquidity ratio | 1,04 | 0,79 |
--------------------------------------------------------------------------------
| Debt equity ratio (%) | 172% | 125% |
--------------------------------------------------------------------------------
| Earnings per share (EUR) | 0,25 | 0,32 |
--------------------------------------------------------------------------------
| Financial leverage (%) | 68% | 67% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales growth (%) (net sales 2007 - net sales 2006) / net sales |
| 2006*100 |
--------------------------------------------------------------------------------
| Gross profit margin (%) gross profit/net sales*100 |
--------------------------------------------------------------------------------
| Net profit margin (%) net profit/net sales*100 |
--------------------------------------------------------------------------------
| Equity ratio (%) Equity / assets* 100 |
--------------------------------------------------------------------------------
| ROA (%) net profit/assets *100 |
--------------------------------------------------------------------------------
| ROE (%) net profit/equity *100 |
--------------------------------------------------------------------------------
| Operating profit margin (%) operating profit/net sales*100 |
--------------------------------------------------------------------------------
| Liquidity ratio current assets/current liabilities |
--------------------------------------------------------------------------------
| Debt equity ratio (%) interest bearing liabilities/equity*100 |
--------------------------------------------------------------------------------
| Earnings per share net profit/average number of shares |
--------------------------------------------------------------------------------
| Financial leverage (%) interest bearing liabilities-cash and cash |
| equivalents/interest bearing liabilities+equity*100 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (unaudited)
--------------------------------------------------------------------------------
| th EEK | 30.09.200 | 31.12.200 | 30.09.2006 |
| | 7 | 6 | |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 65 814 | 51 101 | 45 361 |
--------------------------------------------------------------------------------
| Other financial assets at fair value | 4 556 | 6 334 | 6 067 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 150 583 | 122 726 | 102 378 |
--------------------------------------------------------------------------------
| Inventories | 58 807 | 44 857 | 43 306 |
--------------------------------------------------------------------------------
| Total current assets | 279 760 | 225 018 | 197 112 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 10 141 | 9 708 | 9 532 |
--------------------------------------------------------------------------------
| Investments in associates | 1 068 | 17 | 17 |
--------------------------------------------------------------------------------
| Investment property | 3 830 | 4 123 | 4 221 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 377 359 | 289 210 | 299 804 |
--------------------------------------------------------------------------------
| Intangible assets | 1 016 630 | 138 281 | 107 331 |
--------------------------------------------------------------------------------
| Total non-current assets | 1 409 028 | 441 339 | 420 905 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 1 688 788 | 666 357 | 618 017 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 73 484 | 95 026 | 96 773 |
--------------------------------------------------------------------------------
| Trade and other payables | 196 192 | 187 132 | 152 450 |
--------------------------------------------------------------------------------
| Total current liabilities | 269 676 | 282 158 | 249 223 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 867 966 | 118 846 | 160 619 |
--------------------------------------------------------------------------------
| Other long term liabilities | 2 910 | 83 | 2 680 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 870 876 | 118 929 | 163 299 |
--------------------------------------------------------------------------------
| Total liabilities | 1 140 552 | 401 087 | 412 522 |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Capital and reserves attributable to | | | |
| equity holders of the Group | | | |
--------------------------------------------------------------------------------
| Share capital | 189 711 | 165 232 | 115 232 |
--------------------------------------------------------------------------------
| Share premium | 183 495 | 0 | 0 |
--------------------------------------------------------------------------------
| Reserves | 10 222 | 5 501 | 10 222 |
--------------------------------------------------------------------------------
| Retained earnings | 164 464 | 94 310 | 60 882 |
--------------------------------------------------------------------------------
| Currencu translation reserve | -220 | 0 | 0 |
--------------------------------------------------------------------------------
| Total capital and reserves attributable | 547 672 | 265 043 | 186 336 |
| to equity holders of the Group | | | |
--------------------------------------------------------------------------------
| Minority interest | 564 | 227 | 19 159 |
--------------------------------------------------------------------------------
| Total equity | 548 236 | 265 270 | 205 495 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 1 688 788 | 666 357 | 618 017 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET (unaudited)
--------------------------------------------------------------------------------
| th EUR | 30.09.200 | 31.12.2006 | 30.09.200 |
| | 7 | | 6 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 4 206 | 3 266 | 2 899 |
--------------------------------------------------------------------------------
| Other financial assets at fair value | 291 | 405 | 388 |
| through profit or loss | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 9 623 | 7 844 | 6 542 |
--------------------------------------------------------------------------------
| Inventories | 3 758 | 2 867 | 2 768 |
--------------------------------------------------------------------------------
| Total current assets | 17 878 | 14 382 | 12 597 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 648 | 620 | 609 |
--------------------------------------------------------------------------------
| Investments in associates | 68 | 1 | 1 |
--------------------------------------------------------------------------------
| Investment property | 245 | 264 | 270 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 24 118 | 18 484 | 19 161 |
--------------------------------------------------------------------------------
| Intangible assets | 64 975 | 8 838 | 6 860 |
--------------------------------------------------------------------------------
| Total non-current assets | 90 054 | 28 207 | 26 901 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 107 932 | 42 589 | 39 498 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 4 696 | 6 073 | 6 185 |
--------------------------------------------------------------------------------
| Trade and other payables | 12 539 | 11 960 | 9 743 |
--------------------------------------------------------------------------------
| Total current liabilities | 17 235 | 18 033 | 15 928 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 55 473 | 7 596 | 10 265 |
--------------------------------------------------------------------------------
| Other long term liabilities | 186 | 5 | 171 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 55 659 | 7 601 | 10 436 |
--------------------------------------------------------------------------------
| Total liabilities | 72 894 | 25 634 | 26 364 |
--------------------------------------------------------------------------------
| Equity | | | |
--------------------------------------------------------------------------------
| Capital and reserves attributable to | | | |
| equity holders of the Group | | | |
--------------------------------------------------------------------------------
| Share capital | 12 125 | 10 560 | 7 365 |
--------------------------------------------------------------------------------
| Share premium | 11 727 | 0 | 0 |
--------------------------------------------------------------------------------
| Reserves | 653 | 352 | 653 |
--------------------------------------------------------------------------------
| Retained earnings | 10 511 | 6 028 | 3 891 |
--------------------------------------------------------------------------------
| Currencu translation reserve | -14 | 0 | 0 |
--------------------------------------------------------------------------------
| Total capital and reserves | 35 002 | 16 940 | 11 909 |
| attributable to equity holders of the | | | |
| Group | | | |
--------------------------------------------------------------------------------
| Minority interest | 36 | 15 | 1 225 |
--------------------------------------------------------------------------------
| Total equity | 35 038 | 16 955 | 13 134 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 107 932 | 42 589 | 39 498 |
--------------------------------------------------------------------------------
INCOME STATEMENT (unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 quarter | 9 month |
--------------------------------------------------------------------------------
| 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| th EEK | |
--------------------------------------------------------------------------------
| Sales | 257 640 | 216 128 | 784 647 | 663 641 |
--------------------------------------------------------------------------------
| Costs of sales | 187 347 | 160 106 | 574 951 | 484 748 |
--------------------------------------------------------------------------------
| Gross margin | 70 293 | 56 022 | 209 696 | 178 893 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Distribution costs | 16 762 | 12 115 | 42 798 | 31 866 |
--------------------------------------------------------------------------------
| Administrative expenses | 29 197 | 30 070 | 85 410 | 80 888 |
--------------------------------------------------------------------------------
| Other income | 4 437 | 1 467 | 7 347 | 8 856 |
--------------------------------------------------------------------------------
| Other expenses | 1 927 | 137 | 4 142 | 3 599 |
--------------------------------------------------------------------------------
| Operating profit | 26 844 | 15 167 | 84 693 | 71 396 |
--------------------------------------------------------------------------------
| Interest income | 1 140 | (100) | 2 989 | 1 562 |
--------------------------------------------------------------------------------
| Interest expenses | (5 471) | (3 203) | (9 849) | (8 303) |
--------------------------------------------------------------------------------
| Currency exchange loss | (11) | 353 | (61) | (14) |
--------------------------------------------------------------------------------
| Other financial income | 481 | 644 | 1 048 | 921 |
--------------------------------------------------------------------------------
| Other financial expenses | (3 307) | 755 | (3 501) | (267) |
--------------------------------------------------------------------------------
| Net finance costs | (7 168) | (1 551) | (9 374) | (6 101) |
--------------------------------------------------------------------------------
| Share of profit (loss )of | 206 | (19) | 1 385 | 298 |
| associates | | | | |
--------------------------------------------------------------------------------
| Profit before income tax | 19 882 | 13 597 | 76 704 | 65 593 |
--------------------------------------------------------------------------------
| Income tax expense | 626 | 0 | 6 211 | 5 355 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR | 19 256 | 13 597 | 70 493 | 60 238 |
--------------------------------------------------------------------------------
| Attributable to: | 0 | 0 | | |
--------------------------------------------------------------------------------
| Equity holders of the Group | 19 136 | 13 114 | 70 154 | 58 736 |
--------------------------------------------------------------------------------
| Minority interest | 120 | 483 | 339 | 1 502 |
--------------------------------------------------------------------------------
| Basic and diluted earings | 1,72 | 2,31 | 3,87 | 4,98 |
| per share for profit | | | | |
| attributale to the equity | | | | |
| holders of the Company | | | | |
--------------------------------------------------------------------------------
INCOME STATEMENT (unaudited)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3 quarter | 9 month |
--------------------------------------------------------------------------------
| 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
| th EUR | |
--------------------------------------------------------------------------------
| Sales | 16 466 | 13 813 | 50 148 | 42 414 |
--------------------------------------------------------------------------------
| Costs of sales | 11 974 | 10 233 | 36 746 | 30 981 |
--------------------------------------------------------------------------------
| Gross margin | 4 492 | 3 580 | 13 402 | 11 433 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Distribution costs | 1 071 | 775 | 2 735 | 2 037 |
--------------------------------------------------------------------------------
| Administrative expenses | 1 866 | 1 922 | 5 459 | 5 170 |
--------------------------------------------------------------------------------
| Other income | 283 | 92 | 470 | 566 |
--------------------------------------------------------------------------------
| Other expenses | 123 | 9 | 265 | 230 |
--------------------------------------------------------------------------------
| Operating profit | 1 715 | 966 | 5 413 | 4 562 |
--------------------------------------------------------------------------------
| Interest income | 73 | (6) | 191 | 100 |
--------------------------------------------------------------------------------
| Interest expenses | (349) | (205) | (629) | (531) |
--------------------------------------------------------------------------------
| Currency exchange loss | (1) | 22 | (4) | (1) |
--------------------------------------------------------------------------------
| Other financial income | 31 | 41 | 67 | 59 |
--------------------------------------------------------------------------------
| Other financial expenses | (212) | 48 | (224) | (17) |
--------------------------------------------------------------------------------
| Net finance costs | (458) | (100) | (599) | (390) |
--------------------------------------------------------------------------------
| Share of profit (loss )of | 13 | (1) | 88 | 19 |
| associates | | | | |
--------------------------------------------------------------------------------
| Profit before income tax | 1 270 | 865 | 4 902 | 4 191 |
--------------------------------------------------------------------------------
| Income tax expense | 40 | 0 | 397 | 342 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR | 1 230 | 865 | 4 505 | 3 849 |
--------------------------------------------------------------------------------
| Attributable to: | 0 | 0 | | |
--------------------------------------------------------------------------------
| Equity holders of the Group | 1 222 | 834 | 4 483 | 3 753 |
--------------------------------------------------------------------------------
| Minority interest | 8 | 31 | 22 | 96 |
--------------------------------------------------------------------------------
| Basic and diluted earings | 0,11 | 0,15 | 0,25 | 0,32 |
| per share for profit | | | | |
| attributale to the equity | | | | |
| holders of the Company | | | | |
--------------------------------------------------------------------------------
REVENUE BY SEGMENT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EEK | |
--------------------------------------------------------------------------------
| printing services | 278 933 | 249 951 | 12% |
--------------------------------------------------------------------------------
| periodicals* | 370 590 | 308 764 | 20% |
--------------------------------------------------------------------------------
| book salses | 123 540 | 107 838 | 15% |
--------------------------------------------------------------------------------
| information services | 50 046 | 38 449 | 30% |
--------------------------------------------------------------------------------
| online media | 16 553 | 4 077 | 306% |
--------------------------------------------------------------------------------
| unallocated | 1 296 | 967 | - |
--------------------------------------------------------------------------------
| itersegment eliminations | (56 311) | (46 405) | - |
--------------------------------------------------------------------------------
| TOTAL | 784 647 | 663 641 | 18% |
--------------------------------------------------------------------------------
*proportional part from joint ventures
REVENUE BY SEGMENT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue |
--------------------------------------------------------------------------------
| 2007 9 month |2006 9 month | Change |
--------------------------------------------------------------------------------
| th EUR | |
--------------------------------------------------------------------------------
| printing services | 17 827 | 15 975 | 12% |
--------------------------------------------------------------------------------
| periodicals* | 23 685 | 19 734 | 20% |
--------------------------------------------------------------------------------
| book salses | 7 896 | 6 892 | 15% |
--------------------------------------------------------------------------------
| information services | 3 198 | 2 457 | 30% |
--------------------------------------------------------------------------------
| online media | 1 058 | 261 | 305% |
--------------------------------------------------------------------------------
| unallocated | 83 | 62 | - |
--------------------------------------------------------------------------------
| itersegment eliminations | (3 599) | (2 967) | - |
--------------------------------------------------------------------------------
| TOTAL | 50 148 | 42 414 | 18% |
--------------------------------------------------------------------------------
*proportional part from joint ventures
EBITDA BY SEGMENT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EEK | |
--------------------------------------------------------------------------------
| printing services | 51 836 | 50 189 | 3% |
--------------------------------------------------------------------------------
| periodicals*/** | 44 616 | 45 622 | -2% |
--------------------------------------------------------------------------------
| book salses | 4 425 | 3 245 | 36% |
--------------------------------------------------------------------------------
| information services | 8 803 | 4 018 | 119% |
--------------------------------------------------------------------------------
| online media | 6 037 | 1 468 | 311% |
--------------------------------------------------------------------------------
| unallocated | (4 480) | (8 950) | - |
--------------------------------------------------------------------------------
| itersegment eliminations | (1 257) | (1 537) | - |
--------------------------------------------------------------------------------
| TOTAL | 109 980 | 94 055 | 17% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
*proportional part from joint ventures
** 2006. includes income 3.4 million kroons (0.2 million euros) from the sale of
50% shares in Linnaleht
EBITDA BY SEGMENT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EUR | |
--------------------------------------------------------------------------------
| printing services | 3 313 | 3 208 | 3% |
--------------------------------------------------------------------------------
| periodicals*/** | 2 852 | 2 916 | -2% |
--------------------------------------------------------------------------------
| book salses | 283 | 207 | 37% |
--------------------------------------------------------------------------------
| information services | 563 | 257 | 119% |
--------------------------------------------------------------------------------
| online media | 386 | 94 | 311% |
--------------------------------------------------------------------------------
| unallocated | (286) | (572) | - |
--------------------------------------------------------------------------------
| itersegment eliminations | (82) | (99) | - |
--------------------------------------------------------------------------------
| TOTAL | 7 029 | 6 011 | 17% |
--------------------------------------------------------------------------------
*proportional part from joint ventures
** 2006. includes income 3.4 million kroons (0.2 million euros) from the sale of
50% shares in Linnaleht
REVENUE BY GROUP COMPANIES*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EEK | |
--------------------------------------------------------------------------------
| Eesti Ekspressi Kirjastuse AS | 104 851 | 85 491 | 23% |
--------------------------------------------------------------------------------
| AS Delfi | 89 418 | 62 230 | 44% |
--------------------------------------------------------------------------------
| AS Printall | 274 780 | 244 739 | 12% |
--------------------------------------------------------------------------------
| AS Maaleht | 44 811 | 39 984 | 12% |
--------------------------------------------------------------------------------
| UAB Ekspress Leidyba | 49 739 | 38 956 | 28% |
--------------------------------------------------------------------------------
| Rahva Raamat AS | 123 554 | 107 838 | 15% |
--------------------------------------------------------------------------------
| OÜ Netikuulutused | 4 483 | 3 855 | 16% |
--------------------------------------------------------------------------------
| AS Ekspress Hotline | 50 694 | 38 406 | 32% |
--------------------------------------------------------------------------------
| Eesti Päevalehe AS** | 126 993 | 101 439 | 25% |
--------------------------------------------------------------------------------
| AS SL Õhtuleht** | 118 640 | 102 761 | 15% |
--------------------------------------------------------------------------------
| AS Express Post** | 52 840 | 35 655 | 48% |
--------------------------------------------------------------------------------
| AS Ajakirjade Kirjastus** | 163 765 | 140 089 | 17% |
--------------------------------------------------------------------------------
| AS Linnaleht | 18 493 | 11 903 | 55% |
--------------------------------------------------------------------------------
| UAB Medipresa | 61 340 | 44 451 | 38% |
--------------------------------------------------------------------------------
*with intergroup transactions
**joint ventures 100%
REVENUE BY GROUP COMPANIES*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| tuh. EUR | |
--------------------------------------------------------------------------------
| Eesti Ekspressi Kirjastuse AS | 6 701 | 5 464 | 23% |
--------------------------------------------------------------------------------
| AS Delfi | 5 715 | 3 977 | 44% |
--------------------------------------------------------------------------------
| AS Printall | 17 562 | 15 642 | 12% |
--------------------------------------------------------------------------------
| AS Maaleht | 2 864 | 2 555 | 12% |
--------------------------------------------------------------------------------
| UAB Ekspress Leidyba | 3 179 | 2 490 | 28% |
--------------------------------------------------------------------------------
| Rahva Raamat AS | 7 897 | 6 892 | 15% |
--------------------------------------------------------------------------------
| OÜ Netikuulutused | 287 | 246 | 16% |
--------------------------------------------------------------------------------
| AS Ekspress Hotline | 3 240 | 2 455 | 32% |
--------------------------------------------------------------------------------
| Eesti Päevalehe AS** | 8 116 | 6 483 | 25% |
--------------------------------------------------------------------------------
| AS SL Õhtuleht** | 7 582 | 6 568 | 15% |
--------------------------------------------------------------------------------
| AS Express Post** | 3 377 | 2 279 | 48% |
--------------------------------------------------------------------------------
| AS Ajakirjade Kirjastus** | 10 466 | 8 953 | 17% |
--------------------------------------------------------------------------------
| AS Linnaleht | 1 182 | 761 | 55% |
--------------------------------------------------------------------------------
| UAB Medipresa | 3 920 | 2 841 | 38% |
--------------------------------------------------------------------------------
*with intergroup transactions
**joint ventures 100%
OPERATING PROFIT BY GROUP COMPANIES (EBIT)*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EEK | |
--------------------------------------------------------------------------------
| Eesti Ekspressi Kirjastuse AS | 21 711 | 15 746 | 38% |
--------------------------------------------------------------------------------
| AS Delfi | 29 370 | 20 608 | 43% |
--------------------------------------------------------------------------------
| AS Printall | 32 361 | 31 007 | 4% |
--------------------------------------------------------------------------------
| AS Maaleht | 5 871 | 3 134 | 87% |
--------------------------------------------------------------------------------
| UAB Ekspress Leidyba | (1 288) | 1 453 | - |
--------------------------------------------------------------------------------
| Rahva Raamat AS | 2 621 | 2 073 | 26% |
--------------------------------------------------------------------------------
| OÜ Netikuulutused | 1 831 | 535 | 242% |
--------------------------------------------------------------------------------
| AS Ekspress Hotline | 8 699 | 3 038 | 186% |
--------------------------------------------------------------------------------
| Eesti Päevalehe AS**/*** | 2 917 | 3 469 | -16% |
--------------------------------------------------------------------------------
| AS SL Õhtuleht** | 25 482 | 22 747 | 12% |
--------------------------------------------------------------------------------
| AS Express Post** | 3 147 | 117 | 2590% |
--------------------------------------------------------------------------------
| AS Ajakirjade Kirjastus** | 11 585 | 15 018 | -23% |
--------------------------------------------------------------------------------
| AS Linnaleht | 2 013 | (3 081) | - |
--------------------------------------------------------------------------------
| UAB Medipresa | 1 086 | 217 | 400% |
--------------------------------------------------------------------------------
*with intergroup transactions
**joint ventures 100%
*** includes income 6.7 million kroons (0.4 million euros) from the sale of 50%
shares in Linnaleht
OPERATING PROFIT BY GROUP COMPANIES (EBIT)*
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit |
--------------------------------------------------------------------------------
| 2007 9 month | 2006 9 month | Change |
--------------------------------------------------------------------------------
| th EUR | |
--------------------------------------------------------------------------------
| Eesti Ekspressi Kirjastuse AS | 1 388 | 1 006 | 38% |
--------------------------------------------------------------------------------
| AS Delfi | 1 877 | 1 317 | 43% |
--------------------------------------------------------------------------------
| AS Printall | 2 068 | 1 982 | 4% |
--------------------------------------------------------------------------------
| AS Maaleht | 375 | 200 | 87% |
--------------------------------------------------------------------------------
| UAB Ekspress Leidyba | (82) | 93 | - |
--------------------------------------------------------------------------------
| Rahva Raamat AS | 168 | 132 | 26% |
--------------------------------------------------------------------------------
| OÜ Netikuulutused | 117 | 34 | 242% |
--------------------------------------------------------------------------------
| AS Ekspress Hotline | 556 | 194 | 186% |
--------------------------------------------------------------------------------
| Eesti Päevalehe AS**/*** | 186 | 222 | -16% |
--------------------------------------------------------------------------------
| AS SL Õhtuleht** | 1 629 | 1 454 | 12% |
--------------------------------------------------------------------------------
| AS Express Post** | 201 | 7 | 2590% |
--------------------------------------------------------------------------------
| AS Ajakirjade Kirjastus** | 740 | 960 | -23% |
--------------------------------------------------------------------------------
| AS Linnaleht | 129 | (197) | - |
--------------------------------------------------------------------------------
| UAB Medipresa | 69 | 14 | 400% |
--------------------------------------------------------------------------------
*with intergroup transactions
**joint ventures 100%
*** includes income 6.7 million kroons (0.4 million euros) from the sale of 50%
shares in Linnaleht
Additional information:
Priit Leito
Chairman of the Board
AS Ekspress Grupp
Phone: +372 6 698 081
E-mail: priit@egrupp.ee