Market announcement

Title

AS Ekspress Grupp: Consolidated unaudited interim report for the third quarter and 9 months of 2019

Message

The  revenue of AS Ekspress Grupp totalled EUR 16.8 million in the 3(rd) quarter
and  EUR 53.6 million in the first nine months of 2019. Revenue growth continued
to  be strong and  it increased by  8% in the 3(rd) quarter  as compared to last
year.  Growth was primarily driven by  digital revenue which increased by 17% as
compared  to last  year and  made up  already 58% of  the Group's  media segment
revenue at the end of September.

The revenue of the Group's media companies increased by over 12% in the first 9
months  of the year. In the  3(rd) quarter, most media companies were successful
in  advertising  sale.  In  Estonia,  the  share  of  digital subscriptions also
continued  to increase. As an important innovation, Delfi Lithuania launched the
sale  of paid content in the 3(rd) quarter  under the name of "DELFI plius". The
launch  of DELFI's own linear television channel in collaboration with Telia was
also  important in the Lithuanian  market. The sale of  paid content launched in
Latvia  in the 2(nd) quarter has  been well received in  the market, meeting our
expectations. It should be kept in mind that the sale of paid content is a long-
term  process and it takes  time to change consumer  habits, primarily in Latvia
and  Lithuania  where  consumers  have  previously  had  no experience with paid
content of local media.

The  Group's  earnings  before  interest,  tax,  depreciation  and  amortisation
(EBITDA)  totalled EUR 1.41 million in the 3(rd) quarter and EUR 3.88 million in
the  first 9 months of the year. The 3(rd) quarter's EBITDA increased by 117% as
compared  to the same period  last year and by  30% in the first 9 months of the
year. Despite strong EBITDA growth, the Group still incurred a consolidated loss
in  the amount of EUR 0.24 million in the  first 9 months of the year due to two
previous  weak quarters. In the 3(rd) quarter, the  Group earned a profit in the
amount of EUR 0.02 million.

At  the beginning of October, the wholly-owned Latvian subsidiary of AS Ekspress
Grupp,  i.e. A/S Delfi, concluded a contract  to acquire 25.5% of the shares SIA
Altero,  that operates a comparison and  brokerage portal for financial products
in  Latvia  and  Lithuania  (Altero.lv  (https://www.altero.lv/)  and  Altero.lt
(https://www.altero.lt/)).   More   than  90,000 Altero  clients  have  compared
financial  offers  of  consumer  loans,  car  loans and other products since the
launch  in June  2016, which makes  the company  a leading provider of financial
comparison  services in Latvia and  Lithuania. The aim of  the acquisition is to
increase  the  share  of  Group's  digital  revenues and develop its diversified
digital  business. Altero activity  has clear synergies  with our media business
where movement of the final consumer has a similar pattern.

At  the beginning of October, the Group issued 5000 notes with the nominal value
of  1000 euros, interest rate of 6% per year  and the maturity date on 7 October
2027 in  a private placement for the pension funds managed by AS LHV Varahaldus.
The  notes were subscribed in the total  amount of EUR 5 million. The Group used
the  proceeds from the issuance of the notes for stable long-term refinancing of
the latest major capital expenditures and further expansion of the activities to
foster the Group in its implementation of a digital change.

In  collaboration with  other media  organisations and  the Association of Media
Companies, the Group has started to increase the awareness in Estonia regarding
on  the  topic  of  fairer  taxation,  with  the  goal of establishing a tax for
provision of digital services in Estonia.

Explosive  growth of digital services (social media networks, sharing platforms,
various  mobile applications, online advertising, etc.)  over the last ten years
has  significantly  impacted  the  structure  of  traditional economy, providing
completely new ways for making virtual transactions. On the other hand, this has
led  to major changes in the economy: reducing the tax base and transferring the
profits  of large information technology groups to  the countries with a low tax
rate.

In  Estonia, the  fast development  of digital  economy has  created the similar
problems  as  elsewhere  in  the  European  Union  and  the world: large digital
services  companies are capable  of generating significant  revenue from digital
services  targeted at Estonian  users without a  permanent place of operation in
Estonia,  but such digital revenue  is generally not taxed  in Estonia. Both the
Group  and  other  media  organisations  are  of opinion that it is unilaterally
possible to legally establish a digital services tax.


SUMMARY OF THE RESULTS OF THE THIRD QUARTER AND NINE MONTHS

In  the Group's reporting, the management  monitors the performance on the basis
of  proportional  consolidation  of  joint  ventures.  The  loan  contract  also
determines  the calculation  of some  loan covenants  while taking  into account
proportional consolidation.

REVENUE

The consolidated revenue for the 3(rd) quarter of 2019 totalled EUR 16.8 million
(3(rd)  quarter 2018: EUR 15.6 million) and for  the first 9 months of the year,
it  totalled EUR 53.6 million  (9 months 2018: EUR  49.6 million). In the 3(rd)
quarter revenue increased by 8% as compared to the previous year. Revenue growth
is  primarily attributable to the advertising revenue growth both in Estonia and
Lithuania. The share of the Group's digital revenue made up 40% of total revenue
and  58% of media segment revenue at the  end of the 3(rd) quarter. In the first
9 months  of 2019, the Group's  digital revenue increased  by 17% as compared to
the same period last year.

PROFITABILITY

In  the  3(rd) quarter  of  2019, consolidated  EBITDA totalled EUR 1.41 million
(3(rd)  quarter 2018: EUR  0.65 million) and  in the  first 9 months of 2019, it
totalled EUR 3.88 million (9 months 2018: EUR 2.99 million). EBITDA increased by
30% as  compared to the previous year, of which EUR +0.64 million was related to
the  effect of the new accounting standard  IFRS 16 Leases entered into force on
1 January  2019 on  EBITDA.  The  EBITDA  margin  increased  to  7.2% (9  months
2018: 6.0%). In  the 3(rd) quarter, the  Group earned a  profit in the amount of
EUR  0.02 million. In the first 9 months  of 2019, the consolidated net loss was
EUR  -0.24  million  (9  months  2018: profit  EUR 0.27 million). The decline in
profitability  was  primarily  related  to  the  intensifying competition in the
printing  services segment and the increase in input prices. In addition, it was
related  to the  decline in  the revenue  of print  media as well as higher home
delivery and labour costs. In the first 9 months of 2019, the additional loss of
EUR  0.1 million was related to the  interests in associates and other financial
investments.

From 1 January 2019, the Group has applied the new mandatory accounting standard
IFRS  16 Leases.  Due  to  this,  the  leased  assets  and lease liabilities are
recognised  at  the  present  value  of  lease  payments  in  the balance sheet.
Depreciation  on  leased  assets  and  the  estimated  interest expense on lease
liabilities are recognised in the income statement.

The  effect of IFRS 16 on the consolidated balance sheet and income statement as
at 30 September 2019 is disclosed on page 18 of the financial statements.

CASH POSITION

At the end of the reporting period, the Group had available cash by proportional
consolidation  in the amount of EUR 3.4 million  and equity in the amount of EUR
49.9 million  (54% of  total assets,  without taking  into account the effect of
IFRS  16 - 56%). The comparative  figures as of  30 September 2018 were EUR 2.2
million  and EUR  50.4 million (64%  of total  assets), respectively.  As of 30
September  2019, the Group's net debt  totalled EUR 16.4 million. Without taking
into  account the  effect of  IFRS 16, the  Group's net  debt totalled EUR 13.4
million (30 September 2018: EUR 13.3 million).


BUSINESS OPERATIONS

In  the consolidated financial  reports 50% joint ventures  are recognised under
the   equity  method,  in  compliance  with  International  Financial  Reporting
Standards  (IFRS). In its  monthly reports, the  management monitors the Group's
performance on the basis of proportional consolidation of joint ventures and the
syndicated  loan contract also determines the calculation of some loan covenants
by proportional consolidation.

For  the purpose of clarity, the management report shows two sets of indicators:
one where joint ventures are consolidated line-by-line and the other where joint
ventures  are  recognised  under  the  equity  method  and  their  net result is
presented as financial income in one line.

The  effect of the new  standard IFRS 16 "Leases" that  entered into force on 1
January 2019 is described on page 18 and in Note 1 of the financial statements.


FINANCIAL INDICATORS AND RATIOS - joint ventures consolidated 50% line-by-line

 Performance
 indicators -
 joint ventures
 consolidated                                                          12
 50% (EUR                                 9 months  9 months           months
 thousand)       Q3 2019 Q3 2018 Change % 2019      2018      Change % 2018

 For the period

 Sales           16 800  15 596  8%       53 585    49 606    8%       69 096

 EBITDA          1 405   647     117%     3 880     2 991     30%      4 206

 EBITDA margin
 (%)             8.4%    4.1%             7.2%      6.0%               6.1%

 Operating
 profit /(loss)  324     (195)   267%     594       695       -15%     944

 Operating
 margin (%)      1.9%    -1.2%            1.1%      1.4%               1.4%

 Interest
 expenses        (240)   (111)   -115%    (562)     (317)     -77%     (458)

 Net profit
 /(loss) for the
 period          20      (387)   105%     (238)     266       -189%    25

 Net margin (%)  0.1%    -2.5%            -0.4%     0.5%               0.0%

 Return on
 assets (ROA)
 (%)             0.0%    -0.5%            -0.3%     0.3%               0.0%

 Return on
 equity (ROE)
 (%)             0.0%    -0.8%            -0.5%     0.5%               0.0%

 Earnings per
 share (EPS)     0.00    (0.01)           (0.01)    0.01               0.00


SEGMENT OVERVIEW

The  Group's activities are divided into two  large segments - media segment and
printing services segment

The  media  segment  includes  the  Group's  activities  in  Estonia, Latvia and
Lithuania.  It comprises  the operations  of online  portal Delfi, several other
news   portal  providing  online  advertising  network  and  programmatic  sales
solutions,  digital outdoor advertising in Estonia and Latvia, publishing of the
Estonian  weekly newspapers  Maaleht, Eesti  Ekspress and  LP, publishing of the
daily  newspaper  Päevaleht  and  tabloid  Õhtuleht, publishing of the freesheet
Linnaleht,  publishing  of  books  and  magazines  in Estonia and providing home
delivery   services.  The  media  segment  also  includes  organisation  of  the
technology  and innovation  conference Login  in Lithuania  (since March 2019),
operation   of   the   electronic   ticket   sales  platform  (bilesuparadize.lv
(http://www.bilesuparadize.lv)),  ticket  sales  sites  in  Latvia  (since  June
2019), selling through them tickets to various entertainment events on behalf of
event organisers and production studio for content creation.

The  printing services segment includes AS Printall  which one of the largest is
printing  companies in  Estonia. We  are able  to print  high-quality magazines,
newspapers,  advertising materials,  product and  service catalogues, yearbooks,
paperback books and other publications in our printing plant.

Segment EBITDA does not include one-off write-downs for goodwill and trademarks.
Volume-based fees and other fees payable to agencies have been deducted from the
segment's advertising revenue.

The  effect of the new standard IFRS  16 Leases entered into effect on 1 January
2019 on the income statement is described on page 18 and Note 1 to the financial
statements.


Key financial indicators for segments

  (EUR thousand)   Sales

                                                                       12
                                            9 months 9 months          months
                   Q3 2019 Q3 2018 Change % 2019     2018     Change % 2018

 Media segment
 (under equity
 method)           9 908   8 593   15%      30 777   26 002   18%      37 248

   incl. revenue
 from all digital
 and online
 channels          6 987   5 555   26%      20 815   17 468   19%      24 561

 Printing services
 segment           5 608   5 614   0%       18 789   18 190   3%       25 242

 Corporate
 functions         512     615     -17%     1 558    2 004    -22%     2 341

 Inter-segment
 eliminations      (1 043) (1 052)          (3 353)  (3 104)           (4 342)

 TOTAL GROUP under
 equity method     14 985  13 770  9%       47 771   43 091   11%      60 489

 Media segment (by
 proportional
 consolidation)    11 877  10 573  12%      37 084   33 208   12%      46 716

   incl. revenue
 from all digital
 and online
 channels          7 204   5 875   23%      21 598   18 471   17%      25 954

 Printing services
 segment           5 608   5 614   0%       18 789   18 190   3%       25 242

 Corporate
 functions         512     615     -17%     1 558    2 004    -22%     2 341

 Inter-segment
 eliminations      (1 197) (1 206)          (3 846)  (3 795)           (5 204)

 TOTAL GROUP by
 proportional
 consolidation     16 800  15 596  8%       53 585   49 606   8%       69 096


 (EUR thousand)    EBITDA

                                                                       12
                                            9 months 9 months          months
                   Q3 2019 Q3 2018 Change % 2019     2018     Change % 2018

 Media segment
 (under equity
 method)           1 188   625     90%      2 988    2 022    48%      3 355

 Media segment (by
 proportional
 consolidation)    1 277   616     107%     3 292    2 108    56%      3 329

 Printing services
 segment           357     440     -19%     1 465    1 924    -24%     2 403

 Corporate
 functions         (219)   (409)   47%      (854)    (1 042)  18%      (1 492)

 Inter-segment
 eliminations      (10)    0                (23)     1                 (2)

 TOTAL GROUP under
 equity method     1 317   656     101%     3 576    2 905    23%      4 263

 TOTAL GROUP by
 proportional
 consolidation     1 405   647     117%     3 880    2 991    30%      4 206


                                                                   12 months
 EBITDA margin         Q3 2019 Q3 2018 9 months 2019 9 months 2018 2018

 Media segment (under
 equity method)        12%     7%      10%           8%            9%

 Media segment (by
 proportional
 consolidation)        11%     6%      9%            6%            7%

 Printing services
 segment               6%      8%      8%            11%           10%

 TOTAL GROUP under
 equity method         9%      5%      7%            7%            7%

 TOTAL GROUP by
 proportional
 consolidation         8%      4%      7%            6%            6%



MEDIA SEGMENT

ONLINE MEDIA

Important progress and significant accomplishments per country are listed below.

Estonia

  * Ekspress Meedia stood out with several large campaigns, such as "Don't Read
    While Driving" (Delfi), "Series of Lake Races" (Delfi), "Forest" (Maaleht),
    "The Baltic Way 30" (Maaleht), "The Newspaper of Tomorrow" (Eesti
    Päevaleht), and the campaign of newspaper boys and girls of Eesti Ekspress.
  * Several major longread articles were published, such as "Look Back at the
    Song Festival (https://longread.delfi.ee/a/86657111)", a longread related to
    the shipwreck of MS Estonia (https://longread.delfi.ee/a/87445717) and a
    long-read Mähkmeer (https://longread.delfi.ee/a/86538559).
  * In Delfi, the block "breaking news" was revamped both in online and mobile
    versions.
  * Delfi launched a special environment for Basketball World Championship 2019
    (https://sport.delfi.ee/news/korvpall/mm2019/).
  * Ekspress Meedia had a successful quarter of events, the highlights including
    the opening party of the magazine Anne ja Stiil; Zalgiris basketball
    evening, Maaleht trips and Olustvere fair of home-canned foods.
  * Ekspress Meedia launched a new major portal Delfi Lood
    (https://lood.delfi.ee/).
  * Ekspress Meedia launched a new DelfiTV video block with a revamped structure
    and design.
  * Õhtuleht Kirjastus launched revamped mobile apps for both platforms (Android
    ja iOS).
  * Õhtuleht Kirjastus launched an option to buy articles using mobile payments
    and reached a new record in the revenue of digital products.

Latvia

  * Latvian Delfi continued to be the biggest online news outlet by total
    audience.
  * Latvian Delfi plus digital subscriptions continued to grow quicker than
    expected.
  * Latvian Delfi served as main media partner for: Rammstein, Father John
    Misty, Positivus (music festival), Fono C?sis (music festival), Pr?ta V?tra
    (band), Instrumenti (band), Dagamba (band), Jelgava 94 (Latvian movie).
  * Latvian Delfi launched multiple significant projects such as "Izlaushan?s 94
    (https://www.delfi.lv/izlausanas/)" (the biggest escape in the history of
    Latvian prisons), "Stay brutal (https://www.delfi.lv/stay-brutal/)" (youth
    subcultures in 90'ties), "1989: Back to Freedom (https://www.delfi.lv/1989-
    majupcels-briviba/)", "The Threshold of Pain
    (https://www.delfi.lv/temas/sapju-slieksnis)" (about palliative care), DELFI
    Campus (https://www.delfi.lv/campus/) (new portal about STEM education).
  * Delfi TV launched new regular video show "You must know to judge".
  * Delfi Verticals continued to post strong results, for example Tasty
    (https://www.delfi.lv/tasty/) and Vina (https://www.delfi.lv/vina/) reached
    their largest audience in history.
  * Latvian Delfi launched a comprehensive program for optimizations and portal
    improvements.

Lithuania

  * Lithuanian Delfi launched Delfi Plius digital subscriptions and the Open
    Monetization Platform (https://www.delfi.lt/m360/medijos/delfi-sukure-
    atvira-platforma-leisiancia-uzsidirbti-visiems-turinio-
    kurejams.d?id=81643595) both of which were well received by the market.
  * DELFI TV linear channel was launched on Telia platform in Lithuania.
  * Lithuanian Delfi launched 4th year in a row its traditional Influentials
    project (https://www.delfi.lt/apps/itakingiausieji2019/).
  * Lithuanian Delfi launched a donations based initiative ?responsible
    standpoint (https://www.delfi.lt/temos/atsakingas-poziuris/)".
  * Debunk.eu project got even more international attention and recognition: The
    Independent (https://www.independent.co.uk/news/world/europe/lithuania-
    elves-russia-election-tampering-online-cyber-crime-hackers-kremlin-
    a9008931.html?fbclid=IwAR2gFFzmUR8y8OBvVDLhlUKXz-
    AFKx0oQtqo7LJXAiBrCQNU7LPQFLhUslM) wrote favorably about the project and
    European Council shared a video story about Debunk initiative across its
    social media accounts on Facebook, Instagram, Twitter and LinkedIn which
    explains how the Lithuanian tool empowers journalists in a fight against
    disinformation (https://www.facebook.com/watch/?v=928577420918174).


PRINT MEDIA

Based  on the  data of  the Estonian  Newspaper Association, the daily newspaper
with  the largest circulation in Estonia for  the last 12 months continues to be
Õhtuleht.  In January and  December, the newspaper  with the largest circulation
was Maaleht.

In  the 3(rd) quarter of  2019, media segment revenue  totalled EUR 11.9 million
(3(rd)  quarter 2018: EUR 10.6 million) and in the first nine months of 2019, it
totalled EUR 37.1 million (first nine months of 2018: EUR 33.2 million). Revenue
increased  by 12% as compared to the  previous year. Revenue growth is primarily
attributable to the advertising revenue growth both in Estonia and Lithuania.

Digital  media keeps  growing and  despite tough  competition, we  have not lost
market share and our revenue is increasing. By the end of the 3(rd) quarter, the
Group's  digital revenue made  up 40% of total  revenue and 58% of media segment
revenue.  The Group's digital revenue in the first 9 months of 2019 increased by
17% as compared to the same period last year.

The  EBITDA of the media segment in  the 3(rd) quarter of 2019 totalled EUR 1.3
million  (3(rd)  quarter  2018: EUR  0.6 million)  and  in the first 9 months of
2019, it  totalled EUR 3.3 million (first 9 months of 2018: EUR 2.1 million). As
compared  to the  previous year,  EBITDA increased  by 56%, of  which EUR +0.57
million  was the  effect of  the new  accounting standard IFRS 16 Leases entered
into force on 1 January 2019 on EBITDA.


REAL ESTATE PORTAL

According  to the survey  on the recognition  of real estate  companies that was
conducted  by Turu-uuringute AS  in the 2nd quarter  of 2019, the recognition of
Kinnisvara24.ee  (https://kinnisvara24.delfi.ee) that was launched just one year
ago  has reached almost the  same level as that  of the market leaders kv.ee and
City24.  In just  one year,  Kinnisvara24.ee (https://kinnisvara24.delfi.ee) has
become the most popular real estate search channel for 39% of the respondents.

In     the     3(rd) quarter     of     2019, the     portal     Kinnisvara24.ee
(https://kinnisvara24.delfi.ee)  laid a great emphasis on branding - in addition
to  regular advertising channels, ads ran also on TV, radio, outdoor billboards,
magazines  and newspapers and thus,  the organic growth in  the number of visits
reached 25% in the 3(rd) quarter.

A new portal subsite was completed which today has more than 170 new real estate
development  projects. Close  cooperation was  launched with  Inbank in order to
provide   repair   and  interior  decoration  loans  to  visitors  that  can  be
conveniently applied for through the real estate portal.

As       of       30 September       2019, the       portal      Kinnisvara24.ee
(https://kinnisvara24.delfi.ee)  had 506 active  real estate  companies and 560
regular  users with active ads. The number  of brokers who had joined the portal
was 1716.

In  the 3(rd) quarter  of 2019, the  revenue increased  by 7% as compared to the
2nd quarter.

The  Group continues  to actively  develop the  portal to  attain the leadership
position   in   the   market.   The  first-class  search  engine  developed  for
Kinnisvara24.ee  (https://kinnisvara24.delfi.ee) enables  to search  real estate
properties  by such criteria as  "house with a pool"  and "pets allowed" (rental
apartments).

At the competition "Real Estate Deal of the Year 2018", the Estonian Real Estate
Agents'  Association  awarded  the  first  prize  to the development of the real
estate portal Kinnisvara24.ee.



PRINTING SERVICES SEGMENT

In  the  3(rd) quarter  of  2019, the  revenue  of AS Printall totalled EUR 5.6
million  (3(rd)  quarter  2018: EUR  5.6 million)  and  in the first 9 months of
2019, it  totalled EUR 18.8 million (first  9 months of 2018: EUR 18.2 million).
Revenue  increased by 3% as compared  to the previous year  and it was primarily
impacted  by higher paper prices. The  revenue of printing services has declined
in  Estonia  due  to  the  decline  of  the share of print media and advertising
brochures  of large store chains. In  the 3(rd) quarter of 2019, EBITDA totalled
EUR  0.4 million (3(rd)  quarter 2018: EUR  0.4 million) and  in the  first nine
months of 2019, it totalled EUR 1.5 million (first nine months of 2018: EUR 1.9
million).  EBITDA decreased  by 24% as  compared to  the previous year. This was
primarily  impacted by higher input  prices (paper, labour, electricity, natural
gas,  etc.) as well as stronger competition which put negative pressure on sales
margins.

For  several consecutive  years, the  printing services  segment has  been under
pressure  due to continued  digitalisation of regular  journalism and increasing
popularity  of Internet as compared  to printed products. Competition concerning
sales  prices continues to  be intense. The  sales volumes of print circulations
have  declined  which  in  turn  leads  to  higher  printing costs. In addition,
appreciation  of input prices  (incl. labour, paper  and electricity) is another
major challenge.

In  the first 9 months of the year, the share of revenue of AS Printall in other
countries was 62% (9 months 2018: 60%).


FINANCIAL INDICATORS AND RATIOS

 Performance
 indicators  -
 joint ventures
 under equity
 method (EUR                             9 months  9 months           12 months
 thousand)      Q3 2019 Q3 2018 Change % 2019      2018      Change % 2018

 For the period

 Sales          14 985  13 770  9%       47 771    43 091    11%      60 489

 EBITDA         1 317   656     101%     3 576     2 905     23%      4 263

 EBITDA margin
 (%)            8.8%    4.8%             7.5%      6.7%               7.0%

 Operating
 profit /(loss) 339     (90)    477%     603       700       -14%     1 211

 Operating
 margin (%)     2.3%    -0.7%            1.3%      1.6%               2.0%

 Interest
 expenses       (239)   (109)   -119%    (555)     (305)     -82%     (443)

 Profit /(loss)
 of joint
 ventures under
 equity method  (16)    (103)   84%      (17)      (12)      -44%     (273)

 Net profit
 /(loss) for
 the period     20      (387)   105%     (238)     266       -190%    25

 Net margin (%) 0.1%    -2.8%            -0.5%     0.6%               0.0%

 Return on
 assets (ROA)
 (%)            0.0%    -0.5%            -0.3%     0.3%               0.0%

 Return on
 equity (ROE)
 (%)            0.0%    -0.8%            -0.5%     0.5%               0.0%

 Earnings per
 share (EPS)    0.00    (0.01)           (0.01)    0.01               0.00

Financial  indicators and profitability ratios by proportional consolidation are
disclosed on page 11 of the financial statements.

The  effect of the new standard IFRS  16 "Leases" that entered into effect on 1
January  2019 on the income statement and balance sheet is described on page 18
and Note 1 of the financial statements.



                  joint ventures 50%             joint ventures under equity
                  consolidated                   method
 Balance sheet
 (EUR thousand)   30.09.2019 31.12.2018 Change % 30.09.2019 31.12.2018 Change %

 As of the end of
 the period

 Current assets   18 017     15 631     15%      16 916     13 831     22%

 Non-current
 assets           74 235     63 286     17%      73 487     62 907     17%

 Total assets     92 252     78 917     17%      90 403     76 738     18%

   incl. cash and
 bank             3 391      2 228      52%      2 771      1 268      119%

   incl. goodwill 43 420     39 799     9%       42 376     37 969     12%

 Current
 liabilities      20 785     14 207     46%      19 131     12 186     57%

 Non-current
 liabilities      21 532     14 276     51%      21 295     14 118     51%

 Total
 liabilities      42 318     28 483     49%      40 426     26 304     54%

   incl.
 borrowings       19 758     15 554     27%      19 498     15 474     26%

 Equity           49 934     50 434     -1%      49 977     50 434     -1%


                                               joint ventures under equity
             joint ventures 50% consolidated   method

                        30.09.2019                        30.09.2019
                        without                           without
 Financial              the effect                        the effect
 ratios (%)  30.09.2019 of IFRS 16  31.12.2018 30.09.2019 of IFRS 16  31.12.2018

 Equity
 ratio (%)   54%        56%         64%        55%        57%         66%

 Debt to
 equity
 ratio (%)   40%        33%         31%        39%        33%         31%

 Debt to
 capital
 ratio (%)   25%        21%         21%        25%        22%         22%

 Total
 debt/EBITDA
 ratio       3.88       3.30        3.70       3.95       3.40        3.63

 Liquidity
 ratio       0.87       0.88        1.10       0.88       0.89        1.13

From  1 January 2019, the  Group applied  the new  mandatory accounting standard
IFRS  16 "Leases" to recognise  rental expenses. Due  to this, the leased assets
and  lease liabilities are recognised at the present value of lease payments and
depredation  on  leased  assets  and  the  estimates  interest expenses on lease
liabilities is recognised in the income statement.

As  of 30.09.2019, the effect  of IFRS 16 on  the consolidated balance sheet and
income statement is as follows:

                                                      joint ventures
 Balance sheet (EUR       joint ventures              under equity method
 thousand)                50% consolidated 30.09.2019 30.09.2019

 Right of use of
 buildings                2 750                       2 525

 Lease liability (short-
 term)                    197                         175

 Lease liability (long-
 term)                    2 775                       2 537

 Retained earnings        (263)                       (219)


                             joint ventures 50%          joint ventures under
 Income statement (EUR       consolidated                equity method
 thousand)                   9 months 2019               9 months 2019

 Decrease in operating
 expenses                    693                         590

 Increase in depreciation    585                         525

 Estimated interest expense
 on lease liabilities        55                          50


   Formulas used to calculate the financial ratios

                                    Earnings before interest, tax, depreciation
                                    and amortisation. EBITDA does not include
                                    any impairment losses
                                    recognised during the period or result from
 EBITDA                             restructuring.

 EBITDA margin (%)                   EBITDA/sales x 100

 Operating margin (%)                Operating profit/sales x100

                                     Net margin in financial statements/sales
 Net margin (%)                     x100

 Earnings per share                  Net profit / average number of shares

 Equity ratio (%)                   Equity/ (liabilities + equity) x100

 Dividend rate (%)                  Total amount of dividends paid / Net profit

 Debt to equity ratio (%)           Interest bearing liabilities /equity x 100

                                    Interest bearing liabilities - cash and
                                    cash equivalents (net debt) /(net debt
 Debt to capital ratio (%)          +equity) x 100

 Total debt/EBITDA ratio            Interest bearing borrowings /EBITDA

                                    EBITDA/loan and interest payments for the
 Debt service coverage ratio        period

 Liquidity ratio                    Current assets / current liabilities

 Return on assets ROA (%)           Net profit /average assets x 100

 Return on equity ROE (%)           Net profit /average equity x 100

                                    EBITDA/(interest payments + principal
 Debt-Service Coverage Ratio (DSCR) repayments)


Consolidated balance sheet (unaudited)

 (EUR thousand)                                           30.09.2019 31.12.2018
-------------------------------------------------------------------------------
 ASSETS
-------------------------------------------------------------------------------
 Current assets
-------------------------------------------------------------------------------
 Cash and cash equivalents                                     2 771      1 268
-------------------------------------------------------------------------------
 Trade and other receivables                                  10 674      9 154
-------------------------------------------------------------------------------
 Corporate income tax prepayment                                 219         27
-------------------------------------------------------------------------------
 Inventories                                                   3 253      3 382
-------------------------------------------------------------------------------
 Total current assets                                         16 916     13 831
-------------------------------------------------------------------------------
 Non-current assets
-------------------------------------------------------------------------------
 Trade and other receivables                                     986      1 588
-------------------------------------------------------------------------------
 Deferred tax asset                                               49         44
-------------------------------------------------------------------------------
 Investments in joint ventures                                 1 272      2 345
-------------------------------------------------------------------------------
 Investments in associates                                       323        319
-------------------------------------------------------------------------------
 Property, plant and equipment                                14 702     11 921
-------------------------------------------------------------------------------
 Intangible assets                                            56 155     46 691
-------------------------------------------------------------------------------
 Total non-current assets                                     73 487     62 907
-------------------------------------------------------------------------------
 TOTAL ASSETS                                                 90 403     76 738
-------------------------------------------------------------------------------
 LIABILITIES
-------------------------------------------------------------------------------
 Current liabilities
-------------------------------------------------------------------------------
 Borrowings                                                    3 848      1 356
-------------------------------------------------------------------------------
 Trade and other payables                                     15 123     10 801
-------------------------------------------------------------------------------
 Corporate income tax payable                                    159         29
-------------------------------------------------------------------------------
 Total current liabilities                                    19 131     12 186
-------------------------------------------------------------------------------
 Non-current liabilities
-------------------------------------------------------------------------------
 Long-term borrowings                                         15 650     14 118
-------------------------------------------------------------------------------
 Other long-term liabilities                                   5 645          0
-------------------------------------------------------------------------------
 Total non-current liabilities                                21 295     14 118
-------------------------------------------------------------------------------
 TOTAL LIABILITIES                                            40 426     26 304
-------------------------------------------------------------------------------
 EQUITY
-------------------------------------------------------------------------------
 Minority shareholding                                            92         87
-------------------------------------------------------------------------------
 Capital and reserves attributable to equity holders of
 parent company:
-------------------------------------------------------------------------------
 Share capital                                                17 878     17 878
-------------------------------------------------------------------------------
 Share premium                                                14 277     14 277
-------------------------------------------------------------------------------
 Treasury shares                                                (22)       (22)
-------------------------------------------------------------------------------
 Reserves                                                      1 688      1 688
-------------------------------------------------------------------------------
 Retained earnings                                            16 064     16 526
-------------------------------------------------------------------------------
 Total capital and reserves attributable to equity
 holders of parent company                                    49 885     50 347
-------------------------------------------------------------------------------
 TOTAL EQUITY                                                 49 977     50 434
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                                 90 403     76 738
-------------------------------------------------------------------------------



Consolidated statement of comprehensive income (unaudited)

                                             9 months     9 months    12 months
 (EUR thousand)         Q3 2019  Q3 2018         2019         2018         2018
-------------------------------------------------------------------------------
 Sales                   14 985   13 770       47 771       43 091       60 489
-------------------------------------------------------------------------------
 Cost of sales         (12 161) (11 399)     (39 384)     (34 989)     (48 874)
-------------------------------------------------------------------------------
 Gross profit             2 824    2 371        8 387        8 102       11 615
-------------------------------------------------------------------------------
 Other income               161       61          450          222          394
-------------------------------------------------------------------------------
 Marketing expenses       (685)    (693)      (2 311)      (2 177)      (3 108)
-------------------------------------------------------------------------------
 Administrative
 expenses               (1 962)  (1 816)      (5 868)      (5 398)      (7 609)
-------------------------------------------------------------------------------
 Other expenses               1     (14)         (54)         (49)         (82)
-------------------------------------------------------------------------------
 Operating profit
 /(loss)                    339     (90)          603          700        1 211
-------------------------------------------------------------------------------
 Interest income              6       30           18          118          143
-------------------------------------------------------------------------------
 Interest expenses        (239)    (109)        (555)        (305)        (443)
-------------------------------------------------------------------------------
 Other finance income
 and costs                    7     (17)         (37)         (51)        (103)
-------------------------------------------------------------------------------
 Net finance cost         (226)     (96)        (574)        (238)        (403)
-------------------------------------------------------------------------------
 Profit (loss) on
 shares of joint
 ventures                  (16)    (103)         (17)         (12)        (273)
-------------------------------------------------------------------------------
 Profit (loss) on
 shares of associates      (22)        9         (97)            9        (234)
-------------------------------------------------------------------------------
 Profit /(loss) before
 income tax                  75    (280)         (85)          460          302
-------------------------------------------------------------------------------
 Income tax expense        (55)    (107)        (153)        (194)        (276)
-------------------------------------------------------------------------------
 Net profit /(loss)
 for the reporting
 period                      20    (387)        (238)          266           25
-------------------------------------------------------------------------------
 Net profit /(loss)
 for the reporting
 period attributable
 to
-------------------------------------------------------------------------------
 Equity holders of the
 parent company              20    (386)        (243)          268            6
-------------------------------------------------------------------------------
 Minority shareholders        0      (1)            5          (2)           19
-------------------------------------------------------------------------------
 Total comprehensive
 income                      20    (387)        (238)          266           25
-------------------------------------------------------------------------------
 Comprehensive income
 for the reporting
 period attributable
 to
-------------------------------------------------------------------------------
 Equity holders of the
 parent company              20    (386)        (243)          268            6
-------------------------------------------------------------------------------
 Minority shareholders        0      (1)            5          (2)           19
-------------------------------------------------------------------------------
 Basic and diluted
 earnings per share        0,00   (0,01)       (0,01)         0,01         0,00
-------------------------------------------------------------------------------


Consolidated cash flow statement (unaudited)

 (EUR thousand)                                     9 months 2019 9 months 2018
-------------------------------------------------------------------------------
 Cash flows from operating activities
-------------------------------------------------------------------------------
 Operating profit /(loss) for the reporting year              603           700
-------------------------------------------------------------------------------
 Adjustments for:
-------------------------------------------------------------------------------
 Depreciation, amortisation and impairment                  2 987         2 204
-------------------------------------------------------------------------------
 (Gain)/loss on sale and write-down of property,
 plant and equipment                                         (17)           (8)
-------------------------------------------------------------------------------
 Cash flows from operating activities:
-------------------------------------------------------------------------------
 Trade and other receivables                              (1 463)         (157)
-------------------------------------------------------------------------------
 Inventories                                                  130         (840)
-------------------------------------------------------------------------------
 Trade and other payables                                   3 363         1 287
-------------------------------------------------------------------------------
 Cash generated from operations
-------------------------------------------------------------------------------
 Income tax paid                                            (220)         (317)
-------------------------------------------------------------------------------
 Interest paid                                              (428)         (305)
-------------------------------------------------------------------------------
 Net cash generated from operating activities               4 954         2 564
-------------------------------------------------------------------------------
 Cash flows from investing activities
-------------------------------------------------------------------------------
 Purchase of subsidiaries (less acquired cash)            (4 858)             0
-------------------------------------------------------------------------------
 Purchase of other investments                                  0       (1 000)
-------------------------------------------------------------------------------
 Proceeds from joint ventures                                 323             0
-------------------------------------------------------------------------------
 Interest received                                             18            70
-------------------------------------------------------------------------------
 Purchase of property, plant and equipment                (2 124)       (1 663)
-------------------------------------------------------------------------------
 Proceeds from sale of property, plant and
 equipment                                                     18            27
-------------------------------------------------------------------------------
 Loans granted                                               (93)         (551)
-------------------------------------------------------------------------------
 Loan repayments received                                     303         1 069
-------------------------------------------------------------------------------
 Net cash used in investing activities                    (6 414)       (2 047)
-------------------------------------------------------------------------------
 Cash flows from financing activities
-------------------------------------------------------------------------------
 Dividends paid                                                 0       (2 085)
-------------------------------------------------------------------------------
 Lease payments made                                        (669)          (55)
-------------------------------------------------------------------------------
 Change in overdraft                                        (267)         1 008
-------------------------------------------------------------------------------
 Loans received / Repayments of bank loans                  3 899           200
-------------------------------------------------------------------------------
 Net cash used in financing activities                      2 963         (932)
-------------------------------------------------------------------------------
 NET (DECREASE)/INCREASE IN CASH AND CASH
 EQUIVALENTS                                                1 503         (415)
-------------------------------------------------------------------------------
 Cash and cash equivalents at the beginning of the
 year                                                       1 268         1 073
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of the year           2 771           658
-------------------------------------------------------------------------------



Signe Kukin
Group CFO
AS Ekspress Grupp
+372 669 8381
[email protected] (mailto:[email protected])



AS  Ekspress Grupp  is the  leading media  group in  the Baltic States whose key
activities  include web media  content production, publishing  of newspapers and
magazines  and provision of printing services  in Estonia, Latvia and Lithuania.
Ekspress  Grupp that launched  its operations in  1989 employs 1700 people, owns
leading  web media portals in  the Baltic States and  publishes the most popular
daily  and  weekly  newspapers  as  well  as  the  majority  of the most popular
magazines in Estonia.