Börsiteade

Pealkiri

AS Ekspress Grupp: Consolidated unaudited interim report for the fourth quarter and 12 months of 2018

Teade

MANAGEMENT'S COMMENTS

The  business volumes of AS Ekspress Grupp  increased both in the fourth quarter
as  well as over  the 12-month period.  The consolidated revenue  for the fourth
increased  by 11% amounting to  EUR 19.5 million and  the  revenue for 12 months
increased  by 8% amounting to EUR 69.1 million. The consolidated digital revenue
over  for 12 months increased by 23% (2017:  16%) as compared to the same period
last year and made up 38% (2017: 33%) of total revenue.

Consolidated profit before interest, tax, depreciation and amortization (EBITDA)
amounted  to EUR 1.2 million in the fourth  quarter and EUR 4.2 million over the
12-month period. As compared to the same period in 2017, EBITDA decreased by EUR
0.3 million  in  the  fourth  quarter  and  EUR  2.5 million over 12 months. The
continued  fast growth of digital revenue,  especially in Estonia and Lithuania,
had  a positive  impact on  profitability Performance  was under pressure due to
strong  price competition  and growth  of input  prices in the printing services
segment as well as for paper periodicals in media segments. The Group's printing
company is under a strong price pressure due to falling circulations, leading to
a  higher-than-expected decline in the  segment's profitability. The performance
was   also   impacted  by  higher  input  prices,  including  primarily  labour,
electricity  and paper costs. The  latter has also had  an impact on the Group's
publishing companies Ekspress Meedia and Õhtuleht Kirjastus.

The results of the second half of the year include significant amount of one-off
costs  related to the reorganisation of the work  of the areas of activity of AS
Ajakirjade  Kirjastus both in the organisations of AS Ekspress Meedia as well as
AS  Õhtuleht  Kirjastus.  At  the  end  of  2018, the Group witnessed efficiency
growth, and its other web platforms positively complemented the content of paper
magazines, therefore we see an increase in efficiency here in 2019

In  addition, in  the fourth  quarter the  Group had  to write  off part  of the
carrying amount of the book warehouse taken over from AS Ajakirjade Kirjastus at
the  end of 2017 which was higher as  compared to the actual realisable value of
the  books. The effect of one-off costs over the 12 months of 2018 amounts to ca
EUR 0.9 million.

The Group's strategy is aimed at increasing its digital revenue while continuing
to  create high-quality content that  is well received by  readers. We will also
continue to increase our efficiency in all areas. Revenue growth is increasingly
negatively  impacted by  the fact  that two  global groups, Facebook and Google,
have  grown  to  a  noticeable  market  share of the Baltic advertising markets.
However,  the local states have  no overview of the  advertising volumes sold to
these  countries. The  advertising competition  is also  complicated by the fact
that  unlike local media  companies, the advertising  giants do not  have to pay
taxes on their advertising revenue in Estonia, Latvia or Lithuania, because they
reportedly  sell  their  internet  advertising  to  our  markets via their Irish
subsidiaries.

The  Group is  in a  situation where  alleviation of  the problems stemming from
social  media falls on the shoulders of local media while advertising revenue is
shifting  tax-free to  large foreign  companies. Neither  of the large platforms
fosters or takes into account the interests of local state.

In  the  fourth  quarter,  Group's  biggest  media  company   AS Ekspress Meedia
organised several concerts, among which it is worth mentioning:  Kadri Voorand's
concert  in Saku  Suurhall, year's  best star  Nublu concert  In Tartu and among
sports events, the ice hockey games of Helsingin Jokerit for the first time took
place  in Estonia. Delfi  Latvia implemented important  special projects such as
"100  years  in  100 days,  "Founders  of  Latvia"  and launched several charity
campaigns. Delfi Lithuania published a book related to the project "Pravieniskiu
Mafija" that reached to TOP3 bestseller list in Lithuania.

Despite  the increase  of business  volumes, the  Group's profitability is under
pressure and this primarily due to the intensifying competition in the media and
printing  services segment. In the upcoming  periods, the management is going to
pay  attention  to  and  is  looking  for  additional  opportunities  to improve
profitability and enhance efficiency.



SUMMARY OF THE RESULTS FOR THE FOURTH QUARTER AND 12 MONTHS

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

REVENUE

The  consolidated revenue for the  4th quarter of 2018 totalled EUR 19.5 million
(Q4  2017: EUR 17.6 million) and the revenue  for the 12 months of 2018 totalled
EUR  69.1 million (12 months 2017: EUR 63.7 million). Revenue increased by 8% as
compared  to  last  year.  Revenue  growth  is  primarily  attributable  to  the
acquisition  of the majority  holding of the  provider of an advertising network
and  programmatic sales  solutions Adnet  Media in  November 2017 which together
with  Delfi entities has significantly increased  the Group's online revenue and
its  share in  total revenue.  By the  end of  the 4th quarter, the share of the
Group's  digital revenue increased to  38% of total revenue which  is by far the
highest  percentage.  The  Group's  digital  revenue  for the 12 months of 2018
increased by 23% as compared to the same period last year.

PROFITABILITY

In  the 4th quarter of  2018, the consolidated EBITDA  totalled EUR 1.22 million
(Q4 2017: EUR 1.51 million) and over the 12 months of 2018, EBITDA was EUR 4.21
million  (12 months 2017: EUR 6.71 million). EBITDA decreased by 37% as compared
to  last year. The  EBITDA margin declined  to 6.1% (12 months 2017: 10.5%). The
consolidated  net  profit  for  the  12 months  of 2018 was EUR 0.03 million (12
months  2017: EUR  3.15 million)  and  the  net  margin totalled 0.0% (12 months
2017: 4.9%). The   decline   in  profitability  was  primarily  related  to  the
intensifying  competition of the  printing services segment  and the increase in
input prices. In addition, it was related to the decline in the revenue of print
media  and higher home delivery and labour costs (growth +8% vs 12 months 2017)
as  well  as  one-off  costs  (12  months  2018: EUR 0.90 million), which mainly
related  to reorganisation and  extraordinary allowance of  books booked in 4th
quarter.  There  is  additional  loss  on  shares  of  associates and from other
financial investments in the 4th quarter (12 months 2018: EUR 0.27 million).

CASH POSITION

At the end of the reporting period, the Group had available cash by proportional
consolidation  in the amount of EUR 2.2 million  and equity in the amount of EUR
50.4 million  (64%  of  total  assets).  The  comparative  information as of 31
December  2017 were EUR 2.8 million and EUR  52.5 million (66% of total assets),
respectively.  As of 31 December  2018, the Group's net  debt totalled EUR 13.3
million (31 December 2017: EUR 13.0 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.



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



 Performance
 indicators -
 joint ventures
 consolidated 50%                              12 months   12 months
 (EUR thousand)       Q4 2018 Q4 2017 Change % 2018        2017        Change %
-------------------------------------------------------------------------------
 For the period
-------------------------------------------------------------------------------
 Sales revenue        19 490  17 606  11%      69 096      63 699      8%
-------------------------------------------------------------------------------
 EBITDA               1 215   1 512   -20%     4 206       6 713       -37%
-------------------------------------------------------------------------------
 EBITDA margin (%)    6.2%    8.6%             6.1%        10.5%
-------------------------------------------------------------------------------
 Operating profit*    249     630     -60%     944         3 526       -73%
-------------------------------------------------------------------------------
 Operating margin*
 (%)                  1.3%    3.6%             1.4%        5.5%
-------------------------------------------------------------------------------
 Interest expenses    (141)   (104)   -36%     (458)       (427)       -7%
-------------------------------------------------------------------------------
 Net profit/(loss)*
 for the period       (240)   508     -148%    25          2 952       -99%
-------------------------------------------------------------------------------
 Net margin* (%)      -1.2%   2.8%             0.0%        4.6%
-------------------------------------------------------------------------------
 Net profit (-loss)
 for the period in
 the financial
 statements
 (incl. write-downs
 and gain from change
 in ownership
 interest)            (240)   703     -134%    25          3 146       -99%
-------------------------------------------------------------------------------
 Net margin (%)       -1.2%   4.0%             0.0%        4.9%
-------------------------------------------------------------------------------
 Return on assets ROA
 (%)                  -0.3%   0.9%             0.0%        4.1%
-------------------------------------------------------------------------------
 Return on equity (%) -0.5%   1.3%             0.0%        6.1%
-------------------------------------------------------------------------------
 Earnings per share
 (EPS)                (0.01)  0.02             0.00        0.11
-------------------------------------------------------------------------------

* The results reflect the outcome of regular business activities and do not
include impairment losses on goodwill, gains from the changes in ownership
interests in joint ventures, etc.



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, outdoor
digital  screen advertising  in Estonia  and Latvia,  publishing of the Estonian
weekly newspapers Maaleht, Eesti Ekspress and LP, the daily newspaper Päevaleht,
tabloid  Õhtuleht,  freesheet  Linnaleht,  publishing  of books and magazines in
Estonia,  publishing of magazines in Lithuania until December 2017 and providing
home delivery services.

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  and other fees  payable to advertising  agencies are deducted from
the advertising sales of segments.



Key financial indicators for segments



  (EUR thousand)      Revenue

                                               12 months   12 months
                      Q4 2018 Q4 2017 Change % 2018        2017        Change %
-------------------------------------------------------------------------------
 Media segment (under
 equity method)       11 246  8 862   27%      37 248      31 753      17%
-------------------------------------------------------------------------------
   incl. revenue from
 all digital and
 online channels      7 093   5 944   19%      24 561      19 963      23%
-------------------------------------------------------------------------------
 Printing services
 segment              7 052   6 496   9%       25 242      23 879      6%
-------------------------------------------------------------------------------
 Corporate functions  338     686     -51%     2 341       2 486       -6%
-------------------------------------------------------------------------------
 Inter-segment
 eliminations         (1 238) (1 029)          (4 342)     (4 048)
-------------------------------------------------------------------------------
 TOTAL GROUP under
 equity method        17 398  15 016  16%      60 489      54 070      12%
-------------------------------------------------------------------------------
 Media segment (by
 proportional
 consolidation)       13 509  11 782  15%      46 716      42 604      10%
-------------------------------------------------------------------------------
   incl. revenue from
 all digital and
 online channels      7 482   6 272   19%      25 954      21 024      23%
-------------------------------------------------------------------------------
 Printing services
 segment              7 052   6 496   9%       25 242      23 879      6%
-------------------------------------------------------------------------------
 Corporate functions  338     686     -51%     2 341       2 486       -6%
-------------------------------------------------------------------------------
 Inter-segment
 eliminations         (1 409) (1 358)          (5 204)     (5 270)
-------------------------------------------------------------------------------
 TOTAL GROUP by
 proportional
 consolidation        19 490  17 606  11%      69 096      63 699      8%
-------------------------------------------------------------------------------



 (EUR thousand)       EBITDA

                                               12 months   12 months
                      Q4 2018 Q4 2017 Change % 2018        2017        Change %
-------------------------------------------------------------------------------
 Media segment (under
 equity method)       1 333   1 168   14%      3 355       3 729       -10%
-------------------------------------------------------------------------------
 Media segment (by
 proportional
 consolidation)       1 221   1 089   12%      3 329       4 181       -20%
-------------------------------------------------------------------------------
 Printing services
 segment              479     952     -50%     2 403       3 734       -36%
-------------------------------------------------------------------------------
 Corporate functions  (450)   (529)   15%      (1 492)     (1 201)     -24%
-------------------------------------------------------------------------------
 Inter-segment
 eliminations         (3)     0                (2)         0
-------------------------------------------------------------------------------
 TOTAL GROUP under
 equity method        1 359   1 590   -15%     4 263       6 261       -32%
-------------------------------------------------------------------------------
 TOTAL GROUP by
 proportional
 consolidation        1 215   1 512   -20%     4 206       6 713       -37%
-------------------------------------------------------------------------------



 EBITDA margin                    Q4 2018 Q4 2017 12 months 2018 12 months 2017
-------------------------------------------------------------------------------
 Media segment (under equity
 method)                          12%     13%     9%             12%
-------------------------------------------------------------------------------
 Media segment (by proportional
 consolidation)                   9%      9%      7%             10%
-------------------------------------------------------------------------------
 Printing services segment        7%      15%     10%            16%
-------------------------------------------------------------------------------
 TOTAL GROUP under equity method  8%      11%     7%             12%
-------------------------------------------------------------------------------
 TOTAL GROUP by proportional
 consolidation                    6%      9%      6%             11%
-------------------------------------------------------------------------------



MEDIA SEGMENT

ONLINE MEDIA

Related  to Gemius changes to online readership survey methodology in the Baltic
states,  we  continue  to  revise  our  coverage  of  online  media  (readership
statistics are not comparable to earlier data).

Important progress and significant accomplishments per country are listed below.

Estonia

Significant developments and accomplishments during the quarter:

  * Ekspress Meedia renewed versions of Eesti Ekspress web portal and mobile
    app.
  * Ekspress Meedia organised several successful events such as concerts of
    Kadri Voorand, 2 Quick Start and Nublu as well as hockey weekend with
    Helsingin Jokerit.
  * Ekspress Meedia launched new Delfi platform.
  * Ekspress Meedia posted all-time highest results in digital subscriptions.
  * Ekspress Meedia launched a new platform for podcasts called Delfi Tasku.
    Podcasts are enjoying good listenership numbers.
  * Õhtuleht launched new layout of the entire ohtuleht.ee portal.
  * Õhtuleht grew strongly in digital subscriptions and during the quarter
    posted highest results in 2018.

Latvia

Significant developments and accomplishments during the quarter:

  * Delfi carried out successful special projects "100 years in 100 days", "10
    years after Parex bank crash", "Founders of Latvia", "Top: 2018 Year in
    Review" among others.
  * C?lis got an appreciation prize from the Ombudsman of Latvia for support of
    disabled persons, especially children.
  * Delfi was represented on Digital Freedom festival with Delfi Media Lab Stage
    featuring international guest speakers.
  * Delfi launched successful social and charity campaign for caregivers of
    disabled relatives.
  * Delfi media partnerships included Latvian National Film Award "Lielais
    Kristaps", Latvian National Theater Award and Techchill conference.
  * Delfi launched a renewed version of its news portal.
  * Delfi launched a new subsection of popular podcasts providing the biggest
    collection of Latvian podcasts in one place.

Lithuania

Significant developments and accomplishments during the quarter:

  * Delfi launched a physical book related to the "Pravieniskiu Mafia" project,
    that reached TOP3 best-selling book status.
  * Delfi together with 100 children took a plane to Lapland and met with the
    Santa Claus, deers and huskies: https://www.delfi.lt/apps/laplandija/.
  * Delfi journalists Edgaras Savickas and Tomas Janonis were recognised for
    anticorruption publications by Lithuanian Journalists' Union and
    Transparency International.
  * Delfi launched a new podcasts platform https://www.delfi.lt/klausyk/
  * Delfi launched a renewed version of its IOS app.



PRINT MEDIA

Based  on  Estonian  Newspaper  Association  data,  the daily newspaper with the
largest  circulation in Estonia for 2018 full year continues to be Õhtuleht. For
January  and December,  the largest  newspaper was  Maaleht. During the last 12
months, 5 largest newspapers have declined in circulation in total by ca 10 600
copies.

In  the 4th quarter of 2018, the revenue in the media segment totalled EUR 13.5
million  (Q4 2017: EUR 11.8 million)  and in the  12 months of 2018, the revenue
totalled  EUR 46.7 million (12 months 2017: EUR 42.6 million). Revenue increased
by 10% as compared to last year. Revenue growth is primarily attributable to the
acquisition  of the majority  holding of the  provider of an advertising network
and  programmatic sales solutions Adnet Media  last November which together with
Delfi  entities has significantly  increased the Group's  online revenue and its
share in total revenue.

Digital  media is  in growth  and despite  of hard  competition we  haven't lost
market  share and revenues  are increasing. By  the end of  the 4th quarter, the
share  of the  Group's digital  revenue increased  to 38% of  total revenue. The
Group's  digital revenue for the 12 months  of 2018 increased by 23% as compared
to the same period last year.

In  the 4th quarter of 2018, the media  segment's EBITDA was EUR 1.2 million (Q4
2017: EUR  1.1 million) and  in the  12 months of  2018, the EBITDA was EUR 3.3
million (12 months 2017: EUR 4.2 million), decreasing by 20% as compared to last
year.  Lower profitability is related  to the decline in  print media and higher
printing,  home delivery and labour costs, EUR 0.5 million one-off costs related
to  reorganisation  (AS  Ajakirjade  Kirjastus)  and  EUR 0.1 million related to
write-off books.

On  1 June 2018, the  reorganisation of  the joint  venture Ajakirjade Kirjastus
took  place. The publishing of monthly magazines was primarily moved to Ekspress
Meedia  and  that  of  weekly  magazines  to  Õhtuleht Kirjastus (former name SL
Õhtuleht).  From  the  same  date,  Ajakirjade  Kirjastus  and  SL Õhtuleht were
considered as merged and it carries the name of Õhtuleht Kirjastus now.



REAL ESTATE PORTAL

By  the end of the 4th quarter, with its marketing and sales activities the real
estate   portal   Kinnisvara24.ee  (https://kinnisvara24.delfi.ee/)  managed  to
surpass   its  main  competitor  city24.ee  both  in  terms  of  the  number  of
advertisements as well as the number of visitors.

At   the   end  of  December,  there  were  23 660 advertisements  on  the  site
Kinnisvara24.ee (https://kinnisvara24.delfi.ee/) which was 3% more than those of
the  portal  city24.ee.  In  December,  it  had 8% more unique visitors than its
competitor.

As  of the end of December, 315 real  estate companies and 635 regular users had
published  their advertisements  in the  portal. The  number of brokers that had
joined the portal totalled 1 780.



PRINTING SERVICES SEGMENT

In  the 4th quarter of 2018, the revenue of AS Printall totalled EUR 7.1 million
(Q4  2017: EUR 6.5 million) and  in the 12 months  of 2018, the revenue totalled
EUR  25.2 million (12 months 2017: EUR 23.9 million). Revenue increased by 6% as
compared to last year that is mainly impacted by a higher paper prices. Printing
revenues  have decreased In  Estonia partially due  to decline in printing media
and promotional leaflets used by large supermarket chains. In the 4th quarter of
2018, EBITDA was EUR 0.5 million (Q4 2017: EUR 1.0 million) and in the 12 months
of  2018, it  was  EUR  2.4 million  (12  months  2017: EUR 3.7 million). EBITDA
declined  by 36% as compared to last year.  This is manily impacted by increased
input  prices  (paper,  labour,  electricity  and  gas  etc)  and also tightened
competition where sales margins are under pressure.

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 of labour,  paper and electricity is another major
challenge.

The revenue of AS Printall over the 12 months of 2018 outside of Estonia is 61%
(12 months 2017: 57%).



FINANCIAL INDICATORS AND RATIOS



 Performance
 indicators  -
 joint ventures
 under equity method                          12 months    12 months
 (EUR thousand)      Q4 2018 Q4 2017 Change % 2018         2017        Change %
-------------------------------------------------------------------------------
 For the period
-------------------------------------------------------------------------------
 Sales revenue       17 398  15 016  16%      60 489       54 070      12%
-------------------------------------------------------------------------------
 EBITDA              1 359   1 590   -15%     4 263        6 261       -32%
-------------------------------------------------------------------------------
 EBITDA margin (%)   7.8%    10.6%            7.0%         11.6%
-------------------------------------------------------------------------------
 Operating profit*   511     840     -39%     1 211        3 475       -65%
-------------------------------------------------------------------------------
 Operating margin
 *(%)                2.9%    5.6%             2.0%         6.4%
-------------------------------------------------------------------------------
 Interest expenses   (138)   (97)    -43%     (443)        (400)       -11%
-------------------------------------------------------------------------------
 Profit (loss) on
 shares of joint
 ventures under
 equity method       (261)   (233)   -12%     (273)        (2)         -16767%
-------------------------------------------------------------------------------
 Net profit/(loss)
 for the period*     (240)   508     -147%    25           2 952       -99%
-------------------------------------------------------------------------------
 Net margin* (%)     -1.4%   3.4%             0.0%         5.5%
-------------------------------------------------------------------------------
 Net profit /(-loss)
 in the financial
 statements
 (incl. write-downs
 and gain from a
 change in ownership
 interest)           (240)   703     -134%    25           3 146       -99%
-------------------------------------------------------------------------------
 Net margin (%)      -1.4%   4.7%             0.0%         5.8%
-------------------------------------------------------------------------------
 Return on assets
 ROA (%)             -0.3%   0.9%             0.0%         4.2%
-------------------------------------------------------------------------------
 Return on equity
 (%)                 -0.5%   1.3%             0.0%         6.1%
-------------------------------------------------------------------------------
 Earnings per share
 (EPS)               (0.01)  0.02             0.00         0.11
-------------------------------------------------------------------------------

* The results reflect the outcome of regular business activities and do not
include impairment losses on goodwill, gains from the changes in ownership
interests in joint ventures, etc.



                  joint ventures consolidated    joint ventures under equity
                  50%                            method
 Balance sheet
 (EUR thousand)   31.12.2018 31.12.2017 Change % 31.12.2018 31.12.2017 Change %
-------------------------------------------------------------------------------
 As of the end of
 the period
-------------------------------------------------------------------------------
 Current assets   15 631     16 725     -7%      13 831     13 827     0%
-------------------------------------------------------------------------------
 Non-current
 assets           63 286     62 597     1%       62 907     62 130     1%
-------------------------------------------------------------------------------
 Total assets     78 917     79 322     -1%      76 738     75 957     1%
-------------------------------------------------------------------------------
   incl. cash and
 bank             2 228      2 818      -21%     1 268      1 073      18%
-------------------------------------------------------------------------------
   incl. goodwill 39 799     39 920     0%       37 969     37 969     0%
-------------------------------------------------------------------------------
 Current
 liabilities      14 207     11 081     28%      12 186     8 372      46%
-------------------------------------------------------------------------------
 Non-current
 liabilities      14 276     15 747     -9%      14 118     15 091     -6%
-------------------------------------------------------------------------------
 Total
 liabilities      28 483     26 828     6%       26 304     23 463     12%
-------------------------------------------------------------------------------
   incl.
 borrowings       15 554     15 791     -2%      15 474     15 257     1%
-------------------------------------------------------------------------------
 Equity           50 434     52 494     -4%      50 434     52 494     -4%
-------------------------------------------------------------------------------



                     joint ventures consolidated   joint ventures under equity
                     50%                           method
 Financial ratios
 (%)                 31.12.2018 31.12.2017         31.12.2018 31.12.2017
-------------------------------------------------------------------------------
 Equity ratio (%)    64%        66%                66%        69%
-------------------------------------------------------------------------------
 Debt to equity
 ratio (%)           31%        30%                31%        29%
-------------------------------------------------------------------------------
 Debt to capital
 ratio (%)           21%        20%                22%        21%
-------------------------------------------------------------------------------
 Total debt/EBITDA
 ratio               3.70       2.35               3.63       2.44
-------------------------------------------------------------------------------
 Liquidity ratio     1.10       1.51               1.13       1.65
-------------------------------------------------------------------------------





-------------------------------------------------------------------------------
   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
 EBITDA                      result from restructuring.
-------------------------------------------------------------------------------
 EBITDA margin (%)           EBITDA/sales x 100
-------------------------------------------------------------------------------
 Operating margin* (%)       Operating profit*/sales x100
-------------------------------------------------------------------------------
 Net margin (%)              Net margin in financial statements/sales x100
-------------------------------------------------------------------------------
 Net margin* (%)             Net margin*/sales 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
 Debt to capital ratio (%)   equivalents (net debt) /(net debt +equity) x 100
-------------------------------------------------------------------------------
 Total debt/EBITDA ratio     Interest bearing borrowings /EBITDA
-------------------------------------------------------------------------------
 Debt service coverage ratio EBITDA/loan and interest payments for the 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
-------------------------------------------------------------------------------

 *  The results reflect  the outcome of  regular business activities  and do not
include  impairment  losses  on  goodwill,  gains  from the changes in ownership
interests in our joint ventures, etc.



Consolidated balance sheet (unaudited)

 (EUR thousand)                                           31.12.2018 31.12.2017
-------------------------------------------------------------------------------
 ASSETS
-------------------------------------------------------------------------------
 Current assets
-------------------------------------------------------------------------------
 Cash and cash equivalents                                     1 268      1 073
-------------------------------------------------------------------------------
 Trade and other receivables                                   9 154      9 918
-------------------------------------------------------------------------------
 Corporate income tax prepayment                                  27          4
-------------------------------------------------------------------------------
 Inventories                                                   3 382      2 832
-------------------------------------------------------------------------------
 Total current assets                                         13 831     13 827
-------------------------------------------------------------------------------
 Non-current assets
-------------------------------------------------------------------------------
 Trade and other receivables                                   1 588      1 749
-------------------------------------------------------------------------------
 Deferred tax asset                                               44         47
-------------------------------------------------------------------------------
 Investments in joint ventures                                 2 345      2 372
-------------------------------------------------------------------------------
 Investments in associates                                       319        354
-------------------------------------------------------------------------------
 Property, plant and equipment                                11 921     12 189
-------------------------------------------------------------------------------
 Intangible assets                                            46 691     45 419
-------------------------------------------------------------------------------
 Total non-current assets                                     62 907     62 130
-------------------------------------------------------------------------------
 TOTAL ASSETS                                                 76 738     75 957
-------------------------------------------------------------------------------
 LIABILITIES
-------------------------------------------------------------------------------
 Current liabilities
-------------------------------------------------------------------------------
 Borrowings                                                    1 356        166
-------------------------------------------------------------------------------
 Trade and other payables                                     10 801      8 095
-------------------------------------------------------------------------------
 Corporate income tax payable                                     29        111
-------------------------------------------------------------------------------
 Total current liabilities                                    12 186      8 372
-------------------------------------------------------------------------------
 Non-current liabilities
-------------------------------------------------------------------------------
 Long-term borrowings                                         14 118     15 091
-------------------------------------------------------------------------------
 Total non-current liabilities                                14 118     15 091
-------------------------------------------------------------------------------
 TOTAL LIABILITIES                                            26 304     23 463
-------------------------------------------------------------------------------
 EQUITY
-------------------------------------------------------------------------------
 Minority interest                                                87         68
-------------------------------------------------------------------------------
 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      1 531
-------------------------------------------------------------------------------
 Retained earnings                                            16 526     18 762
-------------------------------------------------------------------------------
 Total capital and reserves attributable to equity
 holders of parent company                                    50 347     52 426
-------------------------------------------------------------------------------
 TOTAL EQUITY                                                 50 434     52 494
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                                 76 738     75 957
-------------------------------------------------------------------------------



Consolidated statement of comprehensive income (unaudited)

 (EUR thousand)                  Q4 2018  Q4 2017 12 months 2018 12 months 2017
-------------------------------------------------------------------------------
 Sales revenue                    17 398   15 016         60 489         54 070
-------------------------------------------------------------------------------
 Cost of sales                  (13 884) (11 900)       (48 874)       (42 869)
-------------------------------------------------------------------------------
 Gross profit                      3 513    3 115         11 615         11 201
-------------------------------------------------------------------------------
 Other income                        173      666            394          1 383
-------------------------------------------------------------------------------
 Marketing expenses                (930)    (821)        (3 108)        (2 898)
-------------------------------------------------------------------------------
 Administrative expenses         (2 211)  (1 884)        (7 609)        (5 921)
-------------------------------------------------------------------------------
 Other expenses                     (33)     (42)           (82)           (97)
-------------------------------------------------------------------------------
 Operating profit                    511    1 034          1 211          3 669
-------------------------------------------------------------------------------
 Interest income                      25       36            143            173
-------------------------------------------------------------------------------
 Interest expenses                 (138)     (97)          (443)          (400)
-------------------------------------------------------------------------------
 Other finance income/ (costs)      (52)      170          (103)            117
-------------------------------------------------------------------------------
 Net finance cost                  (165)      108          (403)          (109)
-------------------------------------------------------------------------------
 Profit (loss) on shares of
 joint ventures                    (261)    (233)          (273)            (2)
-------------------------------------------------------------------------------
 Profit (loss) on shares of
 associates                        (243)     (17)          (234)           (68)
-------------------------------------------------------------------------------
 Profit before income tax          (158)      892            302          3 490
-------------------------------------------------------------------------------
 Income tax expense                 (83)    (190)          (276)          (344)
-------------------------------------------------------------------------------
 Net profit  for the reporting
 period                            (240)      703             25          3 146
-------------------------------------------------------------------------------
 Net profit for the reporting
 period attributable to
-------------------------------------------------------------------------------
 Equity holders of the parent
 company                           (262)      696              6          3 140
-------------------------------------------------------------------------------
 Minority shareholders                21        6             19              6
-------------------------------------------------------------------------------
 Total comprehensive income        (240)      703             25          3 146
-------------------------------------------------------------------------------
 Comprehensive income for the
 reporting period attributable
 to
-------------------------------------------------------------------------------
 Equity holders of the parent
 company                           (262)      696              6          3 140
-------------------------------------------------------------------------------
 Minority shareholders                21        6             19              6
-------------------------------------------------------------------------------
 Basic and diluted earnings per
 share                            (0.01)     0.02           0.00           0.11
-------------------------------------------------------------------------------



Consolidated cash flow statement (unaudited)

 (EUR thousand)                                   12 months 2018 12 months 2017
-------------------------------------------------------------------------------
 Cash flows from operating activities
-------------------------------------------------------------------------------
 Operating profit for the reporting year                   1 211          3 669
-------------------------------------------------------------------------------
 Adjustments for:
-------------------------------------------------------------------------------
 Depreciation, amortisation and impairment                 3 052          2 787
-------------------------------------------------------------------------------
 Gain from selling business assets                             0          (194)
-------------------------------------------------------------------------------
 (Gain)/loss on sale and write-down of property,
 plant and equipment                                         (5)           (11)
-------------------------------------------------------------------------------
 Cash flows from operating activities:
-------------------------------------------------------------------------------
 Trade and other receivables                               (397)          (105)
-------------------------------------------------------------------------------
 Inventories                                               (550)           (62)
-------------------------------------------------------------------------------
 Trade and other payables                                  2 449          (497)
-------------------------------------------------------------------------------
 Cash generated from operations                            5 760          5 587
-------------------------------------------------------------------------------
 Income tax paid                                           (379)          (371)
-------------------------------------------------------------------------------
 Interest paid                                             (462)          (448)
-------------------------------------------------------------------------------
 Net cash generated from operating activities              4 920          4 769
-------------------------------------------------------------------------------
 Cash flows from investing activities
-------------------------------------------------------------------------------
 Acquisition of subsidiaries (less cash acquired)              0          (546)
-------------------------------------------------------------------------------
 Acquisition of associate                                      0           (74)
-------------------------------------------------------------------------------
 Purchase and receipts of other investments                (995)          (785)
-------------------------------------------------------------------------------
 Proceeds from sale of business assets                         0            130
-------------------------------------------------------------------------------
 Interest received                                           127            169
-------------------------------------------------------------------------------
 Purchase of property, plant and equipment and
 intangible assets                                       (3 082)        (2 023)
-------------------------------------------------------------------------------
 Proceeds from sale of property, plant and
 equipment and intangible assets                              29             12
-------------------------------------------------------------------------------
 Loans granted                                             (700)        (2 227)
-------------------------------------------------------------------------------
 Loan repayments received                                  1 763          1 054
-------------------------------------------------------------------------------
 Net cash used in investing activities                   (2 858)        (4 290)
-------------------------------------------------------------------------------
 Cash flows from financing activities
-------------------------------------------------------------------------------
 Dividends paid                                          (2 085)        (1 787)
-------------------------------------------------------------------------------
 Dividends received                                            0             56
-------------------------------------------------------------------------------
 Finance lease payments made                                (74)           (71)
-------------------------------------------------------------------------------
 Change in overdraft                                       1 191             92
-------------------------------------------------------------------------------
 Loans received                                            1 000              0
-------------------------------------------------------------------------------
 Repayments of bank loans                                (1 900)          (552)
-------------------------------------------------------------------------------
 Net cash used in financing activities                   (1 868)        (2 261)
-------------------------------------------------------------------------------
 NET (DECREASE)/INCREASE IN CASH AND CASH
 EQUIVALENTS                                                 194        (1 782)
-------------------------------------------------------------------------------
 Cash and cash equivalents at the beginning of
 the year                                                  1 073          2 856
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of the year          1 268          1 073
-------------------------------------------------------------------------------



Additional information:
         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.

Attachment

  * EG_IV_kvartal_2018_ENG (https://ml-
    eu.globenewswire.com/Resource/Download/12f45676-1eba-4106-bf8f-666ed4bb907e)