Börsiteade

Pealkiri

AS Ekspress Grupp: Consolidated unaudited interim report for the Second Quarter and First Half-Year of 2019

Teade

The  revenue of AS Ekspress Grupp totalled EUR 19.5 million in the 2(nd) quarter
and  EUR 36.8 million in the first  six months of 2019. Revenue growth continued
to  be  strong  and  it  increased  by  8% as  compared to last year. Growth was
primarily  driven by digital revenue which  increased by 14% as compared to last
year and made up already 57% of the Group's media segment revenue

Despite  intense competition,  in the  first half-year  the Group  increased its
market share in all markets and achieved a strong leadership position in Latvia.
In  the 2(nd) quarter, the Estonian and  Lithuanian media companies continued to
be  successful  both  in  the  sale  of advertisements as well as subscriptions.
Advertising  sales were also temporarily boosted by the election of the European
Parliament.  In  Estonia,  the  growth  in  the  share  of digital subscriptions
continued.  In the  2(nd) quarter, we  launched sales  of paid content in Latvia
under  the name "Delfi  Plus" which similarly  to the Estonian  market will take
time to change consumer habits and is therefore, a long-term process.

The  number of people visiting Delfi portals in all Baltic States has grown more
than  that of our competitors. Our  journalists in Estonia, Latvia and Lithuania
managed  to  bring  major  socially  relevant  topics to readers which were well
received by both readers and professionals in their field.

The  Group's  earnings  before  interest,  tax,  depreciation  and  amortisation
(EBITDA)  totalled EUR 1.80 million in the 2(nd) quarter and EUR 2.47 million in
the  first six months of the year, growing  by almost 6% as compared to the same
period  last year. In the  first half of the  year, the Group's consolidated net
loss totalled EUR 0.26 million.

In the 2(nd) quarter, the Group managed to grow media segment profit to EUR 1.5
million as compared to EUR 1.2 million in the same period of 2018. Profitability
growth  in  the  media  sector  was  primarily  attributable  to  the  growth in
advertising  sales and  efficiency attained  from cost  savings. In the printing
services  segment, profits continued  to fall by  almost 29% as compared to last
year.   In a situation where the volumes  in the printing segment are falling in
Estonia  mostly  due  to  the  decline  in  the  share  of  the  print media and
advertising  brochures of  large store  chains, we  have nevertheless managed to
maintain  our  level  of  exports  that  made  up  62% of the total portfolio of
printing services.

In  the  2(nd) quarter,  the  Group  acquired  a  100% ownership interest in the
Latvian  ticket sales  portal SIA  Bi?eshu Parad?ze  that manages  the electronic
ticket  sales  platform  (bilesuparadize.lv (https://www.bilesuparadize.lv/en/))
and  ticket sales sites,  selling through them  tickets to various entertainment
events on behalf of event organisers.

The  purpose  of  the  acquisition  is  to  expand into new business sectors, by
focusing  on increasing  the Group's  share of  digital revenue,  increasing the
Group's return on equity and using the synergy between the new business acquired
and  media activities. We also  wish to enhance our  current core activities and
support  the Group in its digital transformation  as well as develop the diverse
digital footprint of the Group's business.

At  the beginning of  June, the technology  and innovation conference Login took
place  in Vilnius.  The Group  acquired an  ownership interest  in the latter in
order  to enter  the conference  market. The  purpose of  the acquisition of the
ownership interest is to make this innovation and technology conference into one
of  the most well-known  innovation events in  the Baltic States. The conference
"Julgus  teha  teisiti"  ("The  Audacity  to  Do  Things  Differently") of Eesti
Ekspress that took place for the first time in Tallinn was also well received by
its participants.

In  the  2(nd) quarter,  the  Group's  largest  media company AS Ekspress Meedia
organised  several other major entertainment  events, such as the 95(th) jubilee
concert   of   magazine   Eesti   Naine  in  Alexela  concert  hall,  Kroonika's
Entertainment Awards Gala in the Russian Cultural Centre, 10 performances of the
play  Hakkame, mehed minema  (Men, Let's Get  Going) based on  the life of choir
conductor  and composer Gustav Ernesaks, and Delfi Rally Day. The two latter are
a  good example  of how  Ekspress Meedia  uses its  potential to  address a wide
audience and find current topics, thereby increasing the Company's revenue base.


SUMMARY OF THE RESULTS OF THE SECOND QUARTER AND FIRST HALF-YEAR

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 2(nd) quarter of 2019 totalled EUR 19.5 million
(Q2  2018: EUR 17.7 million) and for 1(st) half-year 2019, it totalled EUR 36.8
million  (1(st) half-year  2018: EUR 34.0 million).  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 39% of total  revenue and 57% of media segment
revenue.  In the 1(st) half-year 2019, the  Group's digital revenue increased by
14% as compared to the same period last year.

PROFITABILITY

In  the 2(nd) quarter of 2019, consolidated EBITDA totalled EUR 1.80 million (Q2
2018: EUR  1.68 million) and for the 1(st) half-year 2019, it totalled EUR 2.47
million  (1(st)  half-year  2018: EUR  2.34 million).  EBITDA increased by 6% as
compared  to the previous  year, of which  EUR +0,43 million was  related to the
effect  of the  new accounting  standard IFRS  16 Leases on  EBITDA entered into
force  on 1 January  2019. The EBITDA  margin declined  to 6.7% (1(st) half-year
2018: 6.9%). In  the  1(st) half-year  2019, the  net  loss  totalled  EUR -0.26
million  (1(st) half-year 2018: EUR 0.65 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  1(st) half-year,  the  additional  loss  of EUR 0.1 million was
related to 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 June 2019 is disclosed on page 19 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 2.5 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 June 2018 were EUR 1.4 million
and  EUR 51.1 million (64% of total  assets), respectively. As of 30 June 2019,
the  Group's net debt totalled EUR 18.6 million. Without taking into account the
effect  of  IFRS  16, the  Group's  net  debt totalled EUR 15.3 million (30 June
2018: EUR 14.0 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.

The  effect of the new  standard IFRS 16 "Leases" that  entered into force on 1
January 2019 is described on page 19 and in Note 1 of the financial statements.


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

 Performance
 indicators -
 joint ventures
 consolidated                             1(st)     1(st)              12
 50% (EUR                                 Half year Half year          months
 thousand)       Q2 2019 Q2 2018 Change % 2019      2018      Change % 2018

 For the period

 Sales           19 471  17 659  10%      36 784    34 010    8%       69 096

 EBITDA          1 796   1 676   7%       2 474     2 344     6%       4 206

 EBITDA margin
 (%)             9.2%    9.5%             6.7%      6.9%               6.1%

 Operating
 profit /(loss)  674     1 050   -36%     269       890       -70%     944

 Operating
 margin (%)      3.5%    5.9%             0.7%      2.6%               1.4%

 Interest
 expenses        (166)   (102)   -62%     (284)     (205)     -38%     (458)

 Net profit
 /(loss) for the
 period          356     893     -60%     (258)     653       -139%    25

 Net margin (%)  1.8%    5.1%             -0.7%     1.9%               0.0%

 Return on
 assets (ROA)
 (%)             0.4%    1.1%             -0.3%     0.8%               0.0%

 Return on
 equity (ROE)
 (%)             0.7%    1.7%             -0.5%     1.2%               0.0%

 Earnings per
 share (EPS)     0.01    0.03             (0.01)    0.02               0.00

Financial  indicators and ratios under the  equity method are disclosed on pages
18-19 of the financial statements.



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),
management   of   the   electronic   ticket  sales  platform  (bilesuparadize.lv
(http://www.bilesuparadize.lv))  and ticket  sales sites  in Latvia  (since June
2019), selling through them tickets to various entertainment events on behalf of
event organisers.

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 19 and Note 1 to the financial
statements.


Key financial indicators for segments

  (EUR thousand)   Sales

                                            1(st)    1(st)
                                            Half     Half              12
                                            year     year              months
                   Q2 2019 Q2 2018 Change % 2019     2018     Change % 2018

 Media segment
 (under equity
 method)           11 512  9 314   24%      20 869   17 409   20%      37 248

   incl. revenue
 from all digital
 and online
 channels          7 775   6 492   20%      13 829   11 913   16%      24 561

 Printing services
 segment           6 610   6 355   4%       13 180   12 576   5%       25 242

 Corporate
 functions         508     697     -27%     1 046    1 388    -25%     2 341

 Inter-segment
 eliminations      (1 155) (1 062)          (2 310)  (2 052)           (4 342)

 TOTAL GROUP under
 equity method     17 475  15 304  14%      32 785   29 321   12%      60 489

 Media segment (by
 proportional
 consolidation)    13 684  11 926  15%      25 207   22 635   11%      46 716

   incl. revenue
 from all digital
 and online
 channels          8 030   6 870   17%      14 394   12 597   14%      25 954

 Printing services
 segment           6 610   6 355   4%       13 180   12 576   5%       25 242

 Corporate
 functions         508     697     -27%     1 046    1 388    -25%     2 341

 Inter-segment
 eliminations      (1 330) (1 320)          (2 649)  (2 589)           (5 204)

 TOTAL GROUP by
 proportional
 consolidation     19 471  17 659  10%      36 784   34 010   8%       69 096


 (EUR thousand)    EBITDA

                                            1(st)    1(st)
                                            Half     Half              12
                                            year     year              months
                   Q2 2019 Q2 2018 Change % 2019     2018     Change % 2018

 Media segment
 (under equity
 method)           1 364   1 151   19%      1 800    1 397    29%      3 355

 Media segment (by
 proportional
 consolidation)    1 519   1 202   26%      2 015    1 492    35%      3 329

 Printing services
 segment           558     783     -29%     1 108    1 484    -25%     2 403

 Corporate
 functions         (273)   (309)   12%      (636)    (633)    0%       (1 492)

 Inter-segment
 eliminations      (7)     1                (13)     1                 (2)

 TOTAL GROUP under
 equity method     1 643   1 626   1%       2 259    2 248    0%       4 263

 TOTAL GROUP by
 proportional
 consolidation     1 796   1 676   7%       2 474    2 344    6%       4 206


                                       1(st) Half    1(st) Half    12 months
 EBITDA margin         Q2 2019 Q2 2018 year 2019     year 2018     2018

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

 Media segment (by
 proportional
 consolidation)        11%     10%     8%            7%            7%

 Printing services
 segment               8%      12%     8%            12%           10%

 TOTAL GROUP under
 equity method         9%      11%     7%            8%            7%

 TOTAL GROUP by
 proportional
 consolidation         9%      9%      7%            7%            6%



MEDIA SEGMENT

ONLINE MEDIA

Important progress and significant accomplishments per country are listed below.

Estonia

  * Ekspress Meedia launched a new Delfi IOS application and a new web platform
    of Eesti Päevaleht.
  * The annual photography competition of Ekspress Media's Reisijuht.ee
    (https://reisijuht.delfi.ee/) and Turist.ee (https://turist.delfi.ee/)
    received a new visual appearance.
  * Eesti Päevaleht and LP launched a joint Friday edition with a new design and
    concept.
  * Maakodu arranged a charity project at the recently opened family house for
    the people with special needs in Pärnu, celebrating the magazine's jubilee.
  * Delfi published longread-type (https://longread.delfi.ee/a/86329103)
    analysis of the elections.
  * Ekspress Meedia launched the social campaign Roolis ei loe
    (https://www.delfi.ee/news/paevauudised/rooliseiloe/) (Don't Read While
    Driving).
  * Ekspress Meedia relaunched the summer paperboy project
    (https://www.delfi.ee/teemalehed/lehelapsed).
  * Ekspress Meedia organised several major events, such as Eesti Ekspress
    conference "The Audacity to Do Things Differently", the 95(th) jubilee
    concert of magazine Eesti Naine in Alexela concert hall, Kroonika's
    Entertainment Awards Gala in the Russian Cultural Centre, Delfi Rally Day,
    and 10 performances of the play Hakkame, mehed minema (Men, Let's Get Going)
    based on the life of choir conductor and composer Gustav Ernesaks.
  * Õhtuleht Kirjastus launched new mobile applications and revamped the web
    platform kalale.ee (http://www.kalale.ee).

Latvia

  * Delfi Latvia finished the quarter as the biggest online news outlet in
    Latvia by total audience, page views and user time-share.
  * Delfi Latvia introduced paid digital subscription service Delfi Plus to the
    market.
  * During Q2, Delfi podcast center (https://www.delfi.lv/podkasti/) got a
    number of content additions and was growing rapidly.
  * Delfi Latvia launched web platform refresh for vertical content portals.
  * Delfi Latvia covered Ice Hockey World, European women basketball and
    Wimbledon championships in tennis (including local coverage from Wimbledon).
  * Vi?a.lv launched of multimedia series "Against a flow" - stories about
    Latvians who have moved from city to countryside.
  * Delfi Latvia served as main media partner for: Muse (band), Lampa talk
    festival, Dentsu Digital Camp, Sound poets band, Rally Liep?ja, EBIT
    conference, Sound Poets band, Musiqq band.
  * Delfi Latvia organised 'uz:RUNA' (https://www.delfi.lv/news/delfi-par-
    mums/runas-speks-nav-tas-skaluma-aizvadita-delfi-konference-
    uzruna.d?id=51101235), a conference of public speaking.
  * During talk festival LAMPA Delfi Latvia participated in 17 different
    sessions and panel discussions.

Lithuania

  * Delfi Lithuania became a member of The International Fact-Checking Network
    (https://www.delfi.lt/m360/naujausi-straipsniai/delfi-tapo-tarptautinio-
    faktu-tikrinimo-tinklo-partneriais.d?id=81550287), IFCN.
  * Delfi Lithuania relaunched English information channel
    (https://en.delfi.lt).
  * Longread-type multimedia projects such as ?Events, that changed the world"
    (http://apps.delfi.lt/ivykiai/), ?Forest Brothers"
    (https://www.delfi.lt/multimedija/misko-broliai/) and a project to
    commemorate the twentieth anniversary of Zhalgiris victory in Euroleague
    (https://www.delfi.lt/apps/eurolygaga/) were published.
  * Delfi Lithuania together with partner companies launched a social initiative
    "do not squint" (https://www.delfi.lt/m360/naujausi-straipsniai/delfi-
    kviecia-prie-socialines-iniciatyvos-nezvairuok-prisijungti-
    menininkus.d?id=81660845) to draw attention on the issue of mobile phone use
    while driving.
  * Delfi Lithuania improved top of mind awareness
    (https://www.delfi.lt/m360/naujausi-straipsniai/visuomenes-apklausa-delfi-
    yra-pagrindinis-naujienu-portalas-beveik-pusei-lietuvos-
    gyventoju.d?id=81486963&fbclid=IwAR3Lcdqy9rOMH9FqiFLLELNo0_rXtP5oiL8SMOxaI-
    AiXvODZyjc1UQTR-o) among users, also spontaneous awareness, recognition of
    being users main information portal as well as recognition of becoming a TV
    platform (https://www.delfi.lt/m360/naujausi-straipsniai/delfi-tv-suolis-po-
    ispudingu-augimo-metu-tapo-populiariausia-interneto-televizija-
    lietuvoje.d?id=81525943&fbclid=IwAR3e8Lky1JVxwwawTTJ50QivScUbbOThOj92Mkwx0qq
    1jkcOX6XIUin5Ibg).


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. During  the last  12 months, the  circulation of  the five largest
newspapers has declined by 7 600 copies.

In  the 2(nd) quarter  of 2019, the  revenue in  the media  segment totalled EUR
13.7 million  (Q2 2018: EUR  11.9 million) and  in the  1(st) half-year 2019, it
totalled  EUR  25.2 million  (1(st)  half-year  2018: EUR 22.6 million). Revenue
increased  by 11% as compared to the  previous year. Revenue growth is primarily
attributable to the advertising revenue growth 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 1(st) half-year
2019, the  Group's digital revenue  made up 39% of  total revenue and 57% of the
media  segment revenue. The Group's digital revenue in the 1(st) half-year 2019
increased by 14% as compared to the same period last year.

The  EBITDA of the media segment in  the 2(nd) quarter of 2019 totalled EUR 1.5
million  (2(nd) quarter 2018: EUR 1.2 million) and in the 1(st) half-year 2019,
it totalled EUR 2.0 million (1(st) half-year 2018: EUR 1.5 million). As compared
to  the previous year,  EBITDA increased by  35%, of which EUR +0,38 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 2(nd) 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.

By     the     end     of    the    2(nd) quarter    of    2019, Kinnisvara24.ee
(https://kinnisvara24.delfi.ee)  still surpasses its key competitor, real estate
portal  City24.  As  of  30 June  2019, there  were 22 548 advertisements in the
portal  Kinnisvara24.ee (https://kinnisvara24.delfi.ee) which  is 5.4% more than
the  portal  City24  had.  Due  to  intense  competition, from February 2019 the
competitors  kv.ee and City24  do not publish  the data on  the number of people
visiting  their  sites.  In  the  2(nd) quarter  of  2019, the average number of
browsers   of   Kinnisvara24.ee  (https://kinnisvara24.delfi.ee)  was  89 821 on
average.

As  of 30 June 2019, there were 519 active real estate companies and 661 regular
users      with     active     ads     in     the     portal     Kinnisvara24.ee
(https://kinnisvara24.delfi.ee). The number of brokers who had joined the portal
was 1 614.

The  Group will continue 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
properties).

At  the competition  "Real Estate  Deal of  the Year",  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  2(nd) quarter  of  2019, the  revenue  of AS Printall totalled EUR 6.6
million  (Q2 2018: EUR 6.4 million) and in the 1(st) half-year 2019, it totalled
EUR  13.2 million (1(st) half-year 2018: EUR 12.6 million). Revenue increased by
5% 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 printed  media and advertising  brochures of large
store  chains. In the 2(nd) quarter of 2019, EBITDA totalled EUR 0.6 million (Q2
2018: EUR  0.8 million) and  in the  1(st) half-year 2019, it  totalled EUR 1.1
million  (1(st)  half-year  2018: EUR  1.5 million).  EBITDA decreased by 25% as
compared  to  the  previous  year.  This  was primarily impacted by higher input
prices  (paper,  labour,  electricity,  natural  gas,  etc.)  as well as tighter
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 1(st) half-year 2019, the  revenue of AS  Printall in other countries is
62% (1(st) half-year 2018: 61%).


FINANCIAL INDICATORS AND RATIOS

 Performance
 indicators  -
 joint ventures
 under equity                            1(st)     1(st)
 method (EUR                             Half year Half year          12 months
 thousand)      Q2 2019 Q2 2018 Change % 2019      2018      Change % 2018

 For the period

 Sales          17 475  15 304  14%      32 785    29 321    12%      60 489

 EBITDA         1 643   1 626   1%       2 259     2 248     0%       4 263

 EBITDA margin
 (%)            9.4%    10.6%            6.9%      7.7%               7.0%

 Operating
 profit /(loss) 621     897     -31%     264       790       -67%     1 211

 Operating
 margin (%)     3.6%    5.9%             0.8%      2.7%               2.0%

 Interest
 expenses       (166)   (99)    -68%     (282)     (196)     -44%     (443)

 Profit /(loss)
 of joint
 ventures under
 equity method  51      152     -67%     0         91        -100%    (273)

 Net profit
 /(loss) for
 the period     356     893     -60%     (258)     653       -140%    25

 Net margin (%) 2.0%    5.8%             -0.8%     2.2%               0.0%

 Return on
 assets (ROA)
 (%)            0.4%    1.2%             -0.3%     0.9%               0.0%

 Return on
 equity (ROE)
 (%)            0.7%    1.7%             -0.5%     1.2%               0.0%

 Earnings per
 share (EPS)    0.01    0.03             (0.01)    0.02               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 19
and Note 1 of the financial statements.


                  joint ventures 50%             joint ventures under equity
                  consolidated                   method
  Balance sheet
 (EUR thousand)   30.06.2019 31.12.2018 Change % 30.06.2019 31.12.2018 Change %

 As of the end of
 the period

 Current assets   17 777     15 631     14%      16 283     13 831     18%

 Non-current
 assets           74 616     63 286     18%      74 113     62 907     18%

 Total assets     92 393     78 917     17%      90 396     76 738     18%

   incl. cash and
 bank             2 450      2 228      10%      1 507      1 268      19%

   incl. goodwill 43 347     39 799     9%       42 303     37 969     11%

 Current
 liabilities      20 203     14 207     42%      18 400     12 186     51%

 Non-current
 liabilities      22 276     14 276     56%      22 038     14 118     56%

 Total
 liabilities      42 479     28 483     49%      40 439     26 304     54%

   incl.
 borrowings       21 027     15 554     35%      20 745     15 474     34%

 Equity           49 914     50 434     -1%      49 957     50 434     -1%


             joint ventures 50% consolidated   joint ventures under equity method

                        30.06.2019             30.06.2019             30.06.2019
                        without                without                without
 Financial              the effect             the effect             the effect
 ratios (%)  30.06.2019 of IFRS 16  30.06.2019 of IFRS 16  30.06.2019 of IFRS 16

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

 Debt to
 equity
 ratio (%)   42%        35%         31%        42%         35%        31%

 Debt to
 capital
 ratio (%)   27%        23%         21%        28%         24%        22%

 Total
 debt/EBITDA
 ratio       4.85       4.09        3.70       4.85        4.15       3.63

 Liquidity
 ratio       0.88       0.90        1.10       0.88        0.99       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 30.06.2019, the effect  of IFRS 16 on  the consolidated balance sheet and
income statement is as follows:

                              joint ventures 50%      joint ventures under
 Balance sheet (EUR thousand) consolidated 30.06.2019 equity method 30.06.2019

 Right of use of buildings    3 045                   2 801

 Lease liability (short-term) 412                     368

 Lease liability (long-term)  2 883                   2 646

 Retained earnings            (263)                   (219)


                             joint ventures 50%          joint ventures under
 Income statement (EUR       consolidated                equity method
 thousand)                   1(st) Half year 2019        1(st) Half year 2019

 Decrease in operating
 expenses                    462                         388

 Increase in depreciation    391                         351

 Estimated interest expense
 on lease liabilities        38                          34


 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 (%)               Net margin in financial statements/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


Consolidated balance sheet (unaudited)

 (EUR thousand)                                           30.06.2019 31.12.2018
-------------------------------------------------------------------------------
 ASSETS
-------------------------------------------------------------------------------
 Current assets
-------------------------------------------------------------------------------
 Cash and cash equivalents                                     1 507      1 268
-------------------------------------------------------------------------------
 Trade and other receivables                                  11 174      9 154
-------------------------------------------------------------------------------
 Corporate income tax prepayment                                 143         27
-------------------------------------------------------------------------------
 Inventories                                                   3 459      3 382
-------------------------------------------------------------------------------
 Total current assets                                         16 283     13 831
-------------------------------------------------------------------------------
 Non-current assets
-------------------------------------------------------------------------------
 Trade and other receivables                                   1 004      1 588
-------------------------------------------------------------------------------
 Deferred tax asset                                               49         44
-------------------------------------------------------------------------------
 Investments in joint ventures                                 1 585      2 345
-------------------------------------------------------------------------------
 Investments in associates                                       337        319
-------------------------------------------------------------------------------
 Property, plant and equipment                                15 061     11 921
-------------------------------------------------------------------------------
 Intangible assets                                            56 077     46 691
-------------------------------------------------------------------------------
 Total non-current assets                                     74 113     62 907
-------------------------------------------------------------------------------
 TOTAL ASSETS                                                 90 396     76 738
-------------------------------------------------------------------------------
 LIABILITIES
-------------------------------------------------------------------------------
 Current liabilities
-------------------------------------------------------------------------------
 Borrowings                                                    4 291      1 356
-------------------------------------------------------------------------------
 Trade and other payables                                     14 002     10 801
-------------------------------------------------------------------------------
 Corporate income tax payable                                    107         29
-------------------------------------------------------------------------------
 Total current liabilities                                    18 400     12 186
-------------------------------------------------------------------------------
 Non-current liabilities
-------------------------------------------------------------------------------
 Long-term borrowings                                         16 454     14 118
-------------------------------------------------------------------------------
 Other long-term liabilities                                   5 584          0
-------------------------------------------------------------------------------
 Total non-current liabilities                                22 038     14 118
-------------------------------------------------------------------------------
 TOTAL LIABILITIES                                            40 439     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                                            16 044     16 526
-------------------------------------------------------------------------------
 Total capital and reserves attributable to equity
 holders of parent company                                    49 865     50 347
-------------------------------------------------------------------------------
 TOTAL EQUITY                                                 49 957     50 434
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND EQUITY                                 90 396     76 738
-------------------------------------------------------------------------------



Consolidated statement of comprehensive income (unaudited)

                                           1(st) Half   1(st) Half    12 months
 (EUR thousand)         Q2 2019  Q2 2018    year 2019    year 2018         2018
-------------------------------------------------------------------------------
 Sales                   17 475   15 304       32 785       29 321       60 489
-------------------------------------------------------------------------------
 Cost of sales         (14 126) (12 027)     (27 223)     (23 591)     (48 874)
-------------------------------------------------------------------------------
 Gross profit             3 349    3 278        5 562        5 731       11 615
-------------------------------------------------------------------------------
 Other income               170      121          289          160          394
-------------------------------------------------------------------------------
 Marketing expenses       (894)    (718)      (1 625)      (1 485)      (3 108)
-------------------------------------------------------------------------------
 Administrative
 expenses               (1 969)  (1 766)      (3 906)      (3 582)      (7 609)
-------------------------------------------------------------------------------
 Other expenses            (35)     (18)         (56)         (34)         (82)
-------------------------------------------------------------------------------
 Operating profit
 /(loss)                    621      897          264          790        1 211
-------------------------------------------------------------------------------
 Interest income              6       44           12           87          143
-------------------------------------------------------------------------------
 Interest expenses        (166)     (99)        (282)        (196)        (443)
-------------------------------------------------------------------------------
 Other finance income
 and costs                 (42)     (15)         (79)         (34)        (103)
-------------------------------------------------------------------------------
 Net finance cost         (202)     (70)        (349)        (142)        (403)
-------------------------------------------------------------------------------
 Profit (loss) on
 shares of joint
 ventures                    51      152            0           91        (273)
-------------------------------------------------------------------------------
 Profit (loss) on
 shares of associates      (16)        0         (75)            0        (234)
-------------------------------------------------------------------------------
 Profit /(loss) before
 income tax                 454      979        (160)          740          302
-------------------------------------------------------------------------------
 Income tax expense        (97)     (86)         (98)         (86)        (276)
-------------------------------------------------------------------------------
 Net profit /(loss)
 for the reporting
 period                     356      893        (258)          653           25
-------------------------------------------------------------------------------
 Net profit /(loss)
 for the reporting
 period attributable
 to
-------------------------------------------------------------------------------
 Equity holders of the
 parent company             354      894        (263)          654            6
-------------------------------------------------------------------------------
 Minority shareholders        2      (1)            5          (1)           19
-------------------------------------------------------------------------------
 Total comprehensive
 income                     356      893        (258)          653           25
-------------------------------------------------------------------------------
 Comprehensive income
 for the reporting
 period attributable
 to
-------------------------------------------------------------------------------
 Equity holders of the
 parent company             354      894        (263)          654            6
-------------------------------------------------------------------------------
 Minority shareholders        2      (1)            5          (1)           19
-------------------------------------------------------------------------------
 Basic and diluted
 earnings per share        0.01     0.03       (0.01)         0.02         0.00
-------------------------------------------------------------------------------


Consolidated cash flow statement (unaudited)

 (EUR thousand)                       1(st) Half year 2019 1(st) Half year 2018
-------------------------------------------------------------------------------
 Cash flows from operating activities
-------------------------------------------------------------------------------
 Operating profit /(loss) for the
 reporting year                                        264                  790
-------------------------------------------------------------------------------
 Adjustments for:
-------------------------------------------------------------------------------
 Depreciation, amortisation and
 impairment                                          1 977                1 458
-------------------------------------------------------------------------------
 (Gain)/loss on sale and write-down
 of property, plant and equipment                        2                  (7)
-------------------------------------------------------------------------------
 Cash flows from operating
 activities:
-------------------------------------------------------------------------------
 Trade and other receivables                       (1 902)                (274)
-------------------------------------------------------------------------------
 Inventories                                          (77)                (814)
-------------------------------------------------------------------------------
 Trade and other payables                            2 182                  960
-------------------------------------------------------------------------------
 Cash generated from operations                      2 446                2 113
-------------------------------------------------------------------------------
 Income tax paid                                     (140)                (245)
-------------------------------------------------------------------------------
 Interest paid                                       (317)                (196)
-------------------------------------------------------------------------------
 Net cash generated from operating
 activities                                          1 989                1 672
-------------------------------------------------------------------------------
 Cash flows from investing activities
-------------------------------------------------------------------------------
 Purchase of subsidiaries (less
 acquired cash)                                    (4 960)                    0
-------------------------------------------------------------------------------
 Purchase of other investments                           0              (1 000)
-------------------------------------------------------------------------------
 Interest received                                      12                   67
-------------------------------------------------------------------------------
 Purchase of property, plant and
 equipment                                         (1 352)              (1 212)
-------------------------------------------------------------------------------
 Proceeds from sale of property,
 plant and equipment (Note 5)                            4                   25
-------------------------------------------------------------------------------
 Loans granted                                        (78)                (476)
-------------------------------------------------------------------------------
 Loan repayments received                              301                  574
-------------------------------------------------------------------------------
 Net cash used in investing
 activities                                        (6 073)              (2 022)
-------------------------------------------------------------------------------
 Cash flows from financing activities
-------------------------------------------------------------------------------
 Finance lease payments made                         (410)                 (37)
-------------------------------------------------------------------------------
 Change in overdraft                                    67                 (92)
-------------------------------------------------------------------------------
 Loans received / Repayments of bank
 loans                                               4 667                    0
-------------------------------------------------------------------------------
 Net cash used in financing
 activities                                          4 324                (129)
-------------------------------------------------------------------------------
 NET (DECREASE)/INCREASE IN CASH AND
 CASH EQUIVALENTS                                      240                (479)
-------------------------------------------------------------------------------
 Cash and cash equivalents at the
 beginning of the year                               1 268                1 073
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end
 of the year                                         1 507                  595
-------------------------------------------------------------------------------


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.