NHST HOLDING QUARTERLY REPORT FOR
FIRST QUARTER 2022
NHST GROUP'S DEVELOPMENT IN THE FIRST QUARTER OF 2022
• Stable revenues in the media business segment.
• Underlying revenue growth for the SaaS segment, but a stronger NOK leads to lower reported revenues in the segment.
• The media businesses and the SaaS businesses are both investing in product and organizational development.
• Group EBITDA was minus NOK 8,7 million for the quarter.
• New organization structure for the media segment, implemented in 2021, shows promising effects for growth and business development across the publications.
• Increasing market uncertainty caused by the geopolitical situation.
The market situation for the NHST Group was increasingly challenging in the first quarter. The restrictions related to Covid-19 pandemic, which have had a significant impact on the business over the last two years, were wound down in most markets. But the geopolitical situation triggered by the war in Ukraine created new uncertainty with a negative effect on new business. The result for NHST was that advertising income was at the same level as the corresponding quarter last year.
Total revenues for the group were NOK 253.2 million, compared to NOK 256.0 million in the first quarter 2021. The media segment revenues were in total at the same level as last year, while revenues for the SaaS segment declined by NOK 3.0 million as a result of currency translation effects. Underlying revenues in local currencies for the SaaS companies were higher than last year.
Group operating expenses excluding depreciation and amortizations were NOK 261.8 million in the quarter, an increase from the first quarter 2021 of 1.5 per cent. The Group is experiencing increased inflationary pressure for most input factors, including salaries, labor intensive services and print and distribution services. Cost reduction measures have been implemented to counteract this cost pressure.
Group earnings before depreciation and amortization (EBITDA) were minus NOK 8.7 million in the quarter (2021: minus NOK 2,0 million) and the operating result (EBIT) was minus NOK 23,5 million (2021: minus NOK 17.7 million).
The Group continues to invest in production infrastructure and in new products and services. Capital expenditures in the first quarter were NOK 16.8 million (2021: NOK 10.8 million).
The Group had a good liquidity situation at the end of the first quarter with cash and bank balances amounting to NOK 305.6 million, up from NOK 293.2 million at year end 2021.
KEY FIGURES
Numbers in NOK million User revenues Advertising revenues Other revenues Total revenues
Operating expenses
EBITDA before non-recurring items EBITDA
Depreciation Amortisation Operating result
CAPEX
EBITDA less CAPEX
Q1 2022 | YTD 2022 | YTD 2021 | |
200.9 | 200.2 | 200.9 | 200.2 |
44.9 | 47.1 | 44.9 | 47.1 |
7.4 | 8.7 | 7.4 | 8.7 |
253.2 | 256.0 | 253.2 | 256.0 |
261.8 | 258.0 | 261.8 | 258.0 |
-8.7 | -2.0 | -8.7 | -2.0 |
-8.7 | -2.0 | -8.7 | -2.0 |
14.8 | 15.7 | 14.8 | 15.7 |
0 | 0 | 0 | 15.7 |
-23.5 | -17.7 | -23.5 | -17.7 |
16.8 | 10.8 | 16.8 | 10.2 |
-25.5 | -12.8 | -25.5 | -12.8 |
Figure 1: Percentage of total revenues accumulated for Q1 2022
Figure 2: Percentage of total revenues by quarter
MEDIA
The media segment consists of the publications Dagens Næringliv, TradeWinds, Upstream, Recharge, Europower, Intrafish.no, Intrafish.com and Fiskeribladet, as well as shared functions supporting these publications.
Towards the end of 2021 the commercial and administrative functions of the media business were consolidated across all publications and a new function for growth and business development was established. The reorganization is showing promising results although the financial impact in the first quarter 2022 is limited.
User market revenues in the media segment were NOK 149.0 million in the first quarter, which is a 2.2 per cent increase from the first quarter 2021. The conversion of users from paper based or combined subscriptions to digital- only products, continues.
Segment advertising revenues were NOK 44.9 million which is a reduction of 4.7 per cent from last year. However, certain service revenues that were previously reported as advertising revenues are reported under Other revenues in 2022. Adjusting for the reclassification effect, the development in advertising revenue is slightly positive. Advertising revnues were however still to some extent impacted by the Covid-19 restrictions as well as the uncertainty created by the war in Ukraine, and some planned marketing activities were delayed until later in the year.
Operating expenses excluding depreciation and amortization were NOK 202.2 million, an increase of 2.4 per cent from first quarter last year. The increase is mainly related to purchase of printing and distribution services and other external services.
Segment EBITDA ended at minus NOK 3.1 million in the quarter, compared to NOK 1.3 million in the first quarter 2021.
Capitalized development expenses for the segment were NOK 9.3 million (2021: NOK 4.1 million).
NHST increased its shareholding in Norkon Computing Systems to 31.7 per cent through an issue of new equity in January 2022.
NOK million | Q1 2021 | Q2 2021 | Q3 2021 |
User revenues | 145.7 | 140.2 | 151.1 |
Advertising revenues | 47.1 | 58.5 | 49.2 |
Other revenues | 6.1 | 19.6 | 8.2 |
Total revenues | 198.8 | 218.3 | 208.5 |
Operating expenses | 197.5 | 175.4 | 190.2 |
EBITDA | 1.3 | 42.9 | 18.3 |
CAPEX | 4.1 | 4.8 | 4.4 |
EBITDA less CAPEX | -2.8 | 38.1 | 13.9 |
Q4 2021 | Q1 2022 | YTD 2021 | YTD 2022 |
150.9 | 149.0 | 145.7 | 149.0 |
72.7 | 44.9 | 47.1 | 44.9 |
7.5 | 5.1 | 6.1 | 5.1 |
231.1 | 199.0 | 198.8 | 199.0 |
221.5 | 202.2 | 197.5 | 202.2 |
9.6 | -3.1 | 1.3 | -3.1 |
6.1 | 9.3 | 4.1 | 9.3 |
3.5 | -12.4 | -2.8 | -12.4 |
SOFTWARE-AS-A-SERVICE
The business area Software-as-a-Service (SaaS) includes the companies Mynewsdesk and Mention Solutions ("Mention"). Mynewsdesk, headquartered in Stockholm, is offering its customers a PR and communication platform with associated services. The company's main markets are the Nordic area and the DACH area (Germany, Austria, Switzerland). Mention is offering services within media surveillance, mainly focusing on social media. Mention has its head office in Paris and has a global market focus.
The positive development in sales of new subscription contracts for the SaaS businesses continued in the first quarter. This trend was reflected in the recognized revenues for the two companies in the segment. Revenues for Mynewsdesk increased by 5.0 per cent in local currency compared to the first quarter last year, while the corresponding growth for Mention was 4.4 per cent.
Operating expenses were NOK 59.1 million, a reduction of NOK 1.1 million from last year. In local currencies, there was a cost increase due to the strategy to develop the products and the production infrastructure in both companies.
Segment EBITDA was minus NOK 4.8 million compared to minus NOK 3.0 million in the first quarter last year.
Capitalized development expenses for the segment were NOK 7.5 million (2021: NOK 6.7 million).
NOK million | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 |
Subscription revenues | 54.6 | 54.5 | 54.4 | 56.2 |
Other revenues | 2.7 | 2.0 | 2.1 | 2.3 |
Total revenues | 57.2 | 56.5 | 56.5 | 58.5 |
Operating expenses | 60.2 | 60.0 | 54.2 | 58.0 |
EBITDA | -3.0 | -3.5 | 2.3 | 0.5 |
CAPEX | 6.7 | 7.6 | 4.9 | 9.3 |
EBITDA less CAPEX | -9.7 | -11.1 | -2.6 | -8.8 |
Oslo, 25 April 2022 |
Q1 2022 | YTD 2021 | YTD 2022 |
52.0 | 54.6 | 52.0 |
2.2 | 2.7 | 2.2 |
54.2 | 57.2 | 54.2 |
59.1 | 60.2 | 59.1 |
-4.8 | -3.0 | -4.8 |
7.5 | 6.7 | 7.5 |
-12.3 | -9.7 | -12.3 |
The Board of Directors of NHST Holding AS
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NHST Media Group AS published this content on 26 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2022 07:29:07 UTC.
