AS Ekspress Grupp's consolidated net sales in the first quarter of 2007 were 250
million kroons (16 million EUR), up 18% compared to 2006. Company earned
operating profit of 22.4 million kroons (1.4 million EUR) which is 18% more than
year ago. On comparative basis (one-time costs and periodisation differences not
included) operating profit exceeded 2006 results by 36%. Ekspress Grupp's net
profit in the first quarter was 18.2 million kroons(1,2 million EUR), up 6%
compared to 2006. On comparative basis net profit was 41% higher than in 2006.
The significant one-time costs not present last year include the costs of
launching a new weekly Naised (impact on the Group's result -1.3 million
kroons), and the expenses related to the stock exchange listing of the Company
(-0.4 million kroons). Due to the decrease in ownership share of Linnaleht (from
50% last year to 25%), the business is not consolidated any more. In the first
quarter last year the net effect on the consolidated operating profit of the
Group was +0.3 million kroons. Periodisation shifts in the IQ 2007 (compared to
IQ 2006) include the dividend income tax of Ajakirjade Kirjastus (-2.6 million
kroons) - which last year was accounted for in April.
Also, most of the book campaign costs of Eesti Päevaleht (-1.5 million kroons)
are reflected in the IQ this year, whereas last year the costs were spread over
several months. The total effect of one-time revenues and costs and
periodisation shifts compared to IQ 2006 constituted -3.5 million kroons for
operating profit and -6.1 million koonsr for net profit of the Group.
--------------------------------------------------------------------------------
| th EEK | 1Q 2007 | 1Q 2006 | Growth |
--------------------------------------------------------------------------------
| Printing services | 90 821 | 78 938 | 11 883 | 15% |
--------------------------------------------------------------------------------
| Periodicals | 121 613 | 103 798 | 17 815 | 17% |
--------------------------------------------------------------------------------
| Book sales | 41 678 | 38 994 | 2 684 | 7% |
--------------------------------------------------------------------------------
| Information services | 17 551 | 12 438 | 5 113 | 41% |
--------------------------------------------------------------------------------
| Unallocated | 441 | 298 | 143 | 48% |
--------------------------------------------------------------------------------
| Eliminations | (22 510) | (23 233) | (723) | -3% |
--------------------------------------------------------------------------------
| Consolidated revenue | 249 594 | 211 233 | 36 915 | 18% |
| total | | | | |
--------------------------------------------------------------------------------
1 EUR = 15.6466 EEK
Media market's most important trend in the first quarter was the growth of
advertising revenues. According to the measurements of media analyst Toomas
Leito the ad revenues of Estonia's national newspapaers grew by 39% in the first
quarter and magazines had the growth of 20%. Also in Lithuania magazine
advertising market growth was roughly 15% (Ekspress Grupp's estimates). Ekspress
Grupp gained significantly from advertising market growth - group's advertising
revenues from publishing (does not include information services ad revenues)
were up 30% in the first quarter compared to last year. Also circulation sales
were higher (11% compared to 2006), mostly because of bigger number of
subscribers, higher subscription prices and new titles.
In the first quarter several new magazine titles were added to Ekspress Grupp's
portfolio. In Lithuania Ekspress Grupp's daughter company Ekspress Leidyba
bought celebrity magazine “Klubas”. In Estonia Ajakirjade Kirjastus started new
womens weekly “Naised”, cooking magazine “Oma Maitse” and handcrafts magazine
“Käsitöö”.
In the printing segment the most important news was the signing of the purchase
contract of a new magazine printing press in January. Though the increase of
paper and print prices enabled Printall to increase its sales by 15% in the
first quarter, there is currently no additional production capacity. The start
of the new press at the beginning of 2008 will enable to increase the capacity
by 30%.
In the book business Rahva Raamat signed renting contract that doubles the
existing flagship bookstore in Viru Keskus by adding new space on the 4th floor.
The potential of the segment of information services is incremented by the
establishment of a subsidiary in Bucharest. This, taking into account the
population much larger than that of Estonia, could provide for a notable
addition to the Group's cash flows and profits with modest investment amounts.
Consolidated balance (unaudited)
--------------------------------------------------------------------------------
| th EEK | 31.03.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 38 342 | 51 101 |
--------------------------------------------------------------------------------
| Other financial assets at fair value through | 6 847 | 6 334 |
| profit or loss | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 147 986 | 122 726 |
--------------------------------------------------------------------------------
| Inventories | 47 358 | 44 857 |
--------------------------------------------------------------------------------
| Total current assets | 240 533 | 225 018 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 9 329 | 9 708 |
--------------------------------------------------------------------------------
| Investments in associates | 168 | 17 |
--------------------------------------------------------------------------------
| Investment property | 4 026 | 4 123 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 360 534 | 289 210 |
--------------------------------------------------------------------------------
| Intangible assets | 144 044 | 138 281 |
--------------------------------------------------------------------------------
| Total non-current assets | 518 101 | 441 339 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 758 634 | 666 357 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 106 148 | 95 060 |
--------------------------------------------------------------------------------
| Trade and other payables | 188 223 | 187 098 |
--------------------------------------------------------------------------------
| Total current liabilities | 294 371 | 282 158 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 182 928 | 118 846 |
--------------------------------------------------------------------------------
| Other long term liabilities | 292 | 83 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 183 220 | 118 929 |
--------------------------------------------------------------------------------
| Total liabilities | 477 591 | 401 087 |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Capital and reserves attributable to equity | | |
| holders of the Group | | |
--------------------------------------------------------------------------------
| Share capital | 165 232 | 165 232 |
--------------------------------------------------------------------------------
| Reserves | 2 766 | 5 501 |
--------------------------------------------------------------------------------
| Retained earnings | 112 714 | 94 310 |
--------------------------------------------------------------------------------
| Total capital and reserves attributable to equity | 280 712 | 265 043 |
| holders of the Group | | |
--------------------------------------------------------------------------------
| Minority interest | 331 | 227 |
--------------------------------------------------------------------------------
| Total equity | 281 043 | 265 270 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 758 634 | 666 357 |
--------------------------------------------------------------------------------
Consolidated balance (unaudited)
--------------------------------------------------------------------------------
| th EUR | 31.03.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 2 451 | 3 266 |
--------------------------------------------------------------------------------
| Other financial assets at fair value through | 438 | 405 |
| profit or loss | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 9 458 | 7 844 |
--------------------------------------------------------------------------------
| Inventories | 3 027 | 2 867 |
--------------------------------------------------------------------------------
| Total current assets | 15 374 | 14 382 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Trade and other receivables | 596 | 620 |
--------------------------------------------------------------------------------
| Investments in associates | 11 | 1 |
--------------------------------------------------------------------------------
| Investment property | 257 | 264 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 23 042 | 18 484 |
--------------------------------------------------------------------------------
| Intangible assets | 9 206 | 8 838 |
--------------------------------------------------------------------------------
| Total non-current assets | 33 112 | 28 207 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 48 486 | 42 589 |
--------------------------------------------------------------------------------
| SHAREHOLDERS EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 6 784 | 6 075 |
--------------------------------------------------------------------------------
| Trade and other payables | 12 030 | 11 958 |
--------------------------------------------------------------------------------
| Total current liabilities | 18 814 | 18 033 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Borrowings | 11 691 | 7 596 |
--------------------------------------------------------------------------------
| Other long term liabilities | 19 | 5 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 11 710 | 7 601 |
--------------------------------------------------------------------------------
| Total liabilities | 30 524 | 25 634 |
--------------------------------------------------------------------------------
| Equity | | |
--------------------------------------------------------------------------------
| Capital and reserves attributable to equity | | |
| holders of the Group | | |
--------------------------------------------------------------------------------
| Share capital | 10 560 | 10 560 |
--------------------------------------------------------------------------------
| Reserves | 177 | 352 |
--------------------------------------------------------------------------------
| Retained earnings | 7 204 | 6 028 |
--------------------------------------------------------------------------------
| Total capital and reserves attributable to equity | 17 941 | 16 940 |
| holders of the Group | | |
--------------------------------------------------------------------------------
| Minority interest | 21 | 15 |
--------------------------------------------------------------------------------
| Total equity | 17 962 | 16 955 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 48 486 | 42 589 |
--------------------------------------------------------------------------------
Consolidated income statement (unaudited)
--------------------------------------------------------------------------------
| th EEK | 2007 1Q | 2006 1Q |
--------------------------------------------------------------------------------
| Sales | 249 592 | 211 233 |
--------------------------------------------------------------------------------
| Costs of sales | 184 093 | 155 928 |
--------------------------------------------------------------------------------
| Gross margin | 65 499 | 55 305 |
--------------------------------------------------------------------------------
| Distribution costs | 14 078 | 10 683 |
--------------------------------------------------------------------------------
| Administrative expenses | 28 425 | 25 188 |
--------------------------------------------------------------------------------
| Other income | 1 226 | 1 867 |
--------------------------------------------------------------------------------
| Other expenses | 1 839 | 2 286 |
--------------------------------------------------------------------------------
| Operating profit | 22 383 | 19 015 |
--------------------------------------------------------------------------------
| Interest income | 737 | 1 071 |
--------------------------------------------------------------------------------
| Interest expenses | (2 600) | (2 616) |
--------------------------------------------------------------------------------
| Currency exchange loss | (16) | (11) |
--------------------------------------------------------------------------------
| Other financial income | 294 | 73 |
--------------------------------------------------------------------------------
| Other financial expenses | (5) | (1) |
--------------------------------------------------------------------------------
| Net finance costs | (1 590) | (1 484) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates | 334 | 0 |
--------------------------------------------------------------------------------
| Profit before income tax | 21 127 | 17 531 |
--------------------------------------------------------------------------------
| Income tax expense | 2 564 | 0 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR | 18 563 | 17 531 |
--------------------------------------------------------------------------------
| Attributable to: | | |
--------------------------------------------------------------------------------
| Equity holders of the Group | 18 404 | 17 142 |
--------------------------------------------------------------------------------
| Minority interest | 159 | 389 |
--------------------------------------------------------------------------------
Consolidated income statement (unaudited)
--------------------------------------------------------------------------------
| th EUR | 2007 1Q | 2006 1Q |
--------------------------------------------------------------------------------
| Sales | 15 952 | 13 500 |
--------------------------------------------------------------------------------
| Costs of sales | 11 766 | 9 966 |
--------------------------------------------------------------------------------
| Gross margin | 4 186 | 3 534 |
--------------------------------------------------------------------------------
| Distribution costs | 900 | 683 |
--------------------------------------------------------------------------------
| Administrative expenses | 1 817 | 1 610 |
--------------------------------------------------------------------------------
| Other income | 78 | 119 |
--------------------------------------------------------------------------------
| Other expenses | 118 | 146 |
--------------------------------------------------------------------------------
| Operating profit | 1 429 | 1 214 |
--------------------------------------------------------------------------------
| Interest income | 47 | 68 |
--------------------------------------------------------------------------------
| Interest expenses | (166) | (167) |
--------------------------------------------------------------------------------
| Currency exchange loss | (1) | (1) |
--------------------------------------------------------------------------------
| Other financial income | 19 | 5 |
--------------------------------------------------------------------------------
| Other financial expenses | 0 | 0 |
--------------------------------------------------------------------------------
| Net finance costs | (101) | (95) |
--------------------------------------------------------------------------------
| Share of profit (loss )of associates | 21 | 0 |
--------------------------------------------------------------------------------
| Profit before income tax | 1 349 | 1 119 |
--------------------------------------------------------------------------------
| Income tax expense | 164 | 0 |
--------------------------------------------------------------------------------
| PROFIT FOR THE YEAR | 1 185 | 1 119 |
--------------------------------------------------------------------------------
| Attributable to: | | |
--------------------------------------------------------------------------------
| Equity holders of the Group | 1 175 | 1 094 |
--------------------------------------------------------------------------------
| Minority interest | 10 | 25 |
--------------------------------------------------------------------------------
Additional information:
Viktor Mahhov
Chief Financial Officer
+372 669 8080