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Films, games push up Egmont earnings

Scandi group's revenue rises 9.6% but profits dip by $3.3 mil

STOCKHOLM — While acknowledging the constant pressure on circulation figures and margins in the media industry, Scandinavian media group Egmont generated revenue of $1.4 billion in 2005, an increase of 9.6%.

The jump springs primarily from higher sales generated by Nordisk Film, particularly in interactive games.

Pre-tax profit for the group dropped by $3.3 million, from $83.7 million in 2004 to $80.4 million a year later. Profit after tax was $53.8 million.

President Steffen Kragh said that the profit for the year is satisfactory.

“Our earnings remained on a par with last year’s high level. We also stepped up investments in new launches and digital media in 2005,” he said.

The result reflects varying profit developments in Egmont’s divisions, which include Magazines, Kids & Teens, Books, Nordisk Film and Egmont International.

Operating profit for Nordisk Film was down $2.4 million to $4.8 million last year, while revenue increased by $82 million to $426 million. The year saw the launch of the portable entertainment system PSP and the VOD project Sputnik Film. Investments included the acquisition of a 20% shareholding in Finland’s biggest film production company, Matilla Rohr Productions.

The International division recorded its best profit to date. With its prime focus on children’s media, operating profit for the division was $25 million in 2005, compared with $20.3 million in 2004.