A-pressen further develops its strong position

Transcription

A-pressen further develops
its strong position
A-pressen aspires to be Norway’s most important owner of local and regional newspapers, creating profitability, influencing social development and helping to strengthen
democracy, language and culture through local media. A-pressen aims to further
develop its strong position in Norway and has ambitions of growing internationally in
its core areas.
Overall corporate goals 1999–2000:
• A-pressen aspires to strengthen local media by exerting social influence.
• A-pressen’s media business shall continue to grow in 1998–2000.
• A-pressen shall increase its yield on locked-up capital by upwards of 10 per cent.
At 31 December 1998 the Group comprised 118 companies, of which 97 are majority
owned.
A-pressen ASA
Storbyavisene
3
Other
newspapers
44
Electronic media
TV
Newspaper/Printing
Printing plants
21
Local TV
licences
8
TV 2 AS
(33 %)
TVNorge AS
(49 %)
1
T h e
y e a r
1 9 9 8
Invested less
in 1998
February
The board of A-pressen votes to apply for a quotation on the Oslo Stock Exchange’s
main list.
A-pressen buys 33 per cent of Norsk Familieøkonomi AS.
A-pressen celebrates its 50th anniversary.
A-pressen Eastern Europe AS is formed. The company’s goal is to establish modern
newspapers in the largest Russian regions.
A-pressen buys the newspaper Kvinnheringen.
Digital Hverdag AS merges with New Media Science Multimedia ASA. A-pressen
owns 23.5 per cent of the shares in the new company.
A-pressen is listed on the stock exchange. A-pressen buys Lofot-Tidende.
A-pressen concludes a new share issue that was fully subscribed to the amount of
NOK 144.3 million. A-pressen buys and becomes the majority owner of Bladet Harstad
and Hadeland. The newspapers Aust Agder Blad and Tvedestrandsposten co-found a
new company, Tvedestrand Risør Holding AS, in which A-pressen owns 51 per cent.
The Finnish media group Sanoma buys 13.5 per cent of A-pressen ASA. (Sanoma
increases its shareholding in A-pressen ASA to 20 per cent in February 1999.)
Dagsavisen is sold to the foundation Dagsavisen and is as of 31 December 1998 no
longer a newspaper owned by A-pressen.
March
May
June
August
September
October
November
December
Key Figures
(NOK 1000)
1998
1997
1996
1995
1994
2 269 859
2 188 310
1 951 440
1 793 681
1 511 407
37 054
103 048
102 792
96 434
72 304
and minority share
- 13 442
45 564
91 197
100 830
62 386
Net profit/loss
- 20 940
17 378
67 920
91 819
58 681
1.6
4.7
5.3
5.4
4.8
2 049 628
2 046 138
1 770 818
1 389 806
809 364
Operating revenues
Operating profit
Profit before taxes
Operating margin (%)
Total assets
Return on total assets (%)
2.2
5.0
8.4
10.5
10.4
Return on equity (%)
- 3.2
3.0
11.7
21.5
24.9
Equity ratio (%)
37.1
31.0
34.5
38.3
29.2
524 872
525 267
519 536
513 349
512 887
2 875
2 904
2 658
2 473
2 144
2 656
2 637
2 374
2 227
1 982
14.4
Circulation majority
owned newspaper
Number of employees in Group
Number of full-time
equivalents in Group
Share related key figures:
Earnings (NOK)
- 2.9
2.4
9.5
18.8
Cash flow (NOK)
16.8
20.0
24.6
39.3
31.6
Book equity (NOK)
81.8
83.9
82.6
73.5
52.9
0
1.0
1.2
1.1
1.0
Dividend (NOK)
Definitions see page 15
General Meeting
Presentation of the 1st tertiary
Presentation of the 2nd tertiary
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Financial calendar (with reservations for possible changes)
10 May 1999
8 June 1999
5 October 1999
Year of consolidation
A-pressen’s financial result for 1998, its 50th anniversary, has disappointed its owners as well as us Group employees. The result is unacceptably poor, but does not
significantly shake A-pressen’s solid foundation in the Norwegian media market.
A-pressen’s two key positions, local newspapers and TV 2, are maintaining their grip
on the public and advertisers. Both, however, have a cost development fuelled by a
huge demand for qualified staff members and attractive content. Consequently, it is
a huge challenge to maintain our hold on customers and keep costs under control.
In the autumn of 1998 the Group management established a project team to facilitate
an action plan for good and efficient newspapers in A-pressen. The project team’s
documentation and evaluations have told us that there is considerable potential for
product improvements within a tighter framework of resources. Reader support
shows that A-pressen publishes good local newspapers. The team’s work nevertheless has revealed wide differences in the quality as well as the productivity of the
newspapers. But it has also showed that most newspapers have areas in which they
are extremely good, and that all have areas that could be improved. By studying the
best components of the newspapers and the most productive parts of the organization we get an idea of what is possible when everything works. The main thrust of
our organizational development this year will be to transfer as much as possible of
this collective competence to the individual firms.
These efforts will prepare A-pressen for economic downturns and tougher competition. After several years of sharp increases in the annual growth of advertising revenues we are now looking at slower growth and possible declines in some markets.
A-pressen is well equipped to deal with the competition, but is particularly vulnerable
to growth in wage costs because they account for an extremely high proportion of
our overall costs. Consequently, we face considerable challenges in the years to
come. We are well prepared in terms of investments. The printing plants have been
modernized and made more efficient, and in 1998/99 we will overhaul both our
accounting and production systems.
Over the past eight years, the owners have invested more than NOK 500 million in
developing A-pressen. Most of this capital, together with a reasonable amount of borrowed funds, have been invested in TV 2 and flourishing local newspapers. These
investments have been sound ventures with a low risk factor.
A-pressen has also helped TV 2 acquire a significant stake in TVNorge. A small proportion has been invested in high-risk areas such as local TV and electronic media. The
short-term effect of these investments is a considerable burden on A-pressen’s bottom
line. Our goal is to strengthen the Group’s position in the Norwegian media market,
and I am convinced that these investments will both strengthen the Group’s earnings
and value, and that we will eventually see positive effects of these ventures in the
local newspapers.
The poor results of the last two years have without a doubt been a burden on A-pressen’s
organization. Although we can see progress by many measures, earnings will naturally always be the main criteria for judging the success of our strategy and operations. For this reason, A-pressen will give priority to consolidation rather than continued significant growth. Earnings must and will be improved. We will not, however,
abandon the basic idea behind our strategy since 1995: We aim to build value through
strategic investments, partly to strengthen existing operations and partly to have
more legs to stand on. In the coming months A-pressen will continue to take proactive
steps to consolidate its position.
Alf Hildrum
CEO
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R e p o r t o f t h e
B o a r d o f D i r e c t o r s
1998 – steps have been
taken to improve the
Group’s profitability
998 was for A-pressen a year punctuated by several significant events. The parent company celebrated its 50th anniversary and A-pressen shares were listed
on the stock exchange in October at the same time as the share capital was
increased. Dagsavisen was sold at the close of the year to an independent foundation and the Group is working to reduce its ownership stakes in Bergensavisen,
Fremtiden and Rogalands Avis. The Finnish media group Sanoma has traded its way
up to become the second biggest shareholder of A-pressen ASA.
1
The financial results were weak and unsatisfactory and the Board has taken steps
which will improve the Group’s profitability in the long term. Further measures will be
implemented in the course of 1999.
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Results
The Group’s pre-tax profits were reduced by NOK 59 million to a loss of NOK 13.4 million.
The operating profit for 1998 was NOK 37 million, down NOK 66 million from 1997.
The result was negatively impacted by NOK 18 million worth of write-downs in electronic media and TV, a poorer operating result for Storbyavisene, reduced press subsidies, a realized loss of NOK 20 million from the sale of the Dagsavisen shares and
implementation of new business management and accounting systems in the core
business.
Group revenues in 1999 came to NOK 2 269.9 million, 3.7 per cent higher than the
year before. Both circulation and advertising revenues showed good progress compared with 1997. Underlying growth from 1997 was 3 per cent and 3.4 per cent
respectively. Underlying growth in printing revenues was 0.8 per cent.
Cost of materials amounted to NOK 320 million, with newsprint costs accounting for
NOK 154.6 million, compared with NOK 157.7 million in 1997. The reduction in newsprint costs in 1998 thus came to 2 per cent. Adjusted for new and sold companies,
the underlying growth in newsprint costs was 5.3 per cent.
In 1998 the Group replaced many of its business systems, inter alia to deal with the
Year 2000 Problem. Nearly NOK 45 million has been invested via the subsidiaries in
business systems. An estimated NOK 20 million was charged as expenses.
The Group’s share from associated companies in 1998 was a loss of NOK 3.2 million,
compared with a loss of NOK 17.2 million in 1997. The figures are not directly comparable because Nyhetskanalen, the defunct all-news channel, was included in 1997,
and the Group’s stake in TV 2 was increased throughout 1997.
The Group’s cash flows from operating activities came to NOK 110.5 million, down
NOK 16.5 million compared with 1997. A-pressen made net investments of altogether NOK 139 million in 1998.
The Group’s equity ratio rose from 31 per cent at the beginning of the year to 37.1 per
cent at year-end. Liquid reserves amounted to NOK 348 million at 31 December 1998.
Net interest-bearing debt at the same time was NOK 594 million.
Year 2000
The Group has initiated a number of measures, inter alia to ease the transition to the
year 2000. New circulation systems including subscription, distribution, news-stand
sales and newspaper carrier management were in place at all A-pressen newspapers
by the end of 1998. A-pressen has furthermore replaced its payroll and accounting
systems at nearly all Group firms. In 1999 several newspapers will modernize their
advertising systems.
The Group has adopted fixed guidelines, with a detailed checklist, of the steps subsidiaries are to take with respect to potential problems. The guidelines also cover
computer equipment, telephony and other electronic equipment including management of the press and packing systems.
A-pressen believes it has taken the necessary steps to conquer the Millennium Bug.
IT or system-related complications stemming from the changeover to the year 2000
can nevertheless not be ruled out.
The business areas
Newspapers and printing
A-pressen strengthened its position in the local newspaper market in 1998 by acquiring
several local newspapers. The Group now has ownership interests in 47 newspapers,
of which 43 are majority owned. The newspapers maintained their strong position in the
local markets through the year. A-pressen’s overall daily circulation including minorityowned newspapers totalled 578 815 or 19.5 per cent of Norway’s daily circulation.
The overall circulation of the newspapers in which the Group owns more than 20 per
cent was virtually unchanged compared with the year before (comparable companies). Excluding the circulation of Dagsavisen the underlying decline was 0.5 per cent.
Local newspapers
In November and December the Group purchased 68.8 per cent of the shares of the
newspaper Hadeland. Twenty-five per cent was acquired through a private placement,
while the remainder was purchased via an offer sent to all previous shareholders.
Since the turn of the year the Group has raised its stake to 93.7 per cent. Hadeland
has a daily circulation of 7 607 and is published in Brandbu.
The newspaper Lofot-Tidende in Leknes in Lofoten in Northern Norway was acquired
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on 1 November. Lofot-Tidende was founded in 1987 and was previously locally
owned. In the autumn of 1997 the weekly newspaper began publishing two times a
week. Lofot-Tidende complements A-pressen’s newspapers in the region. LofotTidende has been a supplementary newspaper in the Media Nor advertising pool
since 1994.
Effective 1 January 1999, a joint ownership company was established for the newspapers Aust Agder Blad in Risør and Tvedestrandsposten. A-pressen ASA will own 51
per cent of the shares in the new company, Tvedestrand Risør Holding AS.
Tvedestrandsposten has a circulation of 3 875, while the circulation of Aust Agder
Blad is 3 683. Together the two newspapers will be the market leader in the municipalities east of Arendal: Tvedestrand, Risør, Vegårshei and Gjerstad. Tvedestrandsposten and Aust Agder Blad will continue to operate as independent newspapers.
Effective 1 September, the local newspaper Kvinnheringen in Husnes was purchased.
Kvinnheringen publishes three issues per week with a circulation of 4 863 copies, and
is currently the leading newspaper in Kvinnherad municipality.
In 1998 the Group increased its ownership stake in Bladet Harstad to 76 per cent and
in Nordlys to 69.5 per cent.
Profits
Local newspapers increased their operating revenues in 1998 by 9.1 per cent to NOK
1 499 200 000. Growth in advertising revenues waned in the third period and advertising revenues were 8 per cent higher than the year before. Underlying annual
growth of directly comparable companies was 4.9 per cent.
Operating profits less goodwill rose by NOK 1.1 million to NOK 110.2 million. The operating profit for directly comparable companies was, however, down NOK 5.5 million
from 1997. The profit for the business area is marked by wide variations among the
newspapers. The newspapers Romerikes Blad, Østlands-Posten and Oppland
Arbeiderblad increased their operating profit by approximately NOK 27 million, to
more than NOK 67 million.
The three newspapers in Østfold saw their combined profits drop by more than NOK
16 million, while the newspapers in Northern Norway reported a NOK 8 million decline.
Storbyavisene
In 1995, A-pressen organized its No. 2 newspapers in five of Norway’s largest cities
(Bergensavisen, Dagsavisen, Fremtiden, Rogalands Avis and Telemarksavisa) into a
separate subgroup for major city newspapers, Storbyavisene AS. With the exception
of Telemarksavisa, the circulation gap between these newspapers and their competitors is so wide that for the foreseeable future it will not be possible to operate them
without direct public subsidies.
In 1993–1998 the real value of these direct subsidies was reduced by nearly NOK 50
million. Out of the total subsidy package of NOK 187.2 million, the Storbyavisene
received NOK 74 million, equivalent to 40 per cent. The reduction in direct public subsidies is a contributing factor to the significantly worse financial results of these newspapers.
The majority of legislators in the Storting, Norway’s national assembly, want to continue the current policy of maintaining a diversified press in Norway. At various times,
however, the authorities and representatives of most of the parties in the Storting
have questioned whether newspapers owned by corporations should receive such
extensive direct public subsidies as those received by certain A-pressen papers.
Consequently, regulations have been issued which prevent reasonable servicing of
equity capital in companies entitled to public subsidies. The unintended effect of this
has been a poorer access to equity capital.
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In light of these circumstances, A-pressen has for some time evaluated ownership
solutions more suited to the special situation of these newspapers. The goal is to
ensure the publication of these newspapers on the most stable basis possible. In
order for these plans to succeed, subsidies must be predictable and restored to at
least the level of the early ’90s. The Board has concluded that there is little possibility of this happening unless A-pressen ASA reduces its ownership stakes in the newspapers that receive the most subsidies.
Jan Kr. Balstad
On 31 December, Dagsavisen was transferred to an independent foundation. With
the exception of Telemarksavisa, which will be transferred to A-pressen Avis og Trykk
AS (wholly-owned by A-pressen ASA), a process was initiated at the end of the third
tertiary to reduce the Group’s financial interest in the other Storbyavisene (Bergensavisen, Fremtiden and Rogalands Avis). The Group’s goal is to complete this process
by the end of the first half of 1999.
Chair
Deputy Secretary General
of the Norwegian
Federation of
Trade Unions (LO)
In December 1998 the Group reduced its exposure in Bergensavisen to under 80 per
cent. This was accomplished via a NOK 10 million private placement in Bergensavisen
directed at Frank Mohn AS.
Results
The Storbyavisene increased their losses in 1998 by NOK 17.1 million to NOK 26.9 million.
Dagsavisen’s loss (excluding the approximately NOK 20 million profit from the sale of
buildings) amounted to NOK 13.1 million and is charged in its entirety against
Storbyavisene’s operating result. On 31 December 1998, Dagsavisen was hived off as
an independent foundation and is therefore not included in the Group’s year-end balance
sheet. An accounting loss of approximately NOK 20 million was realized from the sale
of the Dagsavisen shares.
Terje Moe Gustavsen
Deputy Chair
Head of LO Stat
Printing
In printing, operating profits increased by NOK 6.9 million to NOK 14.1 million, even
though Media Øst Trykk AS in Lillestrøm had production problems. As partial compensation for increased production-related costs, Media Øst Trykk has received approximately NOK seven million in compensation from an out-of-court settlement with the
supplier of the packing equipment. In early March 1999, Media Øst Trykk AS concluded
negotiations with the press supplier which resulted in a NOK 15 million compensation
agreement. NOK four million of this amount has already been entered as income.
The work of eliminating and reorganizing printing facilities in Eastern Norway has
been concluded and all newspaper production has been transferred to Media Øst
Trykk. All costs in connection with the restructuring plan were charged in 1998 and
amounted to just over NOK six million.
Russia
A-pressen has teamed up with the European Bank for Reconstruction and
Development (EBRD) to invest in the Russian newspaper and printing market. The
investments will be carried out by the company A-pressen Eastern Europe AS (AEE),
the ownership of which is split 65/35 between A-pressen ASA and EBRD. Work proceeds on several newspaper and printing projects. The investments will take place in
phases. A-pressen’s share of the planned investments amounts to NOK 40 million
and will inter alia take the form of transfers of used printing equipment. No investments had been made by AEE in Russia at 31 December 1998. Implementation of
the first investments are scheduled for first period 1999.
Åshild M. Bendiktsen
Board member
Director of Finance,
Bendiktsen & Aasen AS
TV
The channel TV 2 continues its positive trend. Both reported audience numbers and
other market surveys show that its popularity with the public increased again in 1998.
New programming plans were made in 1998 as part of a long-term strategy to build
loyalty to the channel.
The TV 2 Group posted a net profit of NOK 86.3 million, down NOK 12.3 million from
1997. The decline was caused in its entirety by the losses of associated companies and
newly started enterprises. The channel reported a significant increase in revenues, but
price increases for broadcasting rights and new programme investments have also
served to push up costs. TVNorge lowered TV 2’s net profits by NOK 58.2 million.
The TV companies (mostly local TV) in which the Group is the majority shareholder reported an operating loss of NOK 25.4 million, compared with a loss of NOK
22.4 million the year before. The weaker result is due inter alia to NOK 5.5 million in
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extraordinary amortization of goodwill. Due to a decline in content production the
underlying profit performance was, however, negative towards the end of the year.
Local TV stations are struggling to penetrate the local advertising market, partly
because local TV is a new advertising medium, and partly because the stations have
not been adept at selling and producing local advertising. Advertising revenues for
comparable companies were 16 per cent higher in 1998 than in 1997. The Group’s goal
is for the local TV companies to break even in 1999. Major changes are needed to
achieve this objective. Cost-cutting measures alone will not be sufficient to achieve
the short-term goal of break even. Steps have been taken to improve the sales work
of the local TV companies.
Jorunn Helgesen
Board member
Employee representative
Typographer
Fremover
Electronic Media
In 1998, Electronic Media posted an operating loss of NOK 11.1 million, including NOK
5.2 million in extraordinary amortization of goodwill. In the third period a merger
agreement was signed between the Internet companies New Media Science AS and
Digital Hverdag AS. A-pressen owned 51 per cent of the latter company and owns
23.5 per cent of the merged company. In setting the conversion ratio, it was assumed
that the merged company would post a result of approximately NOK 5 million. Digital
Hverdag achieved a result in accordance with the preconditions, while New Media
Science’s performance deteriorated significantly. Compensation for the shortfall will
be negotiated with the old owners of New Media Science.
Svein Haugsvold
Board member
Deputy Managing Director
Share capital and shareholder relations
In June 1998 a private placement was directed at Group employees. A total of 338
employees subscribed for 10 478 shares. A private placement in December of 24 135
shares was undertaken as settlement for the take-over of 30 per cent of the shares
in Lofoten Kommunikasjon AS.
VÅR bank og forsikring
On 28 October A-pressen ASA shares were listed on the Oslo Stock Exchange. A preemptive issue at NOK 90 per share was carried out simultaneously. The subscription
rights were quoted on the Oslo Stock Exchange. The issue, the gross of which was
NOK 144.3 million, was underwritten mainly by existing shareholders.
The extraordinary general meeting held in conjunction with the stock exchange listing
and the new share issue voted to remove the Article of Association limiting ownership of shares to 20 per cent.
The issue brought no major changes among the largest shareholders. In December,
Sanoma, Finland’s biggest media corporation, bought 13.2 per cent of A-pressen
ASA’s shares through its company Helsinki Media Company AS. In 1999 Sanoma has
increased its shareholding to 20 per cent.
In 1998, the Norwegian Confederation of Trade Unions (LO) formed the investment
company Fagbevegelsens Investeringsselskap AS. LO and a few affiliated unions
transferred their shares in A-pressen ASA to this company.
Brit Renngård
Deputy board member
(attends regularly)
Chief cashier of Norwegian
At the close of 1998, A-pressen shares were trading at NOK 105, 36 per cent lower
than in 1997. Prices fluctuated widely throughout the year, however, from a high of
NOK 170 to a low of NOK 92. At 31 December 1998 A-pressen had 1 642 shareholders, compared with 1 385 the year before.
Civil Service Union
Personnel and organization
At the close of 1998 the Group had 2 875 employees (2 656 full-time equivalents),
excluding newspaper carriers. In 1997 the Group had 2 904 employees accounting for
2 636 full-time equivalents. The number of full-time equivalents for comparable companies was reduced by 28 from 1997 to 1998.
Considerable resources are spent on training and developing managers and employees
in A-pressen’s companies. The Group’s joint management and personnel policy is followed up locally and centrally through a number of measures and programmes.
8
The group union representative system functions well and the Board would like to
thank all employees for their fine efforts over the past year.
A-pressen ASA
The Board proposes that no dividend be paid for the 1998 financial year. The Board
approves the parent company’s and Group’s annual accounts for 1998, and proposes
that A-pressen ASA’s loss for the year of NOK 55.4 million be settled as follows:
Kith Skaalerud
Board member
Received Group contribution
NOK 68.7 million)
Transferred to distributable reserve
NOK (13.3 million)
Total
NOK 55.4 million)
Advertising consultant
Romerikes Blad AS
A-pressen ASA owns 43 newspapers, six printing companies, 33.2 per cent of the
shares of TV 2 AS, 23.5 per cent of the shares in New Media Science ASA, and a few
smaller project-related companies. In addition, the parent company has stakes in four
other papers. The Group comprises 118 companies including 21 associated companies.
The parent company provides a number of joint services for Group companies, including training, purchasing, marketing, and capital management. The Group’s head office
is in Oslo and had 29 employees at year-end. In 1997, the Board decided to enlarge
the corporate administration somewhat in order to handle the sharp growth in Group
investments. This was done in 1998. Operations and activities of the parent company
are financed through an administrative fee paid by the subsidiaries and Group contributions from the subsidiaries that do not receive press subsidies. In addition to its
own expertise, the parent company uses the special competencies possessed by the
subsidiaries and associated companies. The working environment is good, and the
company does not pollute the external environment.
Johnny Helgesen
Board member
Photographer
Østfoldpressen AS
Total remuneration of the Board, Corporate Assembly, CEO and auditor is covered in
Note 2 of the parent company’s annual accounts. The same note shows how many
shares are owned by each member of the Board, Corporate Assembly, auditor and
CEO.
Future outlook
The financial results of Norwegian media will to a large extent be determined by the
state of the economy. Last autumn’s interest hikes created uncertainties about the
economic situation of consumers and corporations, and have had the direct effect of
reducing the growth of advertising investments. Growth in private consumption is
predicted to be weaker than in previous years.
Consequently, there is more uncertainty than usual about the direction of advertising
markets, which will be of great significance to the Group’s opportunities for improving earnings in 1999. Advertising growth towards the end of 1998 plummeted and
was negative in some areas. In light of this, we cannot rule out the possibility of a
reduction in the newspapers’ advertising revenues in 1999, but expect to see modest growth in TV advertising.
Tore Tønne
Sustained uncertainty about consumer spending could also reduce the demand for
newspaper subscriptions, precipitating higher marketing costs to maintain sales.
Board member
CEO Norway
Seafoods ASA
The Group faces major challenges in strengthening the Group’s competitiveness
through improved profitability. Future revenues will probably not allow for the attainment of satisfactory profitability without significant productivity gains. By the year
2000 the Group must bring personnel costs of continued operations down to the
same nominal level as 1998. The Group’s newspaper and printing companies will
therefore have to reduce the number of employees by at least 10 per cent, calculated from the beginning of 1998. Some of these cuts were carried out in 1998 and in
the approved budgets for 1999. Various means will be employed in implementing the
downsizing so that direct dismissals can be avoided as far as possible. The costs will
be charged to the 1999 accounts.
The Board places considerable emphasis on bolstering competitiveness through
improving the product quality of the newspapers. A high priority is therefore placed
on product development. Considerable emphasis is placed on using the newspapers’
collective competencies in improving and creating new editorial content and advertising products.
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The extensive replacement of computer equipment is expected to be essentially finished in 1999. Operations-related investments are expected to be considerably lower
in the years to come.
Media policy is marked by great uncertainty because there is a considerable gap
between the approved political goals and the means employed to attain them. The
reduction in press subsidies has continued into 1999, increasing the chances of a
political majority in favour of imposing a tax (VAT) on newspaper sales. This could
reduce the number of newspapers considerably in Norway and newspapers with the
strongest market position will pass the cost on to readers. The probable effect of this
will be to reduce newspaper sales considerably.
Eigil Wettre
Board member
CEO Møller-gruppen AS
Earnings of the printing plants are expected to remain stable. Media Øst Trykk has
now decided to complement its facility to ensure stability in deliveries and to meet
demand. Capacity utilization is expected to improve at this facility in 1999, but will not
reach its target level before the beginning of 2000.
The TV 2 Group’s profits will be affected primarily by the development of the advertising market and by TVNorge’s earnings. Big question marks still hang over TVNorge’s
performance, although we expect to see a reduction in its losses in 1999. Local TV
costs continue to fall, and the cost programme will be concluded in the first half of
1999. Revenue trends will determine whether profits will be achieved in the course
of the second half.
Alf Hildrum
CEO A-pressen ASA
The development of electronic media will continue to be marked by great uncertainty. In 1999, efforts will be concentrated mainly on developing the investments made
in recent years. Internet operations of local papers will continue in line with a cautious
investment programme.
The investment programme in Russia is proceeding according to plan. Because of the
devaluation of the rouble, short-term yield estimates must be reduced although the
investments will still yield acceptable earnings. The approved investment programme
is to be carried out in the course of the year 2000.
Over the next two years, the Group will invest the majority of its management
resources in bolstering the Group’s competitiveness through improved earnings. The
Group’s short-term growth ambitions will have to be curtailed but its overall growth
strategy remains, however, in place.
Oslo, 9 March 1999
Jan Kr. Balstad
Åshild M. Bendiktsen
Svein Haugsvold
Johnny Helgesen
Jorunn Henriksen
Terje Moe Gustavsen
Brit Renngård
Kith Skaalerud
Eigil Wettre
Alf Hildrum
Tore Tønne
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S h a r e h o l d e r
r e l a t i o n s
Open shareholder policy
-pressen ASA will endeavour to maintain an open shareholder policy and
provide information so that underlying values and future growth opportunities in the company are reflected in the share price as well as possible. This
will be accomplished via regular annual and interim reports, stock market bulletins
and press releases, and by maintaining regular contact with stock market players.
Major corporate events are reported as they take place.
A
Healthy share liquidity is a high priority at A-pressen and is the main reason why the
company decided to be listed on the Oslo Stock Exchange in October 1998. Securities
issued by A-pressen shall represent a liquid investment alternative for investors.
A pre-emptive issue by which 1.6 million new shares were issued coincided with the
stock market listing. The issue was fully subscribed and was guaranteed in advance at
NOK 90 per share by a consortium consisting mainly of existing shareholders. The
gross proceeds of the issue amounted to approximately NOK 144 million. The issue
was arranged by Elcon Securities ASA in cooperation with Enskilda Securities.
12
The company endeavours to keep the most prominent financial players in the media
regularly updated on A-pressen so that their knowledge about the company and the
industry is at a high level. The main focus has been and will continue to be on the
Norwegian financial market, although the management of A-pressen has also given
presentations in London following the publication of interim figures.
Performance of A-pressen share
200
Share capital
A-pressen ASA’s share capital at 31 December 1998 was NOK 176.8 million divided
into 8 839 643 shares with a nominal value of NOK 20. In addition to the pre-emptive
issue in November 1998, there was a private placement in December 1998 of 24 135
shares (share price NOK 112.50) and an employee issue in June 1998 of 10 478
shares (share price NOK 127.50).
200
150
125
Development of share capital
Year Type of changes
Change in
sharecapital
Sharecapital Nom. value
after change
(NOK)
No. of shares
after changes
1989 Issue
20 000 000
22 000 000
100
220 000
1991 Issue
59 105 000
81 105 000
100
811 050
1994 Issue directed at employees 4 858 200
85 963 200
100
859 632
1995 Private placement
309 000
86 272 200
100
862 722
0
86 272 200
20
4 313 610
56 250 000
142 522 200
20
7 126 110
240 000
142 762 200
20
7 138 110
500 000
143 262 200
20
7 163 110
782 000
144 044 200
20
7 202 210
7 212 668
1995 Share split (5:1)
100
75
50
March 95
209 560
144 253 760
20
1998 Pre-emptive issue
directed at employees
32 416 400
176 310 160
20
8 815 508
482 700
176 792 860
20
8 839 643
Tradability of shares
Under the old Article 5 of the Articles of Association, no new shareholders could own
more than 20.0 per cent of the company’s shares. The article has now been removed
from the company’s Articles of Association as it was incompatible with the principle
of free trading of the share via the Oslo Stock Exchange.
Company shares were traded in the “unlisted” market until its introduction to the
stock exchange on 28 October 1998. According to the Norwegian Registry of
Securities, a total of 11.4 million shares were traded in 1998. Of these, 2.53 million shares
are related to the transfer of all of the Norwegian Federation of Trade Union’s (LOs)
A-pressen shares to a newly established investment company, Fagbevegelsens
Investeringsselskap AS, in the autumn of 1998.
In December 1998, Helsinki Media Group, a wholly-owned Norwegian subsidiary of
the Finnish Sanoma group, purchased 1.16 million shares in A-pressen, equivalent to
13.2 per cent of the share capital. In February 1999 the company’s shareholding was
raised to 20.0 per cent. Sanoma is a strategic investor in A-pressen and will be given
a seat on the board in 1999. The management is 100 per cent supportive of having
Sanoma as an owner.
The subscription rate in the pre-emptive issue was set at NOK 90 and the subscription
rights were traded between 29 October 1998 and 12 November 1998. The first quotation
day for the A-pressen share was 28 October 1998. Approximately 1.44 million shares
were traded via the Oslo Stock Exchange from the stock-exchange introduction until the
end of the year.
The final quoted price in 1998 was NOK 105. Highest price in 1998 was NOK 170
while the lowest was NOK 92. The share has performed well since its stock-exchange
introduction at NOK 90, and was traded at a price of NOK 127 in February. It closed
at NOK 110 on 28 February.
Share price performance
1998
1997
1996
Highest price (NOK)
170
195
155
Lowest price (NOK)
92
158
94
105
165
155
11 493 875
2 245 246
12 398 224
Closing price at year end (NOK)
Total volume (source: VPS)
13
March 96
March 97
March 98
S h a r e h o l d e r
r e l a t i o n s
Shareholders
Fagbevegelsens Investeringsselskap AS owned 28.5 per cent of the shares at the
end of the year, and was consequently the largest shareholder.
At 31 December 1998, Sanoma via Helsinki Media Company AS owned 13.2 per cent
of A-pressen, making it the second largest shareholder at the close of the year. In
February 1999 the company increased its shareholding to 20.0 per cent.
The Møller Gruppen via Møller Investor AS and Møller Skipsinvest AS had a 13.7 per
cent stake at the end of the year.
The number of shareholders at 31 December 1998 was 1 642.
The 20 largest shareholders owned 85.7 per cent of the total number of shares at
year-end.
Table of 20 largest shareholders at 31.12.98
Name
Percentage of foreing shareholders
26.17%
1996
26.70%
Number of shares
Shareholding in %
Fagbevegelsens Investeringsselskap AS
2 523 662
28.55
Helsinki Media Company AS
1 163 200
13.16
Møller Investor AS
974 500
11.02
Fidelity Funds
457 966
5.18
Clydesdale Bank s/a Fidelity Investment
391 844
4.43
Storebrand Livsforsikring
246 722
2.79
Møller Skipsinvest AS
238 778
2.70
VÅR Livsforsikring
236 400
2.67
Norwegian Union of Municipal Employees
235 889
2.67
Verdipapirfondet Skagen Vekst
230 000
2.60
Aksjespar Postbanken
150 000
1.70
Brown Brothers
122 222
1.38
VÅR Skadeforsikring
107 000
1.21
Sparebanken NOR
97 778
1.11
Clydesdale Bank S/A Fidelity European
95 577
1.08
Gjensidige Livsforsikring
87 300
0.99
Norwegian Civil Service Union
61 630
0.70
Vital Forsikring
60 300
0.68
Postbanken Aksjevekst
51 920
0.59
Gjensidige Skadeforsikring
43 600
0.49
Total 20 largest shareholders
7 576 288
85.71
Other shareholders
1 263 355
14.29
Total
8 839 643
100.00
Foreign-owned share:
Sanoma owns its shares through a Norwegian company (Helsinki Media Company AS)
and is therefore not included in the foreign ownership share.
1997
13.90%
1998
Norwegian ownership:
Foreign ownership:
86.10 per cent
13.90 per cent
RISK/Dividend:
The general RISK amount (regulation of the cost price of a share by a sum equivalent
to the retained profit per share) for the Group was first computed in 1995.
(NOK)
1998
1997
1996
1995
RISK at start of year
5.90
5.15
- 2.83
- 4.24
0
1.00
1.20
1.10
Dividend
The Board recommended that no dividend be paid for 1998. In the longer term,
A-pressen’s goal is to pay a dividend in relation to the liquidity situation and future
investment need. The company will nevertheless endeavour to pay a dividend in line
with what is normal in the industry.
14
Key figures
Definition of key figures
From the profit and loss account
1Operating
(NOK 1 000)
Operating revenues
1998
1997
1996
1995
1994
2 269 859
2 188 310
1 951 440
1 793 681
1 511 407
37 054
103 048
102 792
96 434
72 304
Operating profit
Profit before taxes and minority share - 13 442
45 564
91 197
100 830
62 386
Net profit
17 378
67 920
91 819
58 681
- 20 940
margin
Operating profit/Operating revenues
2Return
on total assets
(Result before extraordinary items + financial
expenses) / Average total assets
3Return
on equity
(Net profit + minority share – extraordinary
From the balance sheet
items) / Average shareholders’equity including
Total current assets
443 525
418 561
501 108
429 545
379 631
Total fixed assets
1 606 103
1 627 577
1 269 710
960 261
429 733
Total assets
2 049 628
2 046 138
1 770 818
1 389 806
809 364
Total current liabilities
519 758
558 254
482 731
414 038
366 770
Total current long-term liabilities
769 044
852 894
677 419
442 850
206 334
minority interests
4Equity
ratio
Shareholders’ equity including minority
interests / Total assets
Minoritetsinteresser
37 392
30 454
15 978
9 338
8 974
723 434
604 536
594 690
523 580
227 286
2 049 628
2 046 138
1 770 818
1 389 806
809 364
Minority interests
Shareholders’ equity
5Earnings
per share
(Net profit – extraordinary items) / Average number of shares
6Cash
flow per share
(Net profit + ordinary depreciation – extraordinary
items + taxes – taxes payable) / Average number
Profitability/capital
of shares
Operating margin (%)1
Return on total assets
(%)2
Return on equity (%)3
Equity ratio
(%)4
1.6
4.7
5.3
5.4
4.8
2.2
5.0
8.4
10.5
10.4
- 3.2
3.0
11.7
21.5
24.9
37.1
31.0
34.5
38.3
29.2
7Book
equity per share
Book equity / Number of shares as per 31.12.
8Market
capitalisation
Last traded share price x number of shares as
per 31.12.
Share related key figures
Quoted price/share
price as per 31.12. (NOK)
105
165
155
92
n/a
Number of shares as per 31.12.
8 839 643
7 202 210
7 202 210
7 126 110
4 298 160
Average number of shares
7 342 155
7 202 210
7 164 160
4 362 119
4 068 560
Earnings per share (NOK)5
- 2.9
2.4
9.5
18.8
14.4
Cash flow per share (NOK)6
16.8
20.0
24.6
39.3
31.6
Book equity per share (NOK)7
81.8
83.9
82.6
73.5
52.9
Market capitalisation (NOK million)8
928
1 188
1 116
656
n/a
RISK per share (NOK)
5.9
5.15
- 2.83
- 4.24
-
0
1
1.2
1.1
1.0
Dividend per share (NOK)
1998
(NOK million)
Local StorbyPrintingnewspapers avisene companies
Operating revenues
1 499.2
492.2
118.7
- 8.5
110.2
TV
366.0
55.0
- 26.9
14.4
-
- 0.3
- 26.9
14.1
El. HC/undis./
media
elim.
8.1
- 150.6
- 16.9
- 6.0
- 23.5
- 8.5
- 5.2
- 0.3
- 25.4
- 11.1
- 23.8
Operating profit/loss
before goodwill
Goodwill
Associated companies
Business area profit/loss
0.7
-
-
5.2
- 9.8
0.7
110.9
- 26.9
14.1
- 20.2
- 21.0
- 23.1
7.4
3.9
1997
(NOK million)
Operating revenues
1 374.0
486.8
118.4
- 9.8
- 9.3
-
109.1
- 9.8
336.2
38.5
13.8
- 61.0
before goodwill
Goodwill
4.7
113.8
7.9
- 9.8
7.5
- 19.9
- 0.3
- 2.6
7.2
- 22.4
-
- 21.0
7.2
- 43.4
- 1.7
- 0.9
- 2.7
- 1.0
- 3.7
21.9
- 0.3
21.6
0.1
21.7
2.1
Business area profit/loss is the total of the company accounts.
15
B u s i n e s s
A r e a s
The business areas
of A-pressen
-pressen’s operations are divided into the following business areas: Newspapers, Printing, TV and Electronic Media. Management of the newspaper
and printing area is placed under two units, A-pressen Avis og Trykk AS and
A-pressen Media Øst AS, both located in Lillestrøm. The newspapers and printing
plants in Østfold, Akershus, Hedmark and Oppland counties are run by the latter unit,
while operations in the rest of the country are handled by A-pressen Avis og Trykk AS.
The two operating units have direct or indirect majority interests in 43 newspapers
and seven printing companies.
A
Another major business area for A-pressen is TV. The Group owns 33.2 per cent of the
shares of TV 2 and has ownership stakes in eight local TV stations as well as a few
small production companies.
The electronic media area comprises a limited number of Internet and multimedia
companies.
16
B u s i n e s s A r e a
n e w s p a p e r
Share of turnover
Local newspaper 66.0 %
A-pressen: Norway’s most
important owner of local
newspapers
Newspapers affiliated to the Norwegian Newspaper Publishers’ Association have
increased their circulation for the second year in a row. Although the increase is not
more than 3 019 copies (+0.1 per cent), the result is impressive in relation to the position of Norwegian daily newspapers. Norway is one of the top countries in the world
in terms of newspaper consumption and while other comparable countries struggle
to keep circulations up, Norwegian consumption is very stable. The general trends
can be summed up as follows: Local newspapers are maintaining their strong position, news-stand sales show high overall stability and special interest newspapers are
rapidly gaining. A-pressen’s net overall circulation in 1998 was 578 815, a gain of 98
copies. Excluding Avisa Sogndal, its circulation is down 1 610 copies, or 0.3 per cent.
Storbyavisene 21.7%
There are major regional differences in circulation. With few exceptions, the circulations of newspapers in Northern Norway and Østfold are declining, but are more stable in the rest of the country. Oppland Arbeiderblad shows a new solid increase in circulation, of 552 copies.
A-pressen’s advertising revenues increased by 7.7 per cent in 1998. Adjusted for purchased and sold newspapers the increase is 3.4 per cent. There is no change in the
volume compared to last year. There are huge regional differences in advertising revenues. The biggest growth is in the populous Eastern Norway region, while newspapers in Northern Norway are experiencing stagnation and decline.
Advertising pools are an important source of income for many A-pressen newspapers. Through the pools, advertisers can place a single order and have the same
advertisement run in several newspapers. In a steadily more regionalized advertising
market, this translates into a stronger competitive position. Orkla Dagspresse newspapers have cancelled their advertising pool agreement with several of A-pressen’s
newspapers. This could have a negative impact on revenues, but A-pressen is working on advertising products that will compensate for their loss.
Strategy
Although A-pressen has expanded in step with media developments, newspapers
and all that is associated with newspaper publishing are still the main business of the
Group and will remain so for the foreseeable future. Norway is one of the top newspaper-reading countries in the world, and A-pressen’s local newspapers are standing
strong despite competition from national newspapers, TV and new media. In an age
of fragmented media choices, people prefer the intimacy of a local newspaper. This
was recently confirmed in the 1998 edition of Norway’s official newspaper reader
survey, Forbruker og Media, conducted by the Norsk Gallup Institutt. In terms of both
public attention and finances, publishing local newspapers is the very backbone of
A-pressen’s business. Consequently, this area will continue to be our main focus in
the years to come.
The main principle and strongest suit of local newspapers’ is their closeness to readers and advertisers. A-pressen is Norway’s pre-eminent publisher of local newspapers. Thirty five of the Group’s newspaper are the leaders in their districts. This
means that they either are the sole newspaper in their place of publication or have
the highest circulation and are the preferred newspaper of readers and local advertisers.
It is crucial that A-pressen strengthen the position of local newspapers in the minds
of readers, and consolidate the Group’s dominating grip on the local market through
development, acquisitions and alliances.
18
One goal is to reduce costs, particularly personnel costs. A programme has been prepared to reduce the number of full-time equivalents by 10 per cent by the end of the
year 2000.
One objective in particular is to strengthen earnings by increasing advertising market
competencies at the corporate as well as regional and local level.
The future outlook for local newspapers has been assessed as very good. No media,
new or old, have managed to topple the position of local newspapers as a repository
and expression of local identity for the majority of Norwegians.
A-PRESSEN NEWSPAPER
Sole newspapers
Aura Avis
Arbeidets Rett
Fremover
Aust Agder Blad
Avisa Sogndal
Bygdeposten
The Group intends to:
• ensure and strengthen the strategic position of local newspapers.
• initiate investments and alliance-building internationally in newspapers and printing.
• increase the profitability of existing newspapers, printing and distribution operations by a significant amount.
Finnmark Dagblad
Finnmarken
Firda
Halden Arbeiderblad*
Hardanger Folkeblad
Helgeland Arbeiderblad
Indre Akershus Blad
Indre Smaalenenes Avis*
Kvinnheringen
Lofotposten
Malvik Bladet
Namdals-Avisa
Opdalingen
Oppland Arbeiderblad
Rana Blad
Ringerikes Blad
Romerikes Blad
Sarpsborg Arbeiderblad
Stjørdalens Blad
One of the main reasons was the sale of Dagsavisen, which by itself weakened the
result by cirka NOK 20 million. Fremtiden and Rogalands Avis reported reported profits
in 1998.
Tidens Krav
Tvedestrandsposten
Østlands-Posten
Øvre Smaalenene*
Dagsavisen increased its circulation by 3 021 last year to 43 792 copies. Telemarksavisa and Bergensavisen increased their circulation, while Fremtiden and Rogalands
Avis saw a sharp decline in circulation. Telemarksavisa (+82) made further headway
against its competitor Varden (-548), and now has 68.6 per cent of the No. 1 newspaper’s circulation. This is the second strongest market position for a No. 2 newspaper in Norway.
Årdal & Lærdal Avis
* Minority companies
Source: NAL Aviskatalogen
The future outlook for the major city newspapers is filled with uncertainty. In general,
the newspapers are struggling with poor profitability, have stiff competition and are
dependent on public subsidies at about the present level.
A-pressen’s Oslo editorial office
A-pressen’s Oslo editorial office (APOR) is the press group’s news service, owned by
the newspapers through a shareholding agreement signed in 1990.
APOR’s objective is to conduct free and independent journalism and, in close cooperation with other A-pressen editorial staffs, help increase the circulation of its
owners, strengthen their competitiveness and underscore their distinctiveness as
newspapers with a social democratic viewpoint.
The company posted revenues of NOK 26 million in 1998. Membership fees of the
newspapers make up more than half of its revenues while the remainder comes from
the sale of additional services – mainly to newspapers in the press group. Apor has
35 employees (30 full-time equivalents).
During this decade APOR has rapidly transformed itself into a complete news agency offering feature stories, daily leaders and a complete photo service. The agency
manages the intranewspaper copy exchange system and extensive sports reporting
Bladet Harstad
Demokraten
Telemarksavisa
Rjukan Arbeiderblad
The performance of the Storbyavisene group, a loss of NOK 26.9 million including public subsidies of NOK 74 million, was worse than the year before.
Nordlys
No. 2-Newspapers
Glåmdalen
Rakkestad Avis
The ambition is to reduce the ownership stakes to under 50 per cent in the three
other newspapers over the course of the first half of 1999.
Nordlands Framtid
Moss Dagblad
Lofot-Tidende
The board of A-pressen decided in the autumn of 1998 to reduce the Group’s stakes
in these newspapers, with the exception of Telemarksavisa, which was transferred on
1 January 1999 to A-pressen Avis og Trykk AS, a company wholly owned by A-pressen
ASA. Dagsavisen was transferred to separate foundation on the same date.
Hamar Arbeiderblad*
Firdaposten
Hadeland
Storbyavisene AS
The Storbyavisene (major city newspapers) group comprises Bergensavisen, Rogalands
Avis, Telemarksavisa and Fremtiden. The newspapers are so-called No. 2 newspapers
of readers and advertisers in their regions, and are subjected to strong competition
from dominant regional newspapers and national newspapers. These newspapers
receive approximately 80 per cent of the press subsidies allocated to the Group’s
newspapers.
No. 1-Newspapers
Akershus Amtstidende
19
Storbyaviser
Bergensavisen
Fremtiden
Rogalands Avis
n e w s p a p e r
service and produces finished pages – particularly the radio and TV listings – for sale
to the newspapers.
A-pressen circulation
In the course of 1998 the APOR Ekstra news service was launched as an alternative to
the news service offered by the Norwegian News Agency (NTB), and was made available to most A-pressen newspapers. The service has been well received by the newspapers and established as a permanent service starting January 1999. Fifteen newspapers have cancelled their subscription to NTB in favour of APOR’s service, which is
considerably cheaper and is furthermore only available to A-pressen newspapers.
512 887
1994
513 349
1995
519 536
1996
525 267
1997
Local newspaper
524 872
1998
(NOK million)
1998
1997
Circulations revenues
519.7
479.9
Advertising revenues
Total circulation Norway
806.3
725.0
Printing revenues
58.3
67.0
Government subsidies
13.3
17.4
101.6
84.8
1 499.2
1 374.0
Cost of materials
245.6
230.8
Salaries, wages and other personnel expenses
662.7
599.5
Other operating and administration costs
412.5
369.5
64.3
60.1
Other operating revenues
A-pressen 19.5%
Total operating revenues
Schibsted 32.9%
Orkla-Schibsted 7.3%
Andre 21.2%
Dagbladet 7.0%
Ordinary operating revenues
Orkla 12.1%
Bad debts and guarantees
3.9
5.0
Total operating expenses
1 389.0
1 264.9
110.2
109.1
Result from associated companies
Business areas profit/loss
Circulation development of Norwegian newspapers
(mill. copies)
0.7
4.7
110.9
113.8
7.4
7.9
3.00
Storbyavisene
2.75
2.50
(NOK million)
1998
1997
Circulations revenues
213.3
212.3
Advertising revenues
182.0
176.8
Printing revenues
2.25
2.00
’98
’96
’94
’92
’90
’88
’86
’84
’82
0.0
0.0
74.0
79.6
22.8
18.1
492.2
486.8
’80
Cost of materials
104.7
99.0
220.9
212.9
176.6
166.9
14.3
14.9
Ordinary operating revenues
2.6
2.9
519.1
496.6
- 26.9
- 9.8
0.0
0.0
- 26.9
- 9.8
- 5.5
- 2.0
Circulation development
(47 newspapers)
1998
1997
1996
1995
1994
126 210
125 190
126 117
126 266
125 573
Other majority newspapers 398 662
400 077
393 419
387 083
387 314
Total majority newspapers 524 872
525 267
519 536
513 349
512 887
Storbyavisene
Minority newspapers
Total circulation
20
53 943
53 450
54 927
54 670
54 745
578 815
578 717
574 463
568 019
567 632
Figures for comparable newspapers.
A-pressen Eastern Europe AS
A-pressen aims to establish a strategic position in the Russian regional newspaper
market by establishing modern newspapers in Russia’s biggest regions. One of its
goals is to establish operations at an early phase of the development of a private
media market. The venture is underpinned by simple and modern rotary presses that
can be flexibly expanded in pace with the development of the market.
The operation in Russia is part of A-pressen’s added valued development, and is an
expression of a desire to capitalize on the Group’s expertise and organization. Market
potential is substantial and will probably climb in step with the growing purchasing
power of Russian consumers.
The business has been set up as a separate company, A-pressen Eastern Europe AS
(AEE). Ownership is split between A-pressen, with 65 per cent, with the remaining
35 per cent owned by the European Bank for Reconstruction and Development
(EBRD) and EBRD’s regional fund Nordic Russian Management Company Ltd
(NORUM). AEE has signed a framework agreement on a partnership with the media
group Komsomolskaya Pravda-Group To-day (KP-GS) and regional investors. A fundamental principle in the projects is that the Russian partners do the basic investments
(premises etc.) and pay up their share of the capital before AEE and EBRD inject capital.
A-pressen’s expertise will be actively used to develop the projects.
A number of projects are in progress, the first three of which are to come on stream
in the first half of 1999.
21
Major changes in
the area of printing
p r i n t i n g
A-pressen’s printing business is partly organized in separate printing companies and
partly as divisions of newspaper companies. The business area accounts for 9.0 per
cent of the Group’s external revenues. A-pressen has 21 press installations. Of these,
eight are organized in seven separate printing companies, the remaining 13 are press
installations in the newspaper companies. A-pressen’s printing business consists first
and foremost of printing the Group’s own newspapers as cost-effectively as possible.
Media Øst Trykk AS (MØT) has large shares in the external market, but has ambitions
of increasing its market share substantially.
Share of turnover
Trykk 9.0 %
A-pressen has been involved in the Russian market since 1994, and in 1996 it invested
in the state-owned printing plant in Murmansk. The project has been successful and
provided valuable experience. The operations in Russia have now been spun off into
a separate company, A-pressen Eastern Europe AS, of which A-pressen owns 65 per
cent, with the remainder owned by the European Bank for Reconstruction and
Development (EBRD).
A-pressen has restructured most of its printing business since 1996. In Eastern
Norway, the number of printing plants has been reduced from six to two over the
course of 1997 and 1998. During this period all production of the printing plants in
Kongsvinger, Sarpsborg, Drammen and Skøyen was transferred to Media Øst Trykk
AS in Lillestrøm and Mysen. In Sogn og Fjordane the printing plants of Firdaposten
and Sogn Dagblad have been closed and operations have been transferred to Firda.
In Stavanger, Rogalands Avis’ printing plant was sold, and the printing of the newspaper was transferred to the competitor, Stavanger Aftenblad. When Telemarksavisa’s
own printing plant was closed, Larvik Rotasjonstrykkeri AS took over printing the
newspaper. A-pressen also sold Sentrum Trykk in Trondheim and Larvik-based
Østlands-Postens Boktrykkeri in 1998.
The basis for further structural changes will probably be limited. This is primarily
because geography and long distances make distribution difficult, in combination with
the fact that the present solution of small press installations in the newspaper companies is cost-effective.
After the closure of the printing works in Sarpsborg, Drammen, Skøyen and
Kongsvinger in 1998, the production facilities of Media Øst Trykk AS (MØT) are in
Lillestrøm and Mysen. The facility in Lillestrøm prints altogether 15 daily newspapers,
while two newspapers are printed in Mysen.
Printing revenue (NOK million)
125
1993
149
1994
223
1995
227
1996
179
206
1997
1997
181
204
1998
1998
The Group’s external printing revenue
Revenue adjusted for bought and sold companies
In the spring of 1997, MØT installed the country’s most modern production facility
based on a so-called semi-commercial concept. The equipment and equipment configurations are set up to print both daily newspapers and advertising supplements.
The old rotary press has been upgraded and renovated, and currently performs well
with respect to colour options and the printing quality of daily newspapers. The facility in Lillestrøm can produce three newspapers simultaneously.
The rotary press in Mysen was upgraded in the autumn of 1998. The packing facility
has been automated and the press was expanded to 32 pages with four colours
throughout. This means that Media Øst Trykk has plenty of capacity to print shoppers.
The Mysen site also has its own sheet press and has recently invested in a modern
four-colour machine.
The printing plant in Lillestrøm experienced, however, considerable operating problems in its first year of business, mainly due to the failure of the press and packing
equipment suppliers to fulfil their contracts. The problems have caused substantial
losses in the form of additional costs and low productivity, and, not least, a loss of
competitive power and lost opportunities in the civilian printing market.
22
Media Øst Trykk has received NOK 15 million in compensation from the printing press
supplier, of which NOK 4 million was posted to income in 1997/98. The company will
do some upgrading of the printing plant to ensure stable output. Production stability
has improved considerably in the last few months, but it will still take some time
before the facility’s capacity can be fully used and all productivity targets are
achieved.
A-PRESSEN PRINTING
Printing companies
Aura Avis Drift
Media Øst Trykk
avd. Mysen
Together with the 15 press installations in the newspaper companies, Aura Avis Drift
AS, Nor-Trykk Narvik AS, Nye Hojem Trykkeri AS (sheet printing works),
Bergensavisens Trykk AS and Samtrykk ANS make up the rest of A-pressen’s printing
business.
Nor-Trykk Narvik
Nye Hojem Trykkeri
Bergensavisen Trykk
Sam-Trykk
Larvik Rotasjonstrykkeri
Printing companies
1997
29.7
33.9
Operating revenues
366.0
336.2
Cost of materials
139.5
131.6
114.1
105.8
61.4
63.1
Ordinary depreciation
35.0
28.7
1.9
- 0.1
351.9
329.1
14.1
7.2
0.0
0.0
14.1
7.2
3.9 %
2.1 %
Operating margin
The business area profit/loss in the area of printing includes only those printing companies which
are organized in separate shareholders companies.
Lofotposten
Namdals-Avisa
Rana Blad
Markets outside Norway could prove interesting over time, the same applies to
Norwegian printing jobs given to foreign printers. Norwegian customers annually
place an estimated NOK 600 million worth of printing jobs outside Norway.
302.3
Rjukan Arbeiderblad
Continued growth is expected in the rotary printing market, but competition will harden as several large printing factories come on stream over the next few years. Prices
are under pressure already now.
1998
Firda
Hardanger Folkeblad
Nordlys
In the civilian printing market there is also a tendency to demand steadily better paper
quality (glazed paper) and bleed printing. In Eastern Norway, stiff competition
between shopping centres and chain stores has led to ever larger print runs and
increasing demands for shorter turnaround times. MØT is equipped to meet customers’ new requirements. Media Øst Trykk’s strategy is to industrialize production,
improve quality and utilize investments better. Its goal is to win external jobs in competition with other rotary printers.
336.3
Finnmarken
Finnmark Dagblad
Quality, price, volume and delivery speed standards have increased noticeably in the
newspaper and civilian printing markets. Newspapers are seeing greater demand for
colour advertisements from their customers. This requires greater capacity to print
colour advertisements in the printing plants and higher standards on the printing quality of the advertisements. Efficient packing facilities are another competitive factor.
The capacity to do inserts, segmentation and selective addressing provides greater
competitiveness.
Printing revenues
Arbeidets Rett
Nordlands Framtid
In addition to printing A-pressen’s own newspapers, these printing plants compete to
a greater or lesser extent in various segments of the external printing market. The
Narvik-based company Nor-Trykk has printed Norsk Lysingsblad (Norwegian Gazette)
for many years and been working since 1996 with the Murmansk-based state-owned
printing plant Sever on jobs in the Russian market. The contract with Norwegian
Gazette was extended by 10 years on 1 January 1998.
(million NOK)
Printing plants in
newspapers companies
23
Strong position
in television
A-PRESSEN TV
Production
Broadcasting
TMM Produksjon (70 %*)
TV 2 (33 %)
TV Norge (49 %**)
TV-Huset (44 %*)
Advertising
A-pressen enjoys a dominant position as the owner of Norwegian commercial TV
channels. The biggest investment is the Group’s 33.2 per cent stake in TV 2, accounting for approximately 90 per cent of the Group’s NOK 630 million investment in this
business area.
Local TV
TV Østfold (90 %)
Small Film (50 %)
TV Romerike (99 %)
Film Companiet (20 %)
TV Innlandet (62 %)
TV Nord-Trøndelag (70 %)
TV Helgeland (39 %*)
The market
The television viewing of Norwegians has been tracked via MMI’s TV meter panel
since 1992. Viewing has increased steadily from 122 minutes per day in 1992 to 150
minutes in 1996. In 1997 TV watching dropped six minutes to 144 minutes per day. In
1998, viewing increased again, ending on an average day at 151 minutes per person
over 12 years of age. This is the highest viewing time recorded since TV meter measurements began in 1992.
TV Tromsø (36 %)
TV Telemark (67 %)
TV Finnmark (11 %)
*The Group’s ownership stake
**TV 2’s ownership stake
Norway’s TV advertising market exploded after TV 2 came on the air in 1992. The
advertising market including agency commissions totalled more than NOK 1.8 billion
in 1998, and has grown rapidly in recent years. This development has been driven primarily by TV 2, which has significantly increased its production of gross rating points
(GRP). Not only has the volume increased, but the price per GRP has also increased
considerably as the result of demand exceeding supply for most of the year. Further
development in the years to come will depend on the general state of the Norwegian
economy.
TV 2 has become a central figure in the advertising market because of a tendency by
advertisers to choose the leading channel for airing their commercials. TVNorge’s performance in this area was poor until 1996, but is now showing improvement thanks
to greater distribution and cooperation with TV 2. The only real competitor for the
moment is TV 3. This channel operates out of Britain under British advertising rules,
which gives it certain advantages compared with TV 2 and TVNorge. Under British
rules, the channel can have commercial breaks during programmes and telecast
advertising aimed at children.
The local TV advertising market is still underdeveloped for several reasons. Local
advertisers have to get used to the new medium, very few have air ready material at
their disposal, capacity to produce sufficiently inexpensive commercial spots has
been limited and introductory sales to local advertisers have not been good.
In the future, TV signals will be distributed digitally instead of by analog means. This
will reduce the cost of establishing new TV channels, and is expected to lead to the
founding of more niche channels.
Channels
TV 2
TV 2 is Norway’s largest and most important commercial TV channel. TV 2 has a 64
per cent share of the TV advertising market in Norway, and has a solid number two
position behind NRK 1 in the audience market. TV 2 is clearly the most popular channel in Norway among young viewers aged 12 to 34.
A-pressen owns 33.2 per cent of TV 2 and wants to contribute to TV 2’s further development. Under TV 2’s licence terms, the maximum stake a single shareholder may
Key figures for TV 2
(NOK million)
1998
1997
1996
1995
1994
1 336
1 070
898
784
554
Operating profit
154
155
124
114
43
Profit before taxes
161
162
133
113
36
Profit after taxes
84
95
94
107
36
33,2
33,2
23,3
24,5
-
6,0
4,7
8,8
2,1
-
Operating revenues
A-pressen’s ownership (%)
A-pressen’s share of the result
after goodwill depreciations
25
B u s i n e s s
A r e a
T V
own is one-third of the shares. This stipulation is virtually fully utilized as A-pressen,
Egmont and Schibsted are close to owning a third each of TV 2.
It is natural to capitalize on TV 2’s considerable knowledge and organization within a
Scandinavian framework.
Viewership – population over the age 12
60 %
In the coming millennium TV 2 will continue to embrace the profile which has created its success: a general interest broadcaster with the entire population as its target
group. TV 2’s ambition is to be an independent, credible, informative, engaging, entertaining and, not least, innovative TV channel.
55 %
50 %
45 %
40 %
35 %
TV 2 faces three major challenges. Three factors are prominent in the short term:
a) the competitive situation in Norway,
b) higher cost of programmes and sports rights,
c) competition from international players.
30 %
25 %
20 %
15 %
In the longer term TV 2 will have to deal with the globalization of the TV market and
the transition to digital TV.
10 %
5%
4. Q. ’98
4. Q. ’97
4. Q. ’96
4. Q. ’95
4. Q. ’94
4. Q. ’93
4. Q. ’92
0%
NRK
TV 2
TVN
TV 2 and TVNorge signed an extensive partnership agreement in 1997 in connection
with TV 2’s acquisition of 49 per cent of TVNorge. TV 2 is committed to increasing
viewership of TVNorge. It is believed the partnership will strengthen both channels in
the competition with NRK, TV 3 and other TV channels. In 1998, TVNorge increased
its market share from 8.0 to 8.6 per cent. TVNorge thus increased its market share
for the second year in a row after three previous years of reduced market shares. The
8.6 per cent share is the highest market share claimed by TVNorge since measurements were established in 1992.
TV 3
NRK TO
TV 2’s advertising revenues (including agency commissions) grew in 1998 by more
than 11 per cent to nearly NOK 1.2 billion. The company also sees considerable potential in the development of advertising media such as the Internet and text-TV through
subsidiaries. The convergence and synergy of PC technology, telecommunications
and the TV industry offer TV 2 exciting opportunities in the future.
On the other hand, the steadily spiralling cost of sports broadcasting rights is alarming. TV 2 believes forging strategic alliances is extremely important in the competition
for rights to international sporting events.
Over the past few years TV 2 has evolved from being purely a TV channel to becoming involved in a number of other TV-related business areas. For example, TV 2 has
established Autograph Broadcast Systems, Storm Weather Center AS,
Nyhetssentralen Byrå 2 AS and Net 2 Interaktiv AS, all of which possess good business ideas and products in expanding markets. TV 2 has merged the satellite card
company Norgeskanalen with the Telenor/Canal Plus company Canal Digital Norge AS
and has a post-merger stake of 16 per cent in Canal Digital Norge. Companies like this
will provide TV 2 with more legs to stand on, and in the coming millennium it is probable that they will account for a considerable portion of TV 2’s income.
TV 2’s licence expires 31 December 2002. The company is working to extend the
licence.
Local TV
The Group also owns stakes in eight local TV companies and a few small production
companies. Cooperation between A-pressen’s local TV stations and newspapers on
advertising, promotion, editorial activities and administrative functions is a Group goal.
Local TV (NOK 1 000)
NordFinnmark Trøndelag
Helgeland
Innlandet
Romerike
Telemark
Tromsø
Østfold
No. of persons over the age 13 in the licensing area
64
289
61
87
163
99
95
205
Channel’s coverage as per 2nd Q. 1998 (%)
70
55
56
63
77
72
52
80
Weekly viewership as per 2nd Q. 1998 (%)
40
32
37
29
35
49
33
41
Number of weekly viewers as per 2nd Q. 1998
26
92
23
25
57
49
31
84
1989
jan. 97
des. 96
1988
jan. 97
aug. 97
aug. 96
nov. 96
When the channel started its regular broadcasts
26
Several stations have achieved healthy audience numbers, while the industry in general is struggling to bring in sufficient advertising revenues. The Group is following the
situation closely, and its goal is for all companies to break even in 1999.
The Norwegian TV advertising market
1995
175
222
803
A-pressen entered the local TV market in 1996 when the authorities improved the
operating conditions for the industry. Its motivation for getting involved was of both a
defensive and proactive nature. Local TV operates in the same markets as local newspapers. A-pressen wanted to be in position in case local TV won substantial shares
from local newspapers. In places where A-pressen is involved in both newspapers
and TV the strategy is to work together in order to give the advertising market a better
offer. Local TV is a relatively small part of A-pressen’s TV operations. Its goal is nevertheless to be a leading owner of profitable local TV companies.
1996
191
187
896
1997
242
201
1 061
1998
303
283
1 180
TV3
TVN
The local TV companies have extensive dealings with TVNorge because they distribute TVNorge’s programmes, via their own transmission systems, for much of the
broadcasting day. TVNorge pays according to distribution. In addition, the stations
have agreements on the sale of programmes to TVNorge and they also broadcast
their own local programmes with local advertising during part of the time the channel
is on the air. The combination of these activities forms the financial basis of the local
stations, some of which also have revenues from games and text-TV.
TV 2
The most important advertising base is large regional advertisers. Until now, they
have for the most part used printed media – getting used to moving pictures will take
time. These advertisers are also not used to paying for advertising production, which
traditionally has been done by the production departments of newspapers.
Consequently, it will take time to sell local TV as an advertising medium to advertisers. Interest, however, is picking up.
Other TV operations
A-pressen currently has small stakes in programme production and production of
advertising. The Group’s goal is to establish profitable operations in several parts of
the value chain, either alone or together with partners.
As of today the Group has ownership stakes in two companies that produce programmes: TMM Produksjon and TV Huset, and two advertising production companies:
Small Film AS and Film Companiet AS. These two companies are in a start-up phase.
TV
(NOK million)
1998
1997
Total operating revenue
55.0
38.5
Cost of materials
7.9
5.7
Saleries, wages and other personnel expenses
33.0
24.8
23.7
18.1
Ordinary depreciation*
14.8
8.0
0.9
4.3
80.3
60.9
- 25.4
- 22.4
*Extraordinary goodwill depreciations
5.2
- 21.0
- 20.2
- 43.4
5.5
-
27
E l e c t r o n i c m e d i a
Share of turnover
Electronic media 0.4 %
Uncertain future
in electronic media
The business area is under development and saw considerable consolidation and
restructuring in 1998. New formations so far have been far ahead of the market curve.
Several of A-pressen’s activities experienced major changes in 1998. 1999 will also be
a turbulent period.
The business area currently comprises four subsidiaries and four associated companies. A-pressen’s largest venture so far in the business area – Digital Hverdag AS – is
merging with New Media Science Multimedia ASA, and will be an associated company from 1999, though with accounting effect for 1998.
Subsidiaries
– A-pressen Nett AS is the operating company for the on-line newspaper products of
14 newspapers. The company provides technical, editorial and market services to
participating newspapers, and is connected with Bergensavisen.
– Lokalnett AS supplies Internet solutions and consultant services to municipalities
and the public sector. The company is located in Lillehammer and had a difficult year
in 1998 due to the sluggishness of the municipal market and operating problems
associated with the demerger of the company. A-pressen is continually evaluating
its position in this market.
– Bilkanalen AS is a motor trade-related niche service on the Internet. In 1998 the
company experienced a setback in the market after the precondition of joint ownership with the car industry no longer proved possible. Bilkanalen’s operations will
be restructured in 1999.
– Funn Narvik AS supplies IT consultant services.
Digital Hverdag/New Media Science
Digital Hverdag has been a rapidly growing winner in the professional Internet solutions market. In the summer of 1998, the company saw that the market needed larger and stronger players. A process for finding a suitable partner ended with a merger
agreement with the market leader, New Media Science. The new company is clearly
the largest in the Norwegian market, but is also encountering increasing competition
from other companies that have merged in the past few months. In 1999 New Media
Science will have nearly 100 employees and post revenues of more than NOK 60 million.
The company is also in position to do business in the Nordic market through the
Nordic Net Partners alliance.
– Intrafish AS is a niche Internet news venture for the fish farming industry.
– Norsk Familieøkonomi AS supplies editorial products and personal finance-related
services for members.
– Cyberbook AS supplies CD-ROM products specially aimed at the school and “play
and learn” market.
– Medical Media AS has merged with Transmit Medical AS, and is a niche venture in
the health/medical sector. Transmit Medical will offer editorial services, courses and
consultant services.
The Market
The Internet market was saw sharp growth in access and use in 1998, but the advertising market did not live up to the expectations of players. Advertising revenues in
1998 amounted to approximately NOK 70 million. For 1999, the prognoses vary from
NOK 70 to 150 million. Last year saw a number of projects that ran into capital problems, triggering considerable restructuring. The largest media players nevertheless
continue to make considerable investments, with the goal of turning a profit in 2000.
28
Strategy
Although there are an unusually high number of uncertainties connected with electronic media, a substantial industry is evolving which already has interesting business
opportunities. The risk, however, is high, and many players have already suffered considerable losses.
A-pressen’s strategy is threefold. Firstly, a number of newspapers publish basic on-line
editions to consolidate the position of their core operation. Secondly, several A-pressen
companies supply consultant services to the professional market. Thirdly, A-pressen
is carefully building up niche markets in content media.
A-PRESSEN ELECTRONIC MEDIA
Subsidiares
A-pressen Nett (100 %)
Bilkanalen (86 %)
Lokalnett (87 %)
A-pressen’s goal is to be a leading player in the business area, and the market leader
in electronic local media. In two years it is looking to make acceptable profits on combined revenues of between NOK 75 and 100 million.
FUNN (76 %)
Electronic media
(NOK million)
1998
1997
8.1
13.8
Cost of materials
1.4
2.7
Salaries, wages and other personell expenses
5.5
6.4
6.3
5.2
Ordinary depreciation*
6.1
2.0
Bad depts and guarantees
0.0
0.2
19.2
16.4
- 11.1
- 2.7
Result form associated companies
* Extraordinary goodwill depreciations
- 9.8
- 1.0
- 21.0
- 3.7
5.2
-
29
New Media Science (23 %)
Cyberbook (22 %)
IntraFish (38 %)
Norsk Familieøkonomi (33 %)
N e w s p a p e r s a n d p r i n t i n g c o m p a n i e s
A-pressen’s newspapers and printing
companies
lthough A-pressen has expanded in step with media developments,
newspapers and all that is associated with newspaper publishing are
still the main business of the Group and will remain so for the foreseeable future. Norway is one of the top newspaper-reading countries in the world,
and A-pressen's local newspapers enjoy a strong position despite competition
from national newspapers, TV and new media. In an age of fragmented media
choices, people prefer the intimacy of a local newspaper. This was recently confirmed in the Norwegian Newspaper Publishers' Association's circulation report
for 1998. In terms of public interest and finances, publishing local newspapers
is the very backbone of A-pressen's business. Consequently, this area will continue to be our main focus in the years to come.
A
The Group's goals in this area are to:
• ensure and strengthen the strategic position of local newspapers
• significantly increase profits of existing newspaper, printing and distribution
operations
30
1998
7 170
18 682
2 961
1997
7 158
18 527
2 761
7 196
18 448
2 076
7 274
18 793
2 781
Circulation
Operating revenues
Operating revenues
Circulation
N e w s p a p e r s
•
•
1996 •
1995 •
Arbeidets Rett
1998
8 431
30 655
3 380
1997
8 303
27 122
3 646
8 170
27 625
4 818
7 77 4
20 623
969
•
•
1996 •
1995 •
[email protected]
P. O. Box 12, 1441 Drøbak
Tel. 64 90 54 00
[email protected]
P. O. Box 24, 7361 Røros
Tel. 72 40 64 00
www.fjellnett.no/retten
Aura Avis1
•
•
1996 •
1995 •
Aust Agder Blad
1998
3 715
9 014
207
1997
3 578
8 500
248
3 590
15 474
851
3 651
19 068
1 333
•
•
1996 •
1995 •
1998
3 683
6 832
1997
3 712
6 567
632
3 701
6 057
325
3 677
6 086
221
[email protected]
P. O. Box 43, 6601 Sunndalsøra
Tel. 71 69 24 44
[email protected]
P. O. Box 40, 4951 Risør
Tel. 37 15 04 11
Avisa Sogndal2
1998
•
1 708
1 207
Bergensavisen
- 1 091
•
• 30 735
1996 • 29 384
1995 • 28 903
1998
31 022
1997
[email protected]
P. O. Box 43, 6851 Sogndal
Tel. 57 67 33 37
•
2 553
5 007
•
• 10 462
1996 • 10 763
1995 • 10 507
1997
- 1 625
121 806
- 1 133
•
•
1996 •
1995 •
5 784
9 906
- 290
1997
5 782
9 662
526
5 414
8 462
189
5 268
7 968
592
[email protected]
P. O. Box 53, 3371 Vikersund
Tel. 32 78 71 11
Finnmark Dagblad
•
•
1996 •
1995 •
43 050
- 6 316
1998
10 362
39 820
43 567
- 132
1997
10 679
39 229
3 313
40 007
- 1 497
10 893
39 280
1 927
37 214
- 1174
11 027
38 670
1 801
[email protected]
P. O. Box 83, 1601 Fredrikstad
Tel. 69 31 99 99
www.demokraten.of.no
32
- 5 079
132 809
1998
Demokraten
9 866
- 9 638
136 504
Bygdeposten
1 308
[email protected]
P. O. Box 806, 9488 Harstad
Tel. 77 05 94 00
1998
135 686
[email protected]
P. O. Box 824, 5087 Bergen
Tel. 55 23 50 00
www.ba.no
Bladet Harstad3
1998
472
1 463
[email protected]
P. O. Box 360, 9615 Hammerfest
Tel. 78 42 86 00
Operating revenues
Circulation
Circulation
Operating revenues
Firda4
Finnmarken
7 818
27 176
1 423
• 1998
15 011
56 041
5 570
7 955
27 001
2 330
• 1997
15 007
53 753
5 388
8 117
26 485
2 291
44 685
5 910
26 674
3 260
• 1996
• 1995
13 675
8 148
13 282
38 670
4 500
[email protected]
P. O. Box 616, 9811 Vadsø
Tel. 78 95 55 00
[email protected]
P. O. Box 160, 6801 Førde
Tel. 57 83 33 00
Firdaposten
Fremover
5 965
15 316
563
5 870
14 743
878
5 830
15 151
- 62
6 050
15 710
- 823
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 38, 6901 Florø
Tel. 57 74 00 00
10 193
34 644
426
10 410
34 115
2 116
10 453
33 632
2 510
10 335
33 312
2 099
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 324, 8504 Narvik
Tel. 76 95 00 00
www.fremover.no
Fremtiden
Glåmdalen
12 619
43 578
272
• 1998
21 391
84 352
3 619
14 001
45 971
362
• 1997
22 017
83 960
5 333
14 786
45 369
- 2 095
82 870
6 620
45 853
529
• 1996
• 1995
22 250
15 700
22 490
80 358
4 694
[email protected]
P. O. Box 9, 3001 Drammen
Tel. 32 26 70 00
• 1998
• 1997
• 1996
• 1995
[email protected]
2226 Kongsvinger
Tel. 62 81 52 22
Hadeland5
7 607
• 1998
• 1997
• 1996
• 1995
Halden Arbeiderblad6
22 641
764
• 1998
[email protected]
P. O. Box 85, 2712 Brandbu
Tel. 61 33 41 20
10 540
62 356
485
10 477
58 175
2 742
10 474
55 002
2 752
10 470
54 319
2 790
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 113, 1751 Halden
Tel. 69 21 56 00
www.ha.halden.no
Hamar Arbeiderblad7
Hardanger Folkeblad
28 693
122 252
10 873
• 1998
5 879
16 239
2 220
28 252
122 792
12 471
• 1997
5 861
16 090
3 494
• 1996
• 1995
5 847
14 836
2 298
5 835
13 962
2 356
28 169
119 819
9 760
28 034
112 641
9 284
[email protected]
P. O. Box 262, 2302 Hamar
Tel. 62 51 96 00
torget.ha-nett.no
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 374, 5751 Odda
Tel. 53 65 06 00
33
Indre Akershus Blad9
•
•
1996 •
1995 •
Operating revenues
Circulation
Operating revenues
Circulation
N e w s p a p e r s
•
•
1996 •
1998
10 200
38 468
3 117
1998
6 541
12 102
1997
9 950
37 307
2 882
1997
6 540
11 144
583
9 779
34 752
2 170
6 425
9 800
-486
9 845
32 297
1 990
1998
1997
[email protected]
P. O. Box 564, 8651 Mosjøen
Tel. 75 11 36 00
www.helgeland.arbeiderblad.no
[email protected]
P. O. Box 68, 1941 Bjørkelangen
Tel. 63 85 48 00
Indre/Øvre Smaalenenes avis8
Kvinnheringen10
• 14 710
• 14 721
56 825
5 182
57 049
8 107
1998
•
[email protected]
P. O. Box B, 1801 Askim
Tel. 69 81 61 00
•
• 10 418
1996 • 10 414
1995 • 10 740
10 060
1997
1 904
34 844
1 237
35 017
2 561
32 745
1 179
1998
•
Malvik Bladet
3 569
156
1997
2 751
3 278
144
2 570
3 344
176
2 311
2 697
172
•
•
1996 •
1995 •
6 371
26 560
- 7 061
6 370
25 743
- 2 340
6 737
23 599
- 4 856
6 714
21 887
- 3 800
[email protected]
P. O. Box 190, 1501 Moss
Tel. 69 24 02 40
www.moss-dagblad.no
Nordlands Framtid
•
• 20 828
1996 • 21 041
1995 • 21 268
43 615
3 363
1998
41 967
4 604
1997
39 127
3 416
37 049
2 691
[email protected]
P. O. Box 158, 7801 Namsos
Tel. 74 21 21 00
namdalsavisa.namdalsnett.no
34
320
1997
Namdals-Avisa
•
• 13 401
1996 • 13 239
1995 • 13 064
1 612
1998
[email protected]
P. O. Box 130, 7551 Hommelvik
Tel. 73 97 13 11
1997
4 707
Moss Dagblad
2 818
13 591
389
[email protected]
P. O. Box 4, 8376 Leknes
Tel. 76 05 40 00
1998
1998
4 398
Lofot-Tidende11
35 428
[email protected]
P. O. Box 85, 8305 Svolvær
Tel. 76 06 78 00
www.lofotposten.no
•
•
1996 •
1995 •
4 863
[email protected]
5460 Husnes
Tel. 53 48 21 30
www.kvinnheringen.no
Lofotposten
1998
226
20 257
77 267
- 114
74 694
936
72 624
- 179
71 277
1 376
[email protected]
Storg. 9, 8002 Bodø
Tel. 75 50 50 00
www.nordlands-framtid.no
Operating revenues
Circulation
Operating revenues
Circulation
Nordlys12
Opdalingen
30 924
124 356
9 563
• 1998
3 239
7 914
1 081
32 874
130 166
15 213
• 1997
3 201
7 812
1 215
32 646
121 920
12 571
7 139
434
108 651
8 954
• 1996
• 1995
3 210
33 078
3 198
6 877
120
[email protected]
P. O. Box 2515, 9272 Tromsø
Tel. 77 62 35 00
www.nordlys.no
[email protected]
P. O. Box 33, 7341 Oppdal
Tel. 72 42 11 88
Rakkestad Avis13
29 157
119 892
18 390
28 605
111 420
14 789
28 521
109 611
14 117
28 509
101 377
9 666
• 1998
• 1997
• 1996
• 1995
2 467
7 200
13
2 366
5 882
- 678
2 425
4 746
64
• 1998
• 1997
• 1996
• 1995
• 1998
• 1997
• 1996
[email protected]
P. O. Box 404, 1891 Rakkestad
Tel. 69 22 25 55
[email protected]
P. O. Box 24, 2801 Gjøvik
Tel. 61 18 93 00
www.oa-nett.no
Ringerikes Blad14
Rana Blad
11 199
52 305
3 625
• 1998
13 228
67 519
10 734
11 034
51 249
5 221
• 1997
13 276
64 861
10 354
• 1996
• 1995
11 078
50 150
4 773
11 010
48 698
4 673
• 1998
• 1997
[email protected]
P. O. Box 68, 3502 Hønefoss
Tel. 32 17 95 00
[email protected]
P. O. Box 55, 8601 Mo
Tel. 75 12 55 00
www.ranablad.no
Rjukan Arbeiderblad
Rogalands Avis
2 471
6 779
- 491
• 1998
16 521
63 813
123
2 464
6 484
541
• 1997
17 509
62 778
1 047
2 520
6 354
389
57 643
253
6 372
153
• 1996
• 1995
17 895
2 525
16 825
59 950
- 2 061
[email protected]
Svaddev. 149, 3660 Rjukan
Tel. 35 08 00 50
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 233, 4001 Stavanger
Tel. 51 82 20 00
www.rogavis.no
Romerikes Blad15
41 906
188 374
34 892
• 1998
17 397
98 455
6 921
42 123
174 294
24 171
• 1997
17 605
97 130
16 370
41 517
209 182
30 387
73 264
10 152
198 640
25 730
• 1996
• 1995
17 652
40 468
17 600
84 297
13 018
[email protected]
P. O. Box 235, 2001 Lillestrøm
Tel. 63 80 50 50
• 1998
• 1997
• 1996
• 1995
[email protected]
P. O. Box 87, 1701 Sarpsborg
Tel. 69 11 11 11
www.sarpsborg-arbeiderblad.of.no
35
- 890
1997
7 277
18 228
996
7 421
18 283
1 653
7 405
17 991
1 792
Circulation
Stjørdalens Blad
•
•
1996 •
1995 •
•
•
1996 •
1995 •
Telemarkavisa
•
• 22 174
1996 • 21 913
1995 • 21 968
1998
22 256
1997
3 502
80 189
- 4 497
79 779
- 1 815
81 584
-4 950
[email protected]
P. O. Box 2833 Kjørbekk
3702 Skien
Tel. 35 58 55 00
www.telemarksavisa.no
Tidens Krav
Tvedestrandsposten16
16 099
51 119
4 675
1998
1997
16 091
50 069
6 714
1997
16 106
48 263
5 256
16 148
46 372
5 719
•
•
Østlands-Posten17
•
• 14 372
1996 • 13 720
1995 • 13 714
14 501
3 875
3 914
[email protected]
P. O. Box 100, 4901 Tvedestrand
Tel. 37 16 20 66
[email protected]
P. O. Box 8, 6501 Kristiansund
Tel. 71 67 00 00
1997
93 868
[email protected]
P. O. Box 163, 7501 Stjørdal
Tel. 74 82 72 11
1998
1998
17 734
Operating revenues
7 101
Circulation
Operating revenues
1998
N e w s p a p e r s
Årdal & Lærdal avis18
81 987
14 477
1998
82 816
1 263
1997
85 024
359
78 626
12 653
[email protected]
P. O. Box 2000, 3251 Larvik
Tel. 33 16 30 00
www.ostlands-posten.no
1 Aura Avis: The company was demerged in 1996. Printing and administration have been transferred to Aura Avis Drift AS.
2 Avisa Sogndal: Started publishing on 1 July 1997.
•
•
2 419
5 063
- 1 162
1 931
10 534
- 191
[email protected]
P. O. Box 284, 6882 Øvre Årdal
Tel. 57 64 86 50
10 Kvinnheringen: Kvinnheringen was transferred to a new established
company on 1 September 1998. The figures apply only to the period
of 1 September–31 December 1998. Circulation figures are for the
full year.
3 Bladet Harstad: Acquired with effect from 1 January 1998.
11 Lofot-Tidende: Acquired with effect from 1 November 1998.
4 Firda: Acquired with effect from 1 January 1996.
12 Nordlys: A-pressen acquired majority on 1 May 1997.
5 Hadeland: Acquired with effect from 31 December 1998.
13 Rakkestad Avis: Acquired with effect from 1 July 1996.
6 Halden Arbeiderblad: Associated company.
14 Ringerikes Blad: Acquired with effect from 1 November 1997.
7 Hamar Arbeiderblad: The company was reorganized in 1998. The
figures are therefore not comparable. Minority company.
15 Romerikes Blad: The company was demerged in 1997. The figures
are therefore not comparable.
8 Indre Smaalenenes Avis: Indre Smaalenenes Avis was acquired
with effect from 1 July 1996. Indre Smaalenenes Avis and Øvre
Smaalenene have since 1 January 1997 been published by
Smaalenene Medier AS. Associated company.
16 Tvedestrandsposten: Acquired with effect from 1 January 1999.
17 Østlands-Posten: Acquired with effect from 1 January 1995.
18 Årdal & Lærdal avis: Started publishing on May 1997.
9 Indre Akershus Blad: Acquired with effect from 1 September 1996.
36
Explanation to key figures:
Circulation: Weekday circulation, source: NAL
Operating revenues: The company’s operating revenues in NOK 1 000.
Operating profit/loss: The company’s operating profit/loss in NOK 1 000.
P r i n t i n g
Bergensavisen Trykk AS
Operating revenues
Media Øst Trykk AS
55 482
Operating profit
4 121
Operating revenues
234 527
Operating profit
4 835
P. O. Box 6012, 5892 Bergen
Tel. 55 23 51 81
P. O. Box 235, 2001 Lillestrøm
Tel. 63 80 50 80
Aura Avis Drift AS
ANS Sam-Trykk
Operating revenues
17 056
Operating profit
1 722
P. O. Box 43, 6601 Sunndalsøra
Tel. 71 69 24 44
Nye Hojem Trykkeri AS
Operating revenues
Operating revenues
10 690
Operating profit
863
P. O. Box 68, 3501 Hønefoss
Tel. 32 12 82 80
Nor-Trykk Narvik AS
17 108
Operating profit
1 089
P. O. Box 364, 7801 Namsos
Tel. 74 21 21 50
Operating revenues
Operating profit
34 453
2 497
P. O. Box 177, 8501 Narvik
Tel. 76 95 05 00
Larvik Rotasjonstrykkeri AS
Operating revenues
Operating profit
7 377
-172
P. O. Box 2000, 3251 Larvik
Tel. 33 16 30 00
Divided from Østlands-Posten
as a separate company with effect
from 1 October 1998.
37
c o m p a n i e s
A c c o u n t
Contents
40 Profit and loss account A-pressen Group
41 Balanse sheet A-pressen Group
42 Cash flow statement A-pressen Group
43 Accoutning policies A-pressen Group
45 Sale and purcase of subsidiaries A-pressen Group
46 Notes A-pressen Group
55 Value added statement A-pressen Group
56 Profit and loss account A-pressen ASA
57 Balanse sheet A-pressen ASA
58 Cash flow statement A-pressen ASA
59 Notes A-pressen ASA
64 Auditor’s report for 1998 and Statement by the Corporate Assembly
38
A n n u a l
A c c o u n t s
Profit and loss account
(NOK 1 000)
Notes
1998
A-pressen
1997
1996
638 668
Operating revenues
Circulation revenue
733 072
692 173
Advertising revenue
1 054 656
979 130
862 196
204 233
206 110
226 645
Printing revenue
Government grants
87 331
98 428
99 354
190 567
212 469
124 577
2 269 859
2 188 310
1 951 440
323 617
Operating expenses
Cost of materials
1,2
Other operating and administrative expenses
320 081
336 221
1 100 548
1 014 586
905 766
640 156
604 361
504 253
3
146 228
123 133
103 913
4
5 440
6 961
11 099
Loss on sales of shares
5
20 352
-
-
2 232 805
2 085 262
1 848 648
37 054
103 048
102 792
- 3 210
- 17 169
13 413
Operating profit
13
Financial items
Financial income
11 067
9 388
17 027
Financial expenses
- 58 353
- 49 703
- 42 035
Net financial items
- 47 286
- 40 315
- 25 008
- 13 442
45 564
91 197
- 8 726
- 27 190
- 24 141
1 228
-996
864
- 20 940
17 378
67 920
Profit/ loss before tax
and minority shareholders
Taxes
6
Minority shareholders’ stake
Net profit/ loss
Earnings per share (in NOK)
- 2.9
2.4
9.5
Average number of shares
7
7 342 155
7 202 210
7 164 160
Number of shares at end of year
8 839 643
7 202 210
7 202 210
40
A n n u a l
A c c o u n t s
Balance sheet
(NOK 1 000)
A-pressen
Notes
31 Dec. 98
31 Dec. 97
31 Dec. 96
Cash and bank deposits
8
Trade receivables
4
170 875
148 695
253 576
201 830
204 834
184 135
49 377
47 880
45 039
21 443
17 152
18 358
443 525
418 561
501 108
11,13
585 072
594 836
396 698
12
17 973
16 484
35 907
18 494
22 075
35 881
212 213
203 121
139 306
305 526
ASSETS
Current assets
Other short-term receivables
Stock-in-trade
9
Fixed assets
Shares in associated companies
Other shares
Long-term receivables
Goodwill and other immaterial rights
3
Machinery and fixtures
3
431 716
440 078
Buildings, sites and dwellings
3
340 635
350 983
356 392
Total fixed assets
1 606 103
1 627 577
1 269 710
Total assets
2 049 628
2 046 138
1 770 818
Trade creditors
75 069
92 522
87 078
Bank overdraft
3 777
3 658
5 447
LIABILITY AND
SHAREHOLDERS’ EQUITY
Current liabilities
Payable VAT, social security,
tax withholdings, etc.
188 546
185 530
157 968
6
10 721
23 851
19 755
Provisions for dividend
14
683
7 693
9 436
Other short-term debt
15
240 962
245 000
203 047
16
519 758
558 254
482 731
17
760 949
825 036
635 319
1 943
1 142
1 492
2
6 152
26 716
40 608
16
769 044
852 894
677 419
37 392
30 454
15 978
Taxes payable
Long-term liabilities
Long-term debt
Subordinated loans
Net pension obligations
Total long-term liabilities
Minority interests
Share capital (8 839 643 shares á NOK 20)
176 793
144 044
144 044
Other equity capital
546 641
460 492
450 646
723 434
604 536
594 690
2 049 628
2 046 138
1 770 818
Total shareholders’ equity
18
Total liabilities and
shareholders’ equity
Guarantees
Secured debts
19
41
7 935
8 809
35 576
78 488
122 547
620 824
A n n u a l
A c c o u n t s
Cash flow statement
(NOK 1 000)
A-pressen Group
1998
1997
1996
Cash flows from operating activities
Profit/ loss before taxes
and minority shareholders
- 13 442
45 564
91 197
Taxes paid for the period
- 23 355
- 21 848
- 7 626
146 228
123 133
103 913
Profit/ loss on and writedown of
fixed assets and
863
- 19 908
- 10 496
3 210
17 169
- 13 413
Change in stocks, debtors and creditors
- 18 740
1 996
11 860
Change in other accrual items
- 15 139
- 33 208
24 820
Profit/ loss on associated companies
Items classified as investing and
financing activities
Net cash flow from operating activities (a)
30 827
14 023
5 970
110 452
126 921
206 225
57 532
45 922
12 165
- 172 709
- 280 478
- 301 656
1 879
110 451
13 408
- 24 259
- 335 824
- 46 789
0
340
130
Cash flows from investing activities
Incoming payment from sale of fixed assets
Outgoing payment for purchase
of fixed assets and goodwill
Incoming payment from sale of
shares and units
Outgoing payment for purchase of
shares and units
Incoming payment from
sale of other investments
Outgoing payment for
purchase of other investments
Net cash flow from investing activities (b)
- 1 232
- 584
- 34 118
- 138 789
- 460 173
- 356 860
121 058
687 163
258 754
Cash flows from financing activities
Incoming payment when taking up
new long-term debt
Incoming payment when
taking up new short-term debt
0
333
269
- 185 145
- 388 967
- 38 170
-108
- 1 490
- 1 167
119
- 35 796
4 401
Outgoing payment of interest
- 52 384
- 44 771
- 29 263
Incoming payment of equity capital
153 050
589
5 746
Outgoing repayment of long-term debt
Outgoing repayment of short-term debt
Net change in bank overdraft
Dividends received from
associated companies
21 557
20 746
0
Dividends paid
- 7 630
- 9 436
- 8 298
Net cash flow from financing activities (c)
50 517
228 371
192 272
22 180
- 104 881
41 637
Cash balances at beginning of year
148 695
253 576
211 939
Cash balances at end of year
170 875
148 695
253 576
Net change in cash flows through
the year (a+b+c)
The Group uses the indirect method for presenting its cash flow statement in accordance with
the Preliminary Norwegian Accounting Standard for Cash Flow Statements. The indirect model
shows gross cash flows from investing and financing activities, while the accounting result is
reconciled against net cash flow from operating activities.
42
A n n u a l
A c c o u n t s
Accounting policies
General
A-pressen
The consolidated accounts for A-pressen ASA and subsidiaries are rendered in accordance with
Norwegian accounting laws and generally accepted accounting practice, and are based on the
fundamental principles of historical cost, comparisons, continued operations, congruence and prudence.
Consolidation of subsidiaries
Consolidation policies
The consolidated accounts include A-pressen ASA and subsidiaries in
which A-pressen ASA has a controlling interest. Normally, this will involve companies in which A-pressen
ASA either directly or indirectly via subsidiaries owns more than 50 per cent of the voting shares. The
consolidated accounts are prepared according to the acquisition method and show the Group as a unit.
In the consolidated accounts, all outstanding accounts and intercompany transactions are eliminated.
The cost price of shares in subsidiaries is eliminated against the equity capital at the time of acquisition.
Added value beyond the underlying equity in subsidiaries is distributed to the assets to which the value
added is connected. The part of the cost price which cannot be ascribed to specific assets represents
goodwill. Goodwill is included in the consolidated accounts as an intangible asset and is amortized using
the straight-line method over its estimated economic lifetime, though by at least 5 per cent per year. The
book value of goodwill is written down if the actual value is lower and the decline in value is not
assumed to be of a temporary nature.
For subsidiaries in which A-pressen ASA does not own 100 per cent of the shares, the other
shareholders’ stakes are shown in the balance sheet as minority interests. The minority shareholders'
stake of the net profit/ loss is shown on a separate line in the profit and loss account.
Stakes in companies in which the Group has considerable influence are
treated according to the equity method. Normally, this will involve companies in which the Group owns
between 20 and 50 per cent. This means that the Group’s share of the profit/ loss for the year after tax
and depreciation of any value added are posted on a separate line in the profit and loss account. Value
added in the associated companies is treated according to the same principles as those for
consolidating subsidiaries. In the consolidated balance sheet, shares in associated companies are
entered as fixed assets at the original cost price to which accumulated profit shares less dividend are
added.
Sale/purchase of subsidiaries and associated companies
Sales and purchases of subsidiaries and
associated companies are included in the consolidated accounts for the part of the year they have been
a subsidiary of or associated with the Group.
Income from advertising, non-subscription sales and subscription sales
Valuation and classification policies
Advertising income is
reduced for given discounts. Newspaper subscriptions are invoiced in advance. The sale of goods is
taken to income at the time of delivery. Prepaid subscriptions are accrued in the balance sheet as
current liabilities. Non-subscription sales are reduced by the cost of returned newspapers. Commissions
on sales are treated as other operating costs.
Press subsidies
Press subsidies are distributed according to criteria in the Regulations of 7 November
1996 relating to production subsidies for daily newspapers, with later amendments of 17 February 1997
and 22 January 1998. The purpose is to promote and maintain a differentiated press in Norway. The main
criteria for receiving press subsidies is that the newspaper must have an editor-in-chief and contain
general news and current affairs coverage. Press subsidies are granted to all newspapers with a
circulation of between 1 000 and 6 000 copies, and to newspapers that are not the largest in their place
of publication, providing they fulfil the criteria in the Regulations. The press-subsidy programme is
managed by the Ministry of Cultural Affairs via the National Media Authority. Newspapers apply for press
subsidies each year and the funds are distributed on the basis of the Storting’s appropriations based on
the previous year’s circulation of the newspapers that are entitled to subsidies. Press subsidies are paid
quarterly, and are taken to income in their entirety the year they are received.
Principles for charging to profits
A cost is charged to profits at the time it has accrued. Received
legal actions are charged to profits if the loss can be quantified and is more likely to be incurred than
not.
43
A n n u a l
A c c o u n t s
Accounting policies
Assessment of assets and liabilities
cont. valuation and classification policies
A-pressen Group
Goods circulation-related claims and debts are classified
as current assets and current liabilities, respectively. Assets and liabilities not connected with
goods circulation are classified as current assets and current liabilities if they fall due for payment
within one year after the date of closing of accounts. Other assets and liabilities are classified as
fixed assets and long-term debts, respectively. The first year’s repayment of long-term debt is
classified as long-term debt.
Trade receivables
Trade receivables are valued at nominal value at 31 December 1998 less
provision for future foreseeable loss.
Stock-in-trade
Stock-in-trade consists mainly of newsprint with a very fast turnover rate. The
stocks are valued at cost price or actual value, whichever is lower. Deduction is made for dead
stock.
Shares
Shares intended for permanent ownership are posted in the balance sheet as fixed
assets and are valued at cost price. Depreciation at anticipated permanent decline in value is
undertaken following individual evaluation of the particular investment.
Fixed assets
Fixes assets are valued at historical cost after deductions for business
depreciation. Business depreciation is linear and is set according to an assessment of the
technical and economic lifetime of each asset.
The following depreciation periods are used:
Goodwill is depreciated over
5–20 years
Moveable operating assets are depreciated over
3–15 years
Buildings and plant are depreciated over
3–50 years
Publishing rights
50 years
Direct maintenance of operating assets is posted to operating costs, while expenses for
upgrading/ improving are added to the cost price of the operating assets and depreciated
accordingly. Profit or loss on the sale of fixed assets is calculated as the difference between the
sales amount and book value. Said profits are posted to "Other operating revenues" and losses
under "Other operating and administrative expenses."
Change in accounting policy
In this year's accounts, goodwill at acquisition is divided between
publishing rights as an intangible asset and goodwill as a residual item. The amortization period
for these two items is different, although no regulation of amortization for earlier years was done
in connection with the division.
Taxes
The deferred tax asset is counterbalanced by the deferred tax.
Pensions
Pension costs and net pension obligations are included in the profit and loss account
and balance sheet according to the Preliminary Norwegian Accounting Standard for Pension
Costs. The pension commitments are calculated systematically over the average remaining
earning time based on the employee’s age, period of service, salary and future adjustment of
salary, discount rate, future return on pension funds and actuary assumptions of mortality and
voluntary retirement. Pension funds are valued at actual value.
Pension funds and the accrued obligation are valued using estimates from the closing of
accounts which are corrected each year in accordance with actuary calculations.
Subsidiaries amortize deviations and estimate/ plan changes according to the Standard's equalization
method. Accordingly, an accumulated effect exceeding 10 per cent of the greatest value of the
pension obligations and pension funds is posted systematically over the average remaining
earning period.
44
A n n u a l
A c c o u n t s
Sales and purchases of subsidiaries
A-pressen Group
The following sales and purchases of businesses were carried out after 1 January 1998:
Harstad Avisproduksjon AS, subsidiary. Owned by Bladet Nordlys AS, Lofoten Kommunikasjon AS,
Acquisitions in 1998
Fremover AS and Nor-Trykk AS.
Kvinnheringen AS, subsidiary of A-pressen ASA.
Lofoten Kommunikasjon AS, subsidiary of A-pressen Avis og Trykk AS.
A-pressen Avis og Trykk AS, subsidiary of A-pressen ASA.
Founded in 1998
A-pressen Eastern Europe AS, subsidiary of A-pressen ASA.
A-pressen Eiendom AS, subsidiary of A-pressen ASA.
Bergensavisen Konsern AS, subsidiary of Storbyavisene AS.
Bergensavisen Transport AS, subsidiary of Bergensavisen Konsern AS.
Gardermoen Pluss AS, subsidiary of Media Øst AS.
Larvik Rotasjonstrykkeri AS, subsidiary of Østlands-Posten AS.
Møre og Romsdal Annonsesamkjøring AS, subsidiary of Aura Avis AS.
Reklametjeneste Hedmark AS, subsidiary of Glåmdalen AS.
Trippel Reklame AS, subsidiary of Bergensavisen AS.
Arbeiderbladet AS (Dagsavisen), subsidiary of Storbyavisene AS.
Sales in 1998
Nord Mail AS, subsidiary of Østlands-Posten AS.
Telemarksavisa Reklame AS, subsidiary of Telemarksavisa AS.
A-direkte AS, subsidiary of A-pressen ASA.
Closed in 1998
Dagningen Reklame AS, subsidiary of Lillehammer Medieinvestering AS.
Østlands-Posten Boktrykkeri AS, subsidiary of Østlands-Posten AS.
Bilkanalen AS, subsidiary of A-pressen ASA. Formerly an associated company.
Other changes in 1998
Digital Hverdag AS, merged with New Media Science ASA. The merged company is an associated
company in A-pressen ASA.
A/S Hadeland, subsidiary of Media Øst AS. Previous stake under 20 per cent.
Norsk Lokal TV AS, subsidiary of A-pressen ASA. Merged into Norsk Medieutvikling AS.
Telemark TV Holding AS, subsidiary of Telemarksavisa AS. Formerly an associated company.
Total Grafisk AS, subsidiary of Nor-Trykk AS. Merged into Nor-Trykk AS.
TV Tromsø AS, subsidiary of Bladet Nordlys AS. Previous stake under 20 per cent.
45
A n n u a l
A c c o u n t s
Notes
NOTE 1
A-pressen
SALARIES, WAGES AND OTHER PERSONNEL EXPENSES
(NOK 1 000)
1998
1997
1996
Salaries, wages and holiday pay
837 227
770 274
693 934
Employer’s contribution
111 096
103 721
91 194
16 116
10 224
11 631
136 109
130 367
109 007
1 100 548
1 014 586
905 766
1998
1997
1996
2 890
2 781
2 566
Net pension costs
Other personnel expenses
Total salaries, wages and
other personnel expenses
Average number of employees
Average number of
employees in A-pressen Group
NOTE 2
PENSION COSTS AND OBLIGATIONS
The A-pressen Group has pension schemes covering altogether 1 814 insured, of which 1 449 are
active. Of the 1 814 persons, 1 544 are included in pension schemes financed through insurance
companies/funds, and 270 are included in pension schemes financed by operations.
In addition to the above-mentioned schemes, net pension obligations at 31 Dec. 1998 also included
the estimated obligation connected with Collective Agreement Pension (AFP) for Group employees.
AFP obligations totalling NOK 2.8 million were charged as an expense in 1998.
The employer contribution rate for the home municipality of the individual companies is used.
No changes have been made in the economic assumptions from 1996 to 1998. The net pension
cost for the year is included under the items salaries, wages and other personnel expenses.
Obligations and costs are calculated on the basis of the following factors:
Discount rate:
6%
Expected return on pension funds
7%
Annual wage adjustment:
3%
Regulation of the basic pension:
2%
Annual adjustment of pension:
2%
Pension obligations and funds at end of year
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
32 107
Not secured, covered by operations
Estimated accrued pension obligation
Non-amortized obligation at change of estimate
Net pension obligation
35 461
28 501
- 13 815
1 209
248
21 646
29 710
32 355
Financed through
insurance companies/ funds
Market value of pension funds
229 866
210 925
132 595
- 240 920
- 212 199
- 119 065
Non-amortized obligation
at change of estimate/ plan
Total net pension obligation
46
- 4 440
- 1 720
- 5 277
-15 494
- 2 994
8 253
6 152
26 716
40 608
A n n u a l
A c c o u n t s
Notes
cont. NOTE 2
A-pressen
Pension costs for the year is as follows:
(NOK 1 000)
1998
1997
1996
17 956
15 155
13 012
Current value of the year’s pension
withholdings and contributions
Interest cost of accrued pension
withholdings and contributions
14 873
12 815
8 531
- 15 332
- 13 301
- 7 357
Amortization of deferred
obligation at estimate/ plan change
903
- 1 924
3 734
1 239
0
- 4 416
Employees’ share of premium payment
- 3 523
- 2 521
- 1 873
Net pension cost
16 116
10 224
11 631
Change in overfinancing
NOTE 3
FIXED ASSETS
Goodwill
Publishing
rights
Machinery/
fixtures
Buildings/
plants
Sites/
dwellings
Total
113 378
127 522
1 035 853
503 267
16 097
1 796 117
Additions 1998
19 573
17 502
191 178
72 102
3 224
303 579
Disposals 1998
5 513
0
231 896
83 429
9 774
330 612
127 438
145 024
995 135
491 940
9 547
1 769 084
(NOK 1 000)
Acquisition cost at 1 Jan. 98
Acquisition cost at 31 Dec. 98
Accumulated depreciation at 31 Dec. 98
49 182
11 067
563 419
159 822
1 030
784 520
Book value at 31 Dec. 98
78 256
133 957
431 716
332 118
8 517
984 564
Ordinary depreciation for the year
20 179
2 628
106 682
16 652
87
146 228
5–20
50
3–15
3–50
0–30
Depreciation period (years)
Goodwill
The amortization period for goodwill in connection with acquisitions varies from 5 to 20 years. The
principal rule according to the Companies Act is 5 years. An amortization period of more than 5 years
has been set for some acquired companies because of their good market positions and the positive
synergy effects they have on the Group as a whole.
Below is a specification of goodwill broken down by business area.
(NOK 1 000)
Amortization
for the year
Net book value
at 31 Dec. 98
Newspapers
5 910
73 314
268
2 008
TV
8 529
2 241
Electronic media
5 172
0
300
693
20 179
78 256
Printing plants
Other
Total goodwill
Publishing rights
Publishing rights are amortized over 50 years as it is assumed that the value of such rights diminishes
over a very long period of time.
A specification of publishing rights is given below.
Amortization
for the year
(NOK 1 000)
Net book value
at 31 Dec. 98
Newspaper
2 628
133 957
Total publishing rights
2 628
133 957
47
A n n u a l
A c c o u n t s
Notes
cont. NOTE 3
A-pressen
FIXED ASSETS
Investments over the past five years
(NOK 1 000)
1998
Purch.
Sale
1997
Purch.
Sale
1996
Purch.
Sale
1995
Purch.
Sale
Goodwill
19 573
0
85 031
0
70 403
0
81 519
0
100
Publishing rights
17 502
0
0
0
0
0
0
0
0
0
162 593 13 224
87 483
4 177
Machinery/ fixture
191 178 15 606
Buildings/ plant
72 102 54 034
Sites/ dwellings
3 224
Total
0
303 579 69 640
NOTE 4
1994
Purch.
Sale
0
318 976 38 614
152 298 14 295
132 018
7 185
149 040
1 457
61 582
3 300
4 449
6 100
6 121
123
3 408
0
6 411
219
1 570
0
542 146 45 922
375 149 15 752
312 105 16 743
93 602 10 277
BAD DEBTS
NOK 5.4 million was charged as an expense in 1998. Total provisions for forseeable future bad
debts at 31 Dec. 98 amounted to NOK 13.8 million.
NOTE 5
LOSS ON SALE OF SHARES
Arbeiderbladet AS (Dagsavisen) was sold at 31 Dec. 98. Dagsavisen’s result is therefore included in
the consolidated accounts until this date. The Group’s loss on the sale of the shares was NOK 20.4
million.
NOTE 6
TAXES
Below is a specification of the Group’s taxes.
(NOK 1 000)
1998
1997
1996
Taxes payable
10 721
23 851
19 755
Deferred taxes
- 1 499
0
0
0
5 413
4 386
Acquired deferred tax assets
Reconciliation of taxes before acquisition
0
- 2 074
0
Too much/ little allocated previous year
- 496
0
0
Taxes
8 726
27 190
24 141
48
A n n u a l
A c c o u n t s
Notes
cont. NOTE 6
A-pressen
TAXES
Below is a specification of short-term and long-term differences between accounting and tax-related
assets and loss carryforwards. Calculation of deferred tax assets is based on nominal tax rates at the
end of the last three financial years.
Temporary differences that can be offset:
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
Current assets
- 14 176
- 19 599
- 18 672
Current liabilities
- 15 050
- 22 515
- 8 381
Fixed assets
101 832
32 104
45 058
Long-term shareholdings
- 46 814
- 30 497
- 10 204
Other long-term items
12 808
46 027
8 576
Total
38 600
5 520
16 377
Unused loss carryforwards
- 54 080
- 65 729
- 73 508
Basis for deferred tax assets
- 15 480
- 60 209
- 57 131
4 334
16 859
15 997
31 Dec. 96
Deferred tax assets
of differences that can be offset
Temporary differences that cannot be offset:
(NOK 1 000)
31 Dec. 98
31 Dec. 97
- 6 152
- 26 716
- 40 608
Total
- 6 152
- 26 716
- 40 608
1 723
7 480
11 370
0
0
0
Deferred tax assets of
differences that cannot be offset
Deferred tax assets
in the balance sheet
The NOK 6.1 million in net deferred tax assets at 31 Dec. 98 is not entered in the balance sheet because
the Group does not have deferred tax obligations which are the upper limit for entering the deferred tax
assets in the balance sheet. The Group had negative differences of NOK 36.1 million in unused dividend
payments at 31 Dec. 98.
Other long-term items consist mainly of positive temporary differences concerning profit and loss
accounts. At 31 Dec. 98 the Group had NOK 54 million in loss carryforwards, of which NOK 41 million
is related to companies which do not receive press subsidies. Based on an evaluation of the Group’s
profit performance and remaining period for carrying forward loss carryforwards, the accounts are
arranged so that the negative temporary differences connected with loss carryforwards can be offset in
their entirety against positive temporary differences.
NOTE 7
EARNINGS PER SHARE
Earnings per share are calculated according to the Norwegian Accounting Standard Discussion
Document. Earnings per share are calculated as the net profit/ loss divided by a time-weighted number
of ordinary shares. The time-weighted number of ordinary shares takes into consideration the
subscription of share capital in 1996 and the 1998 equity issue.
NOTE 8
CASH AND BANK DEPOSITS
At 31 Dec. 98, cash in hand and bank deposits totalled NOK 170.9 million, of which locked-up tax
withholdings amounted to NOK 43.1 million.
NOTE 9
STOCK-IN-TRADE
Stock-in trade consists mainly of newsprint with a very fast turnover rate. The stocks are valued at cost
price or actual value, whichever is lower. Deduction is made for dead stock.
49
A n n u a l
A c c o u n t s
Notes
NOTE 10
A-pressen
SHARES IN SUBSIDIARES
Company’s
share capital
A-pressen Avis og Trykk AS
SUBSIDIARES
No. of shares
Nom. value of shares
A-shares
B-shares
A-shares
B-shares
A-PRESSEN ASA
Shares of
Book
nom. value
value
A-PRESSEN GROUP
Shares of
Stake at
nom. value 31 Dec. 98
1 000 000
10 000
-
100
-
1 000 000
1 000 000
1 000 000
100.00%
Lofoten Kommunikasjon AS
100 000
100
-
1 000
-
-
-
100 000
100.00%
A-pressen Eastern Europe AS
7 468 300
74 683
-
100
-
4 876 500
9 626 857
4 876 500
65.30%
100 000
1 000
-
100
-
100 000
100 000
100 000
100,00%
100.00%
A-pressen Eiendom AS
A-pressen Nett AS
A-pressen TV AS
A-pressen Elektroniske Medier AS
AdExchange Norden AS
TV Nord-Trøndelag AS
Trøndersk Multimedia A/S
TMM Produksjon A/S
TV Helgeland A/S
900 000
900
-
1 000
-
900 000
900 000
900 000
10 000 000
100 000
-
100
-
10 000 000
10 476 220
10 000 000
100.00%
50 000
5 000
-
10
-
-
-
50 000
100.00%
50 000
100
-
500
-
-
-
25 500
51.00%
1 450 000
950
500
1 000
1 000
-
-
1 015 000
70.00%
1 844 700
2 838
-
650
-
-
-
1 329 250
50.44%
50 000
50
-
1 000
-
-
-
50 000
70.00%
38.92%
500 000
500
-
1 000
-
-
-
278 000
A-pressens Oslo-redaksjon AS
775 000
775
-
1 000
-
39 000
541 000
664 000
81.05%
Annonsetorget AS
250 000
250
-
1 000
-
250 000
0
250 000
100.00%
Arbeidets Rett AS
446 050
2 500
6 421
50
50
433 600
5 240 128
433 600
97.21%
Aura Avis AS
542 600
54 260
-
10
-
526 470
491 747
526 470
97.03%
50 000
50 000
-
1
-
-
-
50 000
97.03%
1 544 600
154 460
-
10
-
1 498 540
1 399 703
1 498 540
97.02%
630 000
12 600
-
50
-
620 600
671 040
620 600
98.51%
600 000
600
-
1 000
-
600 000
600 000
600 000
100.00%
2 880 000
576
-
5 000
-
2 880 000
42 782 815
2 880 000
100.00%
100.00%
Møre og Romsdal Annonsesamkjøring AS
Aura Avis Drift AS
Aust Agder Blad AS
Avisa Sogndal AS
Avishuset Firda AS
TV Sogn og Fjordane AS
Bilkanalen AS
Bladet Nordlys AS
50 000
50
-
1 000
-
-
-
50 000
700 000
700
-
1 000
-
600 000
600 115
600 000
85.71%
61 950
1 239
-
50
-
43 050
9 272 245
43 050
69.49%
TV Tromsø AS
1 638 950
32 779
-
50
-
-
-
855 000
36.25%
Bygdeposten AS
1 100 000
220
-
5 000
-
1 100 000
1 100 000
1 100 000
100.00%
Dagbladet Finnmarken AS
1 052 300
21 046
-
50
-
997 300
3 154 286
997 300
94.77%
704 400
12 500
1 588
50
50
642 150
1 476 616
642 150
91.16%
50 000
50
-
1 000
-
-
-
50 000
91.16%
888 800
8 888
-
100
-
873 700
873 700
873 700
98.30%
Fremover AS
419 050
6 391
1 990
50
50
404 850
5 415 118
404 850
96.61%
FUNN AS
462 000
462
-
1 000
-
-
-
360 000
76.47%
Hardanger Folkeblad AS
1 458 100
2 800
26 362
50
50
1 444 350
7 088 021
1 444 350
99.06%
Harstad Avisproduksjon AS
1 650 000
1 650
-
1 000
-
-
-
1 386 000
76.05%
100 000
100
-
1 000
-
-
-
100 000
76.05%
Finnmark Dagblad AS
Finnmarksposten AS
Firdaposten AS
Bladet Harstad AS
Helgeland Arbeiderblad AS
601 150
5 094
6 929
50
50
576 150
5 559 916
576 150
95.84%
Kvinnheringen AS
100 000
100 000
-
1
-
100 000
100 000
100 000
100.00%
Lillehammer Medieinvestering AS
5 250 000
774 000
276 000
5
5
5 071 835
14 064 585
5 071 835
96.61%
Lofotposten AS
1 000 000
1 000
-
1 000
-
1 000 000
16 200 000
1 000 000
100.00%
LokalNett AS
600 000
60 000
-
10
-
524 010
0
524 010
87.34%
Lopo Eiendom AS
200 000
400
-
500
-
200 000
340 000
200 000
100.00%
Media Nor AS
450 000
90
-
5 000
-
-
-
400 000
88.89%
Media-Riks AS
312 000
312
-
1 000
-
312 000
94 218
312 000
100.00%
Media Øst AS
112 017 820 187 907 406
112 225 100
15 405
2 229 097
50
50
112 017 820
99.82%
Akershus Amtstidende AS
60 000
60
-
1 000
-
-
-
60 000
99.82%
Buskerud Trykk AS
50 000
50
-
1 000
-
-
-
50 000
99.82%
250 000
25
-
10 000
-
-
-
250 000
99.82%
400 000
4 000
-
100
-
-
-
360 510
89.96%
8 839 700
88 397
-
100
-
-
-
8 292 800
93.64%
500 000
500
-
1 000
-
-
-
300 000
56.18%
416 900
4 169
-
100
-
-
-
287 300
68.79%
Ski Avis AS
Gardermoen Pluss AS
Glåmdalen AS
Reklametjeneste Hedmark AS
A/S Hadeland
Media Øst Eiendom AS
50 000
50
-
1 000
-
-
-
50 000
99.82%
Media Øst Trykk AS
1 000 000
10 000
-
100
-
-
-
1 000 000
99.82%
Romerikes Blad AS
1 000 000
1 000
-
1 000
-
-
-
1 000 000
99.82%
180 000
4
-
45 000
-
-
-
180 000
99.82%
99.82%
Indre Akershus Blad AS
Romeriksposten AS
400 000
40 000
-
10
-
-
-
400 000
TV Romerike AS
5 756 200
57 562
-
100
-
-
-
5 740 700
99.55%
Østfoldpressen AS
17 025 300
1 702 530
-
10
-
-
-
16 973 800
99.51%
Demokraten AS
2 162 600
23 252
20 000
50
50
-
-
2 102 696
96.76%
50 000
50
-
1 000
-
-
-
46 000
91.55%
100 000
100
-
1 000
-
-
-
100 000
99.51%
99.51%
Indre Smaalenene Avis AS
Indre Smaalenene Avis og Trykkeri AS
Marker Avisbyrå AS
Moss Dagblad AS
Rakkestad Avis AS
TV Østfold AS
Østfoldsamkjøringen AS
Mjøs Media AS
50
50 000
50
-
1 000
-
-
-
50 000
1 659 400
16 594
-
100
-
-
-
1 544 900
92.65%
50 000
50
-
1 000
-
-
-
50 000
99.51%
6 200 000
62 000
-
100
-
-
-
5 597 000
89.83%
302 500
605
-
500
-
-
-
300 500
98.86%
50 000
50
-
1 000
-
50 000
55 345
50 000
100.00%
A n n u a l
A c c o u n t s
Notes
cont. NOTE 10
A-pressen Group
SHARES IN SUBSIDIARES
Company’s
share capital
SUBSIDIARES
No. of shares
Nom. value of shares
A-shares
B-shares
A-shares
B-shares
A-PRESSEN ASA
Shares of
Book
nom. value
value
A-PRESSEN GROUP
Shares of
Stake at
nom. value 31 Dec. 98
Namdals-Avisa AS
6 542 000
6 542
-
1 000
-
6 256 000
10 176 977
6 256 000
Nordlands Framtid AS
4 309 800
86 196
-
50
-
4 122 200
6 350 845
4 122 200
95.65%
Nor-Trykk AS Narvik
5 030 000
100
906
5 000
5 000
4 530 000
12 382 845
5 030 000
99.66%
3 828 000
7 656
-
500
-
1 497 500
1 497 500
3 000 000
76.65%
200 000
200
-
1 000
-
-
-
200 000
81.40%
3 866 350
4 200
73 127
50
50
3 845 700
36 152 561
3 845 700
99.47%
Namdal Reklame & Informasjon AS
Oppland Arbeiderblad AS
Gjøvik Distribusjon AS
Rana Blad AS
Ringerikes Blad AS
95.63%
50 000
10
-
5 000
-
-
-
50 000
99.47%
1 557 700
2 000
29 154
50
50
1 549 750
12 386 189
1 549 750
99.49%
100.00%
700 800
584
-
1 200
-
700 800
86 140 806
700 800
Sam-distribusjon A/S
250 000
100
-
2 500
-
-
-
167 500
67.00%
Rjukan Arbeiderblad AS
653 000
653
-
1 000
-
653 000
1 413 696
653 000
100.00%
1 268 706
634 353
-
2
-
1 267 412
1 267 413
1 267 412
99.90%
645 000
645
-
1 000
-
645 000
1 956 011
645 000
100.00%
Sogn Dagblad AS
Stjørdalens Blad AS
Malvik Bladet AS
Storbyavisene AS
Bergensavisen Konsern AS
Bergensavisen AS
Bergensavisen Transport AS
Tårnhjørnet AS
150 000
150
-
1 000
-
-
-
150 000
100.00%
8 050 000
1 610
-
5 000
-
8 050 000
13 050 000
8 050 000
100.00%
6 990 000
2 231 320
-
3.133
-
-
-
5 565 101
79.62%
9 922 000
1 338 800
-
7.411
-
-
-
9 856 808
79.09%
400 000
400
-
1 000
-
-
-
400 000
79.62%
6 000 000
6 000
-
1 000
-
-
-
6 000 000
79.62%
50 000
20
-
2 500
-
-
-
50 000
79.62%
200 000
200
-
1 000
-
-
-
200 000
79.62%
Fremtiden AS
7 690 000
7 690
-
1 000
-
-
-
6 177 000
80.33%
Rogalands Avis AS
3 626 250
29 010
-
125
-
-
-
3 471 875
95.74%
50 000
500
-
100
-
-
-
25 000
47.87%
5 219 000
5 219
-
1 000
-
-
-
5 219 000
100.00%
100 000
100
-
1 000
-
-
-
67 000
67.00%
2 454 000
2 454
-
1 000
-
-
-
1 620 000
44.23%
Trippel Reklame AS
Nytt om bil Sør-Rogaland AS
Telemarksavisa AS
Telemark TV Holding AS
TV-Huset AS
TV Telemark AS
Tidens Krav AS
Tidens Krav Transport AS
5 170 000
10 340
-
500
-
-
-
4 225 500
60.37%
4 211 900
84 238
-
50
-
4 199 600
4 199 600
4 199 600
99.71%
99.71%
50 000
50
-
1 000
-
-
-
50 000
TV Innlandet AS
8 700 000
8 700
-
1 000
-
-
-
5 515 000
61.52%
Østlands-Posten AS
5 490 200
109 804
-
50
-
5 490 200 101 831 418
5 490 200
100.00%
3 000 000
3 000
-
1 000
-
3 000 000
100.00%
-
Total shares in subsidiaries
-
192 489 087 615 936 942
NOTE 11
SHARES IN ASSOCIATED COMPANIES
ASSOCIATED COMPANIES
Company’s
share capital
A-PRESSEN GROUP
No. of shares
Nom. value of shares Shares of
A-shares B-shares
A-shares B-shares nom. value
Book
value
Stake at
31 Dec. 98
29.39%
AS Avisdrift
107 500
215
-
500
-
32 500
133 786
Cyberbook AS
715 000
715
-
1 000
-
158 000
804 991
22.10%
Film Companiet AS
500 000
500
-
1 000
-
100 000
0
20.00%
Gjøvik Media AS
800 000
1 600
-
500
-
385 000
0
47.87%
Halden Arbeiderblad AS
100 000
2 000
-
50
-
41 500
3 859 805
41.50%
Hedmark Oppland Media AS
800 000
4
-
200 000
-
200 000
200 000
23.41%
IntraFish AS
102 000
102
-
1 000
-
39 000
0
38.24%
New Media Science ASA
2 219 405
2 219 405
-
1
-
521 174
10 517 711
23.48%
Norsk Familieøkonomi AS
8 307 000
8 307
-
1 000
-
2 769 000
2 194 445
33.33%
750 000
75 000
-
10
-
262 490
0
35.00%
On Line Publishing AS
Small Film AS
1)
Smaalenene Medier AS
1)
Telemark/ Agder Samkjøringen AS
Telemark Distribusjon AS
1)
TV 2 AS
TV Måløy Multimedia AS
TV Nordland AS
Øvre Smaalenene AS
800 000
8 000
-
100
-
400 000
563 832
50.00%
3 500 000
100
3 400
1 000
1 000
1 830 600
4 854 130
52.05%
200 000
200
-
1 000
-
67 000
192 275
33.50%
50 000
5 000
-
10
-
25 000
1 153 948
50.00%
260 000 000
2 600 000
-
100
-
300 000
1 200
-
250
-
119 000
1 400 000
2 800
-
500
-
500 100
5 001
-
100
-
Total shares in associated companies
86 321 300 557 275 599
33.20%
0
39.67%
666 000
0
45.50%
130 000
3 321 747
25.87%
94 067 564 585 072 269
1)
The A-pressen Group has considerable but not decisive influence in the companies Small Film AS,
Smaalenene Medier AS and Telemark Distribusjon AS.
51
A n n u a l
A c c o u n t s
Notes
NOTE 12
A-pressen Group
OTHER SHARES
OTHER COMPANIES
Company’s
share capital
Hamar Media AS
Markedsprofilen AS
Stake at
31 Dec. 98
18,50%
1 300
-
20 000
-
4 810 600
570 600
50 000
50
-
1 000
-
50 000
50 000
96,76%
4 396 844
4 396 844
-
1
-
862 200
7 404 200
19,61%
12 761 000
25 522
-
500
-
1 844 500
1 860 260
13,60%
8 688 775
1 737 755
-
5
-
1 680 375
0
19,34%
3 500 100
35 001
-
100
-
630 100
0
18,00%
-
-
-
-
-
-
8 087 940
-
Medical Media AS
NYTV ASA
TV Pluss AS
Other shares and units
Book
value
26 000 000
1)
Norsk Telegrambyrå AS
A-PRESSEN GROUP
No. of shares Nom. value of shares Shares of
A-shares B-shares A-shares B-shares nom. value
2)
Total other shares
9 877 775 17 973 000
1)
Markedsprofilen AS is valued according to the cost method. Markedsprofilen AS, which is wholly
owned by Demokraten AS, is without activity and is irrelevant to the consolidated accounts.
2)
NOTE 13
INVESTMENT IN ASSOCIATED COMPANIES
Ownership
stake
(NOK 1 000)
AS Avisdrift
Bilkanalen AS
Shares completely or partly owned by subsidiaries
1)
Cyberbook AS
Film Compagniet AS
1)
Book
value
31 Dec. 97
Additions/
disposals
in period
Profit/ loss
share after
taxes 1998
Adjusted
directly
against Eq.
Received
dividend
Book
value
31 Dec. 98
134
29.39 %
-
106
28
0
0
50.00 %
88
0
- 88
0
0
0
22.10 %
942
0
- 137
0
0
805
20.00 %
15
0
- 15
0
0
0
Gjøvik Media AS
47.87 %
-
385
- 114
- 271
0
0
Grenlandsnettet AS
35.00 %
79
61
- 140
0
0
0
Grenlandsradioen AS
35.00 %
38
-4
- 34
0
0
0
41.50 %
3 845
0
15
0
0
3 860
Hedmark Oppland Media AS
23.41 %
-
200
0
0
0
200
IntraFish AS
38.24 %
1 079
0
- 1 079
0
0
0
23.48 %
-
13 022
- 2 505
0
0
10 517
2 194
33.33 %
-
4 800
- 2 606
0
0
35.00 %
3 200
225
- 3 425
0
0
0
Small Film AS
50.00 %
502
0
62
0
0
564
Smaalenene Medier AS
52.05 %
4 361
0
493
0
0
4 854
Telemark/ Agder Samkjøringen AS
33.50 %
48
0
144
0
0
192
Telemark Distribusjon AS
50.00 %
293
0
861
0
0
1 154
Telemark TV Holding AS
1)
49.00 %
4 271
- 3 221
- 1 050
0
0
0
TV 2 AS
33.20 %
571 490
1 353
5 991
0
- 21 557
557 277
TV Nordland AS
45.50 %
0
441
- 441
0
0
0
TV-Måløy Multimedia AS
39.67 %
-
190
- 190
0
0
0
Øvre Smaalenene AS
25.87 %
4 585
- 1 412
148
0
0
3 321
594 836
16 146
- 4 082
-271
- 21 557
585 072
Total associated companies
Deferred revenues2)
872
Total result from associated companies
- 3 210
1)
Bilkanalen AS was an associated company until 30 June 98. The company’s share of the result
as an associated company is therefore included until this date. On 1 July 98 the company
became a subsidiary and is therefore consolidated as a subsidiary from this date. Telemark TV
Holding AS was an associated company until 30 April 98. The company’s share of the result as
an associated company is therefore included up to this date. The company became a subsidiary
on 1 May 98 and is therefore consolidated as a subsidiary from this date. Telemark TV Holding
AS and Film Compagniet AS changed their names in 1998 from Per Simon Mustvedt AS and TV
Fabrikken AS respectively.
2)
A profit was made in connection with the sale of shares in TV Norge AS in 1997 from A-pressen
ASA to TV 2 AS, and is according to the Norwegian Accounting Standard for Associated
52
Companies, a deferred revenue.
A n n u a l
A c c o u n t s
Notes
cont. NOTE 13
A-pressen
INVESTMENTS IN ASSOCIATED COMPANIES
Profit/ loss shares in associated companies are the amounts remaining after depreciating NOK 27.7 million in
goodwill. Net book value of goodwill in associated companies amounted to NOK 411.3 million at 31 Dec. 97.
The depreciation period for goodwill relating to the investment in TV 2 AS is 20 years. As a business asset,
this goodwill is estimated to be of significant value within the depreciation period based on a overall
assessment of TV 2 AS’ earnings and market position. TV 2 AS’ licence period expires in 2002. It is
assumed operations will continue after this time. Other goodwill has a depreciation period of 5 years.
NOTE 14
PROVISIONS FOR DIVIDEND
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
0
7 202
8 643
Dividends to A-pressen ASA shareholders
Dividends to minority
shareholders of subsidiaries
683
491
793
Total provisions for dividend
683
7 693
9 436
31 Dec. 98
31 Dec. 97
31 Dec. 96
157 258
176 200
140 500
Accrued costs
46 171
37 094
24 254
Other current liabilities
37 533
31 706
38 293
240 962
245 000
203 047
31 Dec. 98
31 Dec. 97
31 Dec. 96
1 288 802
1 411 148
1 160 150
515 981
554 596
477 284
7 694
27 829
42 381
523 675
582 425
519 665
NOTE 15
OTHER CURRENT LIABILITIES
(NOK 1 000)
Prepaid subscriptions
Total other current liabilities
NOTE 16
LIABILITIES
(NOK 1 000)
Total liabilities
Non-interest-bearing short-term debt
Non-interest-bearing long-term debt
Total non-interest-bearing liabilities
Interest-bearing short-term debt
3 777
3 658
5 447
Interest-bearing long-term debt
761 350
825 065
635 038
Total interest-bearing liabilities
765 127
828 723
640 485
170 875
148 695
253 576
Net interest-bearing liabilities
594 252
680 028
386 909
53
A n n u a l
A c c o u n t s
Notes
NOTE 17
A-pressen
LONG-TERM DEBT
(NOK 1 000)
31 Dec. 98
31 Dec. 97
Bank loan - syndicate, A-pressen ASA
575 000
670 000
31 Dec. 96
0
Other long-term debt
185 949
155 036
635 319
Total long-term debt
760 949
825 036
635 319
Repayment schedule for long-term bank loan – syndicate, A-pressen ASA
(NOK 1 000)
Long-term bank loan – syndicate
Facility
Amount drawn
at 31 Dec. 98
750 000
575 000
Repayment schedule for long-term bank loan – syndicate
1999
2000
2001
2002
2003
0
50 000
100 000
100 000
500 000
In April 1997 A-pressen ASA signed a NOK 750 million syndicated loan agreement. The loan
agreement is a drawing facility managed by DnB ASA and has duration of 6 years. NOK 575 million
had been drawn on the facility at 31 Dec. 98. In addition, A-pressen ASA has a NOK 100 million
bank overdraft agreement with DnB ASA, of which NOK 54 million had been drawn at 31 Dec. 98.
In June 1998, A-pressen ASA secured NOK 200 million on five-year contracts, and has prudent
exposure to changes in Norwegian interest rates.
(NOK 1 000)
Interest rate swap
Nominal amount
Receives
Pays
Contract period
100 000
6 month NIBOR
5.72 %
June 1998 – June 2003
Nominal amount
Ceiling
Contract period
100 000
6.50 %
June 1998 – June 2003
(NOK 1 000)
CAP – 6 month revolving
NOTE 18
(NOK 1 000)
Shareholders’ equity at 31 Dec. 95
Equity issue
Other
Total share-
Share capital
equity capital
holders’ equity
142 522
381 058
523 580
8 316
9 838
Net profit/ loss (majority)
1 522
67 920
67 920
Allocated to dividend
- 9 436
- 9 436
Deferred taxes from
acquisition of new companies
144 044
2 788
2 788
450 646
594 690
17 378
17 378
- 7 693
- 7 693
Other changes
144 044
Equity issue
32 749
Other changes
NOTE 19
161
161
460 492
604 536
107 006
139 755
- 20 940
-20 940
- 683
- 683
766
766
176 793
546 641
723 434
31 Dec. 98
31 Dec. 97
31 Dec. 96
78 488
122 547
620 824
177 682
240 268
875 842
SECURED DEBTS
(NOK 1 000)
Debts secured by mortgage
Book value of mortgaged assets
54
A n n u a l
A c c o u n t s
Va l u e a d d e d s t a t e m e n t
(NOK 1 000)
A-pressen
1998
1997
1996
2 182 529
2 089 882
1 852 086
VALUE ADDED
Operating revenues
(excluding government subsidies)
Consumption of purchased
materials and services
Gross value added from operations
986 029
947 543
838 969
1 196 500
1 142 339
1 013 117
Capital wear (ordinary depreciation)
146 228
123 133
103 913
Net value added from operations
1 050 272
1 019 206
909 204
11 067
9 388
17 027
- 3 210
- 17 169
13 413
1 058 129
1 011 425
939 644
87 331
98 428
99 354
1 145 460
1 109 853
1 038 998
Financial income
Share of profit/ loss from
associated companies
Value available for distribution
from own activities
Total values available
for distribution
VALUE DISTRIBUTION
Employees
Gross salaries, wages and social benefits
(of which tax withholding)
989 453
910 865
814 572
(270 028)
(271 979)
(235 297)
683
7 693
9 436
58 353
49 703
42 035
Owners
Dividends
Capital investors
Interest etc. to lenders
Central and local government
Taxes on income
Government taxes
8 726
27 190
24 141
111 096
103 721
91 194
The companies
Retained for future value added
and ensuring of financial soundness
Total values distributed
- 22 851
10 681
57 620
1 145 460
1 109 853
1 038 998
The Group’s value added is a result of the input factors labour, capital and technology. The value added
statement shows how the values are distributed to various interest groups in society. The gross value
added is shown as the Group’s total operating revenues less the value of consumed goods and services.
Depreciation (capital wear) represents a reduction of the value of the production equipment throughout
the year, and is deducted on a par with purchases and consumed goods and services. The difference
between gross value added and capital wear is equal to the net value added. Financial income, share of
profit of associated companies and net extraordinary items represent an addition to the net value added.
The Group has received government subsidies which are included in the total values for distribution.
55
A n n u a l
A c c o u n t s
Profit and loss account
(NOK 1 000)
Notes
1998
A-pressen ASA
1997
1996
Operating revenues
Profit from sale of shares
0
93 566
0
25 614
40 948
30 558
25 614
134 514
30 558
Operating expenses
2,9
20 345
15 678
12 179
Other operating and administrative expenses
1,2
27 721
23 979
12 020
1 866
3
3 771
1 741
4
- 2 985
4 582
622
48 852
45 980
26 687
- 23 238
88 534
3 871
Operating profit
Financial items
Financial income
5
23 356
28 473
10 596
Financial expenses
5
- 50 579
- 34 460
- 25 417
Write-down of shares
- 4 987
- 4 261
0
Net financial items
- 32 210
- 10 248
- 14 821
Net profit/ loss
- 55 448
78 286
- 10 950
68 719
34 738
13 595
0
- 7 830
0
- 13 271
- 97 992
5 998
0
- 7 202
- 8 643
55 448
- 78 286
10 950
Application of annual
profit/ settlement of annual loss
To legal reserve
To/ from distributable reserve
Allocated to dividends
Total
56
A n n u a l
A c c o u n t s
Balance sheet
(NOK 1 000)
Notes
A-pressen ASA
31 Dec. 98
31 Dec. 97
31 Dec. 96
ASSETS
Current assets
Short-term receivables
7
1 180
5 139
12 615
4,5
118 176
57 072
103 611
119 356
62 211
116 226
Fixed assets
Shares in subsidiaries
8
615 937
501 119
434 931
Shares in other companies
8
391 873
374 703
386 746
Long-term receivables
5
475 896
600 271
29 077
Goodwill
3
0
925
1 850
Machinery and fixtures
3
22 659
2 259
1 961
Total fixed assets
1 506 365
1 479 277
854 565
Total assets
1 625 721
1 541 488
970 791
4 120
4 064
1 565
0
7 202
8 643
335 476
236 824
31 497
339 596
248 090
41 705
482 836
LIABILITIES AND
Current liabilities
Payable VAT, social security,
tax withholdings, etc.
Dividends
Other short-term debt
5
Long-term liabilities
Long-term debt
5
582 081
741 785
9
4 274
4 869
5 328
586 355
746 654
488 164
144 044
Share capital (8 839 643 shares á NOK 20)
176 793
144 044
Legal reserve
287 812
180 806
172 976
Distributable reserve
235 165
221 894
123 902
699 770
546 744
440 922
1 625 721
1 541 488
970 791
13 962
14 203
62 461
0
0
471 108
Total shareholders’ equity
10
Total liabilities
and shareholders’ equity
Guarantees
Secured debt
11
57
A n n u a l
A c c o u n t s
Cash flow statement
(NOK 1 000)
A-pressen
1998
1997
1996
- 55 448
78 286
- 10 950
3 771
1 741
1 866
10 229
6 169
0
-30
134
-22
Cash flows from operating activities
Write-down and loss on shares
Profit/ loss on sale of fixed assets
Profit on sale of shares
Change in stock, debtors and creditors
Change in other accrual items
0
- 98 767
- 7 164
- 14 105
- 5 999
- 5 082
42 025
- 209 376
- 70 049
Items classified as investing and
financing activities
30 346
18 128
14 729
Net cash flow from operating activities (a)
16 788
- 209 684
- 76 672
Cash flows from investing activities
Incoming payment from sale of fixed assets
Outgoing payment for purchase of fixed assets
Incoming payment from sale of subsidiares
Outgoing payment for purchase of subsidiaries
Incoming payment from sale of other shares
Outgoing payment for purchase of other shares
449
6
275
- 27 205
- 1 293
- 1 362
456
2 809
11 283
- 16 831
- 97 529
- 54 868
0
105 097
0
- 16 846
- 92 887
- 23 458
Outgoing payment for
placement in other investments
Net cash flow from investing activities (b)
0
605
- 20 409
- 59 977
- 83 192
- 88 539
147 421
Cash flows from financing activities
Incoming payment when taking up
new long-term debt
50 000
670 000
- 145 000
- 371 423
0
Outgoing payment of interest
- 45 313
- 31 828
- 14 729
Incoming payment of shareholders’ funds
Outgoing repayment of long-term debt
137 040
0
0
Dividends received
14 967
13 700
31
Outgoing payment of dividends
- 7 202
- 8 643
- 7 839
Incoming payment of Group contribution
34 738
13 594
37 184
Net cash flow from financing activities (c)
39 230
285 400
162 068
- 3 959
- 7 476
- 3 143
Cash balances at beginning of year
5 139
12 615
15 758
Cash balances at end of year
1 180
5 139
12 615
Net change in cash balances through
the year (a+b+c)
A-pressen ASA uses the indirect model for presenting its cash flow statement in accordance with
the Preliminary Norwegian Accounting Standard for Cash Flow Statements. The indirect model
shows gross cash flows from investing and financing activities, while the accounting result is
reconciled against net cash flow from operating activities.
58
A n n u a l
A c c o u n t s
Notes
A-pressen ASA
The accounts for A-pressen ASA cover all the activities of the Group management.
A-pressen ASA’s accounting policies are described under the Group accounting polices. The notes to the
consolidated accounts will in some cases also include A-pressen ASA.
The A-pressen Group has established a group account system with joint and several liability. In accounting
terms, the subsidiaries’ net deposits are classified as short-term debt to subsidiaries, while the
subsidiaries’ long-term withdrawals are classified as long-term receivables from subsidiaries in A-pressen
ASA’s accounts.
NOTE 1
OPERATING REVENUES
The write-down of shares in subsidiaries is included in other operating and administrative expenses. The
shares in LokalNett AS were written down by NOK 5.3 million in 1998.
NOTE 2
REMUNERATION TO THE BOARD OF DIRECTORS, CEO AND AUDITOR
Total remuneration in 1998 to the Board of Directors and Corporate Assembly of A-pressen ASA
amounted to NOK 414 750. The CEO’s salary in 1998 came to NOK 850 608, while other reportable
benefits amounted to NOK 113 609. A-pressen ASA has no option arrangement for employee
representatives or employees. No severance pay agreements beyond the normal period of notice have
been made with any A-pressen ASA executives. Remuneration to the auditor of of A-pressen ASA
totalled NOK 300 000, of which NOK 87 200 was for consultant services.
Shares owned by members of the Group Board of Directors:
Eigil Wettre
2 590 shares
Johnny Helgesen
71 shares
Jorunn Henriksen
71 shares
Kith Skaalerud
31 shares
Shares owned by members of the Corporate Assembly of the Group:
Borgny Grini
37 shares
Trine Bergstedt
31 shares
Shares owned by the auditor:
State-authorized public accountant Jan Fr. Sønsteby
0 shares
Shares owned by CEO:
Alf Hildrum
NOTE 3
33 100 shares
FIXED ASSETS
(NOK 1 000)
Goodwill
Machinery/ fixtures
Total
9 250
4 529
13 779
Additions 1998
0
23 665
23 665
Disposals 1998
0
1 371
1 371
Acquisition cost at 31 Dec. 98
9 250
26 823
36 073
Accumulated depreciation at 31 Dec. 98
9 250
4 164
13 414
0
22 659
22 659
925
2 846
3 771
10
3–10
Acquisition cost at 1 Jan. 98
Book value at 31 Dec. 98
Ordinary depreciation for the year
Depreciation period (years)
59
A n n u a l
A c c o u n t s
Notes
cont. NOTE 3
A-pressen
FIXED ASSETS
Investments over the past five years
(NOK 1 000)
1998
Purch. Sale
Machinery/ fixture
23 665 449
NOTE 4
1997
Purch. Sale
1 254
6
1996
Purch. Sale
1995
Purch. Sale
1994
Purch. Sale
1 362 275
175 227
1 022 1 081
BAD DEBTS
NOK three million was credited to the profit and loss account in 1998. Total provisions for
forseeable future bad debts at 31 December 1998 amounted to NOK 7.1 million.
NOTE 5
RECEIVABLES AND LIABILITIES
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
Receivables
Group trade receivables
19 110
5 178
864
Other trade receivables
7 709
2 467
1 357
Accounts receivable from Group companies
76 909
36 919
85 381
Other short-term receivables
14 448
12 508
16 009
Total short-term receivables
118 176
57 072
103 611
Subordinated loans to Group companies
3 500
2 000
853
Other subordinated loans
1 300
1 300
0
Long-term receivables from Group companies
357 654
472 414
28 006
Long-term Group account system receivables
104 313
114 673
0
9 129
9 884
218
475 896
600 271
29 077
31 Dec. 98
31 Dec. 97
31 Dec. 96
Group accounts payable
766
984
193
Other accounts payable
6 049
761
2 127
8 939
Other long-term receivables
Total long-term receivables
(NOK 1 000)
Liabilities
Other short-term debt to Group companies
358
134
Short-term Group account system payables
306 062
219 018
0
Other current liabilities
22 241
15 927
20 238
335 476
236 824
31 497
177 720
Long-term debt to Group companies
6 500
47 219
Other long-term liabilities
575 581
694 566
305 116
582 081
741 785
482 836
A-pressen ASA has NOK 1.2 million in interest income from Group companies and NOK 0.4
million in interest costs to Group companies.
Further specification of other long-term liabilities is shown in Note 17 in the consolidated
accounts.
60
A n n u a l
A c c o u n t s
Notes
NOTE 6
A-pressen
TAXES
Below is a specification of the difference between the accounting result before taxes and the tax basis
for the year for A-pressen ASA.
(NOK 1 000)
Permanent differences/ other differences
1998
1997
1996
- 55 448
78 286
- 10 950
2 441
4 910
- 2 599
- 12 585
1
- 8 926
0
- 94 518
- 4 666
68 719
34 738
13 595
Applied loss carryforward
- 3 127
- 23 417
0
0
0
- 13 546
1998
1997
1996
0
0
0
Change in temporary differences
Group items
Tax basis for the year
Taxes
(NOK 1 000)
Taxes payable
Below is a specification of short-term and long-term differences between accounting and tax-related
assets and loss carryforwards.
Temporary differences that can be offset:
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
Current assets
- 3 035
- 4 593
- 5 898
Current liabilities
- 4 414
- 9 724
- 7 176
969
- 4 152
- 4 937
Fixed assets
Long-term shareholdings
- 14 690
- 10 461
- 7 178
Total
- 21 170
- 28 930
- 25 189
Unused loss carryforward
- 10 888
- 13 595
- 37 012
Basis for deferred tax assets
- 32 058
- 42 525
- 62 201
8 976
11 907
17 416
31 Dec. 96
differences that can be offset
Temporary differences that cannot be offset:
(NOK 1 000)
31 Dec. 98
31 Dec. 97
- 4 274
- 4 869
- 5 328
Total
- 4 274
- 4 869
- 5 328
1 197
1 363
1 492
0
0
0
differences that cannot be offset
Deferred tax assets
in the balance sheet
The deferred tax assets are calculated on the basis of the temporary differences between accounting
and fiscal assets existing at the end of the financial year. The deferred tax assets are not entered in the
balance sheet because the deferred tax assets cannot exceed the deferred taxes in the balance sheet.
In addition, A-pressen ASA has a negative difference of NOK 28.8 million concerning unused dividend
payments.
NOTE 7
CASH AND BANK DEPOSITS
A-pressen ASA’s cash and bank deposits totalled NOK 1.2 million at 31 December 1998.
Of this amount there is NOK 1.1 million in tax withholdings in a locked-up account.
61
A n n u a l
A c c o u n t s
Notes
NOTE 8
A-pressen ASA
SHARES
A specified summary of shares in subsidiaries is shown in Note 10 of the consolidated accounts.
Company’s
share capital
(NOK)
No. of
shares
Value of
nominal shares
Shares of
nominal value
Book
value
100 000
2 000
50
41 500
41 500
2 219 405
2 219 405
1
521 174
13 022 580
Shares in associated companies
Cyberbook AS
715 000
715
1 000
158 000
1 455 779
750 000
75 000
10
262 490
0
IntraFish AS
102 000
102
1 000
39 000
0
8 307 000
8 307
1 000
2 769 000
4 800 000
260 000 000
2 600 000
100
57 715 800
360 452 480
TV 2 AS
Total shares in associated companies
379 772 339
Company’s
share capital
No. of
shares
Value
nominal shares
Shares of
nominal value
Hamar Media AS
26 000 000
1 300
20 000
4 810 600
570 600
Trønder-Avisa AS
2 250 000
2 250
1 000
210 000
4 125 000
Medical Media AS
4 396 844
4 396 844
1
862 200
7 404 200
TV Pluss AS
3 500 100
35 001
100
630 100
(NOK)
Book
value
Shares in other companies
Total shares in other companies
0
12 099 800
Total shares in associated
and other companies
391 872 139
NOTE 9
A-pressen ASA employees are covered by group pension schemes, which are treated as benefit
plans in the accounts. In addition, the company has pension obligations that are not covered by
insurance. This applies to one former employee and five former employees of subsidiaries.
The net pension cost for the year is included under the item salaries, wages and other personnel
expenses.
No changes were made in economic assumptions from 1996 to 1998.
Obligations and costs are calculated on the basis of the following factors:
Discount rate:
6%
Expected return on pension funds:
7%
Annual wage adjustment:
3%
Adjustment of basic pension:
2%
Annual pension adjustment:
2%
Pension obligations and funds at end of year:
(NOK 1 000)
31 Dec. 98
31 Dec. 97
31 Dec. 96
3 529
3 429
3 947
- 444
- 50
- 236
3 085
3 379
3 711
Not secured, covered by operations
Financed through
insurance company/ funds
Market value of pension funds
6 102
5 089
3 729
- 4 330
- 3 443
- 2 386
- 583
- 156
274
1 189
1 490
1 617
Total net pension obligation
4 274
4 869
5 328
62
Annual Accounts
Notes
cont. NOTE 9
A-pressen
Pension cost for the year:
(NOK 1000)
1998
1997
1996
980
821
634
Current value of the year’s
pension withholdings and contributions
Interest cost of accrued
pension withholdings and contributions
509
453
400
- 247
- 198
- 135
Amortization of deferred
obligation at change of estimate
17
-1
38
Employees’ share of premium payment
- 230
- 153
- 136
Net pension cost
1 029
922
801
NOTE 10
(NOK 1 000)
Shareholders’equity at 31 Dec. 95
Equity issue
Share
Legal
Distributale
Total share-
capital
reserve
reserve
holders’ equity
142 522
164 660
129 900
437 082
1 522
8 316
Net profit/ loss
0
9 838
- 10 950
- 10 950
13 595
13 595
- 8 643
- 8 643
172 976
123 902
440 922
7 830
70 456
78 286
144 044
Net profit/ loss
34 738
34 738
- 7 202
- 7 202
221 894
546 744
Equity issue
144 044
180 806
32 749
107 006
Net profit/ loss
176 793
NOTE 11
0
139 755
- 55 448
- 55 448
68 719
68 719
287 812
235 165
699 770
31 Dec. 96
SECURED DEBTS
(NOK 1 000)
31 Dec. 98
31 Dec. 97
Debts secured by mortgage
0
0
471 108
Book value of mortgaged assets
0
0
642 322
63
A n n u a l
A c c o u n t s
A-pressen ASA
Auditor’s report for 1998
TO THE GENERAL MEETING OF A-PRESSEN ASA
We have audited the annual report and accounts for A-pressen ASA for 1998, showing a loss for
the year of NOK 55 448 000 for the parent company and a consolidated loss for the year of
NOK 20 940 000. The annual report and accounts, which comprise the annual report proper, profit
and loss account, balance sheet, cash flow statement, notes to the accounts as well as
consolidated accounts, are presented by the company's Board of Directors and its Chief
Executive Officer.
Our responsibility is to examine the company's annual report and accounts, its accounting
records and other related matters.
We have conducted our audit in accordance with relevant laws, regulations and generally
accepted auditing standards. We have performed those audit procedures which we have
considered necessary to confirm that the annual report and accounts are free of material
misstatements. We have examined selected parts of the evidence supporting the accounts and
assessed the accounting principles applied, the estimates made by the management, and the
content and presentation of the annual report and accounts. To the extent required by generally
accepted auditing standards we have reviewed the company's internal control and the
management of its financial affairs. The Board of Directors' proposal for the settlement of the loss
for the year is in accordance with the requirements of the Norwegian Companies Act.
In our opinion, the annual report and accounts have been prepared in accordance with the
requirements of the Norwegian Companies Act and present fairly the financial position of the
company and of the group as at 31 December 1998 and the result of its operations for the
financial year, in accordance with generally accepted accounting principles.
Oslo, 9 March 1999
NORAUDIT DA
Jan Fr. Sønsteby
State Authorized Public Accountant
Statement by the Corporate Assembly
TO THE GENERAL MEETING OF A-PRESSEN ASA
The Board of Directors' report, profit and loss account and balance sheet for 1998 for A-pressen
ASA and the Group, as well as the auditor's report, have today been presented to the Corporate
Assembly.
The Corporate Assembly recommends that the General Meeting approve the Board's proposal
that the parent's company's net loss of NOK 55.4 million be covered as follows:
NOK 68.7) million
Transferred to distributable reserve NOK (13.3) million
Total
Oslo, 15 March 1999
Bente N. Halvorsen
Chair of the Corporate Assembly
64
NOK 55.4) million
Finnmark Dagblad
Finnmarken
Nordlys
99
Bladet Harstad
Nor-Trykk Narvik AS
Fremover
Lofot-Tidende
Lofotposten
Nordlands Framtid
Rana Blad
Namdals-Avisa
Stjørdalens Blad
Malvik Bladet
Tidens Krav
Aura Avis
Aura Avis Drift AS
Opdalingen
Arbeidets Rett
Firdaposten
Firda
Avisa Sogndal
Årdal & Lærdal Avis
Kvinnheringen
Hamar Arbeiderblad
Hadeland
Bergensavisen
Hardanger Folkeblad
Ringerikes Blad
Rjukan Arbeiderblad
Bygdeposten
Fremtiden
ANS Sam-Trykk
Rogalands Avis
Aust Agder Blad
Tvedestrandsposten
Telemarksavisa
Østlands-Posten
Glåmdalen
Romerikes Blad
Indre Akershus Blad
Øvre Smaalenene
Rakkestad Avis
Demokraten
Indre Smaalenenes Avis
Halden Arbeiderblad
Moss Dagblad
Media Øst Trykk AS
Media Øst Trykk (avd Mysen)
Unique digital merger Local newspapers maintain strong position
Petersburg Express
Future generation
local newspapers
Value of TV 2 increases
Annual Report 1998
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The 10-year period from 1988 to today has been extremely expansive.
Here are the main highlights:
1988:
Loss of circulation and revenues, considerable losses (NOK 70 million)
The board of Norsk Arbeiderpresse AS approves reorganization plan
1989:
Continued circulation, revenue and financial losses
Costs are reduced by NOK 115 million
The Federation of Norwegian Trade Unions (LO) congress agrees to refinance A-pressen by up to NOK 160 million
1
1990:
Reorganization, new costcutting, continued financial and circulation losses
A-pressen wins the newspaper war in Nordmøre against Dagbladet:
Tidens Krav becomes the sole newspaper
Bergensavisen and Romerikes Blad launch Sunday editions
1991:
Further costcutting, smaller losses (NOK 15 million), continued loss of
circulation
LO injects NOK 158 million in A-pressen
A-pressen takes over Arbeiderbladet from the Labour Party
1992:
Profit (NOK 31 million) and reduced circulation losses (down 3,002 copies)
1993:
Profit (NOK 61 million) and modest increase in circulation (283 copies)
Second-hand sale of shares to employees and union branches: NOK 4.9
million
Nye Hojem Trykkeri and BA-trykk established
Norsk Lokal TV AS is founded with Norsk Aller
The board decides to expand ownership and make the shares tradable
1994:
Profit (NOK 58 million) and circulation growth ( 2,682 copies)
Increase of share capital towards employees: NOK 5.5 million
Name changed from Norsk Arbeiderpresse AS to A-pressen AS
1995:
Profit (NOK 100 million) and stable circulation
The general meeting approves payment of dividend
A-pressen buys Lofotposten, Østlands-posten and Firda
A-pressen buys 22 per cent of TV 2
The Labour Party sells its A-pressen AS shareholding
A-pressen buys 20 per cent of RiksNett
Private increase of share capital: NOK 225 million, share split, new articles
of association
1996:
Profit (NOK 91 million) and circulation growth
A-pressen buys 4 per cent of TVNorge with an option on a further 16 per
cent
A-pressen participates in nine companies awarded local TV licences
A-pressen buys Indre Smaalenenes Avis og Trykkeri, Rakkestad Avis and
Indre Akershus Blad
Avisa Trondheim is closed
1997:
Profit (NOK 45 million) and circulation growth
A-pressen becomes majority shareholder of Nordlys, buys Ringerikes Blad
A-pressen sells Dagningen to Gudbrandsdølen Lillehammer Tilskuer (GLT)
A-pressen increases shareholding in TV 2 to 33 per cent and TV 2 buys
49 per cent of TVNorge
A-pressen buys 51 per cent of Digital Hverdag
A-pressen founds A-pressen Nett and launches 12 newspapers on the
Internet
Media Øst Trykk opens new printing plant in Lillestrøm
1998:
A-pressen is listed on the Oslo Stock Exchange
A-pressen buys Kvinnheringen, Lofot-Tidende and Hadeland
A-pressen establishes A-pressen Eastern Europe AS
Contents
CHAPTER 1: T H I S I S A-PRESSEN
1
EVEN TS
2
THE CEO’S VIEW POINT
3
C H A P T E R 2 : REPOR T O F T H E B O A R D O F D I R E C T OR S
4
CHAPTER 3: SHAREHOLDER RELAT I O N S A N D P O L I C Y
12
CHAPTER 4: BUSINESS AREAS
16
N E W S PA P E R
18
PRIN T I N G
22
TELEVISION
25
ELECTRONIC MEDIA
28
C H A P T E R 5 : C O M PA N Y OV E R V I E W
30
N E W S PA P E R S
32
P R I N T I N G C O M PA N I E S
37
CHAPTER 6: ACCOUNTS
38
THE GROUP A-PRESSEN
40
N OT E S T H E G R O U P A - P R E S S E N
46
A-PRESSEN ASA
56
N OT E S A - P R E S S E N A S A
59
A U D I TO R ’ S R E P O R T, S TAT E M E NT B Y T H E C O R P O R A T E A S S E M B LY
64
Founded on local
devotion
The roots of A-pressen’s humble beginnings can be found in the establishment
of the first workers' newspaper – Vort Arbeid – in 1884. Towards the end of the
1800s the trade union movement gathered strength as a social force against the
exploitation of workers and for equitable distribution of wealth. Strong forces
were to be challenged. The movement had to have its own newspapers in order
to get its message out and agitate and mobilize workers. This is how the labour
press was born in Oslo, Røros, Hammerfest and throughout Norway.
“First came the newspaper, then the party”, wrote Bjørn Bjørnsen about the
founding of Vort Arbeid, which was followed by Social-Demokraten,
Arbeiderbladet and Dagsavisen. That is the way it was: the movement and newspaper were one. Agitation on behalf of the trade union movement was the newspapers' mission and goal. In 1905 there were 14 Labour Party newspapers and
by 1928 the number had reached 45.
Society began to change, not abruptly and brutally, and Norway’s modern democracy gradually evolved and took shape over the years. Newspapers also changed: “The newspaper reflects and makes its mark on the present, becoming part
of history in the process,” is how Øyvind Hirsti summed it up in the book “Rana
Blad – Folkets røst i 90 år” (Rana Blad – the People’s Voice for 90 Years).
Labour Party newspapers grew strong in the 1930s, but were hard hit by the
second world war when 38 out of 44 newspapers were shut down by the
Germans, while more than half of the newspapers of the Conservatives and
Agrarian Party were allowed to continue. After the war the newspapers – the
world's strongest labour press – were reconstructed at an impressive tempo,
against heavy odds. How did they succeed?
Haakon Lie, the powerful former secretary general of the Labour Party, gave this
answer when A-pressen celebrated its 50th anniversary in 1998: “They succeeded because a pressure group of locally anchored newspapers was built up in
combination with centralization to solve financial and other problems that could
not be solved locally.”
So simple – and so difficult. Devotion to community in combination with sound
central solutions is the red thread of A-pressen’s history – even during the at
times painful severance from its role as a mouthpiece for the Labour Party and
movement in the ’60s, ’70s and ’80s – all the way up to today's modern media
corporation, securely founded on a philosophical platform and an unshakeable
belief in local newspapers, but also equipped for meeting the needs of tomorrow’s media society.
From a financial point of view, A-pressen's development can be divided into two
main epochs: the first 40 years and the last 10. In 1998 the board of the then
Norsk Arbeiderpresse AS presented a plan for refinancing and reorganizing the
group, marking the beginning of a transition from a newspaper cooperative to
today’s media corporation. The reason for this action was increasing financial
pressure caused by a declining market, a lack of cost control and considerably
greater competition.
The company was formed on 27 May 1948 under the name Norsk
Arbeiderpresse AS. Alongside the cooperative Arbeiderpressens Samvirke AL,
the holding company provided a sound framework around A-pressen's organization and cooperative approach. The formation of the Group in 1989 united these
companies.
99
A-pressen ASA
Stortingsgaten 2
P.O. Box 1168 Sentrum
0107 OSLO
Telephone +47 22 00 90 00
Telefax +47 22 33 40 37
www.apressen.no
[email protected]
Organization No. 926 914 529
Design: Gazette
Layout and production: Gazette
Print: Larvik Rotasjonstrykkeri
Published April 1999
Circulation 1 000
English translation
Group Board of Directors
Jan Kr. Balstad, Chair
Shareholders representatives
Bente Halvorsen (Chair),
Balstad is Deputy Secretary General of
Norwegian Confederation of Trade Unions
the Norwegian Confederation of Trade
Kjetil Lisland (Deputy Chair), Møller Investor AS
Unions. He has served as the chair of
Jan Davidsen, Norwegian Union of Municipal Employees
A-pressen's board since 16 June 1997
Svend O. Eriksen, Hardanger Folkeblad AS
.
Terje Moe Gustavsen, Deputy Chair
Moe is the President of LO State.
He has served on A-pressen's board
since 11 October 1994.
Arild Fredriksen, Den norske Bank ASA
Erik Garaas, Gjensidige Forsikring
Martin Mæland, OBOS
Arnfinn Nilsen, Norwegian Union of General Workers
Bente Fredheim Nygård, A-pressen Media Øst AS
Olav Støylen, Norwegian Union of Chemical Industry
19
Åshild M. Bendiktsen, Board Member
Bendiktsen is Director of Finance,
Bendiktsen & Aasen A/S. She has served
Workers
Berit Tolg, LO State
Arvid Øygård, Helgeland Arbeiderblad AS
on A-pressen's board since 16 June 1997
.
Svein Haugsvold, Board Member
Haugsvold is Deputy Managing
Director, VÅR bank og forsikring.
since 30 January 1990.
Employee representatives
Line Mette Finnøy, Stjørdalens Blad AS
Oddny Johnsen, Bladet Nordlys AS
Edvard Boye, Dagsavisen Arbeiderbladet AS
Borgny Grini, Telemarksavisa AS
Ingunn Sandåker, Bergensavisen AS
Trine Bergstedt, Lofotposten AS
Tore Tønne, Board Member
Tønne is CEO of Norway Seafoods ASA.
since 16 June 1997.
Eigil Wettre, Board Member
Corporate management
Alf Hildrum, CEO, has headed the Group
since its formation in 1988.
Other senior executives are:
Wettre is CEO of Møller-gruppen AS.
Bjørn Larsen, Corporate Director, Business
Development and the business area Electronic Media
since 15 January 1996.
Mai Torill Hoel, Corporate Director, Organization,
Management, Personnel Development and Corporate
Johnny Helgesen, Board Member,
Employee Representative
Helgesen is a photographer and
employed by Østfoldpressen AS.
since 25 August 1998.
Communications
Even Nordstrøm, Corporate Director,
Finance and Property Management
Marie J. Ritterberg, Corporate Director, Accounting and
Administration (Ritterberg will be leaving
A-pressen ASA on 1 July 1999)
Reidar K. Karlsen, Managing Director,
Jorunn Henriksen, Board Member,
A-pressen Eastern Europe AS.
Henriksen is a typographer and
employed by Fremover. She has served
on A-pressen's board since 25 August
1998.
Following the Group's reorganization in 1997/1998,
Corporate Directors John Kvadsheim and Øivind
Taugbøl each head a division of the newspaper
and printing business area (A-pressen Avis og Trykk AS
and A-pressen Media Øst AS). Both are located in
Kith Skaalerud, Board Member,
Lillestrøm.
Skaalerud is an advertising consultant
A-pressen Avis og Trykk has three regional directors:
at Romerikes Blad. She has served on
Anne Setsaas, A-pressen Midt-Norge
A-pressen's board since 16 June 1997.
Jorulf Husbyn, A-pressen Media Sør and A-pressen
Brit Renngård, Deputy Board Member
Gunn Paulsen, A-pressen Nord-Norge
Vestlandet
(attends regularly) Renngård is chief
Jon Espen Lohne is finance director.
cashier of the Norwegian Civil Service
Union. She has served on A-pressen's
board since 31 October 1995 and
became a deputy board member on
15 January 1996.
The Group's employer's association
Group companies are members of the Confederation of
Norwegian Business and Industry (NHO) through the
Norwegian Newspaper Publishers' Association. The companies are not members of NHO's collective bargaining com-
Group employee representatives
munity. Employer functions are performed by A-pressen's
in A-pressen are
Tariff Association (ATF), which is the Group's employer's
organization. ATF is headed by director John Ravnaas.
Ove Nikolaisen, Hardanger Folkeblad
Bjørn Mietinen, Dagbladet Finnmarken
The auditor for A-pressen ASA is Jan Fr. Sønsteby, state
authorized public accountant, Noraudit DA.
A-pressen
Unique digital merger Local newspapers maintain strong position
Annual Report 1998
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• Table of Contents
• Overview
• Summary 1998
• Key figures
Petersburg Express
• Report of the Board of Directors
• Income Statement
Future generation
local newspapers
• Balance Sheet
Value of TV 2 increases
• Cash Flow Analysis
• Notes
• Shareholders Policy
Main menu
HUGIN 1999. All rights reserved

A-pressen further develops its strong position

Transcription

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