CVR No. 11456111
As a
pproved on the
Annual Meeting on
10 March 2025
Char of the Meeting
Annual Report
2024
Egmont Annual Report 2024
2
Management review
Consolidated financial highlights 4
Egmont in 2024 5
Key Financial Figures for 2024 6
TV 2, Norway 7
Nordisk Film 8
Story House Egmont 9
Egmont Books 10
Egmont’s grants 11
Corporate Social Responsibility 13
Foundation and corporate governance 15
Board of directors 16
Management board 17
Consolidated financial statements
Income statement of the Group 20
Statement of comprehensive income of the
Group 20
Statement of financial position of the Group 21
Cash flow statement of the Group 22
Statement of changes in equity of the Group 23
Sections (notes) 24
Statements
Statement by the board of directors and
management board 58
Independent auditor's report 59
Financial statements of Egmont Fonden
Income statement of Egmont Fonden 63
Statement of financial position of Egmont
Fonden 63
Statement of changes in equity of Egmont
Fonden 64
Notes 65
Contents
2
Egmont Annual Report 2024 Management review
4
4
Egmont
had a solid
result in 2024 with an
operating profit
of
EUR
102 million, an
increase of
21%
compared to 2023.
Financial terms and ratios are defined in section 7.1.
Consolidated
financial highlights
Key figures (EUR million) 2024 2023 2022 2021 2020
Revenue 2,278.0 2,376.8
2,303.1
2,073.5
1,542.0
Profit before net financials, depreciation,
amortisation and impairment losses (EBITDA) *
282.7 284.0
255.9
390.2
224.6
Operating profit (EBIT) 102.1 84.2
81.1
255.9
97.8
Profit/(loss) from investments in associates 5.4 1.7
0.4
4.4
3.4
Net financial income/(expense) from operation 2.7 (6.7)
1.4
0.4
(4.8)
Adjusted operating profit 110.2 79.2
82.9
260.7
96.4
Financial income and expenses, net (27.1)
(28.9)
(15.8)
(15.1)
(11.6)
Profit before tax (EBT) 83.1 50.4
67.1
245.6
84.8
Profit for the year 66.9 41.6
61.6
224.2
74.4
Total assets 2,324.4 2,451.7
2,545.2
2,500.4
1,948.6
Investments in intangible assets 91.6 121.5
129.6
89.7
60.5
Investments in property, plant and equipment 13.2 14.9
27.3
21.4
18.8
Borrowings 291.2 322.6
364.8
186.9
162.6
Net interest-bearing debt ** 406.2 450.8
495.1
306.2
121.1
Equity 1,106.3 1,082.7
1,096.9
1,097.7
885.8
Cash generated from operations *** 220.1 269.0
218.3
301.3
223.2
Financial ratios (%)
Operating margin 4.5
3.5
3.5
12.3
6.3
Equity ratio 47.3
43.9
42.5
43.3
44.8
Return on equity 5.9
3.5
5.6
22.3
7.8
Average number of full-time employees 5,742
6,220
6,201
5,376
4,310
* In 2021, EBITDA was impacted by gain from step-acquisition of Cappelen Damm of EUR 55m.
** Including IFRS 16 leasing debt
*** Calculated before net financials and tax
Egmont Annual Report 2024 Management review
5
Egmont is a leading Nordic media group with a
dual purpose. We bring stories to life and enable
children and youth to have equal opportunities to
pursue a good life. Our stories matter to people
and society, and with a strong entrepreneurial
spirit rooted in our DNA, we continue to find new
ways to share what is important to us.
Egmont has four divisions, TV 2, Nordisk Film,
Story House Egmont and Egmont Books. In total,
we are behind more than 50 innovative
companies and brands spanning books, TV,
magazines, films, computer games, cinemas,
education, e-commerce, and digital agencies.
Our current strategy Grow with the Modern
Consumer – Scale Up and Stand Out enables us
to be a technology-empowered company that
uses consumer insights, data systems and
artificial intelligence to follow the consumer
across all media platforms, delivering locally
produced and engaging journalism, content,
entertainment and experiences. We are driven
by the stories that touch our hearts, enlighten,
educate, inspire, create communities and push
for change.
Our own story is about taking responsibility and
giving back to society. As an enterprise
foundation we use part of our profits to help
others. And we are determined to go greener
and play our part in the green transition.
Solid result in 2024
In 2024, Egmont realised revenue of EUR 2,278
million and an operating profit (EBIT) of EUR 102
million. Revenue was lower than the record year
2023 due to currency translation impacts, a
declining magazine market and extraordinary
sales of game consoles in 2023.
Operating profit increased by EUR 18 million, a
growth of 21%, with good results in all divisions.
The result is satisfactory.
Egmont continued to build subscription and
licensing businesses around its media platforms,
and in 2024 grew direct customer relationships
such as digital book streaming, educational
licenses, computer game users and the
streaming service TV 2 Play, which is accessible
in 1.85 million Norwegian households. Egmont
has also streamlined operations across its
businesses to manage cost hikes in an
increasingly digital and global market. Many of
Egmont’s business are focused on digital
scalability.
2024 was yet another strong year for content,
including a record number of million-plus TV
shows, an Oscar nomination and the publication
of agenda-setting books and quality magazines.
Egmont’s charitable activities constituted
EUR 15.4 million in 2024.
Divisional highlights
TV 2 had a revenue on par with 2023 in EUR, but
a 2% increase in local currency. The adjusted
operating profit was strong, improving by more
than 90%, due to growth in advertising,
continued growth in TV 2 Play subscribers and
comprehensive efficiencies and cost savings
measures. Additionally, TV2 realised a gain on
sale of a subsidiary of EUR 8 million. The 2023
result was affected by significant restructuring
costs.
Nordisk Film's revenue declined in 2024
compared to the all-time high revenue in 2023.
However, adjusted operating profit increased
from 2023, particularly due to improved
profitability in Games and strong performance
across all business areas.
Compared to 2023, Story House Egmont saw a
decrease in revenue in EUR, however almost on
par in local currency. Adjusted operating profit
increased compared to 2023, particularly driven
by cost optimizations in Media and increased
profitability in E-commerce.
In Egmont Books, Cappelen Damm's revenue
increased by 2%. Adjusted operating profit
decreased slightly compared to 2023. In
Lindhardt og Ringhof, both revenue and
adjusted operating profit increased compared to
2023, driven by strong sales within the general
publishing business. Additionally, Lindhardt og
Ringhof expanded its global catalogue by adding
7,000 digital publications, now totalling 140,000.
Egmont in 202
4
Egmont Annual Report 2024 Management review
6
Revenue
Egmont’s revenue amounted to EUR 2,278
million, EUR 99 million less than 2023, but in line
with the expected activity level. Adjusted for
currency translation impacts (lower NOK
exchange rates), revenue was 3.5% down
against last year mainly driven by PlayStation 5
sales, which had an especially strong year in
2023.
Earnings
Operating profit (EBIT) of EUR 102.1 million was
EUR 17.9 million higher than 2023 corresponding
to a growth of 21.3%. Adjusted operating profit of
EUR 110.2 million was EUR 31 million higher than
2023.
The profit before tax (EBT) amounted to EUR 83.1
million, an increase of EUR 32.7 million compa-
red to 2023. The improved result compared to
expectations communicated last year is due to
cost efficiencies, better performance and gains
from sales of subsidiaries.
Tax on profit for the year amounted to an
expense of EUR 16.2 million, corresponding to an
effective tax rate of 19.5%
The net profit for the year was EUR 67.0 million
in 2024 against EUR 41.6 million in 2023.
Balance sheet
Total assets amounted to EUR 2,324.4 million
compared to EUR 2,451.7 million in 2023. The
decrease is mainly caused by currency
translation impacts.
Net interest-bearing debt amounted to
EUR 406.2 million compared to EUR 450.8
million in 2023 and both borrowings and lease
debt were reduced in 2024.
Equity at the end of 2024 amounted to EUR
1,106.3 million compared to EUR 1,082.7 million
last year. Equity was affected by positive
earnings and positive value adjustments of
hedging instruments, but off-set by currency
translation of foreign entities and donations.
Return on equity was 5.9% compared to 3.5% in
2023. The equity ratio at the end of 2024 came
to 47.3% compared to 43.9% in 2023.
Cash flow
Cash generated from operations amounted to
EUR 220.1 million against EUR 269.0 million in
2023. Cash flows from investing activities
amounted to an expense of EUR 94.6 million,
primarily regarding acquisition of film rights and
other rights.
Outlook for 2025
2025 will be a continued year with uncertainty
on macro level and consumer confidence.
Egmont is expecting revenue on par with 2024
and a slight decrease in EBT-level compared
with 2024, excluding the impacts from
divestments and potential acquisitions.
Egmont will carry on developing media
platforms, continuously adapting its media
products to changing consumer needs and new
technology and run profitability programmes
and efficiency-enhancing measures. The
greatest uncertainty is associated with
advertising revenue, which is sensitive to
economic fluctuations and changes in consumer
demand that impacts sales in especially the e-
commerce and games businesses.
Egmont Fonden (parent entity)
The profit reported by Egmont Fonden, the
parent entity of the Egmont Group, excluding
dividends from equity investments in
subsidiaries, was EUR 7.4 million (2023: 6.1
million). The increase is due to increased interest
income. Egmont Fonden’s commercial activities
primarily comprise royalty income from the
Foundation’s publishing rights and management
of the Foundation’s assets. For 2025, Egmont
Fonden expects an unchanged profit excluding
dividends.
Key Financial Figures for 202
4
Egmont Annual Report 2024 Management review
7
637 million EUR
in revenue
(202
3: EUR 637 million)
37
million EUR
in adjusted operating profit
(202
3: EUR 16 million)
1,
158 employees
(202
3: 1,230)
TV 2 is Norway’s commercial public service
broadcaster with a unique content portfolio of
news, sports, local programming and
international films and series. The public service
channel TV 2 Direkte and the 24/7 news channel
TV 2 Nyheter are leading TV channels, and TV 2
Play is the most used commercial streaming
service in the Norwegian market. TV 2 also
operates TV2.no, one of the most popular online
news sites.
2024 was the first year of a new public service
broadcasting agreement, which runs from 2024
to 2028. Revenues in 2024 were EUR 637
million, a growth of 2% in local currency.
Adjusted operating profit was EUR 37 million
compared to EUR 16 million in 2023 reflecting
the full impact of the cost reduction programme
initiated in 2023. Wolftech Broadcast Solutions
AS was sold during the year.
Content
2024 was yet another strong year for journalism
at TV 2. Some of the news department’s
highlights were the extensive coverage of the US
presidential election and the expose of the
acquisition of Norwegian properties close to
military installations by Russians. The news
department also produced the high-profile
documentary series Under Guds Øye (Under
God’s Eye), which has so far been seen by more
than 750,000 Norwegians.
Throughout the year, the Norwegian public
gathered around major sporting events such as
the European Football Championship,
Champions League, Eliteserien and the
European Handball Championship. On the
entertainment side, TV 2 had an outstanding
year launching three new broad family
entertainment shows: Spillet (Bloody Games),
Vokteren (The Summit) and the in-house
developed comedy programme Norges
Dummeste (Nation’s Dumbest). The three shows
each attracted more than a million viewers. In
addition, several of the long-running
entertainment shows such as The Voice, Hver
gang vi møtes (Best Singer), Forræder (Traitors)
and Jakten på kjærligheten (Farmer wants a
Wife) delivered high ratings.
TV channels
TV 2 maintained a share of 27.6% of the total TV
market in 2024. The total commercial market
share was 52.4%, a decrease of 2.0 percentage
points compared to 2023. TV 2’s public service
channel TV 2 Direkte achieved high ratings with
several flagship programmes and its share of the
total market increased by 0.9 percentage points
to 18.1%. The news channel TV 2 Nyheter
delivered in line with 2023 and reached a total
market share of 4.4%. The sports channels as
well as the genre channels TV 2 Zebra and TV 2
Livsstil remained stable.
TV 2 Play
Subscriber numbers continued to grow,
demonstrating TV 2 Play’s prominent position in
the Norwegian streaming market, overtaking
NRK in daily streaming minutes. TV 2 Play
maintained a robust direct-to-consumer (D2C)
base with a declining churn rate. Driven by
Eliteserien and Champions League, TV 2 Play’s
premium football product continued to grow in
2024.
TV2.no
TV2.no had significant growth in page views
throughout 2024, with an all-time high at the
end of November. With the introduction of all
vertical videos, TV2.no also more than tripled its
video views.
RiksTV
RiksTV operates as a distributor of pay-TV
channels in the Norwegian digital terrestrial TV
network, with additional activities in the fiber and
streaming markets. Serving approximately
230,000 customers, RiksTV continued to
experience growth in fiber markets while
experiencing an expected decline in the digital
terrestrial sector.
TV 2, Norway
Egmont Annual Report 2024 Management review
8
643
million EUR
in revenue
(
2023: EUR 729 million)
42
million EUR
in adjusted operating profit
(
2023: EUR 37 million)
1
,818 employees
(
2023: 2,012)
Nordisk Film is a leading Nordic entertainment
company focused on storytelling in films, series
and computer games across all platforms.
Revenues in 2024 were EUR 643 million,
compared to an all-time high of EUR 729 million
in 2023, which was the first year of full
PlayStation 5 availability generating
extraordinary sales. Adjusted operating profit
reached EUR 42 million in 2024, an increase
from EUR 37 million in 2023, driven by strong
performance across all business areas and
improved profitability in the game studio
portfolio.
Films & series
Nordisk Film offers high quality films and series
to Nordic consumers and had a diverse range of
titles and very solid sales in film and series
content in 2024. Nordisk Film was behind 58
local and international titles in the Nordic
countries as producer, co-producer and/or
distributor during the year.
The production company Nordisk Film
Production released a number of films and
series. The Danish produced The Girl with the
Needle premiered at the Cannes Film Festival
and was nominated for the Oscars in 2025. Also
in Denmark, Boundless, Sons, Hunting Season 2
and Birthday Girl sold around 675,000 tickets
between them. In Norway, Loveable was a huge
success, and the family film Super-Charlie was
among the year’s successful Swedish releases.
The series Bullshit (Prime Video), Call me Dad
(Viaplay) and Of the Record (TV 2 Denmark) all
premiered in 2024.
The associated company Zentropa premiered
Families Like Ours, a seven-episode miniseries
from acclaimed director Thomas Vinterberg, on
Danish TV 2. The Last Journey, co-produced by
Nordisk Film, became the best-selling Swedish
documentary feature of all time. Stormskerry
Maja, produced by the joint venture company
Solar Films, was the highest grossing local film
in Finland. A diverse line-up of international films
included One Life with Anthony Hopkins, Ali
Abassi’s portrait of Donald Trump, The
Apprentice and the musical biopic Better Man.
Cinemas
Nordisk Film Cinemas is one of the leading
cinema chains in Scandinavia operating a total of
47 cinema centers. Reservoir, a new cinema
concept with bar, kitchen and cinema, was
opened in Copenhagen in 2024. Nordisk Film
Cinemas increased its market share, while total
admissions were slightly lower than in 2023, as
the film offering was affected by the effects of an
extended writers’ and actors’ strike in the US.
Nordisk Film Cinemas’ media business had a
solid performance with particularly strong
results.
Games
Nordisk Games owns or co-owns five computer
game studios: Avalanche Studios Group,
Supermassive Games, Flashbulb Games and the
associated companies Star Stable Entertainment
AB and MercurySteam. A minority stake in Nitro
Games was sold during the year. The portfolio of
companies saw a slight increase in sales, driven
by Avalanche, which had another great year with
theHunter: Call of the Wild, the world’s largest
hunting game. The overall profitability of the
portfolio was improved compared to 2023.
Supermassive Games announced Directive
8020, a new self-published title scheduled for
release in 2025, Star Stable released acclaimed
new content, and Flashbulb Games continued to
expand Trailmakers.
Nordisk Interactive is the official distributor of
Sony PlayStation in the Nordic and Baltic
countries. The PlayStation 5 celebrated its fourth
year on the market with continued high
consumer demand and the launch of the
PlayStation 5 Pro with enhanced performance
features. Several high-profile games were
released.
Gifting
The gifting company GoGift achieved double-
digit growth in 2024, driven by global expansion
and the growing success of The Global Gift Card.
GoGift was sold to Waterland Private Equity in
early 2025.
Nordisk Film
Egmont Annual Report 2024 Management review
9
778
million EUR
in revenue
(
2023: EUR 797 million)
34
million EUR
in adjusted operating profit
(
2023: EUR 23 million)
1,
788 employees
(
2023: 1,934)
Story House Egmont is a leading media house
focused on connecting and engaging with
consumers through magazine media,
e-commerce platforms and digital agencies.
Revenues in 2024 were EUR 778 million
compared to EUR 797 million in 2023. In local
currencies, revenues were in line with 2023.
Adjusted operating profit was EUR 34 million, a
significant improvement from 2023, driven by a
strong focus on optimization across all
businesses.
Media
Story House Egmont’s media business focuses
on bringing stories to life for adults and children
alike. Content and journalism are delivered
across formats and platforms. Through its
magazines and digital media, Story House
Egmont contributes to a diverse and high-quality
content-based media landscape in 27 countries
across the Nordics, Europe and some
international markets.
The media brands reached millions of
consumers every day and the magazines
continued to raise important agendas
throughout 2024. The media business was
consolidated, with closer cross-border
cooperation to ensure future financial
performance.
Overall performance and profitability were solid
in all markets. Kids publishing delivered a strong
result and added several new IP rights to its
Disney portfolio.
E-commerce
Story House Egmont’s Nordic
e-commerce companies cover five niches:
Outdoor, Parenting, Home & Interior, Health &
Beauty and Hobby. The companies strive to be
category experts, inspiring consumers and
creating engagement and loyalty within their
target audiences.
The e-commerce portfolio consists of: Outnordic
(Outnorth, Fjellsport, Skittfiske), Egmont
LivingNordic (RUM21, Bagaren och Kocken,
RoyalDesign, Andlight), Norwegian company
Garnius and the minority-owned companies
Jollyroom and Med24.
The Danish e-commerce company NiceHair was
sold in late 2024. Total e-commerce sales were
in line with 2023, but with some differences
between niches and companies. The portfolio
performed better than in 2023, based on lower
cost levels and increased margins.
Agencies
Story House Egmont has digital agencies that
are actively working to connect brands and
consumers in an increasingly digital world,
helping other companies tell their stories and
build strong brands.
The agencies are: Ingager, s360 (including
Helion), Klintberg/Niléhn, Markedspartner, KAN
and OKTO. s360 further expanded its business in
2024 with a new set-up in Barcelona. Overall,
portfolio profitability was strong and in line with
2023.
Story House Egmont
Egmont Annual Report 2024 Management review
10
220
million EUR
in revenue
(
2023: EUR 217 million)
14
million EUR
in adjusted operating profit
(
2023: EUR 16 million)
833
employees
(202
3: 902)
Egmont Books comprises the two publishing
houses Cappelen Damm in Norway and
Lindhardt og Ringhof in Denmark. They publish
local and international books as well as
educational material across all platforms.
Revenues in 2024 were EUR 220 million
compared to EUR 217 million in 2023, with a
growth of 3% in local currencies. Adjusted
operating profit was EUR 14 million.
Cappelen Damm
Cappelen Damm is Norway’s largest publishing
house and develops, sells and distributes
analogue and digital publications in all genres
within both general and educational publishing.
Cappelen Damm owns the distribution company
Sentraldistribusjon and co-owns the audiobook
streaming company Storytel Norway AS.
In local currency terms, Cappelen Damm’s
revenues increased slightly in 2024 compared to
2023, mainly due to growth in the general
publishing business, while the educational
publishing business remained stable. Cappelen
Damm saw double-digit growth in digital
products, with digital learning materials and
audiobooks well received by the market.
In 2024, Cappelen Damm launched more than
3,000 new publications – hardcover editions,
digital educational material, audiobooks, e-books
and paperbacks – which represents almost 40%
of all book publications in Norway included in
industry statistics from the Norwegian Publishers
Association. Cappelen Damm published a
number of bestsellers during the year, including
Råsterk på et år by Jørgine Massa Vasstrand and
Vår ære og vår frykt by Abid Raja. Cappelen
Damm author Lars Saabye Christensen received
the prestigious Brage Honorary Award. This is
the third year in a row that a Cappelen Damm
author has won the prize.
Lindhardt og Ringhof
Lindhardt og Ringhof is one of the two market
leaders in Denmark and has three main business
areas: general publishing, international digital
publishing and educational publishing. Both
Lindhardt og Ringhof’s revenues and profits
reached all-time highs in 2024, driven by strong
sales within the general publishing business.
Lindhardt og Ringhof published a range of new
titles on the Danish market in 2024, and among
the notable were Linea Maja Ernst’s bestselling
debut novel Under navlen, Leif Davidsen’s
suspense novel I skyggen af krigen, Maren
Uthaug’s literary novel 88% and Kristian Leth’s
Verdens vigtigste bog, a book on Christianity.
Digital and international publisher Saga released
local and international audiobooks and e-books
in eleven languages, entered into several
important cooperation agreements and added
7,000 digital publications to its global catalogue,
which now totals close to 140,000 digital
publications. Saga continued to launch
established Nordic authors abroad, such as Karin
Fossum, Michael Katz Krefeld and Steffen
Jacobsen, as well as a range of popular
Norwegian sagas for European readers.
Lindhardt og Ringhof’s educational publishing
business completed the integration of Clio ApS
(acquired in 2022). Digital platforms were
strengthened, the range of upper secondary
school materials was expanded and growth in
private tuition continued.
Egmont Books
Egmont Annual Report 2024 Management review
11
15
million EUR
in
grants
(2023: EUR
15 million)
Egmont supports children and young people at
risk through signature programmes and grants
to organizations and initiatives in Scandinavia.
Our aim is to ensure that all children and young
people have equal opportunities to build a good
life, get an education and participate actively in
society.
Egmont is a foundation and in 2024 a total of
EUR 15.4 million was granted to 35 initiatives in
Denmark, Norway and Sweden.
Signature programme: SygtStærk
Egmont’s new Signature Programme SygtStærk
(StayStrong), initiated in 2023, creates a
community for young people living with a
chronic or serious illness. Among the many
initiatives in 2024, SygtStærk has created a
storytelling corps of young people who share
their personal experiences and stories.
SygtStærk has also organised co-creation
workshops and a wide range of physical and
online events, and launched its new online
community on Discord, creating a digital
community for peer support and networking.
Child poverty
Egmont launched a new publication, Egmont
indsigt (Egmont Insight). The first edition was
published in the autumn of 2024 and focused on
child poverty in Denmark. The new findings
presented in the publication made headlines in
several of the country’s major media outlets,
highlighting the need to support children
growing up in poverty. Through Egmont indsigt,
Egmont aims to shed light on the challenges
faced by vulnerable children and young people,
and to contribute to discussions on how we as a
society can address them.
In 2024, Egmont provided direct support to
vulnerable families and children through eight
partner organisations in En håndsrækning (A
Helping Hand).
Important partnerships
Egmont renewed its partnership with Lær for
Livet (Learn for Life) in 2024 so that they can
continue to help children strengthen their
academic, personal and social skills, build
resilience and be prepared to start a youth
education. Egmont also extended its support to
Modstrøm (Counterflow) in partnership with the
Tuborg Foundation and the Bikuben Foundation.
With this grant, Modstrøm is working to
empower young people who don’t follow the
traditional path in the education system.
Leisure activities and communities
Egmont has supported several organisations
working to ensure that children can participate in
leisure activities and communities with their
peers. One example is support for GAME, an
organisation that trains young volunteers
(Playmakers) to make a difference through sport
for children and young people in their local
communities. Egmont also supported
Specialsport.dk (Adaptive Sports), which works
to ensure that children and young people with
disabilities can participate in leisure activities.
Activities in Sweden and Norway in 2024
In Norway, for example, Egmont supported
Guttas Campus, a unique initiative aimed at
strengthening the life and academic skills of
boys who find school challenging. In Sweden,
Egmont worked with Berätterministeriet, an
organisation dedicated to improving literacy and
fostering creativity among students, particularly
in Malmö. Egmont also continued to work with
BLING, an organisation that promotes
entrepreneurship among young people from
Sweden’s most deprived areas.
Nordisk Film Fonden
Nordisk Film Fonden is part of Egmont Fonden
and supports initiatives in Scandinavia that
promote and develop film talent. In 2024,
Nordisk Film Fonden donated EUR 1.0 million.
Ten projects were supported, including the film
technology conference Picture This_24,
MiniMBAs, Sonic Days, the talent incubators
Super 8 (DK) and New Voices (NO), and the Polar
Bear’s Writing Camp. The Store Isbjørn and Lille
Isbjørn scholarships were awarded to 62 film
talents to study abroad. The winners of Nordisk
Film Fonden’s honorary awards were director
Roja Pakari, actor Sofie Torp, director Christian
Andersen, actor Liv Elvira Kippersund Larsson,
director Franciska Seifert Eliassen and
director/screenwriter Anders Thomas Jensen.
Egmont’s
grants
11
Egmont Annual Report 2024 Management review
12
Distribution policy
The board of directors has set the framework for
distributing donations in The Egmont Fonden’s
Philanthropic Strategy 2022-25.
During the year, the Grants Secretariat presented
individual proposals for donations to be
distributed within that framework to the board of
directors.
In December 2024, the Board of Directors
approved a revised philanthropic strategy that
will run from 2025 to 2030.
Egmont Fonden’s Statutory Report on
Distribution Policy, cf. section 77b of the Danish
Financial Statements Act, can be reviewed and
downloaded at:
www.egmont.com/distributionpolicy.
Egmont’s
grants (continued)
12
Egmont Annual Report 2024 Management review
13
4
0,835 Greenhouse gas emissions
(tCO2e)
(2023:
45,629 tCO2e)
Egmont’s Sustainability Report provides detailed
information on sustainability and our responsi-
ble business behaviour. The Sustainability
Report serves as a supplement to the United
Nations Global Compact Communication on
Progress, which will be submitted through the
CoP digital platform. The Sustainability Report
includes Egmont’s mandatory non-financial
reporting in accordance with article 99a and
Egmont’s statement on data ethics in
accordance with article 99d of the Danish
Financial Statements Act. The full report can be
downloaded at: www.egmont.com/key-figures-
reports.
The highlights from Egmont’s Sustainability
Report 2024 are set out as follows.
Go Greener
Egmont’s Go Greener strategy describes
Egmont’s ambitions to contribute to a low-
carbon economy and a better planet for future
generations. Egmont’s greenhouse (GHG)
emissions from scope 1, 2 (market-based) and
selected scope 3 categories have decreased
from 45,629 tCO2e in 2023 to 40,835 tCO2e in
2024 (-11%). From 2022, Egmont has matched its
total electricity consumption (scope 2) with 100%
renewable electricity, which has significantly
decreased Egmont’s emissions (market-based)
from own operations. During 2024, Egmont has
signed up to the Science Based targets initiative
and is preparing to set robust GHG emission
reduction targets for scope 1, 2 and 3 aligned
with the Paris Agreement.
Corporate Social Responsibility
13
Egmont Annual Report 2024 Management review
14
Business ethics and anti-corruption
Egmont’s Business Ethics Policy incorporates a
wider range of legal compliance areas, and it is
an overall umbrella to communicate compliance
policies and how Egmont expects all managers
and employees to act. The Business Ethics e-
learning presents the employees with dilemmas
and cases, which they may encounter in their
daily business. The training is automatically
assigned to all relevant new employees, and
Egmont runs regular refresher training for all
relevant employees and conducts training on
certain topics based on a risk assessment.
Whistleblowing policy and system
Egmont has a whistleblowing policy which can
be accessed online by employees in Egmont and
by external parties (via Egmont.com). In 2024,
Egmont received two whistleblower reports.
Both matters have been investigated and follow
up actions taken. Both matters have been closed.
Data protection, ethics and security
Egmont has implemented a group-wide, general
framework for ongoing GDPR compliance, and
its businesses continue to actively implement
GDPR compliance into the way they work.
Egmont also has a group-wide Information
Security Policy, and all employees are educated
in general information security on an annual
basis. Finally, Egmont has introduced a policy on
data ethics to ensure that Egmont companies
manage data in an ethical way. The principles in
the policy are universal and relevant across
Egmont but currently it only applies directly to all
100% owned Danish companies.
Egmont social compliance
Egmont’s approach to social compliance is
guided by Egmont’s Code of Conduct to third
parties and business partners and it is aligned
with UN Global Compact’s ten principles and
covers topics related to human rights, labour
rights, environment and anti-corruption. The
Code of Conduct sets out our minimum
requirements on responsible business practices
for our business partners and suppliers, while
the Egmont Social Compliance Programme
defines processes and practices on how to
ensure compliance and how to mitigate non-
compliance issues at our direct suppliers and
selected sub-suppliers. During 2024, Egmont
continued to monitor its manufacturers’ social
compliance level via social audits, and on-going
dialogue to remedy audit findings. During 2024,
Egmont has evaluated 212 social audit reports
and self-assessment questionnaires.
Employee engagement
Egmont’s leaders are vital to the well-being and
development of its people, and it is crucial for
Egmont’s continued success that its leaders
understand how to guide their employees
through the rapid changes in business models.
Therefore, Egmont continues to invest in
leadership training, which aims at unfolding
Egmont’s strategy in a set of key leadership
principles. In 2024, 119 leaders from across the
businesses have completed the ‘Committed to
Lead’ programmes. A supplementary one-day
leadership course, which was completed by 233
leaders was introduced in 2024. Egmont’s
engagement remains at a high level, both in
terms of participation rate in surveys (88%) and
the overall engagement level (7.9 on a 10-point
scale) according to the latest survey in April
2024.
Corporate
Social Responsibility (continued)
Egmont Annual Report 2024 Management review
15
Governance framework
Based on the legal requirements in Egmont
Fonden’s charter as well as the most recent
recommendations from the Committee on
Foundation Governance and the Committee on
Corporate Governance, the board of directors
and the management board have established the
governance framework for Egmont.
In general, Egmont Fonden adheres to support
the Danish Recommendations on Foundation
Governance and complies with most of the
recommendations. Egmont Fonden’s Statutory
Report on Foundation Governance for the
financial year 2024 can be reviewed and
downloaded at:
www.egmont.com/foundationgovernance.
The report includes a full description of Egmont’s
approach to each of the recommendations from
the Committee on Foundation Governance.
The board of directors has also prepared a
Report on Corporate Governance for the
financial year 2024 based on the
Recommendations on Corporate Governance.
The report can be reviewed and downloaded at:
www.egmont.com/corporategovernance.
Organisation
At the annual meeting in March 2024, Merete
Eldrup was reappointed to the board for a four-
year period.
Egmont Fonden’s charter requires that the board
members elected on the basis of the charter
have relevant skills to manage the commercial
and charitable activities carried out by the
foundation. The board members must also have
sufficient understanding of the main markets in
Scandinavia. Board members must collectively
have relevant experience from both foundation
and business activities as well as management
of companies. At least three board members
must have significant commercial experience
from longstanding management positions or
similar positions in society in Scandinavia, and at
least two of these members must have obtained
the experience in one or more companies or
institutions in Denmark. In that connection, the
board has assessed that its members must
collectively have relevant experience from and
with international business and management,
finance and reporting, entreprise foundations,
digital business and marketplaces, mergers &
acquisitions, media, strategy design and
implementation, growth markets, ESG, digital
transformation and performance management.
Foundation and
corporate governance
15
Egmont Annual Report 2024 Management review
16
Merete Eldrup (Chair)
2 3 5 6
Professional board member. Born 1963, appointed
2020, election period expires 2028.
Member of the board of Egmont International Holding
A/S, University of Copenhagen
(C)
, Nykredit Realkredit
A/S
(C)
, Nykredit Holding A/S
(C)
, Greenland Airports
International, Molslinjen A/S and Falck A/S.
Special competences: media, finance, strategy,
management.
Participated in 6 out of 6 board meetings.
Tom Knutzen (Vice Chair)
1 3 5 6 7
Professional board member. Born 1962, appointed
2023, election period expires 2027.
Member of the boards of Egmont International
Holding A/S, FLSmidth & Co. A/S
(C)
(until April 2025),
Tivoli A/S
(C)
, Jeudan A/S
(VC)
, Givaudan S.A.,
Switzerland and Jungbunzlauer Holding AG,
Switzerland.
Special competences: management, international
business, innovation, finance, M&A and strategy.
Participated in 6 out of 6 board meetings.
Dr. Martin Enderle
1 3 5
Professional board member. Born 1965, appointed
2014, election period expires 2026.
Member of the boards of Egmont International
Holding A/S, Delivery Hero SE
(C)
, Germany; Chrono24
GmbH, Germany; Senior Advisor to atHome Group,
Luxembourg and McKinsey & Co.
Special competences: international management
experience, growth markets, digital marketplaces,
classifieds, food delivery, mergers & acquisitions,
venture capital, strategy implementation.
Participated in 4 out of 6 board meetings.
Josh Bottomley
1 3 5
CEO, dunnhumby, UK. Born 1967, appointed 2017,
election period expires 2025.
Member of the board of Egmont International
Holding A/S.
Special competences: international business and
management experience, digital transformation,
strategy design and implementation.
Participated in 5 out of 6 board meetings.
Christian Wegner
1 3 5
CEO, Südwestdeutsche Medienholding (SWMH),
Germany. Born 1974, appointed 2017, election
period expires 2025.
Member of the board of Egmont International
Holding A/S.
Special competences: international business and
management experience, performance management,
portfolio management, strategy and execution, digital
transformation, growth markets, M&A, venture capital.
Participated in 6 out of 6 board meetings.
Rebekka Glasser Herlofsen
2 3 5 7
Independent consultant, investor and professional
board member. Born 1970, appointed 2023,
election period expires 2027.
Member of the board Egmont International Holding
A/S, Norwegian Hull Club, Norway
(C)
, Handelsbanken
Norge, Norway
(C)
, DNV Council, Norway
(C)
, Wilh.
Wilhelmsen Holding ASA, Norway, Aibel AS, Norway,
BW Offshore ASA, Norway, Torvald Klaveness Group
AS, Norway, Rockwool A/S, Denmark.
Special competences: financial expert and board
certified within ESG.
Participated in 6 out of 6 board meetings.
Peder Høgild
1 4
Media operator, Nordisk Film Biografer. Born 1958,
elected 2019, election period expires 2027.
Participated in 6 out of 6 board meetings.
Jesper Lyders Andersen
1 4
Editor in chief, Praxis A/S. Born 1986, elected 2023,
election period expires 2027.
Participated in 6 out of 6 board meetings.
Anna von Lowzow
2 4
Journalist and director, Nordisk Film Production
A/S. Born 1961, elected 2016, election period
expires 2027.
Participated in 6 out of 6 board meetings.
C
:
Chair
VC:
Vice Chair
1
Male
2
Female
3
Independent
4
Employee representative in
commercial activities
5
General and charitable activities
6
Funding and Grant Committee
7
Audit Committee.
No board members own shares, options, warrants or
similar in the foundation’s subsidiaries, joint ventures and
associated companies. No members are appointed by
authorities or providers of grants etc.
Board of directors
Egmont Annual Report 2024 Management review
17
Steffen Kragh
President and CEO. Born 1964
Member of the boards of Lundbeckfonden
(C)
,
Lundbeckfond Invest A/S
(C)
, Tryg A/S
(VC)
, Tryg
Forsikring A/S
VC)
, Nordic Bioscience Holding A/S
VC)
.
Chair, Vice Chair or member of boards of Egmont
Group companies
Hans J. Carstensen
Executive Vice President and CFO. Born 1965
Member of the board of Statens Ejendomssalg A/S
(Freja Ejendomme A/S)
(C)
Chair, Vice Chair or member of boards of
Egmont Group companies
C
:
Chair
VC:
Vice Chair
Management
board
17
Egmont Annual Report 2024 Consolidated financial statements
19
Main statements
Income statement 20
Statement of comprehensive income 20
Statement of financial position 21
Cash flow statement 22
Statement of changes in equity 23
Section 1
Operating activities
1.1 Revenue 24
1.2 Other operating income 25
1.3 Personnel expenses 26
1.4 Financial income/(expense) from
operations 27
Section 2
Invested capital and working
capital items
2.1 Intangible assets 28
2.2 Property, plant and equipment 32
2.3 Leases 33
2.4 Amortisation, depreciation and
impairment losses 34
2.5 Investment properties 34
2.6 Inventories 34
2.7 Trade receivables 35
2.8 Prepayments 35
2.9 Pension obligations 36
2.10 Provisions 37
2.11 Other liabilities and deferred income 37
Section 3
Capital structure and financing
3.1 Financial risks 38
3.2 Cash and cash equivalents 40
3.3 Net interest bearing debt 40
3.4 Financial liabilities 40
3.5 Financial income and expenses 41
3.6 Derivative financial instruments 42
Section 4
Investments, disposals, joint
ventures and associates
4.1 Acquisition and divestment of
businesses 43
4.2 Investments in joint ventures and
associates 45
Section 5
Taxes
5.1 Income taxes 47
5.2 Deferred taxes 48
Section 6
Other disclosures
6.1 Related parties 49
6.2 Contingent liabilities 49
6.3 Fees to auditors 49
6.4 Subsequent events 49
Section 7
Basis for preparation
7.1 Basis of preparation 50
7.2 Significant accounting estimates and
judgements 52
7.3 Principal accounting policies 52
7.4 Standards and interpretations not yet
adopted 52
Section 8
Group entities
8.1 Subsidiaries 53
8.2 Joint ventures 56
8.3 Associates 56
Egmont Annual Report 2024 Consolidated financial statements
19
Consolidated
financial statements
Egmont Annual Report 2024 Consolidated financial statements
20
Income statement of the Group
(EURk)
Statement of comprehensive income of the Group
(EURk)
Section 2024 2023
1.1 Revenue 2,278,036
1.2 Other operating income 24,322
Cost of goods sold (719,961 )
(785,926 )
Other external expenses (794,486 )
(788,597 )
1.3 Personnel expenses (498,802 )
(536,801 )
2.4 Depreciation, amortisation and impairment losses (180,561 )
(199,817 )
Other operating expenses (5,552 )
(6,313 )
4.2 Profit/(loss) after tax from investments in joint ventures (906 )
Operating profit 102,090
4.3 Profit/(loss) after tax from investments in associates 5,425
1.4 Net financial income/(expense) from operation 2,718
(6,618 )
Adjusted operating profit 110,233
3.5 Financial income 885
3.5 Financial expenses (28,008 )
(31,091 )
Profit before tax 83,110
5.1 Tax on profit for the year (16,169 )
(8,774 )
Net profit for the year 66,941
Net profit for the year attributable to:
Egmont Fonden 64,291
Non-controlling interests 2,650
Total 66,941
Section 2024 2023
Profit for the year 66,941
Items that won't be reclassified to the income statement in subsequent
periods:
Actuarial gains/(losses) on defined benefit pension plans 1,282
(1,037 )
Other equity transactions in joint ventures and associates 1,083
(2,840 )
5.1
Tax on items that won't be reclassified to the income statement in
subsequent periods (282 )
(3,402 )
Items to be reclassified to the income statement in subsequent periods:
Foreign exchange adjustments on translation to presentation currency (891 )
(2,851 )
Foreign exchange adjustments on translation of foreign entities (32,958 )
(48,127 )
Net value adjustment of hedging instruments 7,452
5.1 Tax on items to be reclassified to the income statement in subsequent periods (1,448 )
(3,069 )
(27,845 ) (38,420 )
Other comprehensive income after tax (25,762 ) (41,822 )
Total comprehensive income 41,179
(215 )
Total comprehensive income attributable to:
Egmont Fonden 38,848
(3,600 )
Non-controlling interests 2,331
Total 41,179
(215 )
Egmont Annual Report 2024 Consolidated financial statements
21
Statement of financial position of the Group at 31 December
(EURk)
Section Assets 2024 2023
2.1 Intangible assets 1,114,929
2.2 Property, plant and equipment 161,589
2.3 Lease assets 121,439
2.5 Investment properties 44,835
4.2 Investments in joint ventures and associates 145,907
Other investments 4,513
6.1 Receivables from joint ventures and associates 694
5.2 Deferred tax assets 10,153
Total non-current assets 1,604,059
2.6 Inventories 163,030
2.7 Trade receivables 275,258
6.1 Receivables from joint ventures and associates 622
Other receivables 91,848
2.8 Prepayments 151,131
3.2 Cash and cash equivalents 38,407
Total current assets 720,296
Total assets 2,324,355
Section Equity and liabilities 2024 2023
Capital fund 29,500
Retained earnings and other reserves 1,070,420
Egmont Fonden’s share of equity 1,099,920
Non-controlling interests 6,340
Equity 1,106,260
3.4 Borrowings 291,207
3.4 Lease liabilities 115,067
5.2 Deferred tax liabilities 46,891
2.10 Provisions 11,867
2.11 Other liabilities and deferred income 22,983
Non-current liabilities 488,015
3.4 Borrowings - 48,709
3.4 Lease liabilities 38,954
3.4 Trade payables 248,157
Prepayments from customers 47,702
2.10 Provisions 63,893
2.11 Other liabilities and deferred income 331,374
Current liabilities 730,080
Total liabilities 1,218,095
Total equity and liabilities 2,324,355
Egmont Annual Report 2024 Consolidated financial statements
22
Cash flow statement of the Group
(EURk)
Section 2024 2023
Operating profit 102,091
Adjustment for non-cash operating items, etc.:
Other non-cash operating items, net (16,497 )
(17,049 )
2.4 Depreciation, amortisation and impairment losses 180,561
Profit/(loss) after tax from investments in joint ventures 906
(75 )
Provisions (40,024 )
(19,494 )
Cash generated from operations before change in working capital 227,037
Change in inventories 11,714
Change in receivables (15,608 )
(37,643 )
Change in trade payables and other payables (3,001 )
Change in working capital (6,895 )
Cash generated from operations 220,142
Interest received 534
Interest paid (19,558 )
(18,985 )
2.3 Interest paid on lease liabilities (8,118 )
(8,006 )
Corporate income tax paid (10,432 )
(17,536 )
Cash flows from operating activities 182,568
2.1 Acquisition of intangible assets (91,550 )
(121,544 )
2.2 Acquisition of property, plant and equipment (13,225 )
(14,877 )
Disposal of property, plant and equipment 4,382
Acquisition of financial assets (4,589 )
(579 )
Disposal of financial assets 3,032
4.1 Acquisition of subsidiaries (5,458 )
(3,777 )
4.1 Disposal of subsidiaries 12,846
Cash flows from investing activities
(94,562 )
(139,558 )
Section 2024 2023
Acquisitions of non-controlling interests (4,284 )
(1,782 )
Disposal of non-controlling interests 2,155
3.4 Borrowing from credit institutions, etc.
3.4 Repayments to credit institutions, etc. (79,858 )
(72,934 )
3.4 Instalments on lease liabilities (39,969 )
(36,494 )
4.2 Dividends from joint ventures and associated companies 3,612
Dividends to non-controlling shareholders (1,015 )
(1,434 )
1.3 Share based payment (340 )
-
Donations
(15,392 )
(14,853 )
Cash flows from financing activities (85,641 )
(90,592 )
Net cash flows from operating, investing and financing activities 2,365
(3,439 )
Cash and cash equivalents at 1 January 44,902
Foreign exchange adjustment of cash and cash equivalents (8,860 )
(9,817 )
Cash and cash equivalents at 31 December 38,407
3.2 Hereof cash pledged as collateral (790)
(2,632)
Cash and cash equivalents at 31 December (unrestricted) 37,617
42,269
The cash flow statement cannot be derived directly from the balance sheet and income statement.
Egmont Annual Report 2024 Consolidated financial statements
23
Statement of changes in equity of the Group
(EURk)
2024
Capital fund
Reserve for
hedging
transactions
Reserve for
foreign
exchange
adjustments
Retained
earnings
Non-
controlling
interests Total equity
Equity at 1 January 29,519
(272,891 )
Net profit for the year - - - 64,291
Foreign exchange adjustments on
translation to presentation currency
(19 )
(4 )
(5 )
(891 )
Foreign exchange adjustments on
translation of foreign entities
(33,275 )
(32,958 )
Value adjustments of hedging
instruments
Value adjustment for the year - (811 )
Value adjustments transferred to other
external expenses
Value adjustments transferred to
financial expenses
Other items
Actuarial gains/(losses) on defined
benefit pension plans
Equity transactions in associates - - - 1,083
Tax on other comprehensive income - (1,829 )
(282 )
Other comprehensive income (19 )
(32,894 )
(319 )
(25,762 )
Total comprehensive income (19 )
(32,894 )
Used for charitable purposes and
associated costs
Acquisitions/disposal, non-controlling
interests
(2,250 )
(900 )
Dividends, non-controlling interests - - - - (1,015 )
(1,015 )
Share-based payment - - - (340 )
Equity at 31 December 29,500
(305,785 )
2023
Capital fund
Reserve for
hedging
transactions
Reserve for
foreign
exchange
adjustments
Retained
earnings
Non-
controlling
interests Total equity
Equity at 1 January 29,583
(6,924 )
(224,309 )
Net profit for the year - - - 38,245
Foreign exchange adjustments on
translation to presentation currency
(64 )
(49 )
(32 )
(2,851 )
Foreign exchange adjustments on
translation of foreign entities -
(49,131 )
(37 )
(48,127 )
Value adjustments of hedging
instruments
Value adjustments for the year - (604 )
Value adjustments transferred to other
external expenses -
Value adjustments transferred to
financial expenses -
Other items
Actuarial gains/(losses) on defined
benefit pension plans - - -
(1,037 )
Equity transactions in joint ventures - - - (2,840 )
Tax on other comprehensive income - (3,618 )
Other comprehensive income (64 )
(48,582 )
(6,145 )
(41,822 )
Total comprehensive income (64 )
(48,582 )
(215 )
Used for charitable purposes and
associated costs - - -
(14,853 )
Acquisition/disposal, non-controlling
interests - - -
(9,693 )
Dividends, non-controlling interests - - - 0
(1,434 )
(1,434 )
Share-based payment - - - 404
Equity at 31 December 29,519
(272,891 )
Egmont Annual Report 2024 Section 1 - Operating activities
24
1.1 Revenue
The Group’s revenue
The Group’s revenue primarily arises from sales
of goods and services, including books and
magazines, e-commerce products (primarily
home & interior and outdoor), games consoles,
TV and film production, TV and cable
broadcasting distribution, advertising, gaming
and subscription sales.
Revenue is split in our four divisions as follows:
Contract assets and liabilities
Contract assets primarily relate to revenue from
work for hire contracts where the customer has
been invoiced less than the stage of completion.
As such, the balances of this account vary and
depend on the number of ongoing work for hire
contracts at the end of the year. Contract assets
are presented in trade receivables.
Contract liabilities include advances on gift
cards, subscriptions, work for hire contracts, etc.
and are presented as deferred income.
Significant estimates and judgements
The Group considers all terms and conditions in contracts
with customers in order to determine the performance
obligation(s), the transaction price and the allocation of the
transaction price.
All types of variable consideration such as rebates, return
rights or penalties etc. are reconised as revenue only to the
extent that it is highly probable that a significant reversal
will not occur subsequently. Return and warranty policies
are typically based on customary return arrangements in
local markets.
Recognition and measurement of revenue is based on
estimates and judgements relating to expected sales
returns allowed to customers in most markets. When the
customer holds a right to return the good, the Group
estimate the expected number of goods that will be
returned based on historical return and postpone
recognition of such revenue.
These judgements can have a material impact on the timing
and measurement of recognised revenue as well as the
level of the refund liability.
Revenue from films and games work for hire contracts is
subject to judgements relating to identifying the
performance obligations in the contract, i.e. assessing
whether milestones are separate performance obligations
or one combined. Furthermore, assessment of the
percentage of completion is subject to estimates
Accounting Policies
Revenue
The Group separates customer contracts into performance
obligations and recognises revenue from these separately.
For customer contracts that includes more than one
performance obligation, Egmont allocates the transaction
price to the individual performance obligations
proportionate to their stand-alone selling price.
Section 1
Operating activities
This section includes
disclosures on the Group’s
operating activities generated
for the year
describing the
revenue streams within the
Group, other operating
income
, personnel expenses
and financial/income expenses
from operations
.
Egmont had a revenue of
EUR
2,278 million in 2024. The
decrease
compared to 2023
was
primarily due to
depreciation of Norwegian
Kroner
, lower sales of game
consoles
and a declining
magazine market
.
Nordic Countries
Other Countries
Total
Geographical markets
(EURk)
2024 2023 2024 2023 2024 2023
Sale of goods 938,658
1,139,285
243,097
178,817
1,181,755
1,318,101
Sale of services 820,472
774,484
127,588
161,488
948,060
935,971
Royalty 110,717
98,821
27,697
13,973
138,414
112,794
Rental income 9,807
9,937
- -
9,807
9,937
Total 1,879,654
2,022,526
398,382
354,278
2,278,036
2,376,804
At point in time 1,182,847
1,340,559
319,466
303,901
1,502,313
1,644,460
Transferred over time 696,807
681,967
78,916
50,377
775,723
732,344
Total 1,879,654
2,022,526
398,382
354,278
2,278,036
2,376,804
Revenue split on Divisions
(EURk)
2024 2023
TV 2, Norway 636,613
636,683
Nordisk Film 643,387
728,473
Story House Egmont 777,560
796,602
Egmont Books 220,097
216,687
Other (i.e. rental income) 9,807
9,937
Eliminations (9,428)
(11,578)
Total 2,278,036
2,376,804
Contract balances (EURk) 2024 2023
Trade receivables
(section 2.7)
275,258
264,125
Contract assets - 1,536
Contract liabilities
(Section 2.11)
100,555
99,851
Egmont Annual Report 2024 Section 1 - Operating activities
25
1.1 Revenue (continued)
1.2 Other operating income
Accounting Policies
Other operating income and costs
Other operating income and costs comprise items
secondary to the principal activities of the entities, including
gains and losses on the disposal of businesses (including
re-measuring of existing shares in step-acquisitions),
intangible assets and property, plant and equipment and
right-of-use assets, as well as value adjustments of
investment properties at fair value and fair value
adjustments of contingent consideration.
Gains and losses on the disposal of entities, intangible
assets and property, plant and equipment are determined
as the selling price less disposal costs and the carrying
amount at the date of disposal.
Gains and losses from re-measuring existing shares in step-
acquisitions are determined as the fair value of new shares
acquired, adjusted for control premium less the carrying
value of those shares prior to the step-acquisitions.
Government grants
TV 2, Norway has a public service broadcasting agreement
with the Norwegian state, which compensates TV 2 for
additional cost regarding production of Norwegian news,
film and TV content for EUR 12.9 million in 2024 (2023: EUR
11.8 million). Compensation under the agreement with the
Norwegian state is recognised in the income statement as a
reduction of the related expenses.
Accounting Policies
(continued)
The Group recognises revenue when or as control passes to
the customer. Revenue is measured at its transaction price,
which comprise net present value when payments exceed
12 months.
Revenue is measured excluding VAT and taxes and
including all types of discounts provided to customers.
When consideration is received before control is transferred
it is recognised as a contract liability and presented as
deferred income.
Warranty provisions are recognised as the underlying goods
are sold based on historical warranty costs experience in
previous financial years.
Generally, payment terms are based on customary terms in
local markets.
Revenue from sale of goods
Revenue from sale of goods comprise sale of PlayStation
products, sale from e-commerce, etc. are recognised at
point in time when control is transferred, usually when the
goods are delivered. Specific revenue recognition criteria for
significant revenue streams are described below.
Revenue from sale of cinema tickets (sale of goods)
Revenue from sale of cinema tickets is recognised as the
movies are shown.
Revenue from magazine sales (sale of goods)
Egmont recognises revenue from sale of magazines, both
subscription and single-copy sales, and ads related to
magazines at the publication date of the magazine, which is
considered a point in time.
Magazine subscriptions are considered as a number of
discrete performance obligations which are satisfied over
the course of the subscription period as magazines are
published.
For circulation sales, where customer’s holds a right of
return, Egmont only recognises revenue from the sale of
magazines to the extent that it is highly probable that a
significant reversal will not occur.
Revenue from TV and film production (sale of goods)
Revenues from sale of TV and film productions to TV
stations (availability rights) and distribution companies is
recognised at point in time, on the availability date, when it
becomes available (accessible) to the customer.
Consideration received for TV and film productions before
the availability date is a contract liability and is presented in
the balance sheet as deferred income. Deferred income is
measured at fair value.
Consideration received for co-founding of film productions
are recognised as revenue.
Self-published games (sale of goods)
Revenue from self-published games without no future
material free content communicated at time of release, is
recognised at the time of delivery to the customer
(download).
When Egmont promises to deliver future material free
content, the customer contract includes an additional
performance obligation. Egmont allocates the transaction
price in such arrangements by determining the stand-alone
selling price of the performance obligations that is
recognised upon release.
Revenue from film and tv distribution (royalty)
Revenue from rent of films to cinemas is recognised in
period of screen-time, when the tickets are redeemed.
Revenue from video on demand distribution is recognised
when the program is broadcasted based on statements
from the streaming platforms.
Revenue from streaming of e-books and audio books
(royalty)
Royalties earned from rent of e-books and audio books
rights to streaming platforms are recognized as revenue at
the time of delivery to the customer (download).
TV and cable distribution (sale of services)
Revenue from TV and cable distribution (cable fee) is based
on number of subscribers and is recognised on straight-line
basis over the period of the relevant agreements. The
number of subscribers is based on reports received from
the distribution companies.
Revenue from advertising (sale of services)
Revenue from advertising is recognised when the adverts
are broadcasted on TV or in the Cinema. If the transaction
price is variable based on the number of viewers, Egmont
constrains revenue to the extent that it is highly probable
that a significant reversal will not occur subsequently.
Gaming work for hire (sale of services)
Gaming work for hire contracts usually comprise one
performance obligation that is satisfied over time as Egmont
delivers hours at a fixed hourly rate, thus having a right to
consideration that corresponds directly with the value
transferred to the customer to date. Revenue deriving from
work for hire is recognised at the amount that Egmont has a
right to invoice.
Revenue from sale of gift cards (sale of services)
Sale of gift cards are initially recognized as deferred income
and subsequently recognized as revenue over the
redemption period, including the expected amount of not
redeemed gift cards (breakage).
Revenue through the Group’s online platform relating to
customers purchase and redeem of third-party gift cards, is
treated as the Group acts as an agent and the third-party
service provider (partner) being the principal. The gross
revenue received from the customer less the amount paid to
the partner is recognized as revenue.
Deferred income relating to gift cards is assessed for gift
cards which are not expected to be redeemed (breakage).
Breakage is recognized over the redemption period based
on expectations of how many gift cards that will not be
redeemed.
Subscription based revenue (sale of services)
Subscription based revenue primarily comprise TV2 Play,
educational platforms in Books and Cinemas (‘Unlimited’).
Subscription based revenue comprise one performance
obligation that is satisfied over the subscription period, thus
having a right to consideration that corresponds directly
with the value transferred to the customer to date. Prepaid
subscriptions for a certain subscription period are
recognised as deferred income and disclosed as contract
liabilities.
Other operating income (EURk) 2024 2023
Gain on sales of subsidiaries 8,687
-
Earn-outs and sale of activities 4,840
8,128
Reversal of provisions for
litigations and claims
2,802
6,567
Government grants 650
3,021
Miscellaneous 7,343
7,052
Total 24,322
24,768
Egmont Annual Report 2024 Section 1 - Operating activities
26
1.3 Personnel expenses
Compensation to management board amounted
to EUR 5,314k (2023: EUR 5,501k), of which
pension contributions amounted to EUR 482k
(2023: EUR 464k).
Compensation to the board of directors and
Audit Committee amounted to EUR 640k
(2023: EUR 616k).
Share-based payment in Nordisk Games A/S
A long term share-based incentive programme
was issued in Nordisk Games A/S in 2022. The
programme was targeted at executive
employees, selected second level management
and senior specialists in Nordisk Games Group.
The share options were granted for free and
without any related performance conditions,
however certain key employees acquired 1 share
option for every 9 free share options at the fair
value at the grant date.
The fair value calculated at the grant date was
based on a Black-Scholes warrant pricing model.
Beginning of 2024, it was decided to terminate
the share-based incentive programme. The
share-options was repurchased, amounting to a
total of EUR 340k, recognised in equity, after
which they have been cancelled.
The share options granted were recognised in
the income statement corresponding to the fair
value at the time of grant accrued over the
vesting period. The total expense recognised in
respect of equity-settled programmes amounted
to EUR 0 in 2024 (2023: EUR 404k before tax).
The fair value of the remaining equity-settled
programmes amounts to EUR 0k (2023: EUR
825k).
Personnel expenses (EURk) 2024 2023
Wages and salaries (406,970)
(452,495)
Defined contribution pension
plans
(33,058)
(30,386)
Defined benefit pension plans 161
9
Other social security costs (58,935)
(53,525)
Share-based payment - (404)
Total (498,802)
(536,801)
Average number of full-time
employees
Annual compensation to members
of the board of directors per task
2024 2023
Egmont Fonden, general:
Member 11
11
Vice chair 16
16
Chair 21
21
Egmont Fonden,
charitable activities:
Member 11
11
Vice chair 16
16
Chair 21
21
Grant Committee,
charitable activities:
Vice chair 16
16
Chair 32
32
Audit committee
(established in Q4 2023):
Member 11
3
Chair 21
5
Egmont International
Holding A/S:
Member 35
35
Vice chair 52
52
Chair 70
70
Accounting Policies
Personnel expenses
Staff costs are recognised in the financial year in which the
employee renders the related service.
Key management personnel has been defines as the
Management Board.
Share-based payment
The cost of share-based payments, which is expensed over
the vesting period of the programme according to the
service conditions, is recognised in staff costs and equity
Share option programmes 2024 2023
Persons incl. in the
programme
- 9
Share options granted - 1,115,000
Vesting date - 31.05.2025
Exercise period begins
- 01.06.2025
Exercise period ends
- 31.05.2027
Exercise price
- 3.78
Fair value at the date of
the grant
- 1.48
Outstanding share options 2024 2023
1 January 1,115,000
1,525,000
Share options forfeited
during the year
- (410,000)
Share options re-
purchased and cancelled
during the year
(1,115,000)
-
31 December
- 1,115,000
Egmont Annual Report 2024 Section 1 - Operating activities
27
1.4 Financial income/(expense) from
operations
Accounting Policies
Financial income and expenses from operations
Financial income and expense from operation comprise
gains and losses on securities, amortisation of financial
assets and liabilities and foreign exchange adjustments.
Furthermore, changes in the fair value of derivative financial
instruments regarding foreign currency contracts, which
are not designated as hedging instruments as well as the
effective portion of the hedges are also included.
Net financial
income/(expense) from
operation (EURk)
2024 2023
Dividends received 261
149
Gain on disposal of
securities and shares
2,612
209
Foreign exchange gains 1,579
-
Financial income from
operations
4,452
358
Fair value adjustments of
securities and shares
- (1,557)
Foreign exchange loss - (3,854)
Other financial expenses (1,734)
(1,565)
Financial expenses from
operations
(1,734)
(6,976)
Total 2,718
(6,618)
27
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
28
2.1 Intangible assets
Section 2
Invested
capital and
working capital
items
This section includes
disclosures on
the Group’s
invested capital that forms the
basis of our business activities.
Invested capital represents the
Group’s intangible assets,
property, plant and equipment
and net working capital items
in the form of operating assets
and liabilities.
Further
more, invested capital
also comprises significant
intangible assets mainly
related to acquired goodwill
and trademarks from business
combinations carried out over
the years.
Intangible assets totals a carrying amount of EUR 1,114,929k (2023: EUR 1,165,670k).
2024
2023
Intangible assets (EURk)
Goodwill Trademarks
In-house
produced
rights
Film rights
and other
acquired
rights
Intangible
assets under
development
and pre-
payments
Goodwill Trademarks
In-house
produced
rights
Film rights
and other
acquired
rights
Intangible
assets under
development
and pre-
payments
Cost at 1 January 846,949
245,375
356,363
722,137
24,398
878,158
253,615
332,191
655,235
28,579
Adjustments relating to previous years - - - - -
(2,068)
(8,558)
- 7,770
-
Foreign exchange adjustments (31,572)
(7,597)
(3,487)
(4,381)
(193)
(32,975)
(13,032)
(3,398)
(8,364)
(61)
Additions through business
combinations
6,619
- - 1,712
-
4,643
- - 365
-
Additions
180
- 2,511
7,542
80,921
95
14,391
35,149
30,225
41,684
Transferred* - 11,793
97,638
(56,833)
(27,225)
- - - 45,804
(45,804)
Disposals (5,667)
(2,550)
(914)
(2,405)
-
(904)
(1,041)
(7,579)
(8,898)
-
Cost at 31 December
816,509
247,021
452,111
667,772
77,901
846,949
245,375
356,363
722,137
24,398
Amortisation and impairment losses at 1
January
(62,487)
(55,011)
(311,315)
(600,739)
-
(70,875)
(53,267)
(260,249)
(529,988)
-
Adjustments relating to previous years
- - - - -
2,068
8,558
- (7,770)
-
Foreign exchange adjustments 7,313
1,654
3,431
3,584
(18)
6,226
2,363
2,219
5,815
-
Disposals
24
2,553
914
2,173
-
94
1,061
3,178
5,572
-
Transferred*
- (11,793)
(58,902)
50,131
(987)
- - - - -
Reversal of previous impairment loss
- - - - -
- - 2,279
- -
Impairment losses
- (1,473)
(8,490)
(668)
(1,217)
- (1,508)
(6,107)
(10,801)
-
Amortisation
- (11,332)
(46,842)
(46,888)
-
- (12,218)
(52,635)
(63,567)
-
Amortisation and impairment losses at
31 December
(55,150)
(75,402)
(421,204)
(592,407)
(2,222)
(62,487)
(55,011)
(311,315)
(600,739)
-
Carrying amount at 31 December 761,359
171,619
30,907
75,365
75,679
784,462
190,364
45,048
121,398
24,398
* In 2024, in-house produced rights with a carrying amount of EUR 3,822k was reclassified from inventories.
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
29
2.1 Intangible assets (continued)
Goodwill
The carrying amount of goodwill is tested for
impairment annually or if there is any indication
of impairment. The impairment test is made for
the Group’s cash-generating units (CGUs), based
on their management structure and internal
financial reporting.
In the impairment test of the CGUs, the
recoverable amount, equivalent to the
discounted value of expected future net cash
flows, is compared with the carrying amount of
the CGUs.
The recoverable amount is based on the value in
use, determined by using expected net cash
flows that are based on management-approved
budgets and business plans for 2025, project-
tions for subsequent years up to and including
2029 (for Nordisk Film, Games up to 2034), and
long-term average growth during the terminal
period. Net cash flows are discounted to present
value using a CGU-specific discount rate.
Growth rate during the terminal period and pre-
tax discount rates are shown in the table below.
The carrying amount of goodwill has decreased
mainly due to depreciation of Norwegian Kroner
and is specified on the Group’s CGUs as follows:
Results of impairment tests
The impairment tests of the cash-generating
units show no need for write down as the
calculated value in use exceeds the carrying
amount of the CGUs’ invested capital.
Sensitivity
The Group assesses that probable changes in
the assumptions underlying the impairment
calculations will not result in a need to write
down for impairment in the Group’s primary
cash-generating units.
Pre-tax discount
rates
Growth rate during terminal
period
2024 2023
2024 2023
TV 2, Norway 11.5% 14.0%
2.0% 2.5%
Nordisk Film, Cinemas 9.1% 11.3%
2.0% 2.0%
Nordisk Film, Games
10.1% 13.8%
2.5% 2.5%
Story House Egmont
11.3% 13.4%
2.0% 2.0%
Books
10.7% 11.5%
2.0% 2.0%
Goodwill (EURk) 2024 2023
TV 2, Norway 177,916
186,692
Nordisk Film, Cinemas 57,910
59,757
Nordisk Film, Games 122,282
122,477
Story House Egmont 239,967
246,735
Books 153,952
159,490
Other units 9,332
9,311
Carrying amount 761,359
784,462
Significant estimates and judgements
Impairment tests of the Group’s CGU has been prepared
based on the below-mentioned key assumptions, which in
general are based on approved budgets for 2025 and
projections for subsequent years which are prepared based
on past experience, knowledge of the trends in the
businesses within the CGUs and external sources, where
available.
Revenue and margins
The key assumptions in the calculation of value in use for all
cash-generating units are development in revenues and
margins and determination of discount rates and growth
rate during terminal period.
Discount rates and growth rate during
Discount rates are determined for each cash-generating
unit on basis of a risk-free rate, plus market risk premium
and a small stock premium.
The risk-free rate is based on an average of 10-year
government bond spot rates for Denmark, Norway, and
Sweden.
The market risk premium is calculated as a general market
risk premium of 5.6% (2023: 5.9%) multiplied by the non-
leveraged beta value of each cash-generating unit. Further,
a small-cap premium is added.
The non-leveraged beta values are based on the non-
leveraged beta values for peer-group companies.
Expected growth during the terminal period is not estimated
to exceed the long-term average growth rate in the
business areas.
The decrease in discount rates in 2024 are generally driven
by lower interest rate premiums and lower small size
premiums.
TV 2, Norway
The TV business is volatile due to various trends and factors
shifting the business model and therefore affected by a
generally larger uncertainty regarding the development in
revenue and expenses. Combined with increasing prices for
acquiring TV rights related to especially sports events and
increasing programme cost for Norwegian TV productions,
it may result in a more volatile EBITDA-margin in the
coming years. The value of the business is primarily
impacted by the development in advertising income,
number of subscribers and the prices of TV content.
Growth in revenues in the budget and forecast period is
expected to be between 1% and 2% annually (2023: 2-5%)
mainly due to increase in revenue from subscription sales
(TV2 Play) while advertising sales for traditional flow-TV is
expected to decline.
Margins are expected to be maintained at more or less the
same competitive level based on continued efficiencies as
well as a focus on cost savings.
Nordisk Film, Cinemas
The Cinemas cash-generating unit is dependent on a strong
line-up of both local and international titles to keep up ticket
revenue (box office sales) as well as a strong performance in
the gift cards business.
Cinemas are aware of the pressure on the window structure
in terms of changes in the length of the cinema exclusivity
period and the risk of titles being released directly to Home
Entertainment.
Revenue in the budget and forecast period is expected to
grow between 3% and 10% annually (2023: 2-19%) as the
cinemas business will return to a new normal subsequent to
Covid-19 and a period with low level of releases of new big
international titles.
As mentioned in section 4.1, GoGift.com A/S has been
divested after the balance sheet date, which has not
impacted the outcome of the impairment test.
Nordisk Film, Games
Revenues in the Games cash-generating unit is expected to
grow between 3% and 13% annually (2023: 4-18%) from an
increased focus on self-published games and work for hire
projects while at the same time maintaining a stable cost
base resulting in improved profitability.
The gaming industry has been facing tough market
conditions with gamer publishers holding back and
commissioning fewer new projects.
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
30
2.1 Intangible assets (continued)
Trademarks with indefinite useful life
Trademarks with indefinite useful life consist of
the TV2, Norway trademarks.
The carrying amount of trademarks with an
indefinite life is tested for impairment annually or
if there is any indication of impairment.
Trademarks for TV 2, Norway are tested by using
the Relief from Royalty method to assess future
cash flows from royalty income for the individual
trademarks. The royalty rate, determined on the
basis of the cash-generating unit’s products and
the reputation of such products is 4.5%
(2023: 4.5%).
Key parameters used in the impairment models
for the primary cash-generating units:
Impairment tests for trademarks with an
indefinite life for 2024 show that the recoverable
amount exceeds the carrying amount.
Trademarks with definite useful life
Trademarks with definite useful life are primarily
within Nordisk Film Games, Cappelen Damm
and E-commerce.
The impairment on trademarks with definite
useful life in 2024 of EUR 1.5 million is related to
E-commerce due to lower revenue expectations
(2023: impairments of EUR 1.5 million also
relating to E-commerce).
Film rights, other acquired rights and in-
house produced rights
Film rights comprise film, transactional home
entertainment (DVD, TVOD, streaming) and TV
rights. Other acquired intellectual property rights
comprise domain names, magazine titles and
audio- and e-book rights. In-house produced
rights comprise film productions and games.
The Group continuously receives sales estimates,
and if impairment indicators are identified, film
rights and in-house produced films and games
rights are tested for impairment.
The useful lives of film rights and in-house
produced film rights for 2024 were in general at
the expected level.
Impairment losses of approximately EUR 10
million in 2024 (EUR 16 million in 2023) relates
primarily to write-down of a few specific games
in development which was cancelled.
Significant estimates and judgements
Impairment testing
Impairment testing related to intangible assets, including
asset groups with indefinite life such as goodwill and the
TV2 trademark, but also intangible assets with definite life
such as in-house produced rights, is subject to a high
degree of estimates and judgements.
Outcome of impairment testing is dependent on the critical
assumptions applied related to cash flow forecasts, which
are affected by the increased macroeconomic uncertainties
such as increased inflation rates and changed consumer
confidence, but also other factors such as volatile discount
rates and expected long-term growth rates.
Specific key assumptions regarding the impairment tests of
the CGUs are stated above in the goodwill-section.
Indefinite useful life of the TV 2 trademark
Management has assessed that the value of the TV 2
trademark can be maintained for an indefinite period, as it is
a well-established brand on the Norwegian market, having
existed for decades.
The TV industry in the Nordics is characterised as being
very stable with consistent consumer demand and a
predictable competitive environment, and is expected to be
profitable for the foreseeable future. Control of the
trademark is legally established and enforceable
indefinitely. In management’s opinion, the risk of the useful
life of the trademark becoming finite is minimal because of
its market positions and because current and planned
marketing initiatives are expected to sustain its useful life.
Useful life of film rights, other acquired rights and in-house
produced rights
The Group makes regular estimates of the remaining useful
lives of film rights, other acquired rights and in-house
produced films and games rights based on its expected
sales in the cinema, transactional home entertainment
(TVOD and streaming) and TV media markets, etc. which
are naturally subject to uncertainty as actual sales may
differ from estimated sales.
Significant estimates and judgements
(continued)
Nordisk Film, Games (continued)
The gaming business in general, however, is expected to be
a long-term growth area. Due to this, the budget period has
been extended from 5 to 10 years in the impairment test to
normalize the revenue growth towards the terminal period.
Story House Egmont
The traditional publishing business is expected to be
reduced. On the other hand revenue from other business
areas such as e-commerce and agencies are expected to
increase again from 2025 after a couple of years with
challenging macroeconomic circumstances. An annual
growth in revenue between 1% and 6% (2023: 1-6%) is
expected. At the same time, it is expected that the cost base
can be kept relatively stable, resulting in slightly improved
profitability.
Books
The general shift from analogue to digital sales will
continue. The digital business will increase significantly in
both Retail and Education and be the main driver of growth.
An annual growth up to 5% (2023: 4%) is expected in the
budget and forecast period while maintaining a stable cost
base resulting in slightly improved profitability. This is i.e.
due to harvesting of the previous years' heavy investments
in digitalizing the audio books and e-books cataloque.
TV 2, Norway
Trademarks (EURk)
2024 2023
Carrying amount 118,712
124,552
Key valuation assumptions (%) TV 2, Norway
Pre-tax discount rates 11.6% 13.8%
Growth rate, terminal period 2.0% 2.5%
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
31
2.1 Intangible assets (continued)
Accounting Policies
Goodwill
On initial recognition, goodwill is recognised in the balance
sheet at cost as described under “Business combinations”.
Subsequently, goodwill is measured at cost less
accumulated impairment losses. Goodwill is not amortised,
but is subject to an annual impairment test.
The carrying amount of goodwill is allocated to the Group’s
cash-generating units at the date of acquisition. The
identification of cash-generating units is based on the
management structure and internal financial control.
Trademarks
Acquired intellectual property rights, including trademarks,
are measured at cost on initial recognition. Trademarks with
a finite useful life are typically amortised on a straight-line
basis over the useful life (typically 5 to 20 years).
Trademarks with an indefinite useful life are not amortised
but are tested for impairment at least once annually.
In-house produced rights
In-house produced rights, which comprise film and games
are measured at cost, which includes indirect production
costs, less grants received, accumulated amortisation and
impairment, or at the recoverable amount where this is
lower.
In-house produced rights are amortised over the period
during which they are expected to generate income.
Film rights and other acquired rights, etc.
Film rights are recognised as an intangible asset at the time
when control over the asset is transferred. Prepayments for
film rights are recognised in the balance sheet as a
prepayment for intangible assets, and when control is
gained over the assets, prepayments are reclassified to film
rights.
Film rights are measured at cost which is allocated
proportionally to the cinema, transactional home
entertainment and TV media, as well as to markets. Film
rights are amortised over the period during which they are
expected to generate income on the respective market and
in the respective media.
Other intellectual property rights with a definite useful life,
such as domain names and magazine titles, are measured
at cost on initial recognition and amortised on a straight-line
basis over the useful life (typically 5 to 10 years).
Intangible assets in progress
Intangible assets in progress are measured at cost and
consist mainly of prepaid film rights.
Impairment
Goodwill and intangible assets with indefinite useful lives
are subject to annual impairment tests, initially before the
end of the acquisition year and if there is any indication of
impairment. Likewise, development projects in process are
subject to an annual impairment test.
The carrying amount of goodwill is tested for impairment
together with the other non-current assets of the cash-
generating unit or groups of cash-generating units to which
goodwill has been allocated. If the carrying amount exceeds
the recoverable amount, it is written down to the
recoverable amount via the income statement. As a main
rule, the recoverable amount is calculated as the present
value of expected future net cash flows from the entity or
activity (cash-generating unit or groups of cash-generating
units) to which goodwill has been allocated.
Impairment losses of goodwill are not reversed. Impairment
losses on other assets are reversed only to the extent that
changes in the assumptions and estimates underlying the
calculation of impairment losses have occurred. Impairment
losses are only reversed to the extent that the asset's
increased carrying amount does not exceed the carrying
amount that would have been determined (net of
amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
31
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
32
2.2 Property, plant and equipment
2024
2023
Property, plant and equipment (EURk)
Land and
buildings
Plant and
machinery
Tools and
equipment
Leasehold
improvements
Property, plant and
equipment under
construction
Total property,
plant and
equipment
Land and
buildings
Plant and
machinery
Tools and
equipment
Leasehold
improvements
Property, plant
and equipment
under
construction
Total property,
plant and
equipment
Cost at 1 January 229,559
78,183
79,610
34,859
3,234
425,445
230,732
79,157
78,956
30,914
2,763
422,522
Adjustments relating to previous years - - - - - -
- - - 1,414
- 1,414
Foreign exchange adjustments (151)
(3,466)
(788)
(464)
(43)
(4,912)
(508)
(3,986)
(980)
(747)
(30)
(6,250)
Additions through business combinations - - 2
- - 2
- - - - - -
Additions
- 4,311
2,478
469
5,967
13,225
- 4,735
3,146
2,933
4,064
14,877
Transferred 275
(1,275)
2,751
1,368
(3,119)
-
687
- 2,309
496
(3,491)
-
Disposals
(4,612)
(184)
(768)
(1,107)
(189)
(6,860)
(1,352)
(1,723)
(3,821)
(151)
(72)
(7,120)
Cost at 31 December 225,071
77,569
83,285
35,125
5,850
426,900
229,559
78,183
79,610
34,859
3,234
425,444
Depreciation and impairment losses at
1 January
(113,579)
(51,866)
(61,199)
(24,145)
- (250,789)
(109,258)
(50,184)
(56,866)
(20,724)
- (237,032)
Adjustments relating to previous years - - - - - -
- 60
- (1,414)
- (1,354)
Foreign exchange adjustments 75
2,417
502
391
- 3,385
247
2,881
101
318
- 3,548
Disposals 4,308
160
483
606
- 5,557
1,353
1,721
3,033
328
- 6,434
Transferred - 1,275
(895)
(380)
- -
- - - - - -
Reversal of previous impairment loss
- - - - - -
- - 178
568
- 746
Impairment losses - - (1,605)
(307)
- (1,912)
- (16)
(475)
(382)
- (873)
Depreciation (5,191)
(6,226)
(7,198)
(2,937)
- (21,552)
(5,921)
(6,328)
(7,170)
(2,838)
- (22,258)
Depreciation and impairment losses
at 31 December
(114,387)
(54,240)
(69,912)
(26,772)
- (265,311)
(113,579)
(51,866)
(61,199)
(24,145)
- (250,789)
Carrying amount at 31 December 110,684
23,329
13,373
8,353
5,850
161,589
115,980
26,317
18,411
10,714
3,234
174,656
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
33
2.2 Property, plant and equipment (continued)
2.3 Leases
The lease assets consists mainly of property
leases (rent of cinemas, offices, stores and
warehouses etc). The lease contracts are
typically made for fixed periods of 2 to 10 years,
but may have extension options included in the
lease term. Lease terms are negotiated on an
individual basis and contains different terms and
conditions including payment terms, termination
rights, index-regulations, maintenance etc.
Extension and termination options are typically
found in leases in order to maximise operational
flexibility in terms of managing contracts. Some
property leases contain variable payment terms
that are linked to an index or revenue e.g. sale of
cinema tickets.
In 2024, an amount of EUR 4,415k has been
impaired on certain onerous locations with
unused free space (2023: EUR 132k in our
e-commerce business).
Recognised in profit and loss:
(EURk)
2024 2023
Interest expense on lease
liabilities
8,118
8,006
Lease expenses related to
variable lease payments not
included in the lease liabilities
2,031
4,695
Lease payments relating to
short-term leases
(under 12 months) and low-
value leases
2,310
1,807
*For depreciation and impairment of lease assets please
refer to section 2.4
Accounting Policies
Lease assets
Lease assets are recognised at the commencement date of
the lease which is the date the underlying asset is available
for use. Lease assets are measured at cost, less any accu-
mulated depreciation and potential impairment, adjusted
for any remeasurement of lease liabilities. The cost includes
the amount of lease liabilities recognised, initial direct costs
incurred less any lease incentives received. Lease assets
are depreciated over the shorter of the lease term and the
estimated useful lives of the assets, typically 2-10 years.
If ownership of the leased assets transfers to the Group at
the end of the lease term or the cost reflects the exercise of
a purchase option, depreciation is calculated using the
estimated useful life of the asset. The lease assets are also
subject to impairment.
The Group applies the short-term lease recognition
exemptions to its leases of 12 months or less and also the
low-value assets recognition exemptions. Lease payments
on short-term leases and leases of low value assets are
recognised as expense on a straight-line basis over the
lease term in profit and loss.
Significant estimates and judgements
Property, plant and equipment have been assessed for
impairment indicators in 2024 on an individual basis, which
has resulted in write downs amounting to EUR 1,912k
primarily relating to film production equipment
(2023: EUR 873k).
Useful lives have been reassessed, but has not resulted in
any change.
Accounting Policies
Property, plant and equipment
Land and buildings, plant and machinery equipment and
leasehold improvements are measured at cost less
accumulated depreciation and impairment. Cost comprises
the purchase price and any costs directly attributable to the
acquisition until the date when the asset is available for use.
Subsequent costs, e.g. in connection with replacing
components of property, plant and equipment, are
recognised in the carrying amount of the relevant asset if it
is probable that the costs will result in future economic
benefits. The replaced components are derecognised in the
balance sheet, and the carrying amount is transferred to the
income statement. All other costs incurred for ordinary
repairs and maintenance are recognised in the income
statement as incurred.
When individual components of an item of property, plant
and equipment have different useful lives, the cost of such
individual components is accounted for and depreciated
separately.
Depreciation is made on the basis of the asset's residual
value less any impairment losses. The residual value and
useful life of the assets are reassessed every year. If the
residual value exceeds the carrying amount, depreciation is
discontinued.
Corporate properties (head offices)
25, 50 years
Properties used for operational purposes
25 years
Installations and conversions (the useful
life depends on the nature of conversion)
10, 15, 25 years
Plant and machinery
3 - 15 years
Equipment
3 -
5 years
Leasehold improvements
5 - 10 years
Land is not
depreciated
-
Depreciation is provided on a straight-line basis over the
expected useful lives, based on the following estimates of
the useful lives of the assets:
Gains and losses on the disposal of property, plant and
equipment are determined as the difference between the
selling price less disposal costs and the carrying amount at
the date of disposal. Gains or losses are recognised in the
income statement under other operating income or other
operating costs, respectively.
Impairment
The carrying amount of property, plant and equipment is
tested annually for impairment indicators. When there is an
indication that assets may be impaired, the recoverable
amount of the asset is determined, which is the higher of an
asset's fair value less expected disposal costs and its value
in use. Value in use is the present value of future cash flows
expected to be derived from an asset or the cash-
generating unit to which the asset belongs.
An impairment loss is recognised if the carrying amount of
an asset or a cash-generating unit exceeds the recoverable
amount of the asset or the cash-generating unit.
Impairment losses on property, plant and equipment are
reversed only to the extent that changes in the assumptions
and estimates underlying the calculation of impairment
losses have occurred and only to the extent that the asset's
increased carrying amount does not exceed the carrying
amount that would have been determined (net of
amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
Lease assets (EURk) 2024 2023
Lease assets at 1 January 143,668
154,440
Foreign exchange adjustments (3,665)
(5,349)
Re-measurement 3,862
25,666
Additions, net 17,761
1,786
Depreciation (35,772)
(32,743)
Impairment (4,415)
(132)
Carrying amount
at 31 December
121,439
143,668
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
34
2.4 Amortisation, depreciation and
impairment losses
2.5 Investment properties
Investment properties consist of a rental property
in Denmark, rented out under a long-term lease.
The negative fair value adjustment in 2024 is
primarily due to an increased required rate of
return.
Significant estimates and judgements
Investment properties
The fair value of the property has been calculated on the
basis of its expected operating income (pre-tax return) of
EUR 2,124k (2023: EUR 2,035k) and a required rate of return
of 4.89% (2023: 3.88%), determined on the basis of the
general market level and specific circumstances relating to
the property (level 3). No external valuation specialist has
been engaged in the valuation.
The pre-tax return is based on normalised rental income of
2,812 (2023: EUR 2,704k) and operating costs of EUR 689k
(2023: EUR 668k).
If the required rate of return increase or decrease by 0.25%,
the fair value of the investment property will be affected by
EUR 2,114k.
Accounting Policies
Investment properties
Investment properties are held for the purpose of obtaining
rental income and/or capital gains. On initial recognition,
investment properties are measured at cost, consisting of
the acquisition cost of the property and any costs directly
attributable to the acquisition. Subsequently, investment
properties are measured at fair value using the net rental
method. Changes in the fair value are recognised in the
income statement under other operating income/costs in
the financial year in which the change occurs.
2.6 Inventories
The cost of inventories sold and write-down of
inventories for the year amounted to EUR
713,390k (2023: EUR 776,023k) and EUR 23,876k
(2023: EUR 25,065k), respectively.
Reversed write-down of inventories in the
income statement amounted to EUR 3,498k
(2023: EUR 3,992k) due to overstated
provisions.in previous years.
Inventories includes capitalised payroll costs in
the amount of EUR 767k (2023: EUR 1,568k).
The write-downs primarily relate to physical
books and E-commerce products.
Significant estimates and judgements
Write down of inventories to net realisable values relates
primarily to Books and E-commerce. Estimated write-
downs are dependent on expected future sales that by
nature within consumer products and the business areas of
the Group are subject to some uncertainty.
Accounting Policies
Inventories
Inventories are measured at the lower of cost according to
the FIFO method and the net realisable value.
Goods for resale and raw materials and consumables are
measured at cost, comprising purchase price plus delivery
costs.
The cost of finished goods and work in progress comprises
the cost of raw materials, consumables, direct wages and
salaries and indirect production overheads. Indirect
production overheads comprise indirect materials, wages
and salaries as well as maintenance and depreciation of
production machinery and equipment as well as
administrative expenses and management costs.
The cost of acquired TV programmes are recognised as
inventory at the time when the right to broadcast the TV
programme begins. The cost of a TV programme is
expensed proportionally over the period the TV programme
is broadcast.
The net realisable value of inventories is calculated as the
selling price less costs of completion and costs necessary to
effect the sale and is determined taking into account
marketability, obsolescence and development in expected
selling price.
Depreciation, amortisation
and impairment losses (EURk)
2024 2023
Amortisation, intangible assets (105,062)
(128,420)
Impairment losses, intangible
assets, net
(11,848)
(16,137)
Depreciation, property, plant
and equipment
(21,552)
(22,258)
Impairment losses, property,
plant and equipment
(1,912)
(127)
Depreciation of lease assets (35,772)
(32,743)
Impairment losses, lease assets (4,415)
(132)
Total (180,561)
(199,817)
Investment properties (EURk) 2024 2023
Fair value at 1 January 45,066
45,003
Foreign exchange adjustments (30)
(99)
Fair value adjustment (201)
162
Fair value at 31 December 44,835
45,066
Inventories (EURk) 2024 2023
Raw materials and consumables 5,216
5,529
Work in progress 11,179
10,727
Manufactured goods and goods
for resale
139,127
168,197
TV programmes 7,508
8,044
Total 163,030
192,497
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
35
2.7 Trade receivables
To measure the lifetime expected credit losses,
trade receivables are grouped based on shared
credit risk characteristics. The expected loss
rates are based on historical credit losses
experienced in the last 3 years (2021-2024). The
historical loss rates are adjusted to reflect
current and forward-looking information on
macroeconomic factors affecting the ability of
the customers to settle the receivables on basis
of development in corporate insolvencies in the
geographical areas.
For certain sales the Group receives collateral.
This occurs typically in connection with the
distribution of magazines where deposits are
received. Trade receivables secured by collateral,
with a consequent reduction in overall credit risk,
amount to EUR 56,882k (2023: EUR 46,394k).
In addition, some of the Group’s entities take out
credit insurance against losses on trade
receivables to the extent deemed relevant.
Trade receivables and impairment losses can be
specified as follows:
2.8 Prepayments
Prepayments include sports broadcasting rights
amounting to EUR 8,488k (2023: EUR 7,229k),
which are utilised more than 12 months from
balance sheet day.
Accounting Policies
Prepayments
Prepayments, such as prepaid royalty, prepaid authors’ fees
and prepaid TV programs and sports broadcasting rights,
which are recognised under assets, comprise costs incurred
concerning subsequent financial years. Prepayments are
measured at cost less impairment.
Accounting Policies
Trade receivables
Trade receivables are hold with the objective to collect the
contractual cash flows. Receivables are therefore measured
at fair value on initial recognition and are subsequently
measured at amortised cost using the effective interest
method less any impairment.
Receivables are impaired at initial recognition. The
impairment equals lifetime expected credit loss allowance
on receivables in accordance with the simplified approach
Trade receivables (EURk) 2024 2023
Receivables related to third-
party sales of goods and services
275,258
264,125
Contract assets - 1,536
Total trade receivables
at 31 December
275,258
265,661
Ageing of trade receivables
at 31 December (EURk)
2024 2023
Not past due 237,129
213,226
Up to 30 days 27,893
36,779
Between 30 and 90 days 4,083
8,449
Over 90 days 6,153
7,206
Total 275,258
265,661
Development in impairment losses
on trade receivables (EURk)
2024 2023
Impairment at 1 January 3,763
5,176
Foreign exchange adjustments (376)
(139)
Impairment in the year 1,615
822
Realised losses (770)
(832)
Unused amounts reversed (813)
(1,264)
Impairment at 31 December 3,419
3,763
35
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
36
2.9 Pension obligations
Pensions
The Group mainly has defined contribution
pension plans, but also has collective pension
plans (multi-employer plans) as well as defined
benefit pension plans.
Multi-employer plans
The Group has collective pension plans in
Sweden that are entered into with other
enterprises (ITP plans). ITP-plans are classified
as multi-employer plans. Such plans are defined
benefit plans but are treated as defined
contribution plans according to IAS 19.
Contributions made to collective pension plans
in Sweden in 2024 amount to EUR 3,244k (2023:
EUR 3,021k). For 2025, the contributions are
expected to be EUR 3,404k.
Defined benefit pension plans
The Group has defined benefit pension plans in
Norway and Germany. These pension plans are
funded in whole or in part through collective
insurance plans with external insurance
companies who manages the administration and
the investment of the members' pension funds.
The Group is exposed to actuarial risks including
risks on investment and interest rate and
mortality. The Group's remaining defined
pension plans are closed for new members.
The Group expects to contribute EUR 279k to
defined benefit pension plans in 2025.
Sensitivity analysis
The analysis shows that fluctuations are
insignificant.
Other pension obligations
The Group has recognised an obligation of
EUR 399k (2023: EUR 2,080k) to cover other
pension-like obligations, including primarily job
security agreements in a number of subsidiaries.
The benefit payments are conditional upon
specified requirements being met.
Accounting Policies
Pension obligations and similar non-current liabilities
Defined contribution plans where the Group regularly pays
fixed pension contributions to independent pension funds
are recognised in the income statement in the period during
which employees earn entitlement to them, and any
contributions outstanding are recognised in the balance
sheet under other payables.
For defined benefit plans, an actuarial calculation (the
Projected Unit Credit method) is performed annually of the
present value of future benefits payable under the defined
benefit plan based on assumptions about the future
development in variables such as salary levels, interest
rates, inflation and mortality. The actuarial present value
less the fair value of any plan assets is recognised in the
balance sheet under pension obligations.
Pension costs for the year are recognised in the income
statement based on actuarial estimates and financial
assumptions at the beginning of the year. Actuarial gain or
loss is recognised in other comprehensive income.
Pension obligations and similar
obligations (EURk)
2024 2023
Defined benefit pension
obligations
399
607
Other pension obligations (399)
(2,080)
Total - (1,473)
Pension obligations and similar
obligations (EURk)
2024 2023
Present value of defined
benefit pension obligations
(13,116)
(13,060)
Fair value of pension plan
assets
13,532
13,686
Payroll tax (17)
(19)
Net assets at 31 December 399
607
Composition of pension plan
assets (%)
2024 2023
Bonds 37.3% 38.0%
Shares 35.1% 31.8%
Money market and the like
14.7% 16.5%
Property
12.9% 13.7%
Maturity of pension obligations
(EURk)
2024 2023
Within 1 year 821
689
Between 1 - 5 years 4,227
3,839
After 5 years 8,068
8,532
Total 13,116
13,060
Key assumptions used for the
actuarial calculations in the
individual pension plans:
2024 2023
Discount rate 3.1-3.9% 3.1-3.5%
Inflation rate 2.3% 2.3%
Pension increase
2.4-3.75% 1.8-3.25%
Mortality table (Norway) K2013/KU K2013/KU
Egmont Annual Report 2024 Section 2 - Invested capital and working capital items
37
2.10 Provisions
Goods sold with a right of return include e-
commerce products, magazines and books that
the shops can return according to agreement.
Other provisions primarily comprise of provisions
for onerous contracts, provisions for pending
litigation and claims, restructuring provisions
and warranty provisions,.
In 2024, the provisions used and made during
the year are primarily related to onerous sports
contracts and restructuring costs.
Significant estimates and judgements
Provision for goods sold with a right of return
At the date of sale, the Group estimates how many goods
are expected to be returned or exchanged based on
historical experience of selling such goods. This estimate is
naturally subject to uncertainty, as the quantity actually
returned may deviate from the estimated quantity.
However, the uncertainty concerning the return of
magazines is limited due to the short period allowed for
returning them.
Provision for restructuring costs
Provision for restructuring costs are based on the estimate
of costs related to restructuring or closure of activities.
Provision for onerous contracts
Provisions for onerous contracts relating to binding content
supply contracts are based on an assessment of the future
income and unavoidable costs over the contract periods.
The content contractual supply costs are in general fixed
and easily determined, however the future income is
subject to estimates affected by external market conditions
and macroeconomic fluctuations, such as consumer
purchasing power, i.e. impacting number of customers and
subscriptions.
Accounting Policies
Provisions
Provisions are recognised when the Group incurs a legal or
constructive obligation due to an event occurring before or
at the end of the reporting period, and meeting the
obligation is likely to result in an outflow of economic
benefits. Provisions are measured at the best estimate of
the costs required to settle the obligation, which are
discounted with a discounting rate that reflects the current
market interest plus risks specific to the liability, provided
that such discounting would have a material effect on the
measurement of the liability.
Provision for goods sold with a right of return
Provisions for goods sold with a right of return are based on
past experience or otherwise, where the Group can make a
reliable estimate of the amount of goods that will be
returned and expected restructuring costs, etc. Right of
return assets are recognised as part of inventory.
Warranty provisions
Warranty provisions are recognized as the underlying
goods are sold based on historical warranty costs
experience in previous financial years at its gross liability
amount, in respect of which expected partial compensa-
tion from the supplier is recognised in other receivables.
Provisions for restructuring costs
Restructuring costs are recognised under liabilities when a
detailed, formal restructuring plan has been announced to
the employees affected no later than at the end of the
reporting period. On acquisition of businesses, provisions in
the acquiree are only included in goodwill when, at the
acquisition date, the acquiree had an existing liability.
Provisions for onerous contracts
A provision for onerous contracts is recognised when the
expected benefits to be obtained from a contract are lower
than the unavoidable costs of meeting its obligations under
the contract and is recognized at the estimated loss of
fulfilling the contractual obligations assessing the future
income from the contracts and the direct costs related to
the fulfilling of the contracts.
Provisions for litigation and claims
Provisions for litigation and claims are recognized based on
probabilities of various likely outcome.
2.11 Other liabilities and deferred
income
Other liabilities include excise duties, VAT and
staff costs payables, including vacation and
bonus accruals, etc. Deferred income relate to
subscriptions, gift cards, film broadcasting rights
etc. Revenue recognised in the reporting period
that was included in the deferred income
balance at the beginning of the period amounts
to EUR 92,971K (2023: EUR 112,400K).
Accounting Policies
Other liabilities
Other liabilities are measured at net realisable value.
Deferred income
Deferred income is measured at cost. For descriptions on
the different revenue streams, please refer to section 1.1.
2024
(EURk)
Goods sold
with a right
of return Other
Other provisions at 1 January 44,680
73,460
Foreign exchange adjustments (723)
(2,300)
Provisions made 22,033
13,039
Provisions used (26,538)
(41,630)
Disposals (8)
(49)
Reversals (905)
(5,299)
Other provisions at 31
December
38,539
37,221
(EURk) 2024 2023
Non-current liabilities 22,983
27,224
Current liabilities 331,374
326,659
Total 354,357
353,883
Pension and similar obligations - 1,473
Staff costs payables 70,166
64,825
Duties and VAT 69,519
68,091
Payables to JVs and associates 100
375
Deferred income 100,555
99,851
Corporate income tax 1,890
2,506
Other payables 112,127
116,762
Total 354,357
353,883
Egmont Annual Report 2024 Section 3 - Capital structure and financing
38
3.1 Financial risks
As a result of its operations, investments and
financing, the Group is exposed to certain
financial risks. Primarily related to foreign
exchange rates and interest rates fluctuations.
The overall framework for financial risk
management is laid down in the Group’s
Treasury Policy approved annually by the board
of directors. The Treasury Policy comprises the
Group's currency and interest rate policy,
financing policy and policy regarding credit risks
in relation to financial counterparties and
includes a description of approved financial
instruments and risk framework. The overall
framework is assessed on an ongoing basis.
Corporate Finance is responsible for a
centralised management of liquidity and risks
related to financial markets in the Group’s wholly
owned entities. Egmont International Holding
A/S operates as counterparty to the Group’s
entities, thus undertaking centralised
management of liquidity and financial risks.
The Group hedges financial risks that are a
consequence of the Group's operations,
investments and financing and consequently
does not enter into derivative transactions for
trading or speculative purposes.
Management monitors the Group’s financial risk
concentration and financial resources on an
ongoing basis.
Currency risks
The Group’s presentation currency is EUR, but a
significant part of the Group’s activities and
investments are denominated in other
currencies. As a result, exchange rate
fluctuations may have a substantial impact on
the Group’s profit (loss), cash flows and/or
financial position in EUR.
The Danish Central Bank has pursued a fixed
exchange rate policy where the value of the
Danish krone (DKK) is pegged to the value of the
EUR. Consequently, Egmont assumes that there
is no currency risk between EUR and DKK.
The functional currency of subsidiaries is
generally the local currency. Subsidiaries may
have significant revenues and/or costs in other
currencies than their local currency.
Forward exchange contracts are used to ensure
that the actual exposure does not exceed the
currency exposure limit of the Group. The
hedged currency risks mainly relates to purchase
of film rights and sports broadcasting rights.
Hedge accounting is applied to match the
impact of the hedged item and the hedging
instrument in the consolidated income
statement.
The tables below shows the foreign exchange
sensitivity on the income statement for the year
(excluding effects from hedging) and foreign
exchange sensitivity from assets and liabilities.
The impacts would have been the opposite if the
exchange rates had been decreasing by similar
percentages.
Section 3
Capital structure
and financing
This section includes
disclosures on the Group’s
financial risk including use of
derivatives for hedging
purposes
Moreover it includes
disclosures on financial
reserves, the borrowing
positions and financial income
and expenses.
Due to strong cash flow from
operations, net interest bearing
debt (NIBD) was reduced with
EUR 45 million in 2024.
2024 2023
Sensitivity analysis on Revenue and Operating profit
(EURk)
Change in
exchange rate
Revenue
Operating profit
(EBIT) Revenue
Operating profit
(EBIT)
NOK +5% 53,703
13,999
54,943
13,822
SEK +5% 11,953
(10,045)
12,095
(9,752)
USD +5% 5,338
2,820
4,914
2,181
2024 2023
Currency exposure from assets and liabilities (EURk)
Change in
exchange rate
Profit (loss)
before tax OCI before tax
Profit (loss)
before tax OCI before tax
NOK +5% (1,294)
(9,201)
(2,055)
(7,937)
SEK +5% (774)
2,463
(892)
937
USD +5% 1,556
(567)
2,080
701
Movements in the income statement arise from monetary items (cash, borrowings, trade receivables and trade payables)
and hedging instruments where hedge accounting is not applied. Movements in OCI arise from hedging accounting.
Egmont Annual Report 2024 Section 3 - Capital structure and financing
39
3.1 Financial risks and financial instruments (continued)
Interest rate risks
As a result of its investment and financing
activities, Egmont has an exposure related to
fluctuations in interest rate levels.
Egmont’s policy have a target of approx. 40%
(and minimum 20%) of Egmont’s outstanding
net interest bearing debt (excl. leases) to be fixed
for one year or more.
Egmont’s interest rate risks are managed by
entering into interest swap contracts, with
floating-rate loans being converted into fixed-
rate interest loans.
Hedge accounting is applied for the interest rate
swaps.
The principal amount of interest swap contracts
for hedging purposes was EUR 136 million at
31 December 2024 (2023: EUR 97 million).
Had the interest rate level been 1 percentage
point higher during 2024, net interest cost in the
income statement would have increased by
EUR 2 million (2023: EUR 2 million).
A 1 percentage point increase in interest rates
would increase the hedging reserve under equity
by about EUR 4 million (2023: EUR 3 million).
The impacts would have been the opposite had
the interest rates been decreasing by similar
amount.
Commodity risks
The primary commodity risk is increasing
electricity prices.
Approximately two-thirds of Egmont’s electricity
consumption is however covered by fixed price
Purchase Power Agreements. One of these is
classified as a financial derivative. For further
information see sections 3.5.
The sensitivity on the income statement as well
as the reserve for hedging transactions under
equity of a change in electricity prices is
considered insignificant.
Liquidity risks
The liquidity reserve comprises cash and cash
equivalents and unutilised committed and
uncommitted credit facilities. To ensure
optimum utilisation of cash and cash
equivalents, Egmont operates with cash pools.
The upper table shows the committed credit
facilities.
The committed revolving credit facilities are
subject to standard covenant reporting.
Liabilities other than provisions fall due as shown
in the lower tables. The debt repayment
schedule is based on undiscounted cash flows
incl. estimated interest payments based on
current market conditions.
2024
Outstanding committed loan facilities (EURk)
Available
facilities
Fixed/Floating
interest rate Maturity date
Undrawn
amount
Mortgage debt 160,425
Floating 2031-2054* -
Revolving credit facilities 350,000
Floating 2029 219,430
Total committed loan facilities at 31 December 510,425
- - 219,430
* Mortgage loans has initial amortisation free period
2024
Maturity of financial liabilities (EURk)
Carrying
amount
Contractual
cash flows Within 1 year 1 to 5 years After 5 years
Mortgage debt 160,425
248,551
5,737
22,054
220,760
Other credit institutions 130,782
151,144
5,802
145,342
-
Lease liabilities 154,021
175,715
44,566
99,199
31,950
Trade payables 248,157
248,157
248,157
- -
Payables to joint ventures and associates 100
100
100
- -
Non-derivative financial instruments 693,485
823,667
304,362
266,595
252,710
Derivative financial instruments 6,935
7,508
3,657
3,561
289
Total 700,420
831,175
308,019
270,156
252,999
2023
Maturity of financial liabilities (EURk)
Carrying
amount
Contractual
cash flows Within 1 year 1 to 5 years After 5 years
Mortgage debt 111,040
186,735
5,115
20,342
161,278
Other credit institutions 211,561
241,658
56,702
184,956
-
Lease liabilities
176,444
201,663
43,123
130,842
27,699
Trade payables 307,068
307,068
307,068
- -
Payables to joint ventures and associates
375
375
375
- -
Non-derivative financial instruments
806,488
937,499
412,382
336,140
188,977
Derivative financial instruments 19,537
20,438
14,106
5,891
441
Total 826,025
957,937
426,488
342,031
189,417
Egmont Annual Report 2024 Section 3 - Capital structure and financing
40
3.1 Financial risks and financial instruments (continued)
Credit risks
Egmont’s credit risks relate to financial
counterparties and trade receivables.
Egmont is exposed to financial counterparty risk
from cash and cash equivalents, market value of
derivatives, and credit commitments. Egmont
manages this risk by cooperating with banks
with a sound credit rating.
Some subsidiaries sell products and services on
credit and thereby undertake credit risks on
customers.
Egmont is not exposed to significant non-
financial counterparty risks associated with any
particular customer or business partner. It is the
responsibility of subsidiaries to manage their
own credit risk. All major customers are regularly
credit rated. See section 2.7 for further
information on trade receivables.
Accounting Policies
Financial and non-financial liabilities
Financial liabilities are recognised at the date of borrowing
as the net proceeds received less transaction costs paid. In
subsequent periods, the financial liabilities are measured at
amortised cost, such that the difference between the
proceeds and the nominal value is recognised under
financial expenses in the income statement over the term of
the loan.
3.2 Cash and cash equivalents
Cash and cash equivalents include fixed-term
deposits of EUR 407k (2023: EUR 903k). Cash
and cash equivalents pledged as collateral
amounted to EUR 790k (2023: EUR 2,632k).
3.3 Net interest bearing debt
The Group decreased its net interest bearing
debt in 2024 by EUR 44,581k driven by positive
cash flow from operations and decrease of lease
liabilities.
Net interest bearing debt can be specified as
follows:
Net interest-bearing debt
(EURk)
2024 2023
Lease liabilities (154,021)
(176,444)
Mortgage debt (160,425)
(111,040)
Other credit institutions (130,782)
(211,561)
Payables to joint ventures (100)
(376)
Receivables from joint
ventures and associates
694
3,711
Cash and cash equivalents 38,407 44,902
Total (406,227)
(450,808)
3.4 Financial liabilities
Total borrowings decreased in 2024 by EUR
31,394k driven by net positive cash flow from
operating and investing activities. A mortgage
loan increase has been utilised to repay current
borrowings.
Lease liabilities have decreased by EUR 22,423
thousands, as a result of this year’s instalments,
limited amount of new additions and only a few
extensions to the existing lease portfolio.
2024
Financial liabilities (EURk)
Financial
liabilities at 1
January
Cash flows,
net Other*
Foreign
exchange
adjustments
Financial
liabilities at 31
December
Non-current borrowings 273,891
17,497
- (182)
291,206
Non-current lease liabilities 138,840
- (20,476)
(3,297)
115,067
Current borrowings 48,709
(47,905)
141
(945)
-
Current lease liabilities 37,604
(39,969)
42,253
(934)
38,954
Total liabilities from financing activities 499,044
(70,377)
21,918
(5,358)
445,227
2023
Financial liabilities (EURk)
Financial
liabilities at 1
January
Cash flows,
net Other*
Foreign
exchange
adjustments
Financial
liabilities at 31
December
Non-current borrowings 347,583
(72,934)
- (758)
273,891
Non-current lease liabilities 153,869
- (10,113)
(4,916)
138,840
Current borrowings 17,183
32,986
- (1,460)
48,709
Current lease liabilities 35,988
(36,494)
39,006
(896)
37,604
Total liabilities from financing activities 554,623
(76,442)
28,893
(8,030)
499,044
* Other includes additions and remeasurement of lease liabilities as well as reclassification from non-current to current
liabilities
Egmont Annual Report 2024 Section 3 - Capital structure and financing
41
3.5 Financial income and expenses
Net financial expenses have decreased due to
lower borrowings and decreasing interest rates.
The Group has entered into two power purchase
agreements. One of them is classified as a
financial derivative and fair value adjusted over
profit and loss.
Accounting Policies
Financial income and expenses
Financial income and expenses comprise interest income
and expense, including interest expense on leases.
Furthermore, changes in the fair value derivative financial
instruments regarding virtual power purchase agreements
and interest rate swaps, which are not designated as
hedging instruments as well as the ineffective portion of the
hedges are also included.
Borrowing costs relating to general borrowing or loans
directly relating to the acquisition, construction or
development of qualifying assets are allocated to the cost of
such assets.
Power purchase agreements
The accounting treatment of power purchase agreements
(PPAs) are assessed for classification between right-of-use
assets in accordance with IFRS 16 if it is a physical PPA,
where the Group has control over the asset (solar plant), a
derivative financial instrument if it is a virtual PPA with
contract for difference settlement in accordance with
IFRS 9 or an executory contract in accordance with IAS 37 if
the it fulfills the requirement of an own-use contract.
Financial income (EURk) 2024 2023
Interest income,
derivative financial
instruments, measured at
amortised cost
807
2,106
Other financial income 78
126
Total 885
2,232
Financial expenses (EURk) 2024 2023
Interest expenses,
financial liabilities,
measured at amortised
cost
(19,354)
(22,085)
Interest expense on lease
liability
(8,118)
(8,006)
Fair value adjustment of
virtual power purchase
agreement
(536)
(1,000)
Total (28,008)
(31,091)
41
Egmont Annual Report 2024 Section 3 - Capital structure and financing
42
3.6 Derivative financial instruments
Categories of financial instruments
The carrying amount of receivables and other
financial liabilities (current) is equal to the fair
value. Mortgage debt and debt to other credit
institutions (non-current) are floating-rate cash
loans, and thus the fair value is in all material
aspects equal to the carrying amount.
Derivative financial instruments are valued at fair
value on the basis of inputs other than listed
prices that are observable for the liability, either
directly or indirectly (level 2). Put- and call-
options are valued at fair value on basis of
expected future discounted cash-flows (level 3).
Categories of financial instruments
(EURk)
2024 2023
Financial assets measured at fair
value via the income statement
5,528
10,202
Financial assets used as hedging
instruments
1,616
1,397
Financial assets measured at
amortised cost
404,198
406,172
Financial liabilities measured at
fair value via the income
statement
2,875
3,549
Financial liabilities used as
hedging instruments
4,060
15,894
Financial liabilities measured at
amortised cost
693,385
806,488
Accounting Policies
Derivative financial instruments
Derivative financial instruments are recognised at the date a
derivative contract is entered into and measured in the
balance sheet at fair value. Positive and negative fair values
of derivative financial instruments are included in other
receivables and payables, respectively, and a set-off of
positive and negative values is only made when the entity
has the right and the intention to settle several financial
instruments net. Fair values of derivative financial
instruments are computed on the basis of current market
data and generally accepted valuation methods.
Changes in the fair value of derivative financial instruments
designated as and qualifying for recognition as a hedge of
the fair value of a recognised asset or liability are recognised
in the income statement together with changes in the value
of the hedged asset or liability as far as the hedged portion
is concerned.
Changes in the portion of the fair value of derivative
financial instruments designated as and qualifying as a cash
flow hedge that is an effective hedge of changes in future
cash flows are recognised in other comprehensive income
in equity under a separate hedging reserve until the hedged
cash flows affect the income statement. At that time, any
gains or losses resulting from such hedged transactions are
transferred to other comprehensive income and recognised
under the same item as the hedged item.
If the hedging instrument no longer qualifies for hedge
accounting, the hedge will cease to be effective. The
accumulated change in value recognised in other
comprehensive income is transferred to the income
statement when the hedged cash flows affect the income
statement. If the hedged cash flows are no longer expected
to be realised, the accumulated change in value will be
transferred to the income statement immediately. The
portion of a derivative financial instrument not included in a
hedge is recognised under financial items.
For derivative financial instruments that do not qualify for
treatment as hedging instruments and changes in fair value
are currently recognised in the income statement under
financial items.
Call options
Call options related to equity investments are included
under derivatives (other receivables) and measured at fair
value through the income statement. The fair value is based
on a valuation methodology comparing the expected equity
value with the agreed exercise prices (level 3 in the fair
value hierarchy).
Net gains and losses arising from changes in the fair value
of call options are recognised in the income statement as
financial income or expenses.
Put options on non-controlling interests
Non-controlling interests continues to receive an allocation
of profit or loss.
Put options on non-controlling interests’ share of equity are
measured at the present value of the redemption amount
calculated as if the options were exercised on the last day of
the financial year and based on the latest financial
information of the relevant companies. Non-controlling
interests are reclassified as liability at the end of the
financial year as if the acquisition took place at that date (the
anticipated acquisition method).
Net gains and losses arising from changes in the fair value
of put options are recognized in equity.
Financial and non-financial liabilities
Financial liabilities are recognised at the date of borrowing
as the net proceeds received less transaction costs paid. In
subsequent periods, the financial liabilities are measured at
amortised cost, such that the difference between the
proceeds and the nominal value is recognised under
financial expenses in the income statement over the term of
the loan.
Other liabilities are measured at net realisable value.
2024
Derivative financial instruments (EURk) Assets Liabilities Net
Hedge reserve,
before tax
Foreign exchange hedges 1,556
2,559
(1,003)
(180)
Interest rate hedges 558
2,821
(2,263)
(2,263)
Virtual power purchase agreement - 1,536
(1,536)
-
Other 518
19
499
-
Total derivative financial instruments 2,632
6,935
(4,303)
(2,443)
2023
Assets Liabilities Net
Hedge reserve,
before tax
Foreign exchange hedges 5,215
13,512
(8,297)
(10,218)
Interest rate hedges 652
4,931
(4,279)
(4,279)
Virtual power purchase agreement - 1,000
(1,000)
-
Other
393
- 393
-
Total derivative financial instruments
6,260
19,443
(13,183)
(14,497)
Egmont Annual Report 2024 Section 4 - Investments, disposals, joint ventures and associates
43
4.1 Acquisition and divestment
of businesses
Acquisitions in 2024
In 2024, the Group has acquired the remaining
shares (68%) and now owns 100% of the shares
in Ackermann Kommunikation ApS. Further-
more, the Group has acquired 100% of the
shares in Docklin Digital AB. Both companies
operate within the digital agency market.
The acquisitions made in 2024 have not
impacted revenue nor EBIT materially.
Transaction costs are recognised in Other
external expenses, but are immaterial, as the due
diligence processes were handled inhouse.
Ackermann Kommunikation ApS
In October 2024, the Group acquired 100% of the
shares in Ackermann Kommunikation ApS, a
marketing automation agency based in
Copenhagen, Denmark. Ackermann specialises
in delivering tailored solutions that enhance
customer engagement and loyalty through
marketing automation and activation of first-
party data, enabling clients to increase long-term
customer value.
Goodwill from this acquisition is primarily related
to the company’s workforce and know-how.
Docklin Digital AB
In December 2024, the Group acquired 100% of
the shares in Docklin Digital AB, a Stockholm-
based agency providing performance marketing
services. Docklin’s expertise lies in paid search,
paid social, and performance measurement,
offering clients innovative and results-driven
frameworks for improving their marketing
performance.
Customer relationships were identified and
recognised as intangible assets. Goodwill from
this acquisition is primarily related to the
company’s workforce and know-how.
A part of the sales price has been paid in shares
in the acquiring company, S360 A/S.
Acquisitions in 2023
Two entities were acquired for a total cash
purchase consideration of EUR 3,777k.
Significant estimates and
judgements
Acquisition of businesses where a number of estimates and
judgments are carried out related to allocation of the
purchase price to identifiable net assets including intangible
assets/goodwill as well as value adjustments (step-up
acquisitions).
The purchase price allocations made in 2024 was carried
out after the Group gained control over the entities based
on information gathered during the due diligence processes
and knowledge of the companies.
4.1 Acquisition and divestment of businesses (continued)
Section 4
Investments,
disposals,
joint
venture
s and
a
ssociates
This section describes the
acquisition and disposals of
subsidiaries, joint ventures and
associates.
In 2024, two larger subsidiaries
were divested and after the
balance sheet date, one
additional subsidiary was
divested.
Fair value at acquisition date (EURk)
Ackermann
Kommunikation ApS Docklin Digital AB Total
Intangible assets - 1,712
1,712
Property; plant and equipment 2
- 2
Current assets 413
1,189
1,602
Other non-current liabilities 0
(352)
(352)
Other current liabilities (207)
(768)
(975)
Identifiable net assets 208
1,781
1,989
Goodwill 932
5,687
6,619
Purchase consideration 1,140
7,468
8,608
Cash and cash equivalents; acquired (82)
(556)
(638)
Consideration paid in shares in Egmont entities - (2,147)
(2,147)
Fair value of existing share of net assets in step-acquisitions (365)
- (365)
Total cash consideration paid 693
4,765
5,458
Egmont Annual Report 2024 Section 4 - Investments, disposals, joint ventures and associates
44
Divestments in 2024
In 2024, the Group divested all its shares in
Wolftech Broadcast Solutions AS and Nicehair
ApS. In addition, two minor companies were
divested. Total net gain from the divestments
amounts to EUR 8,687k, which have been
recognised in other operating income.
Earn-outs on two divestments have not been
recognised, cf. section 6.2 Contigent assets.
The impact on revenue and EBIT from the
divestments is insignificant as the two biggest
divestments took place end of 2024.
Transaction costs amounted to EUR 665k.
Divestments after the balance sheet date
The Group divested all its shares in GoGift.com
A/S on 10
th
February 2025 resulting in a
preliminary assessed gain of EUR 30 million, but
is subject to finalisation .
No contingent consideration is embedded in the
sales-purchase-agreement.
GoGift.com A/S contributed with EUR 19m in
revenue and an operating profit of EUR 2.8m
in 2024.
Divestments in 2023
Only divestment in 2023 was relating to Nitro
Games Oyj, where Egmont was diluted.
Fair value at disposal date (EURk) Nicehair ApS
Wolftech Broadcast
Solutions AS Other Total
Goodwill 4,706
- 925
5,631
Intangible assets ex. Goodwill 215
- - 215
Property; plant and equipment 731
376
4
1,111
Other non-current assets - 210
217
427
Current assets 11,542
1,048
1,811
14,401
Other non-current liabilities (25)
(248)
(4)
(277)
Other current liabilities (10,951)
(1,799)
(1,561)
(14,311)
Net assets divested 6,218
(413)
1,392
7,197
Gain/(loss) on divestment 285
7,879
523
8,687
Minority interest - (21)
- (21)
Selling price on divestment of businesses 6,503
7,445
1,915
15,863
Deferred payment - (1,712)
- (1,712)
Cash and cash equivalents; divested - (121)
(1,184)
(1,305)
Total cash consideration received 6,503
5,612
731
12,846
Accounting Policies
Business combinations
Businesses acquired or formed during the year are
recognised in the consolidated financial statements from
the date of acquisition or formation. Businesses disposed of
or wound up are recognised in the consolidated financial
statements until the date of disposal or winding-up. The
comparative figures are not restated for newly acquired
businesses. Discontinued operations are disclosed
separately.
The acquisition method is used for acquisitions of new
businesses over which Egmont Fonden obtains control. The
acquired businesses' identifiable assets, liabilities and
contingent liabilities are measured at fair value at the
acquisition date. Identifiable intangible assets are
recognised if they are separable or arise from a contractual
right. Deferred tax is recognised in respect of the fair value
adjustments made.
The acquisition date is the date when Egmont Fonden
effectively obtains control of the acquired business. Costs
attributable to business combinations are expensed as
incurred.
Step acquisitions, where either control, joint control or
significant influence is obtained, the existing equity interest
is remeasured at fair value and the difference between the
fair value and carrying amount is recognised in the income
statement. The additional equity investments acquired are
recognised at fair value in the balance sheet.
Any excess (goodwill) of the consideration transferred, the
value of non-controlling interests in the acquired entity and
the fair value of any existing equity interest over the fair
value of the identifiable assets, liabilities and contingent
liabilities acquired is recognised as goodwill under
intangible assets.
Upon acquisition, goodwill is allocated to the cash-
generating units, which subsequently form the basis for the
impairment test at least annually.
Goodwill and fair value adjustments in connection with the
acquisition of a foreign entity with another functional
currency than the presentation currency of Egmont Fonden
are treated as assets and liabilities belonging to the foreign
entity and upon initial recognition translated into the foreign
entity's functional currency at the exchange rate at the
transaction date.
Negative differences (negative goodwill) are recognised in
profit for the year at the acquisition date.
The consideration for an acquired business consists of the
fair value of the agreed consideration in the form of assets
transferred, liabilities assumed and equity instruments
issued. If part of the consideration is contingent on future
events or compliance with agreed conditions, this part of
the consideration is recognised at fair value at the date of
acquisition.
If uncertainties regarding the identification or measurement
of acquired assets, liabilities or contingent liabilities or
determination of the consideration exist at the acquisition
date, initial recognition will take place on the basis of
provisional values. If it subsequently becomes apparent that
the identification or measurement of the consideration,
acquired assets, liabilities or contingent liabilities was
incorrect on initial recognition, the determination is adjusted
retrospectively, including goodwill, until 12 months after the
acquisition, and the comparative figures are restated.
Subsequently, goodwill is not adjusted. Changes to
estimates of contingent considerations are recognised in
the income statement.
The acquisition of further non-controlling interests after
obtaining control is considered an owner’s transaction, and
the difference between acquisition cost and the share of
such non-controlling interests acquired is recognised
directly in equity.
Gains and losses on the disposal or winding-up of
subsidiaries, jointly controlled entities and associates are
stated as the difference between the selling price or the
disposal consideration and the carrying amount of net
assets, including goodwill, at the date of disposal, less the
cost of disposal. If the disposal of either control, joint control
or significant influence takes place in stages, the retained
equity investment is measured at fair value, and the
difference between the fair value and carrying amount is
recognised in the income statement.
Egmont Annual Report 2024 Section 4 - Investments, disposals, joint ventures and associates
45
4.2 Investments in joint ventures and
associates
Investments in joint ventures
The Group has investment in 10 joint ventures.
No joint ventures are presented separately as
they are considered individually immaterial
relatively to the total portfolio.
Investments in joint ventures
(EURk)
2024 2023
Cost at 1 January 24,042
21,793
Transfer - 2,528
Foreign exchange adjustments (680)
(969)
Additions 1,299
750
Other adjustments - (60)
Cost at 31 December 24,661
24,042
Adjustments at 1 January 4,582
14,931
Transfer - (2,528)
Foreign exchange adjustments 201
(828)
Share of profit for the year (906)
75
Equity transactions in joint
ventures
(212)
(2,840)
Dividends (2,035)
(1,223)
Disposals - 534
Other adjustments - (3,539)
Adjustments at 31 December 1,630
4,582
Carrying amount
at 31 December
26,291
28,624
Key Figures in joint ventures
Comprehensive income (EURk)
2024 2023
Revenue 189,873
178,085
Net profit for the year 1,538
3,891
Dividend received 2,035
1,223
Balance sheet
Non-current assets 9,102
16,031
Current assets 74,495
62,156
Non-current liabilities 1,361
1,182
Current liabilities 53,793
46,402
Equity 28,443
30,601
Egmont Fonden's share of
equity
13,991
15,085
Goodwill 12,300
13,539
Investments in joint ventures 26,291
28,624
45
Egmont Annual Report 2024 Section 4 - Investments, disposals, joint ventures and associates
46
4.2 Investments in joint ventures and associates
Investments in associates
The Group owns shares in 18 entities, with the
most significant located in Sweden.
Significant associates
Star Stable hosts the biggest online horse game
and fits into Egmont’s games strategy.
Jollyroom is the biggest e-commerce business
in the Nordics within parenting and is a part of
Egmont’s strategic e-commerce portfolio.
Star Stable Jollyroom Others Total
Key Figures in associates (EURk)
2024 2023 2024 2023 2024 2023 2024 2023
Revenue 29,666
28,049
127,041
145,152
128,668
129,357
285,375
302,558
Net profit for the year 5,491
(1,107)
(679)
(3,714)
7,177
11,330
11,989
6,509
Dividend received - - - - 1,577
2,696
1,577
2,696
- -
Balance sheet
- -
Non-current assets
821
1,419
12,782
14,337
54,508
75,727
68,111
91,483
Current assets 10,952
6,212
28,421
32,072
79,819
55,293
119,192
93,577
Non-current liabilities 669
811
3,063
4,939
4,338
7,793
8,070
13,543
Current liabilities 3,155
4,271
28,242
32,095
78,723
72,797
110,120
109,163
Equity 7,949
2,549
9,898
9,375
51,266
50,430
69,113
62,354
Egmont Fonden's share of equity 4,524
1,451
4,739
4,463
21,942
20,923
31,205
26,837
Goodwill and other PPA-values 44,755
46,611
18,703
18,675
24,954
23,404
88,412
88,690
Investments in associates 49,279
48,062
23,442
23,138
46,895
44,327
119,616
115,527
Investments in associates
(EURk)
2024 2023
Cost at 1 January 140,962
147,058
Adjustments to previous
years
- 1,129
Foreign exchange
adjustments
(1,724)
(8,247)
Additions 3,051
1,022
Disposals (1,801)
-
Equity transactions in
associates
1,306
-
Other adjustments
(745)
-
Cost at 31 December
141,049
140,962
Adjustments at 1 January (25,435)
(28,170)
Adjustments to previous
years
- (1,129)
Foreign exchange
adjustments
(963)
2,570
Share of profit/(loss) for the
year
5,425
1,665
Dividends (1,577)
(2,696)
Disposals 76
-
Other adjustments
1,041
2,325
Adjustments at 31
December
(21,433)
(25,435)
Carrying amount at 31
December
119,616
115,527
Accounting
Policies
Investments in joint ventures and associated companies are
recognised in the consolidated financial statements accor-
ding to the equity method, which means that the invest-
ments are measured in the balance sheet at the propor-
tionate share of the joint ventures’ and associated
companies’ net asset values calculated in accordance with
the Group's accounting policies minus or plus the propor-
tionate share of unrealised intra-group gains and losses and
plus any excess values on acquisition, including goodwill.
Investments in joint ventures and associated companies are
tested for impairment when impairment indicators are
identified.
Investments in joint ventures and associated companies
with negative net asset values are measured at EUR 0 (nil).
If the Group has a legal or constructive obligation to cover a
deficit in the joint venture and associated company, such
deficit is recognised under liabilities.
On the acquisition of investments in joint ventures and
associated companies, the acquisition method is used; see
description of business combinations.
Share of results from investments in joint ventures
and associates
The proportionate share of the joint ventures’ and associates
results after tax and non-controlling interests and after
elimination of the proportionate share of intra-group
gains/losses is recognised in the consolidated income
statement.
Egmont Annual Report 2024 Section 5 - Taxes
47
5.1 Income taxes
Tax for the year
The effective tax rate in 2024 was affected
upwards by interest deduction limitations and
tax losses not fully recognised in the balance
sheet and downwards by non-taxable gains on
sales of subsidiaries (refer to section 4),
deductible donations distributed from equity as
well as adjustments for prior years.
The effective tax rate in 2023 was affected by
interest limitations, recognition of tax assets not
previously recognised in the balance sheet, as
well as other adjustments for prior years.
Pillar 2
Pillar 2 came into force as of 1 January 2024.
All countries where the Group has operations
impose taxation in excess of 15%. Egmont is not
impacted by the new rules in 2024 as all
countries comply with the transitional safe
harbour rules.
Egmont is also expected to comply with the
transitional safe harbour rules in 2025 and 2026
and is currently investigating the impact of the
GloBE rules effective from 2027.
Accounting Policies
Tax for the year, comprises current tax and changes in
deferred tax.
Section 5
Taxes
This section includes
disclosures on the Group’s tax
position
, including tax for the
year, explanation of the
Group’s effective tax rate and
deferred tax composition.
Furthermore, the section
describes how the Group is
affected by the Pillar 2 rules.
The effective tax rate stood at
19.5% in 2024.
Taxes (EURk) 2024 2023
Current tax (11,074)
(12,970)
Deferred tax (6,163)
2,944
Adjustments for prior years, current tax 517
3,768
Adjustments for prior years, deferred tax 551
(2,516)
Total (16,169)
(8,774)
Tax on the profit for the year results as follows:
Calculated tax, 22.0% on profit before tax (18,284)
(11,084)
Adjustment of calculated tax in foreign entities relative to 22.0% (580)
829
Tax effect of:
Non-taxable income 9,124
5,036
Non-deductible expenses (8,283)
(5,089)
Share of net profit/(loss) in joint ventures 12
17
Share of net profit/(loss) in associates 1,194
366
Adjustments for prior years 1,068
1,252
Withholding taxes (420)
(101)
Total (16,169)
(8,774)
Effective tax rate 19.5% 17.4%
Taxes recognised in other comprehensvie income (EURk) 2024 2023
Tax on value adjustment of hedging instruments (1,829)
(3,618)
Foreign exchange adjustments on translation of foreign entities 381
549
Tax on actuarial gains/(losses) on defined benefit pension plans (282)
475
Total (1,730)
(2,594)
Egmont Annual Report 2024 Section 5 - Taxes
48
5.2 Deferred taxes
Recognised deferred tax assets
The Group has assessed that deferred tax assets
totalling EUR 10,153k (2023: EUR 11,101k),
primarily attributable to tax losses and interest
deduction limitations carried forward in
Germany, Norway and United Kingdom can be
realised in the foreseeable future. This is based
on the forecasted earnings of the enterprises in
which tax assets can be utilised.
Unrecognised deferred tax assets
The total tax value of unrecognised tax losses
and interest deduction limitations carried
forward amounts to EUR 25,493k (2023: EURk
18,853).
Unrecognised tax losses and interest deduction
limitations carried forward relate to Denmark,
Sweden, Norway and United Kingdom.
Significant estimates and judgements
Deferred taxes are subject to some judgements related to
whether tax assets may be utilised.
The amount to be recognised in respect of deferred tax
assets is based on an estimate of the probable time of
realising future taxable profits and the amount of such
profits.
Accounting Policies
Current tax payable/receivable and deferred tax
Current tax payable and receivable is recognised in the
balance sheet as tax computed on the taxable income for
the year, adjusted for tax on the taxable income of prior
years and for tax paid on account.
Deferred tax is measured using the balance sheet liability
method on the basis of all temporary differences between
the carrying amount and the tax value of assets and
liabilities. However, deferred tax is not recognised on
temporary differences relating to goodwill that is not
deductible for tax purposes and on office premises and
other items where temporary differences, apart from
business combinations, arise at the date of acquisition
without affecting either result for the year or taxable
income. Where different tax rules can be applied to
determine the tax value, deferred tax is measured based on
planned use of the asset or settlement of the liability.
Deferred tax assets, including the tax value of tax loss carry
forwards, are recognised at the expected value of their
utilisation to the extent it is considered probable that
taxable profits will be realised in the foreseeable future
against which the losses can be offset.
Deferred tax is measured according to the tax rules and at
the tax rates applicable in the respective countries at the
end of the reporting period when the deferred tax is
expected to be realised as current tax. Changes in deferred
tax due to changed tax rates are recognised in the
comprehensive income for the year.
Impairment
Deferred tax assets are subject to annual impairment tests
and are recognised only to the extent that it is probable that
the assets will be utilised.
Deferred tax (EURk) 2024 2023
Deferred tax at 1 January (28,562)
(29,670)
Adjustments relating to previous years 551
(2,516)
Foreign exchange adjustments 252
4,030
Additions through business combinations (349)
-
Disposals
(321)
-
Deferred tax for the year recognised in the income statement
(6,163)
2,944
Deferred tax for the year recognised in other comprehensive income (2,146)
(3,350)
Deferred tax at 31 December (36,738)
(28,562)
Deferred tax has been recognised in the balance sheet as follows:
Deferred tax, asset 10,153
11,101
Deferred tax, liability (46,891)
(39,663)
Deferred tax, net (36,738)
(28,562)
The deferred tax relates to (EURk) 2024 2023
Intangible assets (44,583)
(50,084)
Property, plant and equipment 6,051
8,424
Receivables (5,212)
(6,598)
Inventories 2,629
3,311
Other current assets (1,791)
(1,774)
Provisions 4,484
7,274
Other liabilities (13,315)
(8,301)
Tax losses allowed for carryforward, etc. 14,999
19,186
Total (36,738)
(28,562)
Egmont Annual Report 2024 Section 6 - Other disclosures
49
6.1 Related parties
Egmont Fonden, as the parent company in the
Group, is an enterprise foundation and has no
owner with control.
The Group’s related parties with significant
influence comprise the foundation’s board of
directors, management board and their close
relatives, as well as enterprises in which this
group of persons has material interests. The
compensation paid to the board of directors and
management board is disclosed in section 1.3.
Related parties with significant influence also
comprise joint ventures and associates; cf.
section 4.2.
Transactions with joint ventures and associates:
6.2 Contingent liabilities
The Group has provided security to credit
institutions of EUR 160,425k (2023: EUR
111,040k) over domicile and investment
properties, with a carrying amount of EUR
133,899k (2023: EUR 137,274k).
The Group have furnished surety commitments
of EUR 25,772k (2023: EUR 24,357k).
The Group has entered into binding contracts
concerning purchase of intangible film rights of
EUR 40,106k (2023: EUR 27,801k).
The Group has entered into binding contracts
concerning content supply, which are not
recognized in the balance sheet. The contractual
nominal obligation amount to EUR 583,549k
(2023: EUR 565,130k). The contracts fall due
over the various contract lengths up to 8 years
from the balance sheet date.
Entities in the Group have furnished
miscellaneous guarantees, etc., amounting to
EUR 25,932k (2023: EUR 13,775k).
Contingent assets
The Group has no significant contingent assets
apart from potential earn-out payments
regarding divested subsidiaries of up to EUR
7,947k (2023: A claim regarding repayment of
previous paid earn-out of up to EUR 6,000k).
6.3 Fees to auditors
6.4 Subsequent events
We refer to section 4.1 Acquisition and
divestment of businesses, where it is described
that GoGift.com A/S has been divested on 10
th
February 2025.
Apart from this, no events have occurred after
the reporting period, which significantly impacts
the financial position as of 31 December 2024.
Section 6
Other disclosures
This section includes
disclosures on
other statutory
information not directly
related to the operating
activities of the Group.
A description of the Group’s
related parties, transactions
with auditors and contingent
liabilities.
Joint ventures
Related parties (EURk)
2024 2023
Receivables 26
1,231
Payables 100
374
Revenue 13,211
12,273
Associates
2024 2023
Receivables 1,290
3,745
Fees to auditors (EURk) 2024 2023
Fee to PWC:
Statutory audit (1,704)
(1,581)
Tax consultancy (303)
(227)
Other assurance statements (134)
(95)
Other services (749)
(684)
Total fees to PWC (2,890)
(2,587)
Fee to other auditors:
Statutory audit (127)
(217)
Tax consultancy (206)
(144)
Other assurance statements (281)
(283)
Other services (168)
(251)
Total fees to other auditors (782)
(895)
Total fees to auditors (3,672)
(3,482)
Egmont Annual Report 2024 Section 7 - Basis for preparation
50
7.1 Basis of preparation
The annual report of Egmont Fonden for 2024
comprises both the consolidated financial
statements of Egmont Fonden and its
subsidiaries (the Group) and the separate
financial statements of Egmont Fonden.
The consolidated financial statements have been
prepared in accordance with the IFRS
Accounting Standards, as adopted by the EU,
and additional requirements in the Danish
Financial Statements Act.
The separate financial statements of Egmont
Fonden have been prepared in accordance with
the Danish Financial Statements Act and the
financial reporting requirements of the
Foundation’s Charter (the Foundation’s financial
statements).
The functional currency of Egmont Fonden is
Danish kroner (DKK). The consolidated financial
statements are presented in euro (EUR) as the
Group’s activities are mainly located in European
countries. All values are presented to nearest
EUR thousands, except otherwise stated.
The consolidated financial statements have been
prepared on the historical cost basis except for
derivative financial instruments, securities and
investment properties (which are measured at
fair value).
The accounting policies have been applied
consistently to the financial year and to the
comparative figures for 2023.
Without impacting recognition or measurement
of revenue, adjustments to disclosure of split
between geographical markets and timing of
revenue recognition has been changed.
Comparative figures have been adjusted
accordingly.
Consolidated financial statements
The consolidated financial statements comprise
Egmont Fonden and subsidiaries in which
Egmont Fonden has control of financial and
operating policies in order to obtain returns or
other benefits from its activities.
The consolidated financial statements have been
prepared by consolidating the financial
statements from Egmont Fonden and the
individual subsidiaries, prepared in accordance
with the Group’s accounting policies. On
consolidation, intra-group income and expenses,
shareholdings, intra-group balances and
dividends, and realised and unrealised gains and
losses on transactions between the consolidated
entities are eliminated. Unrealised gains on
transactions with associates are eliminated in
proportion to the Group's ownership share of the
associate. Unrealised losses are eliminated in the
same way as unrealised gains to the extent that
impairment has not taken place.
Control
Control is usually obtained when the Group
holds more than 50% of the voting rights,
whether directly or indirectly, or otherwise has a
controlling interest in the relevant entity.
Entities in which the Group has significant
influence, but not a controlling interest, are
considered associates. Significant influence is
typically obtained when the Group, directly or
indirectly, owns or holds more than 20% of the
voting rights, but less than 50%.
When assessing whether The Group exercises
control or significant influence, the potential
voting rights that are exercisable at the end of
the reporting period are taken into account.
Non-controlling interests
The non-controlling interests' shares of the profit
for the year, comprehensive income and of the
equity of subsidiaries not wholly owned are
included in the Group's net profit for the year,
comprehensive income and equity, respectively,
but are disclosed separately.
On initial recognition, non-controlling interests
are measured at the fair value of the ownership
share or at the proportionate share of the fair
value of the acquired business’ identifiable
assets, liabilities and contingent liabilities.
In the first scenario, goodwill in relation to the
non-controlling interests' ownership share of the
acquired business is thus recognised, while, in
the latter scenario, goodwill in relation to the
non-controlling interests is not recognised.
The measurement of non-controlling interests is
chosen transaction by transaction and stated in
the sections in connection with the description of
acquired businesses.
Section 7
Basis for preparation
The 2024
annual report of
Egmont Fonden is prepared on
a going concern basis in
accordance with the IFRS
Accounting Standards as
adopted by the EU and further
requirements in the Danish
Financial
Statements Act.
The consolidated financial
statements are presented in
euro (EUR) and rounded to the
nearest thousand
s.
Egmont Annual Report 2024 Section 7 - Basis for preparation
51
7.1 Basis of preparation (continued)
Foreign currency translation
A functional currency is determined for each of
the reporting entities in the Group. The
functional currency is the currency used in the
primary economic environment in which the
individual reporting entity operates.
Transactions denominated in currencies other
than the functional currency are considered
foreign currency transactions.
On initial recognition, foreign currency
transactions are translated to the functional
currency at the exchange rates at the transaction
date. Foreign exchange differences arising
between the exchange rates at the transaction
date and at the date of payment are recognised
in the income statement as financial income or
financial expenses.
Receivables, payables and other monetary items
denominated in foreign currencies are translated
to the functional currency at the exchange rates
at the end of the reporting period. The difference
between the exchange rates at the end of the
reporting period and at the date at which the
receivable or payable arose or was recognised in
the latest financial statements is recognised in
the income statement as financial income or
financial expenses.
In the consolidated financial statements, the
income statements of entities, joint ventures and
associates with another functional currency than
the presentation currency (EUR) are translated at
the exchange rates at the transaction date, and
the balance sheet items are translated at the
exchange rates at the end of the reporting
period. An average exchange rate for each
month is used as the transaction date exchange
rate to the extent that this does not significantly
distort the presentation of the underlying
transactions. Foreign exchange differences
arising on translation of the opening balance of
equity of such foreign entities at the exchange
rates at the end of the reporting period and on
translation of the income statements from the
exchange rates at the transaction date to the
exchange rates at the end of the reporting period
are recognised directly in other comprehensive
income and presented in equity under a separate
translation reserve. The exchange rate
adjustment is allocated between Egmont Fonden
and the non-controlling interests.
Foreign exchange adjustments of intra-group
balances which are considered part of the total
net investment in foreign entities with another
functional currency than the presentation
currency (EUR) are recognised in other
comprehensive income and presented in equity
under a separate translation reserve.
On disposal of wholly owned foreign entities,
associates or jointly controlled entities with
another functional currency than the presen-
tation currency (EUR), the exchange rate
adjustments that have been recognised in other
comprehensive income and are attributable to
the entity are reclassified from other comprehen-
sive income to the income statement together
with any gains or losses from the disposal.
On partial disposal of foreign subsidiaries with
another functional currency than the
presentation currency (EUR) without a loss of
control, a proportionate share of the translation
reserve is transferred from the Group to the non-
controlling interests’ share of equity.
On partial disposal of associates and jointly
controlled entities, the proportionate share of the
accumulated translation reserve recognised in
other comprehensive income is transferred to
the income statement for the year together with
any gains or losses from the disposal.
Cash flow statement
The cash flow effect of acquisitions and
disposals of businesses is shown separately in
cash flows from investing activities. Cash flows
from acquired businesses are recognised in the
cash flow statement from the date of acquisition,
and cash flows from disposals of businesses are
recognised until the date of disposal.
Cash flows from operating activities are calcu-
lated according to the indirect method as the
profit for the year before net financials, adjusted
for non-cash operating items, changes in
working capital and corporate income tax paid.
Cash flows from investing activities comprise
payments in connection with the acquisition and
disposal of businesses and activities and the
acquisition and disposal of intangible assets,
property, plant and equipment and other non-
current assets, as well as securities.
Cash flows from financing activities comprise the
raising of loans and repayment of interest-
bearing debt including lease liabilities, donations
made and transactions with non-controlling
interests.
Cash and cash equivalents comprise cash and
marketable securities with a residual term of less
than three months at the acquisition date which
are subject to an insignificant risk of changes in
value. Cash flows in other currencies than the
functional currency are translated using average
exchange rates unless these deviate significantly
from the rates at the transaction date.
Egmont Annual Report 2024 Section 7 - Basis for preparation
52
7.1 Basis of preparation (continued)
Financial terms
In this annual report the following financial terms
are used:
EBITDA Operating profit (loss) before net
financials, depreciation, amortisation
and impairment losses.
Operating profit
(EBIT)
Profit before tax and net financials.
Adjusted
operating profit
Operating profit after results from
associates and operational financial
income/(expenses).
EBT Profit (loss) before tax
Financial ratios
Financial ratios stated in the consolidated
financial statements have been calculated in
accordance with the Danish Finance Society’s
“Recommendations & Ratios”.
Operating
margin
Operating profit x 100
Revenue
Equity
ratio
Equity, excl. non-controlling interests, x 100
Total assets
Return on
equity
Net profit for the year, excl.
non-controlling interests, x 100
Average equity, excl. non-controlling interests
7.2 Significant accounting estimates
and judgements
The preparation of the Group’s consolidated
financial statements requires management to
make judgements, estimates and assumptions
that affect the reported amounts of revenues,
expenses, assets and liabilities, and the
accompanying disclosures.
Uncertainty about these assumptions and
estimates could result in outcomes that require a
material adjustment, positively or negatively, to
the carrying amount of assets or liabilities
affected in future periods.
Areas involving significant estimates and judgements:
Assessment of performance obligations
in contracts with customers, percentage
of completion in work-for-hire
contracts, etc.
Section 1.1
Impairment testing, useful life and
residual value of intangible assets
Section 2.1
Impairment testing, useful life and
residual value of property, plant and
equipment
Section 2.2
Fair value assessment of investment
properties
Section 2.4
Write down of inventories Section 2.6
Provision for onerous contracts, right of
return, onerous contracts and litigation
and claims
Section 2.10
Acquisitions of businesses Section 4.1
Valuation of deferred tax assets Section 5.2
7.3 Principal accounting policies
General basis for preparation is described in
section 7.1 above and relevant accounting
policies for each section has been presented in
conjunction with the relevant sections. Below are
other relevant accounting policies described.
Accounting Policies
Software as a service (SaaS)
SaaS agreements provide access to cloud software, with
related setup and usage fees expensed as incurred. Costs
enhancing existing systems are capitalized as intangible
assets if eligible or expensed otherwise. Prepaid
customization costs are recognized upfront or amortized
over the contract depending on their linkage to the service.
Lease liabilities
Lease liabilities are measured at the net present value of
lease payments to be made over the lease term.
The lease payments include fixed payments less any lease
incentives receivable, variable lease payments that do not
depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised and payments of
penalties for terminating the lease, if the lease term reflects
the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or
a rate are recognised as expenses in profit and loss in the
period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the
Group uses its incremental borrowing rate at the lease
commencement date, because the interest rate implicit in
the lease is not readily determinable.
After the commencement date the carrying amount of lease
liabilities is remeasured if there is a modification whether
it’s a change in the in-substance fixed lease payments, a
change lease term (termination or extension), or a change in
the assessment to purchase the underlying asset.
7.4 Standards and interpretations
not yet adopted
A number of new standards and amendments
are effective for annual periods beginning after 1
January 2024 though not mandatory for annual
reporting periods ending on 31 December 2024.
Earlier application is permitted; however, the
new or amended standards have not been early
adopted by the Group.
The amended standards are as follows:
• Lack of exchangeability (Amendments to IAS
21 The Effects of Changes in Foreign
Exchange Rates)
• Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 Financial
Instruments)
• IFRS 7 Financial Instruments: Disclosures, and
• IFRS 18 Presentation and Disclosure in
Financial Statements
The Group expects to adopt the new standards,
improvements, amendments and interpretations
when they become mandatory.
None of the amended standards or new
accounting pronouncements are expected to
significantly impact the accounting policies
and/or the consolidated Financial Statements,
however IFRS 18 will result in changed
presentation in both the income statement and
the statement of financial position. Further
analysis of impacts will be carried out in 2025.
Egmont Annual Report 2024 Section 8 - Group entities
53
Section 8
Group entities
8.1 Subsidiaries
Unless otherwise stated, the companies are 100% owned. Ownership reflects the proportion of each entity's
results that is attributed to Egmont Fonden in the
consolidated financial statements (effective owner share).
Cross
-holdings held by companies within the Group are aggregated.
*
Entities owned directly by Egmont Fonden.
**
Entities that do not prepare official annual reports.
***
Due to voting rights and/or specific clauses in the shareholders' agreements, Egmont does not
exercise control despite owning more than 50% of the shares in these entities.
Country Entity Registered office 2024 2023
Denmark Egmont International Holding A/S * Copenhagen
Story House Egmont A/S Copenhagen
Egmont Printing Service A/S Copenhagen
Egmont Creative Solutions A/S Copenhagen
GoShopping ApS Herning
Unique Models of Copenhagen A/S Copenhagen 60% 60%
s360 A/S Aarhus 49.4% 53.5%
Ackermann Kommunikation ApS Copenhagen - 17.1%
(merged with s360 A/S)
Drive Studios ApS Copenhagen 80.8% 80.8%
Flashbulb ApS Copenhagen
Helion B2B A/S Copenhagen 29% 31.4%
Helion B2B Group ApS Aarhus 30.9% 33.4%
AndLight ApS Copenhagen
GoTutor Denmark ApS Copenhagen 60% 60%
Country Entity Registered office 2024 2023
Denmark Ingager ApS Copenhagen 80.3% 80.3%
Nordisk Interactive A/S Copenhagen
Lindhardt og Ringhof Forlag A/S Copenhagen
Nordisk Film A/S Copenhagen
Nordisk Film Distribution A/S Copenhagen
Nordisk Film Shortcut A/S Copenhagen
Nordisk Film Production A/S Copenhagen
Nordisk Games A/S Copenhagen
Nordisk Film Biografer A/S Copenhagen
Nicehair ApS Esbjerg -
Ordblindetræning ApS Esbjerg 51% 51%
Palads Biografen A/S Copenhagen
Praxis Forlag A/S Copenhagen 75% 75%
GoGift.com A/S Copenhagen
Kino.dk A/S Copenhagen 74% 74%
Nordisk Film Bridge Finance A/S Copenhagen
Dansk Reklame Film A/S Copenhagen
Egmont Administration A/S Copenhagen
Egmont Svensk Finansiering A/S (liquidated) Copenhagen -
Egmont Finansiering A/S Copenhagen
Egmont Investering A/S Copenhagen
Egmont Investering 2 A/S Copenhagen
Ejendomsselskabet Vognmagergade 11 ApS * Copenhagen
Ejendomsselskabet Gothersgade 55 ApS * Copenhagen
MBG Sleeping Egmont A/S ** Copenhagen
VPH Sleeping Egmont ApS ** Copenhagen
4 + 1 ApS Hvidovre 20% 20%
Norway Egmont Holding AS Oslo
The Brand AS Oslo 50% 50%
Core Content AS (divested) Oslo - 50%
Drammen Kino AS Drammen 67% 67%
Egmont Annual Report 2024 Section 8 - Group entities
54
8.1 Subsidiaries (continued)
Country Entity Registered office 2024 2023
Norway Egmont Kids Media Nordic AS Oslo
Story House Egmont AS Oslo
Fagmedia AS (merged with Story House Egmont AS) Oslo -
Fjellsport AS Sandefjord 97% 97%
Garnius.no AS Haugesund 51% 51%
Markedspartner AS Grålum 49.8% 49.8%
Nordisk Film AS Oslo
Nordisk Film Distribusjon AS Oslo
Nordisk Film ShortCut AS Oslo 66% 66%
Nordisk Film Production AS Oslo
Nordisk Interactive AS Oslo
Nordiske Fagmedier AS (divested) Oslo - 75%
S360 Norge AS Moss 44.2% 35.4%
Indent AS Moss 39.8% 31.9%
StoryCo AS Oslo 65.2% 65.2%
Filmweb AS Oslo 64.3% 64.3%
Nordisk Film Kino AS Oslo
Media Direct Norge AS Oslo
TV 2 Gruppen AS Bergen
TV 2 AS Bergen
TV 2 Skole AS Bergen
Nydalen Studios AS Oslo
Broom.no AS Oslo
Broommarked AS Oslo
RiksTV AS Oslo
Strim AS Oslo
Electric Friends AS Oslo 99.4% 99.4%
Eventyrkanalen AS Bergen
Vimond Media Solutions AS Bergen
Wolftech Broadcast Solutions AS (divested) Bergen - 95%
TV 2 Invest AS Fredrikstad
Country Entity Registered office 2024 2023
Norway Screen Story AS Stavanger 90.2% 90.2%
Screen Story Film og TV AS Stavanger 90.2% 90.2%
Aventia Media AS Nøtterøy 68% 68%
Cappelen Damm AS Oslo
Tanum AS Oslo
Sentraldistribusjon AS Oslo
Bazar Forlag AS Oslo
Ex Libris Forlag AS Oslo
Flamme Forlag AS Oslo
N.W. Damm & Søn AS Oslo
Sweden Egmont Holding AB Malmö
Egmont Story House AB Malmö
Belong Agency Sweden AB Stockholm 61.6% 61.6%
Ingager AB Stockholm 80.3% 60.3%
Bagaren och Kocken AB Gothenburg
Kanmalmo AB Malmö 61.6% 61.6%
Kanstockholm AB Stockholm 31.4% 31.4%
Docklin Digital AB (acquired) Stockholm 49.4% -
DS Productions AB Stockholm 80.8% 80.8%
Klintberg Niléhn Media AB Stockholm 59% 59%
Outnordic Invest AB Växjö
Outnorth AB Växjö
Nordisk Film Sverige AB Stockholm
Nordisk Film Distribution AB Stockholm
Nordisk Film Interactive AB Stockholm
Nordisk Film Production Sverige AB Stockholm
Royal Design Group Holding AB Kalmar
Royal Design Group AB Kalmar
Fatalist Partners AB Stockholm
Avalanche Studios Group AB Stockholm
Egmont Annual Report 2024 Section 8 - Group entities
55
8.1 Subsidiaries (continued)
Country Entity Registered office 2024 2023
Sweden Fatalist Tecnologies AB Stockholm -
(Merged with Avalanche Studios Group AB)
Fatalist Development AB Stockholm
Fatalist Production 2 AB Stockholm
Fatalist Production 3 AB Stockholm
Fatalist Production 4 AB Stockholm
Fatalist Production 5 AB Stockholm
Systemic Reaction AB Stockholm
Expansive Worlds AB Stockholm
Nordisk Film Biografer Sverige AB Stockholm
S360 AB Stockholm 49.4% 40.1%
Winston Delta Charlie AB Stockholm 31.4% 31.4%
Bamse Förlaget AB Helsingborg
United Kingdom Avalanche Studios Group Limited London
Egmont Holding Limited London
Story House Egmont Limited London
Egmont Publishing Limited London
S360 Digital UK Ltd. (Previous: Reload Digital Ltd.) London 49.4% 53.5%
S360 Digital UK Ltd. (Dissolved) London - 53.5%
Supermassive Games Limited Hampshire
Starshape Games Limited Hampshire
Supermassive Games 1 Limited Hampshire
Supermassive Games 2 Limited Hampshire
Supermassive Games 3 Limited Hampshire
Finland Egmont Holding Oy Helsinki
Oy Nordisk Film Ab Helsinki
Oy Nordisk Interactive Ab Helsinki
Nordic XR Startups Oy Helsinki 60% 60%
search360 OY Helsinki 40% 40%
Country Entity Registered office 2024 2023
Germany Egmont Ehapa Media GmbH Berlin
Egmont Verlagsgesellschaften mbH Berlin
dotbooks GmbH Munich
Egmont Holding GmbH Berlin
Mitte Editionen GmbH Berlin
Egmont Ehapa Rights Management GmbH Berlin
Egmont Ehapa Comic Collection GmbH Berlin
Ingager GmbH Berlin 80.3% 60.3%
GoGift GmbH Frankfurt M.
USA Vimond Media Solutions Inc New York
Avalanche Studios New York Inc. New York
Netherlands s360 Digital NL B.V. Amsterdam 42% 45.5%
Poland Story House Egmont sp. z o.o. Warsaw
Estonia Egmont Estonia AS Tallinn
Latvia Egmont Latvija SIA Riga
Lithuania UAB Egmont Lietuva Vilnius
Bulgaria Egmont Bulgaria EAD Sofia
Croatia Egmont d.o.o. Zagreb
Canada Avalanche Studios Montréal Inc. Montréal
Hong Kong Egmont Sourcing Hong Kong Limited Hong Kong
Australia Vimond Media Solutions APAC Pty Ltd Sydney
Egmont Annual Report 2024 Section 8 - Group entities
56
8.2 Joint ventures
8.3 Associates
Country Entity Registered office 2024 2023
Denmark Med24.dk ApS Løkken 49% 49%
RK af 2018 P/S Copenhagen 50% 50%
Komplementarselskabet RK af 2018 ApS Copenhagen 50% 50%
I/S Ugebladsdistribution ** Albertslund 50% 50%
Norway Allvit AS Oslo 50% 50%
Storytel AS Oslo 50% 50%
Maipo Film AS Oslo 50.1% 50.1%
Finland Solar Films Inc Oy Helsinki 50.1% 50.1%
Story House Egmont Oy Ab Helsinki 50% 50%
China Children's Fun Publishing Co., Ltd. Beijing 49% 49%
Country Entity Registered office 2024 2023
Denmark Zentropa Folket ApS *** Hvidovre 52% 52%
Labrador CMS Danmark ApS (liquidated) Copenhagen - 36.1%
Finland Nitro Games Oyj (divested) Kotka - 26.1%
Germany DRIVE beta GmbH (divested) Berlin - 39.6%
Jollyroom GmbH Berlin 49% 49%
Norway Bladcentralen AS Hagan 40% 40%
Bokbasen AS Oslo 25% 25%
Fantefilm AS Oslo 49% 28.5%
Jollyroom AS Sandefjord 49% 49%
KinoSør AS Kristiansand 49% 49%
My Game AS Oslo 27.4% 27.5%
Norges Televisjon AS Oslo 50% 50%
The Oslo Company AS (divested) Oslo - 20%
Labrador CMS AS Oslo 36.1% 36.1%
Spain Mercury Steam Entertainment S.L. Madrid 40% 40%
Sweden Star Stable Entertainment AB *** Stockholm 56.9% 56.9%
Stella Nova Film AB Stockholm 25% 25%
Jollyroom Group AB Mölndal 49% 49%
Jollyroom AB Mölndal 49% 49%
Motorrad Nordic AB Solna 44% 44%
Okto AB Stockholm 40% 40%
United Kingdom Wendy Promotion Limited London 50% 50%
Egmont Annual Report 2024 Statements
58
Management board
B
oard of directors
Egmont Annual Report 2024 Statements
59
Egmont Annual Report 2024 Statements
60
10 March 2025
CVR No 33 77 12 31
Egmont Annual Report 2024 Financial statements of Egmont Fonden
62
Income statement 63
Statement of financial position 63
Statement of changes in equity 64
1. Accounting policies 65
2. Personnel expenses 65
3. Tax on profit for the year 65
4. Investments in subsidiaries 65
5. Loans to group enterprises 65
6. Basis for distribution 65
7. Related parties 66
Egmont Annual Report 2024 Financial statements of Egmont Fonden
62
Egmont Fonden
financial statements
Egmont Annual Report 2024 Financial statements of Egmont Fonden
63
Income statement of Egmont Fonden
(EURk)
Statement of financial position of Egmont Fonden at 31 December
(EURk)
Note 2024 2023
Royalty income, etc. 975
1,002
2 Personnel expenses (152)
(142)
Other external expenses (412)
(396)
Operating profit 411
464
Dividends from investments in subsidiaries 24,054
19,439
7 Financial income 7,180
5,774
7 Financial expenses (111)
(43)
Profit before tax 31,534
25,634
3 Tax on profit for the year (82)
(100)
Net profit for the year 31,452
25,534
Distribution of net profit:
Transfer to charitable fund 10,000
10,000
Transfer to liquid reserve fund 21,452
15,534
Total 31,452
25,534
Note Assets 2024 2023
4 Investments in subsidiaries 181,133
181,252
5 Loans to subsidiaries 87,157
87,214
Financial assets 268,290
268,466
Total non-current assets 268,290
268,466
Receivables from subsidiaries 70,542
52,263
Other receivables 1,860
1,655
Receivables 72,402
53,918
Securities 129
629
Cash and cash equivalents 6
10
Total current assets 72,537
54,557
Total assets 340,827
323,023
Note Equity and liabilities 2024 2023
Capital fund 29,500
29,519
Reserve fund 214,785
214,926
Charitable fund 32,832
22,847
Liquid reserve fund 45,144
39,107
Total equity 322,261
306,399
Trade payables 101
683
Payables to subsidiaries 33
31
Donations committed but not yet paid 15,178
12,689
Other payables 3,254
3,221
Current liabilities 18,566
16,624
Total liabilities 18,566
16,624
Total equity and liabilities 340,827
323,023
Egmont Annual Report 2024 Financial statements of Egmont Fonden
64
Statement of changes in equity of Egmont Fonden
(EURk)
Liquid reserve fund
2024 Capital fund Reserve fund Charitable fund
Use according
to articles 6-10
Use according
to article 11 Total equity
Equity at 1 January 29,519
214,926
22,847
34,966
4,141
306,399
Foreign exchange adjustments (19)
(141)
(15)
(19)
(3)
(197)
Transfer from distribution
of net profit
- - 10,000
19,363
2,089
31,452
Used for charitable purposes - - - (12,941)
(938)
(13,879)
Costs - - - (1,440)
(74)
(1,514)
Equity at 31 December 29,500
214,785
32,832
39,929
5,215
322,261
Liquid reserve fund
2023 Capital fund Reserve fund Charitable fund
Use according
to articles 6-10
Use according
to article 11 Total equity
Equity at 1 January 29,583
215,401
12,875
34,878
3,636
296,373
Foreign exchange adjustments (64)
(475)
(28)
(80)
(8)
(655)
Transfer from distribution
of net profit
- -
10,000
14,009
1,525
25,534
Used for charitable purposes - - - (12,423)
(938)
(13,361)
Costs - - - (1,418)
(74)
(1,492)
Equity at 31 December 29,519
214,926
22,847
34,966
4,141
306,399
64
Egmont Annual Report 2024 Financial statements of Egmont Fonden
65
Notes
1. Accounting policies
The financial statements of Egmont Fonden have
been prepared in accordance with the provisions
of the Danish Financial Statements Act applying
to reporting class C enterprises (large) and the
financial reporting requirements of the
Foundation’s Charter.
The accounting policies applied in the
presentation of the financial statement are
consistent with those of the previous year.
No cash flow statement has been included for
Egmont Fonden, as reference is made to the
consolidated cash flow statement.
Fees to auditors is disclosed in note 6.3 in the
consolidated financial statements.
The accounting policies of Egmont Fonden
deviate from the Group’s accounting policies in
the following areas
Investments in subsidiaries
Investments in subsidiaries are measured at
cost. Where the recoverable amount is lower
than cost, write-downs are made to this lower
value.
Dividends
Dividends from investments in subsidiaries are
recognised in the profit and loss statement in the
financial year in which the dividend is declared,
typically at the time when the general meeting
approves the distribution of dividend by the
relevant company. Dividends exceeding the
accumulated income from the subsidiaries in the
ownership period are deducted in the cost price.
Equity
Profit is distributed according to the
Foundation’s Charter. The Charitable Activities’
donations and associated expenses are charged
directly to the liquid reserve fund under equity.
The foundation’s equity consists of a capital fund
and a reserve fund intended for the Commercial
Activities. The capital fund is an undistributable
reserve, while the reserve fund can only be
distributed if it exceeds the consolidation
requirements in the Foundation’s Charter. The
charitable fund serves to ensure the existence of
funds required for Egmont Fonden’s Charitable
Activities. The liquid reserve fund is the amount
which is to be used for charitable purposes
under the Foundation’s Charter within the scope
of the Charitable Activities. The total of the
charitable fund and the liquid reserve fund
represent the Foundation’s basis of distribution.
In the calculation of tax, due allowance is made
for the deductibility of charitable donations made
according to the Charter of Egmont Fonden.
These are charged to equity. Tax provisions for
future donations are also taken into account.
Provision for deferred tax is made in case
Egmont Fonden does not expect to use liquid
funds for charitable purposes equal to the tax
provisions.
2. Personnel expenses
Compensation to the board of directors
amounted to 273 in 2024 (2023: 250), of which
129 (2023: 129) was included in the costs of the
Charitable Activities.
The management board of the foundation is also
employed by Egmont International Holding A/S,
which pays all salaries to the management
board. This is covered by an administrative fee to
Egmont International Holding A/S.
References is also made to section 1.3 to the
consolidated financial statements.
3. Financial income
Financial income (EURk) 2024 2023
Interest income from
subsidiaries
5,928
5,753
Other financial income 1,252
21
Total 7,180
5,774
4. Financial expenses
Financial expenses (EURk) 2024 2023
Interest expense to subsidiaries (104)
(1)
Other financial expenses (7)
(42)
Total (111)
(43)
5. Tax on profit for the year
6. Investments in subsidiaries
For a list of subsidiaries please see section 8 in
the consolidated financial statement.
7. Loans to subsidiaries
8. Basis for distribution
Personnel expenses (EURk) 2024 2023
Wages and salaries (152)
(142)
Tax on profit for the year (EURk) 2024 2023
Royalty tax paid (82) (100)
Investments in subsidiaries (EURk) 2024 2023
Cost at 1 January 181,252
181,652
Foreign exchange adjustments (119)
(400)
Cost at 31 December 181,133
181,252
Loans to subsidiaries (EURk) 2024 2023
Cost at 1 January 87,214
87,407
Foreign exchange adjustments (57)
(193)
Cost at 31 December 87,157
87,214
Basis of distribution (EURk) 2024 2023
Balance at 1 January 61,954
51,389
Foreign exchange adjustments (35)
(116)
Used for charitable purposes (13,881)
(13,361)
Costs (1,514)
(1,492)
Transfer from
distribution of net
profit 31,452
25,534
Balance at 31 December 77,976
61,954
Egmont Annual Report 2024 Financial statements of Egmont Fonden
66
9. Related parties
Related parties are defined as Egmont Fonden’s
board of directors and management board, close
family members of those persons, as well as
Egmont Fonden’s subsidiaries, associates and
joint ventures.
Related parties also comprise companies
controlled or jointly controlled by the
aforementioned persons.
There is a duality of membership between the
board of directors and management board of
Egmont Fonden and Egmont International
Holding A/S.
Egmont Fonden receives royalty income and
dividends from subsidiaries. Egmont Fonden
pays for rent and administrative services
delivered by subsidiaries. Egmont Fonden
receives interest on loans to subsidiaries. Related
party transactions are made on arm's length
terms.
The compensation paid to the board of directors
and management board is disclosed in section
1.3 in the consolidated financial statement.
Trading with subsidiaries (EURk) 2024 2023
Service fee 127
129
Rent (76)
(78)
Acquisition of services (85)
(67)
Interest income 5,928
5,753
Interest expenses (104)
(1)
Capital transactions and balances
with subsidiaries at 31 December
2024 2023
Dividends from subsidiaries 24,054
19,439
Loans to subsidiaries 87,157
87,214
Receivables from subsidiaries 70,542
52,263
Payables to subsidiaries (33)
(31)
66
We bring stories to life
Egmont Fonden
Vognmagergade 11
1120 Copenhagen K
Denmark
Telephone: +45 7024 0000
Registered office: