Story House Egmont reorganises and increases European cooperation

Revenues in Story House Egmont's Norwegian division totaled NOK 997.5 million in 2023, down from NOK 1,032 million in 2022. The operating result for the year ended at NOK -3.5 million, a significant decrease from NOK 75.7 million in 2022. This means that the media house is now taking organisational measures. 

- Unfortunately, the trend from 2023 has continued into 2024. The macroeconomic trends remain unchanged, with high prices and a low krone exchange rate, and circulation and advertising revenues are lower than we had hoped for. Last year's savings plan was unfortunately not enough. We will have to further reduce costs and staffing in the Norwegian business in order for it to be profitable and financially sustainable,’ says Per Kjellander, CEO of the media division of Story House Egmont. 

Core business and co-operation in focus 

The media house is now changing direction. The strategy of growth through new ventures is being replaced by a focus on the core business, which is quality content for print and digital platforms. And now that the Norwegian business is part of the European media organisation, the stage is set for more synergies and closer cooperation across national borders.

“The fact that we have organised ourselves across countries means that we can regain profitability without compromising the quality of our brands. This is achieved through a greater focus on standardised work processes, reduced system and supplier costs and far more content exchange across the markets in which we operate. A similar reorganisation was carried out in 2020 when several countries in Europe were placed under joint management,” says Kjellander.

Offer of severance packages and gift pensions 

The employees of Story House Egmont in Norway have today been informed about the upcoming reorganisation and downsizing. There will also be an open offer of severance packages and gift pensions. The downsizing will affect the editorial environment as well as sales, marketing and shared functions such as IT, technology and finance. In addition, some areas outside the strategic core areas will be discontinued. 

“We hope that we will be able to get through this downsizing as voluntarily as possible. That's why we have adjusted the severance packages upwards, so that those of our skilled employees who choose to accept will have the best possible start to a new chapter in their working lives. In addition, we offer contributions to continuing education or career counselling,” says Kjellander. 

Still confident about the future 

He realises that this is a tough process for everyone, but he is clear that on the other side stands a media house that is well equipped for the future. 

”We are a large and strong player in the Norwegian market. As one of the best in storytelling, both commercially and editorially, and with strong brands such as Hjemmet, Bonytt, Klikk and Egmont People, we have all the prerequisites to come out stronger after this tough process. We are also looking for possible future acquisitions and new, profitable licences,” he concludes.