18^th October 2012                                                                                                                            

Mecom Group plc

Interim Management Statement

FULL YEAR GUIDANCE CONFIRMED

The Board of Mecom Group plc ("Mecom" or the "Group"), a leading European consumer publishing group, today issues its interim management statement for the three-month period to 30^th September 2012. All trading performance figures and comparisons quoted in this statement are based on the Group's ongoing operations (i.e. excluding Edda Media and Presspublica in both 2012 and 2011), except where explicitly stated otherwise.

Summary

EBITDA for the three months ending 30^th September 2012 was marginally down on the equivalent period in the previous year, with continuing declines in advertising revenue mitigated by cost savings generated from the Group's ongoing restructuring programme. Based on these results and the prevailing economic environment in its markets, the Group continues to expect full year EBITDA of between €85 million and €95 million, as previously guided on 6^th June 2012.

Trading

Total revenue in the quarter was 10 per cent lower than the comparative period in 2011, compared with a decline in the second quarter of 10 per cent and in the first half of the year of 8 per cent.  Total revenue was lower by 10 per cent in the Netherlands, 9 per cent in Denmark and 17 per cent in Poland.

Circulation revenue in the third quarter continued to follow the trends observed in the first half of the year, with total Group circulation revenue lower by 4 per cent year-on-year (first half: 3 per cent).  In the Netherlands, where 95 per cent of circulation is sold through subscriptions, circulation revenue was flat, year-on-year. In Denmark and Poland, where the Group's businesses are more reliant on single copy sales, declines in circulation revenue of 9 per cent and 12 per cent, respectively, were experienced in the quarter.

The Group's advertising revenue in the three months to 30^th September 2012 fell by 20 per cent year-on-year, compared with 18 per cent in the second quarter and 15 per cent in the first half.  These ongoing declines reflect continuing economic inertia and consumer uncertainty. The advertising revenue declines experienced in each of the Group's divisions are set out below:

Other revenues in the three months were in-line with the same period in 2011, as lower third party printing revenue in the Netherlands was offset by increased distribution revenue in Denmark resulting from a small acquisition completed in the first half of the year.

The Group's restructuring programmes, which continue to be implemented in-line with management's expectations, generated substantial savings in the third quarter, with total costs €24 million (11 per cent) lower than in the same period of the previous year. In particular, the cost reduction initiatives in the Netherlands, which began to be implemented in the second quarter and therefore had a relatively small effect in the first half, started to generate savings in the third quarter.

As a result, EBITDA in the period was marginally lower than the equivalent period in 2011. Depreciation and, particularly, interest expense were lower than in the third quarter of 2011, principally due to significantly lower net debt following the disposals of Edda Media and Presspublica, and as a result adjusted earnings per share for the period were above those of the same period in 2011.

Net debt at 30^th September 2012 was €150.8 million, compared with €321.6 million at 30^th September 2011 and €109.7 million at 30^th June 2012. The increase since June is due to a combination of the Group's normal seasonal trading and working capital profile and exceptional expenditure incurred in connection with the ongoing restructuring programme.

The Group announced on 27^th September 2012 that the District Court of Rotterdam substantively upheld the challenge by Mecom's Dutch subsidiary Koninklijke Wegener N.V. ("Wegener") to the Dutch Competition Authority's ("NMa") fine in respect of alleged breaches of undertakings given by Wegener at the time of an acquisition in 2000.  The Court proposed that the fines imposed by the NMa on Wegener and certain individuals totalling €20.6 million should be reduced to an aggregate of €2.2 million.  Wegener continues to consider its position in respect of the Court's judgement, as does the NMa, both of whom have six weeks from the date of judgement in which to appeal against it.  Wegener had recorded a provision of €10.6 million in respect of future payment of any fine as at 30^th June 2012.

Strategic Review

The Group indicated in its announcement on 19^th July 2012 that it would be conducting a strategic review, the objective of which is to consider opportunities for enhancing shareholder value, potentially through the sale of assets or businesses. This process continues, and the Group will provide further updates, as appropriate, in due course.

Outlook

The Group indicated on 6^th June 2012 that it expected full year EBITDA to be in a range between €85 million and €95 million.  The Group continues to expect to be within this range.

The Group expects full-year earnings per share to be consistent with current market expectations, but expects year-end net debt to be somewhat lower than current market expectations because of lower than previously anticipated cash exceptional costs (including the expected reduction in the NMa fine) and capital expenditure.

Contacts:

Mecom Group plc                                        020 7925 7200

Stephen Davidson, Executive Chairman

Henry Davies, Group Finance Director

Pendomer                                                        020 3603 5221 

Ben Foster                                                        07776 240 806

Rosie Oddy                                                       020 3603 5220