PARKEN Sport & Entertainment

Quarterly Report • Aug 22, 2008

PARKEN Sport & Entertainment A/S

CVR 15 10 77 07

Interim results as at 30 June 2008

Summary

• PARKEN Sport & Entertainment A/S continued to grow in the first half of 2008. Operating profit before amortisation and transfer activities was DKK 78.8 million, (DKK 53.7 million in the first half of 2007). Pre-tax profit for the period was DKK 57.4 million, (DKK 7.0 million in the first half of 2007).

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• In the first half of 2008, Lalandia Billund handed over 133 out of a total of 761 holiday houses, and the construction of the remaining holiday houses, as well as the leisure centre and Aqua Dome, is proceeding according to plan both as regards timetable and budget.
• Lalandia Rødby has opened a new outdoor heated pool area.
• fitness dk introduced a new price structure at the beginning of the year, and achieved a marked increase in membership as a result – at 30 June 2008, there were over 115,000 members.
• In June, PARKEN Sport & Entertainment acquired 70% of a newly established Italian company with an option to acquire a site where it is planned to construct a modern sports and leisure centre.
• In February, PARKEN Sport & Entertainment sold its 55% holding of Billetlugen A/S and simultaneously acquired 10% of the new ticket company behind Billetlugen A/S.
• Construction of the new SuperBest stand is proceeding according to plan both as regards timetable and budget.
• After finalisation of the local plan, construction of the Capinordic Arena at PARKEN is expected to commence in autumn 2008.
• The FCK men's handball team won the Danish championship for the first time, and the women's team gained bronze medals. F.C. Copenhagen gained a set of medals for the eighth successive season – in 2007/08 it was bronze. All three teams have qualified for the European tournaments in the 2008/09 season.

Financial highlights for the Group

DKKm	Q2 2008	Q2 2007	H1 2008	H1 2007	2006/07 (18 mths.)
Key figures
Total income	441,5	255,1	650,3	448,4	1.550,1
Operating profit before amortisation
and transfer activities	43,1	43,3	78,8	53,7	301,3
Amortisation	1,3	6,8	2,5	12,9	38,6
Transfer activities	(15,6)	(4,6)	(6,0)	(11,9)	(39,4)
Financial income and expense	10,1	(11,9)	(12,9)	(21,9)	(61,4)
Profit before tax	36,3	20,0	57,4	7,0	161,9
Profit	27,2	17,9	43,0	8,1	130,5
Non-corrent assets	1.905,7	1.279,0	1.905,7	1.279,0	1.596,3
Corrent assets	948,3	739,9	948,3	739,9	786,1
Total assets	2.854,0	2.018,9	2.854,0	2.018,9	2.382,4
Share capital	49,4	49,4	49,4	49,4	49,4
Equity	789,0	674,3	789,0	674,3	664,6
Non-corrent liabilities	682,6	444,2	682,6	444,2	386,6
Corrent liabilities	1 .382,4	900,4	1.382,4	900,4	1.331,2
Financial ratios
Net profit ratio, %	9,8	17,0	12,1	12,0	19,4
Return on capital employed (ROCE), % *	1,5	2,1	2,8	2,7	8,4
Equity ratio, %	27,6	33,4	27,6	33,4	27,9
Book value per share	319,59	273,13	319,59	273,13	269,20
Share price (end of perioed)	1.290	1.690	1.290	1.690	1.216

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*) The figure stated for 2006/07 has been calculated for a 12-month period.

Management Review

Group income rose by 45% from DKK 448.4 million to DKK 650.3 million. The increase is primarily attributable to the sale of holiday houses at Lalandia Billund, where more than DKK 200 million has been booked as income in consequence of the hand-over of a total of 133 holiday houses. Rental income from property lettings, commissions and booking fees were down in the first six months of the year in comparison with the same period of last year, as a result of the sale of the south-eastern office tower in autumn 2007 and the disposal of the Billetlugen shares at the beginning of 2008.

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Operating profit before amortisation and transfer activities rose by 47% to DKK 78.8 million (DKK 53.7 million in the first half of 2007).

The PARKEN Group achieved a pre-tax profit of DKK 57.4 million in the first half of 2008, against DKK 7.0 million in the same period of last year.

Total assets in the first half of 2008 were up by approximately DKK 400 million, mainly as a result of the construction of the new SuperBest stand, and the holiday houses, leisure centre and Aqua Dome at Billund.

At the end of the period, equity stood at DKK 733.6 million, up by DKK 69.0 million. Current liabilities to banks rose by about DKK 100 million, and a new long-term loan has increased non-current liabilities to banks by about DKK 240 million.

Latest developments around the Group

PARKEN

Construction of the new SuperBest stand is proceeding according to plan both as regards timetable and budget. After finalisation of the local plan, construction of the Capinordic Arena at PARKEN is expected to commence in autumn 2008.

fitness dk

fitness dk introduced a new price structure at the beginning of the year, and achieved a marked increase in membership numbers as a result – at 30 June 2008, there were over 115,000 members, as against 83,000 at the end of June 2007. Three new centres were opened during the first six months of 2008, and the total number of centres is now 36. Two more new centres are expected to be ready to receive the still growing number of members in the second half of 2008.

Lalandia

A new outdoor heated pool area has been opened at Lalandia Rødby, and a new cinema is expected to be opened early in 2009.

In Billund, 133 out of a total of 761 holiday houses have been handed over, and the construction of the remaining holiday houses, as well as the leisure centre and aqua world, is proceeding according to plan both as regards timetable and budget. It is expected that 393 holiday houses will be handed over in 2008.

Miscellaneous

In June, PARKEN Sport & Entertainment acquired 70% of a newly established Italian company with an option to acquire a site where it is planned to construct a modern sports and leisure centre. The site covers 68 hectares and is located near the town of Montepaone in Calabria in southern Italy. The plans for this site include 684 luxury apartments as well as the sports and leisure centre.

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In February, PARKEN Sport & Entertainment sold its 55% holding of Billetlugen A/S, and simultaneously acquired 10% of the new ticket company behind Billetlugen A/S.

Significant risks

Interest swaps have been arranged to hedge a large part of the Group's interest rate risk.

Incentive schemes

A total of 47,300 new share options were issued to the Chairman of the Supervisory Board, the members of the Executive Board and the other managerial staff in the first half of 2008. The number of options exercised in the period was 50,000, and the number outstanding at 30 June 2008 was 63,400.

Expectations for 2008

The Group has performed in accordance with expectations in the first half of 2008, and in the opinion of the Supervisory Board there are no circumstances or risks that call for the expectations for 2008 to be revised.

Group expects to achieve revenue of DKK 1,500 million and a profit before amortisation and transfer activities in the range of DKK 200 million. The profit before tax is expected to be around DKK 100 million.

Management Statement

The Supervisory Board and the Executive Board have today considered and approved this Interim Report for PARKEN Sport & Entertainment A/S, covering the period 1 January – 30 June 2008.

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This Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting, as approved by the EU, and with the further disclosure requirements laid down in Danish legislation for interim reporting by listed companies. It has not been audited or reviewed by the Company's Auditor.

In our opinion, this Interim Report gives a true and fair view of the Group's financial assets, liabilities and financial position as at 30 June 2008 and of the result of the Group's activities and cash flows during the period 1 January – 30 June 2008.

It is also our opinion that the Management Review contains a true and fair account of the development of the Group's activities and financial affairs, the profit for the period and the Group's financial position as a whole, and a description of the principal risks and uncertainties faced by the Group.

Copenhagen, 22 August 2008

Executive Board

Jørgen Glistrup CEO	Dan Hammer Commercial Director
Supervisory Board
Flemming Østergaard Chairman	Niels-Christian Holmstrøm	Hans Jensen
Michael Kjær	Flemming Lindeløv	Peter Norvig
Benny Olsen	Hans Henrik Palm

Income statement

DKK '000	H1	H1	2006/07
	2008	2007	(18 mths.)
Renvenue	650.295	448.397	1.491.714
Revaluation of investment
properties	0	0	58.427
Total income	650.295	448.397	1.550.141
Other income	29.434	0	0
External costs	401.045	216.349	690.982
Staff costs	171.455	153.109	478.690
Depreciation and impairment	28.419	25.269	79.195
Operating profit before amortisation
and transfer activities	78.810	53.670	301.274
Amortisation	2.490	12.898	38.551
Loss from transfer activities	-6.025	-11.889	-39.381
EBIT	70.295	28.883	223.342
Financial income and expense
Financial income	13.627	1.217	8.182
Financial expense	26.548	23.166	69.619
Total financial income and expense	-12.921	-21.949	-61.437
Profit before tax	57.374	6.934	161.905
Tax on profit for the year	14.344	-1.162	31.361
Profit for the year	43.030	8.096	130.544
To be distributed as follows:
Shareholders in PARKEN Sport & Entertainment A/S	41.065	5.287	122.638
Minority interests	1.965	2.809	7.906
	43.030	8.096	130.544
Earnings per share
Earnings per share (EPS) of DKK 20	16,90	2,16	50,51
Diluted earnings per share (EPS-D) of DKK 20	16,47	2,11	49,20

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Balance sheet

DKK '000	30 June 08	30 June 07	31 Dec. 07
ASSETS
Non-current assets
Intangible assets
Goodwill	448.563	444.642	449.463
Leasehold interests	711	0	812
Contractual rights	138.259	99.809	122.989
Patents and trademarks	1.634	1.518	1.678
Completed development projects	0	2.150	3.428
Other intangible assets	19.506	33.742	21.810
	608.673	581.861	600.180
Property, plant and equipment
Land and buildings	579.614	535.891	553.739
Leasehold improvements	58.729	53.048	60.037
Other plant, fixtures and fittings, tools and equipment	113.816	102.584	115.972
Property, plant and equipment under construction and
prepayments for property, plant and equipment	519.513	0	242.808
	1.271.672	691.523	972.556
Other non-current assets
Deposits	19.298	0	18.943
Receivables	5.569	0	0
Deferred tax	468	5.662	4.588
	25.335	5.662	23.531
Total non-current assets	1.905.680	1.279.046	1.596.267
Current assets
Inventories	598.037	78.747	312.357
Investment properties	0	398.454	0
Receivables	98.626	182.530	152.324
Prepayments	17.592	8.010	13.206
Securities	7.625	7.195	7.520
Cash at bank and in hand	26.702	64.956	101.133
	748.582	739.892	586.540
Assets available for sale	199.778	0	199.576
Total current assets	948.360	739.892	786.116
TOTAL ASSETS	2.854.040	2.018.938	2.382.383

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Balance sheet

DKK '000	30 June 07	30 June 07	31 Dec 07
EQUITY AND LIABILITIES Equity
Share capital	49.376	49.376	49.376
Reserve for fair value of investment assets	56.858	56.858	46.222
Retained earnings	605.323	526.787	534.552
Equity share attributable to shareholders of
PARKEN Sport & Entertainment A/S	711.557	633.021	630.150
Minority interests	77.454	41.297	34.408
Total equity	789.011	674.318	664.558
Liabilities
Non-current liabilities
Deferred tax	189.970	143.329	132.321
Provisions for liabilities	30.123	3.484	25.349
Mortgage credit institutions	461.521	281.546	223.296
Other payables	0	10.539	4.455
Deposits	1.016	5.321	1.232
Total non-current liabilities	682.630	444.219	386.653
Current liabilities
Provisions for liabilities	4.477	0	8.906
Mortgage credit institutions	1.019.362	641.050	913.436
Trade payables and other payables	208.719	182.041	304.141
Corporation tax	3.817	131	2.538
Deferred income	93.472	77.179	45.469
	1.329.847	900.401	1.274.490
Liabilities in respect of assets available for sale	52.552	0	56.682
Total current liabilities	1.382.399	900.401	1.331.172
Total liabilities	2.065.029	1.344.620	1.717.825
TOTAL EQUITY AND LIABILITIES	2.854.040	2.018.938	2.382.383

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Statement of changes in equity

Group

Shareholders of PARKEN Sport & Entertainment A/S
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DKK '000	Share	Fair value adjust ments	Retained		Minority
	capital	assets	earnings	Total	interests	Total
Equity at 1 Jan. 2007	49.376	56.858	531.546	637.780	38.423	676.203
Changes in equity in H1 2007
Value adjustment of hedging
instruments	0	0	1.134	1.134	0	1.134
Share-based payments			3.866	3.866		3.866
Tax on changes in equity	0	0	-318	-318	0	-318
Net gains taken directly to
equity	0	0	4.682	4.682	0	4.682
Profit for the year	0	0	5.287	5.287	2.809	8.096
Total income	0	0	9.969	9.969	2.809	12.778
Acquisition of treasury shares	0	0	-18.723	-18.723	0	-18.723
Disposal of treasury shares	0	0	3.995	3.995	0	3.995
Minority interests, net	0	0	0	0	65	65
Total changes in equity	0	0	-4.759	-4.759	2.874	-1.885
Equity at 30 June 2007	49.376	56.858	526.787	633.021	41.297	674.318
Equity at 31 Dec. 2007	49.376	46.222	534.552	630.150	34.408	664.558
Changes in equity in H1 2008
Value adjustment of hedging
instruments	0	0	145	145	0	145
Share-based payments			8.860	8.860		8.860
Tax on changes in equity	0	0	-2.250	-2.250	0	-2.250
Net gains taken directly to
equity	0	0	6.755	6.755	0	6.755
Profit for the year	0	0	41.065	41.065	1.965	43.030
Total income	0	0	47.820	47.820	1.965	49.785
Acquisition of treasury shares	0	0	-233.377	-233.377	0	-233.377
Disposal of treasury shares	0	0	266.964	266.964	0	266.964
Minority interests, net	0	0	0	0	41.081	41.081
Total changes in equity	0	0	81.407	81.407	43.046	124.453

Statement of changes in equity

Shareholders of PARKEN Sport & Entertainment A/S DKK '000 Fair value Share adjust- Retained Minority capital ments earnings Total interests Total Equity at 30 June 2006 49.376 52.813 324.227 426.416 24.119 450.535 Changes in equity in 2006/2007 Value adjustment of hedging instruments 0 0 1.000 1.000 0 1.000 Share-based payments 9.318 9.318 9.318 Tax on changes in equity 0 0 -3.904 -3.904 0 -3.904 Net gains taken directly to equity 0 0 6.414 6.414 0 6.414 Profit (loss) for the year 0 -6.591 129.229 122.638 7.906 130.544 Total income 0 -6.591 135.643 129.052 7.906 136.958 Acquisition of treasury shares 0 0 -142.392 -142.392 0 -142.392 Disposal of treasury shares 0 0 217.074 217.074 0 217.074 Addition, minority interests 0 0 0 0 12.483 12.483 Disposal, minority interests 0 0 0 0 -10.100 -10.100 Total changes in equity 0 -6.591 210.325 203.734 10.289 214.023 Equity at 31 December 2007 49.376 46.222 534.552 630.150 34.408 664.558

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Group

Cash flow statement

	H1 2008	H1 2007	2006/07
DKK '000			(18 mths.)
Revenue	650.295	448.397	1.491.714
Costs	-566.025	-367.175	-1.179.697
Cash flows from operations before changes in working capital	84.270	81.222	312.017
Changes in working capital	-67.807	35.976	-112.652
Cash flows from operations (operating activities)	16.463	117.198	199.365
Interest income, paid	3.134	1.141	7.357
Interest expense, paid	-26.268	-21.272	-65.659
Cash flows from operations (ordinary activities)	-6.671	97.067	141.063
Corporation tax paid	0	0	-40.164
Cash flows from operating activities	-6.671	97.067	100.899
Acquisition of intangible assets	-55.553	-24.770	-137.007
Disposal of intangible assets	36.988	19.485	51.426
Acquisition of property, plant and equipment	-248.311	-115.567	-287.966
Disposal of property, plant and equipment	890	3.289	160.883
Acquisition of financial assets	0	0	0
Disposal of securities *)	0	0	0
Acquisition of subsidiaries and activities	-16.056	0	-245.576
Disposal of subsidiaries and activities	-41.000	0	0
Cash flows from investing activities	-323.042	-117.563	-458.240
External financing:
Repayment of non-current liabilities	-11.507	-9.804	-44.402
Other non-current liabilities	4.558	-2.300	16.215
Proceeds from mortgage loans	249.452	0	153.247
Changes in liabilities to mortgage credit institutions	108.383	78.662	410.462
Shareholders:
Dividend distributed	0	0	0
Acquisition of treasury shares	-233.377	-18.723	-142.392
Disposal of treasury shares	137.773	3.995	11.693
Capital increase from minority interests	0	0	0
Cash flows from financing activities	255.282	51.830	404.823
Net cash flows from operating, investing and financing activities	-74.431	31.334	47.482
Cash and cash equivalents, beginning of year	101.133	33.622	53.651
Cash and cash equivalents, end of year	26.702	64.956	101.133

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Segment reporting

Operating profit before amortisation and transfer activities	11.665	11.342	45.537	30.835	-20.569	78.810
Renvenue	118.682	207.209	304.381	20.023	0	650.295
DKK '000	PARKEN	fitness dk	Lalandia	Other	Elimi.	Group
						H1 2008

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The result of the activities in Lalandia Billund - including the sale of holiday houses - totaled DKK 30,4 million in the first half year of 2008. The profit margin from the sale of Billetlugen is entered in the segment Other, under the title of Other income.

Accounting policies

This Interim Report, has been prepared in accordance with IAS 34, Interim Financial Reporting, as approved by the EU, and with the further disclosure requirements laid down in Danish legislation for interim reporting by listed companies.

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The accounting policies used are unchanged in relation to those of the Annual Report for 2006/07.

A full description of the accounting policies applied is given in the 2006/07 Annual Report.

Contacts

Flemming Østergaard, Chairman Jørgen Glistrup, CEO

Telephone +45 35 43 74 00 www.parken.dk

PARKEN Sport & Entertainment A/S Copenhagen, 22 August 2008