Interim results for the six months ended September 30th 2007

Excellent financial results driven by top-line growth and operating efficiencies

• Operating profit up 25% to £20.8m
• Revenue up 4% to £124.6m
• Revenue at constant currency up 8%
• Dividend increase of 20% (25.2p per share); special dividend of £23m - 91.3p per share

Significant strategic progress against our priorities for 2007:

• Beating ambitious targets
  • Strategy of focusing on the high-end audience globally and in large local markets, continues to deliver
  • Margin increases to 17% from 14%, helped by operating and marketing efficiencies
  • Circulation at The Economist up 11% year on year to 1,260,457 (Jan-June ABC)
  • Electronic advertising revenue at The Economist increased by 15%
  • Economist Intelligence Unit revenues up 10% year-on-year
• Executing our plans for internet development
  • Strong performance of Economist.com, with page views up 30% year-on-year, reaching 16.2m
  • Economist.com monthly users increased 39% year-on-year, reaching 2.6m
  • Increased depth and frequency of Economist Intelligence Unit products
  • Focus on developing CFO online in US with enhanced content and services
• Building on our presence in India
  • Offices established in Delhi and Mumbai
  • Local managers appointed to drive growth in both The Economist and the Economist Intelligence Unit
  • Expansion of local Economist Intelligence Unit research and conference offering
  • Launch of CFO India and a CFO Rising event

Helen Alexander, chief executive of The Economist Group, said: "This year has started well for the Group. Operating profit is up 25%, we have significantly upgraded our online offering and laid the foundations for future growth in India.

"The strategic and financial progress that we have achieved in the first half shows that momentum at the Group continues. We remain confident about the outlook, while being conscious of the volatility in the financial markets, the potential impact of further migration of print advertising online and the continuing decline in the US dollar."

(December 3rd 2007)