(MENAFN- GlobeNewsWire - Nasdaq) Announcement no. 13-2024 5 November 2024
North media Group CEO Lasse Ingemann Brodt commented on the results for Q3 2024:
“Consolidated revenue grew by 38% in Q3 2024, driven by the acquired SDR business, while EBITDA declined, driven by the execution of strategic initiatives in Last Mile – mainly due to the decision made in the second quarter to accelerate the roll-out of automated packing of printed matter in Sweden – and driven by increased payroll costs for deliverers of printed matter and local newspapers in FK Distribution as well as lower revenue performance in Ofir and Bekey. The implementation of automated packing in Sweden is progressing according to plan, but is slightly more costly than expected. In the Digital Services business area, BoligPortal reported satisfactory growth in terms of both revenue and earnings.”
Financial highlights:
| DKKm | Q3 | Q3 YTD
|
| | 2024* | 2023 | 2024* | 2023 |
| Revenue | 306.5 | 222.3 | 984.6 | 700.7 |
| EBITDA | 14.9 | 36.6 | 111.8 | 131.0 |
| EBIT | -1.5 | 29.8 | 50.0 | 110.7 |
| EBIT margin (%) | -0.5 | 13.4 | 5.1 | 15.8 |
| Return on securities | -86.5 | -8.6 | 210.4 | 156.3 |
| Cash flows from operating activities | 15.5 | 40.1 | 48.4 | 125.6 |
| Free cash flow | 22.3 | 39.9 | 8.9 | 121.2 |
* Including the activities of SDR
Performance by business area – Q3 2024
Revenue in the Last Mile business area (FK Distribution and SDR) grew by 46% to DKK 264m, driven by SDR. Excluding SDR, revenue decreased by 1%, attributable to a minor setback in the volumes of local newspapers. Volumes of printed matter was flat. EBITDA fell by 35% to DKK 21m, primarily affected by the roll-out of automated packing in Sweden, the development of the 'MineTilbud' technical platform into an exposure business to be launched in multiple markets and by increased payroll costs for deliverers. EBIT fell from DKK 28m to DKK 8m, driven by the lower EBITDA and general impairment charges in SDR. The EBIT margin was 3.2%.
The implementation of automated packing of printed matter for the Swedish market at the packing centre in Taastrup, Denmark, proceeded according to plan, and the number of Swedish households covered increased substantially. The roll-out is still expected to be completed by the end of Q2 2025.The 'MineTilbud' technical platform is still expected to be fully developed and launched in Sweden by the end of 2024.
The Digital Services business area delivered revenue growth of 3%, driven by a 9% increase in earnings from partnerships, tenants and Data Insights in BoligPortal. This more than made up for the expected drop in advertising revenue from landlords. Total EBITDA fell from DKK 3m to a negative EBITDA of DKK 1m, impacted by the costs of the continued transformation of BoligPortal towards a single universe for tenants and landlords and reassessment of the strategic platform for Ofir and Bekey. EBIT was negative at DKK 2m, down by DKK 4m. The EBIT margin was negative at 4.7%.
YTD performance
Revenue was DKK 985m for the nine months ended 30 September 2024, an increase of 41% driven by SDR. Excluding SDR, revenue was flat. EBITDA fell by 15% to DKK 112m, affected by the expected performance in FK Distribution and Digital Services. EBIT dropped from DKK 111m to DKK 50m due to the write-down of IT systems in SDR, depreciation of the SDR purchase price and general impairment charges in SDR. The EBIT margin was 5.1%.
Guidance for 2024
As announced in company announcement no. 12 of 5 November 2024, the full-year financial guidance for 2024 is revised. Revenue is now expected to be in the DKK 1,315-1,340m range, with an EBITDA in the DKK 140-160m range and an EBIT in the DKK 65-85m range.
Webcast with conference call
CFO Kåre Wigh will present the financial results via webcast on 6 November 2024 at 14:00 CEST. Please register using this link . The webcast will be in Danish with slides in English. Questions may be asked and answered in both languages. Written questions may be submitted during the webcast, while oral questions require registration via this link . An English-language transcript of the full webcast will be added to the on-demand video at the website of North Media as soon as possible after the conference call.
For further information, please contact:
CEO Lasse Ingemann Brodt, tel. +45 20 24 32 92
CFO Kåre Wigh, tel. +45 25 65 21 45
North Media develops and operates platforms for transactions that bring businesses and consumers together. These platforms help consumers find the right products, whether they are looking for groceries, rental housing, jobs or digital access management solutions. North Media has two core business areas: Last Mile : FK Distribution and SDR Svensk Direktreklam are among the leading distributors of leaflets and local newspapers in Denmark and Sweden, respectively. MineTilbud is a leading digital offer platform. Digital Services: Three businesses with the potential for strong growth, rising earnings and scalability: BoligPortal is Denmark's leading home rentals platform, offering services to both landlords and tenants. Ofir is Denmark's most comprehensive jobs universe. Bekey provides digital access solutions for secured stairwells and private homes for the use of homecare services and companies delivering parcels, groceries, meal services, etc.
Attachment
MENAFN05112024004107003653ID1108853511
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.