North Media: Cutting estimates amid soft guidance - ABG

Pre-announced Q4 revenues roughly in line, EBIT 6% below
We cut estimates on soft FY'24 guidance - costs to continue up
Extent of possible SDR synergies still a question mark


Pre-announced Q4 revenues roughly in line, EBIT 6% below

North Media had pre-announced headline figures. Q4 group revenues were 1% below ABGSCe, declining 4% y-o-y. Group EBIT came in 6% short of ABGSCe, driven by significantly higher unallocated costs (in connection with the SDR acquisition). North Media thus reached its FY'23 guidance, seeing revenues declining ~5% y-o-y in '23 with an EBIT margin of ~16% (down ~3pp vs. '22).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2024/3/north-media---cutting-estimates-amid-soft-guidance/