North Media: Disappointing FY'24 guidance - ABG

Q4 revenues in line, EBIT 6% below ABGSCe
DKK 4.0 DPS as expected, but disappointing FY'24 guidance
No comments on synergies; expect cons to cut '24 EBIT by 8-25%


Q4 revenues largely in line, EBIT 6% below ABGSCe

North Media today announced preliminary Q4 results and its FY'24 guidance. Q4 revenues were DKK 248.3m (-1% vs. ABGSCe at DKK 249.9m), while EBIT came in at DKK 39.3m (-6% vs. ABGSCe at DKK 41.8m). This equates to a ~6% drop in revenues in the Last Mile segment in '23, driven primarily by high paper prices and declining advertising sales for local newspapers (while the volume decline appears to have abated during H2'24). At the same time, Digital Services (BoligPortal, Ofir, and BeKey) grew the top-line by 4%, driven by a very strong performance in BoligPortal, while Ofir and BeKey faced setbacks y-o-y. Group EBIT was also impacted by an increase in unallocated costs (primarily related to the acquisition of SDR). North Media recommends a DPS of DKK 4.0 for '23, in line with our estimate.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2024/2/north-media---disappointing-fy24-guidance/