North Media: Guidance downgrade driven by higher costs - ABG

Q3: Revenues 1% below, EBIT DKK -2m vs. ABGSCe +12m
FY'24 guidance downgraded again
Consensus likely to lower '24 EBIT by 10-15%


Q3 revenues 1% below, EBIT DKK -2m vs. ABGSCe DKK +12m

North Media's pre-announced Q3 revenues of DKK 307m came in 1% below ABGSCe at DKK 311m, with the former equating to 38% y-o-y growth. Q3 EBIT of DKK -2m was a clear disappointment when compared to our DKK 12m estimate, driven both by higher costs and write-downs in SDR (no more information regarding the latter provided at this stage, but we suspect it may be another write-down of IT systems like it did in connection with Q1'24). This corresponds to a margin of -1% (down 14pp y-o-y). We await the full Q3 figures due to be announced later today.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2024/11/north-media---guidance-downgrade-driven-by-higher-costs/