North Media: Negative EV, allocation policy needs revision - ABG

Q4 EBIT and guidance pre-announced, portfolio return better
Conference call failed to ease three key investor concerns
FVR cut to DKK 35-67 (36-70), net cash position of ~DKK 41/share


Q4 EBIT and guidance pre-announced, portfolio return better

Both Q4 headline numbers (sales and EBIT) and the FY'25 guidance were pre-announced on 7 March, while North Media's portfolio return of DKK 7m in Q4 surprised positively vs. ABGSCe of DKK -23m. We have made small operational estimate changes after the report, lowering '25e-'26e EBIT by ~2%. This leaves '25e EBIT of DKK 57m at the high end of the DKK 25m-60m guidance. However, we cut EPS significantly from a mark-to-market adjustment to the investment portfolio after a weak Q1. The portfolio is down ~12% q-o-q (with NOVO and NVIDIA driving most of the unrealised losses).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2025/3/north-media---negative-ev-allocation-policy-needs-revision/