North Media: Q3 brought the downgrade we expected - ABG

Q3 revenue 3% lower vs. ABGSCe, much weaker EBIT
FY’22 guidance lowered, primarily from weak Last Mile
We lower our ’22e revenue est. by ~2% and EBIT by 4%


Weaker Q3 a result of a tough macro and cost inflation

North Media reported Q3 revenue of DKK 228m (-3% vs. ABGSCe at DKK 236m) and EBIT of DKK 29m (-35% vs. ABGSCe at DKK 45m). The loss of DKK 19m on the investment portfolio was significantly lower than our estimated loss of DKK 94m in the quarter, causing pre-tax profit to land in positive territory at DKK 12m (vs. ABGSCe at DKK -50m) for the first time since Q4’21, resulting in diluted EPS of DKK ~0.5 (vs. ABGSC at DKK -2.0). From talking to the company, we gathered that the goal of paying a DPS of DKK 5.00/share p.a. for ’22e-24e was reiterated, but there were no indications of share buybacks in the short-term.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2022/11/north-media---q3-brought-the-downgrade-we-expected/