North Media: Q4 will pass, but paper prices make us worried - ABG

Looks set to reach midpoints of FY'22 guidance
Expect intensifying Last Mile volume decline from paper prices
Fair value range of 55-105/share


Set for FY'22 guidance, but downgrade in Q3 was necessary

North Media reports its Q4 results and annual report on 8 February. On the back of a seasonally-strong Q4 historically for leaflets due to Christmas, we expect group revenue of DKK 265m and EBIT of DKK 65m, implying that North Media will reach the midpoints of its FY'22 guidance. We estimate a gain of DKK 57m on the equity portfolio in Q4, resulting in EBT of DKK 117m, and a net cash position of DKK 661m equivalent to DKK 35/share. With no indications of a change in payout policy, we stick to our expectation of an annual DPS of DKK 5.0/share for the coming years.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/north-media/Equity-research/2023/1/north-media---q4-will-pass-but-paper-prices-make-us-worried-/