2023 was a good year with acquisitions and financial results as guided
Announcement no. 2-2024
29 February 2024
North Media’s Group CEO Lasse Brodt commented on the performance in 2023:
“We’re delivering financial results in line with our most recent guidance, which we consider to be satisfactory in light of the fact that several of our businesses were still affected by the economic climate and the uncertain market conditions. FK Distribution reported a drop in volumes, as expected, which impacted our revenue, while BoligPortal delivered revenue of more than DKK 100 million for the first time ever and its best ever EBIT. Ofir and Bekey both reported declining revenue and earnings, and we have taken strategic steps to reverse that performance. This was also the year when we executed on our strategy to acquire, run and optimise high-volume businesses. By acquiring SDR Svensk Direktreklam AB, Sweden’s largest private-sector distributor of leaflets and local newspapers, we have expanded our Scandinavian position in that market.”
Financial highlights:
| DKK m | Q4 | Full year | |||
| 2023 | 2022 | 2023 | 2022 | ||
| Revenue | 248.4 | 259.1 | 949.1 | 995.3 | |
| EBITDA | 45.9 | 69.2 | 176.9 | 219.2 | |
| EBIT | 39.2 | 62.3 | 149.9 | 191.5 | |
| EBIT margin | 15.8% | 24.0% | 15.8% | 19.2% | |
| Return on securities | 189.3 | -194.2 | |||
| Cash flows from operating activities | 126.0 | 191.3 | |||
| Free cash flow | 157.1 | 170.7 | |||
As revealed in Announcement no. 1 of 26 February 2024, North Media delivered financial results in line with the most recent FY 2023 guidance, which was for revenue in the DKK 940–960m range and EBIT in the DKK 145–160m range. Based on the financial performance for the year, the Board of Directors recommends that a dividend of DKK 4 per share be paid.
Performance by business area in 2023
The economic climate and uncertain market conditions continued to impact several of North Media’s businesses during 2023. In the Last Mile business area (FK Distribution), the reduced revenue and earnings were driven by consolidation among retailers, persistently high prices of paper and declining advertising sales for local newspapers. Volumes dropped by 10% overall, essentially driven by structural factors. Market surveys showed once again that leaflets remain the most effective platform for promoting offers and converting these to sales.
The acquisition of SDR Svensk Direktreklam in late 2023 is a good example of North Media’s strategy to acquire, run and optimise high-volume businesses in areas where the Group possesses special strengths and insights and in markets similar to the Danish market. North Media also acquired software technology from Aviou in a minor deal to strengthen minetilbud’s market position.
In the Digital Services business area, BoligPortal delivered nine-digit revenue, at DKK 107 million, for the first time ever and record EBIT, driven by increased advertising revenue from landlords. The number of signed leases and move-in/out inspection reports also reached a record high in 2023. The performance in Ofir, the jobs portal, was affected by a drop new job postings relative to the record set in 2022, and it is essential for the Ofir business to become less cyclical and more scalable. Bekey’s results were not satisfactory, and we have taken steps to reevaluate the market approach in order to turn around the business.
Guidance for 2024
North Media announced its guidance for the Group on 26 February 2024. The table shows below the guidance ranges by business area:
| DKKm | Revenue | EBITDA | EBIT |
| Group | 1,310 - 1,375 | 170 – 210 | 110 – 150 |
| Last Mile (FK Distribution, SDR Svensk Direktreklam) | 1,145 - 1,195 | 175 – 205 | 127 – 157 |
| Digital Services (BoligPortal, Ofir, Bekey) | 165 - 180 | 0 – 10 | -5 – 5 |
| Unallocated expenses | - | -5 | -13 |
As regards the guidance for 2024, SDR Svensk Direktreklam forms part of the Last Mile business, which until now has consisted only of FK Distribution. Henceforth, North Media will provide EBITDA guidance for purposes of reflecting its focus on profitability. EBITDA is expected on level with or slightly higher than 2023, with the positive contribution and recognition from SDR Direktreklam completely or partially offset by a slight decline in FK Distribution as well as a decrease in Ofir and Bekey.
The expected drop in EBIT mirrors developments in operational profitability and an increase in both ordinary depreciation charges and amortisation related to the acquisition of SDR Svensk Direktreklam.
Conference call
Our Group CEO Lasse Ingemann Brod and Group CFO Kåre Wigh will present the interim report in a conference call (in English) on 29 February 2024 at 11:00 CET. Please use this link to attend the conference call. The Annual Report will be presented in Danish on HC Andersen Capital’s platform on 29 February 2024 at 14:00 CET. Please use this link to attend the conference call.
For further information:
CEO Lasse Brodt, tel. +45 20 24 32 92
CFO Kåre Wigh, tel. +45 25 65 21 45
North Media develops and operates platforms for transactions that bring businesses and consumers together. These platforms help consumers find the right products, whether they are looking for groceries, rental housing, jobs or digital access management solutions. North Media has two core business areas: Last Mile: FK Distribution and SDR Svensk Direktreklam are among the leading distributors of leaflets and local newspapers in Denmark and Sweden, respectively. Minetilbud is a leading digital offer platform. Digital Services: Three businesses with the potential for strong growth, rising earnings and scalability: BoligPortal is Denmark’s leading home rentals platform, offering services to both landlords and tenants. Ofir is Denmark’s most comprehensive jobs universe. Bekey provides digital access solutions for secured stairwells and private homes for the use of homecare services and companies delivering parcels, groceries, meal services, etc.
This document is an unofficial translation of the Danish original. If the event of any inconsistencies, the Danish version shall apply.
This document is an unofficial translation of the Danish original. I the event of any inconsistencies, the Danish version shall apply.
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