Financial results for Q2 2024 in line with expectations
Announcement no. 11-2024
15 August 2024
North Media CEO Lasse Ingemann Brodt commented on the results for Q2 2024:
“Consolidated revenue grew by 47% in Q2 2024 and EBITDA grew by 31%, driven by the SDR business, which we acquired in late 2023. There was also a slight improvement in FK Distribution as a result of more customers increasing their volumes of printed matter. We took an important step in the integration of SDR with our first automated packing of printed matter for households in Sweden, and we are now accelerating the implementation of this and expect it to be fully implemented by the end of the 2nd quarter of 2025. Revenue in the Digital Services business area was flat, while increased costs of the continued transformation of BoligPortal and the establishment of a future strategic platform for Ofir and Bekey caused a drop in earnings.”
Financial highlights:
| DKKm | Q2 | Q2 YTD | |||
| 2024* | 2023 | 2024* | 2023 | ||
| Revenue | 351.0 | 238.4 | 678.1 | 478.4 | |
| EBITDA | 57.7 | 43.9 | 96.9 | 94.3 | |
| EBIT | 41.1 | 37.1 | 51.5 | 80.9 | |
| EBIT margin (%) | 11.7 | 15.6 | 7.6 | 16.9 | |
| Return on securities | 141.3 | 61.1 | 296.9 | 164.9 | |
| Cash flows from operating activities | 37.3 | 28.2 | 32.9 | 85.2 | |
| Free cash flow | -5.4 | 27.7 | -13.4 | 81.3 | |
* Including the activities of SDR
YTD results as expected
Consolidated revenue for H1 2024 grew by 42% to DKK 678m, driven by the acquisition of SDR. Excluding SDR, revenue was flat. EBITDA was up 3% to DKK 97m, and the inclusion of SDR more than balanced out the expected decline in FK Distribution and Digital Services. EBIT fell by 36% to DKK 52m, impacted by impairment charges from the write-down of IT systems in SDR and depreciation of the SDR purchase price. The EBIT margin was 7.6%.
Performance by business area – Q2 2024
In the Last Mile business area, revenue grew by 57% to DKK 310m, which could be attributed to the activities acquired in Sweden. Excluding SDR, revenue was up 4%, driven by increased volumes of printed matter and a decline in revenue from the distribution of local newspapers in FK Distribution. EBITDA rose by 47% to DKK 59m, attributable to the revenue improvement. EBIT grew from DKK 37m to DKK 47m despite a slight increase in fixed costs, including higher payroll costs for deliverers in Denmark due to continued strong demand for labour. The EBIT margin was 15%.
In June 2024, FK Distribution and SDR completed the first round of automated packing of printed matter at the packing centre in Taastrup for Swedish households. The use of automated packing for the Swedish market will be accelerated during autumn and expect it to be fully implemented by the end of the 2nd quarter of 2025.
Revenue in the Digital Services business area was flat at DKK 41m. In BoligPortal, increased income from tenants and new digital products balanced out the expected drop in advertising revenue from landlords following a record-high level in 2023. Total EBITDA fell from DKK 4m to a negative EBITDA of DKK 1m due to increased capacity costs associated with the continued transformation of BoligPortal towards a single universe for tenants and landlords and reassessment of the strategic platform for Ofir and Bekey. EBIT was a loss of DKK 3m, down from a profit of DKK 3m. The EBIT margin was negative at 6.1%.
Guidance for 2024
As stated in company announcement no. 10 of 14 August 2024 the group's financial guidance for 2024 was adjusted. Revenue is now expected to be in the DKK 1,320-1,365m range, with EBITDA of DKK 150-170m. EBIT is expected to be in the DKK 75-100m range.
Webcast with conference call
CFO Kåre Wigh will present the financial results via webcast on 16 August 2024 at 14:00 CEST. Please register using this link. The webcast will be in Danish with slides in English. Questions may be asked and answered in both languages. Written questions may be submitted during the webcast, while oral questions also require registration via this link.
For further information, please contact:
CEO Lasse Ingemann 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.
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