H1 results as expected – FY 2022 guidance range narrowed
Announcement no. 19-2022
17 August 2022
The Board of Directors of North Media A/S today approved the interim report for the second quarter 2022.
H1 highlights
H1 2022 results were in line with expectations.
- Consolidated revenue was up by 1% to DKK 508m. The Digital Services business (BoligPortal, Ofir and Bekey) reported combined growth of 16%. Revenue in Last Mile (FK Distribution) was down by 1%.
- Consolidated EBIT was DKK 100m, and the EBIT margin fell as expected, by 6.6 percentage points to 19.7%. The decline was due to higher costs of deliverers, transport, paper and packing, etc. in FK Distribution and growth initiatives in Digital Services.
- BoligPortal and Ofir both grew revenue to new record heights.
- Karman Connect (formerly Lead Supply), the 50%-owned associated company, delivered its best-ever performance and contributed DKK 4m to North Media’s consolidated profit after tax.
- Due to an unrealised negative return on securities of DKK 211m, North Media incurred a loss for the period of DKK 83m. Exclusive of the securities return, the Group achieved a net profit of DKK 81m.
- Cash flows from operating activities amounted to DKK 93m, up from DKK 66m in H1 2021. The free cash flow improved to DKK 93m from DKK 74m in the year-earlier period.
Guidance for 2022 narrowed
BoligPortal’s EBIT guidance raised, whereas the revenue and earnings guidance for the other companies is either unchanged or their previously announced ranges are narrowed.
- Consolidated revenue is now expected in the DKK 1,015-1,040m range (previously DKK 1,010-1,045m).
- Consolidated EBIT is now expected in the DKK 195-220m range (previously: DKK 190-220m).
- The Last Mile business area continues to expect about a 3% decline in revenue, while expecting EBIT in the DKK 192-208m range (previously DKK190-210m). The expected EBIT margin of about 23% is based on substantial cost increases, including for distribution.
- The Digital Services business area narrows its revenue guidance and expects about a 17% increase in revenue with EBIT in the DKK 12-20m range (previously DKK 9-17m). The acquisition of Boligmanager is expected to reduce EBIT by DKK 8m, and earnings are also affected by the fact that Bekey's SmartRelay development and installation costs are no longer capitalised and by growth initiatives in Ofir and BoligPortal.
“We’ve seen satisfactory developments in our underlying operations during the first half of 2022. High inflation and upward pressure on costs makes us focus even more on economies of scale, cost management and consistent execution. For Digital Services, the onus is on increasing growth through initiatives already launched. For FK Distribution, the main focus will be to optimise the core business and strengthen the other recent activities. I’m also very pleased to note that the new solar panel plant at our Taastrup packing terminal is now in operation,” said North Media CEO Lasse Brodt.
Further information:
CEO Lasse Brodt, tel. +45 20 24 32 92
CFO Kåre Wigh, tel. +45 25 65 21 45
The members of the Executive Board will present the interim report in a conference call (in English) on 18 August at 12:30 CEST. Register on https://streams.eventcdn.net/northmedia/q2-2022/register to follow the conference call live. The members of the Executive Board will present the interim report in Danish on HC Andersen Capital’s platform on 18 August at 14:00 CEST (register through this link: https://hcandersencapital.dk/event/north-media-praesentation-af-delaarsrapport-q2-2022/
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 is Denmark’s leading distributor of leaflets and local newspapers; it runs the digital platform ‘minetilbud’ and provides logistics services. Digital Services: Three businesses with the potential for double-digit 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 delivers 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. In the event of any inconsistencies, the Danish version shall apply.
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