North Media narrowing guidance on reasonably good Q3 results
Announcement no. 24-2021
3 November 2021
Q3 2021 highlights (Q3 2020 comparative numbers in brackets)
North Media had a reasonably good third quarter, although the performance did not quite measure up to the strong results of Q3 2020 when FK Distribution had an extra week to deliver printed matter and business activity was boosted by the reopening after the COVID-19 lockdown in spring.
- Consolidated revenue in Q3 2021 was down by 5% to DKK 246m (DKK 261m).
- Revenue in the Last Mile business area (FK Distribution) was down by 8% due to reduced volumes, while the Digital Services business area reported 13% growth. Ofir, the jobs platform, produced a 71% increase in revenue, while BoligPortal and Bekey reported 1% and 5% growth rates respectively.
- EBIT was DKK 56m (DKK 60m), for an EBIT margin of 22.6%.
- Agreement signed to install solar panels with battery energy storage system at the Last Mile (FK Distribution) property in Taastrup. The agreement was concluded with Rolls-Royce Solutions Berlin GmbH, and once the facility is installed, 39% of the power consumption will be generated in-house by solar panels.
Q3 ytd 2021 highlights (Q3 ytd 2020 comparative numbers in brackets)
North Media’s overall results for the Q3 ytd 2021 period were generally in line with expectations.
- Consolidated revenue was down by 3% to DKK 748m (DKK 771m). Revenue was down by 5% in Last Mile (FK Distribution), but up by 11% in Digital Services.
- EBIT improved to DKK 187m (DKK 182m). The EBIT margin was up by 1.5 percentage points to 25.1% driven by efficiency improvements, economies of scale and a better price/product mix.
- Profit for the period, net of the return on securities, improved to DKK 147m (DKK 142m).
Guidance for FY 2021 narrowed
North Media raises the lower end of the revenue and EBIT ranges. The full-year EBIT is expected to surpass the record result of DKK 240m achieved in 2020.
- Revenue is now expected in the DKK 1,020m-1,035m range (previous guidance: DKK 1,015m-1,035m).
- EBIT is now expected in the DKK 255m-265m range (previous guidance: DKK 250m-265m).
- Revenue and EBIT guidance for FK Distribution and Ofir raised. Both businesses are expected to report improved EBIT year on year.
- Guidance for BoligPortal lowered and range for Bekey narrowed. BoligPortal now expects EBIT in line with the 2020 figure, due to a severe drop in activity in the rental housing market. Bekey also expects EBIT in line with 2020 because a drop in revenue in connection with onboarding of new home care customers is expected to be offset by the momentum in regular licence and service revenue.
“A severe drop in activity in the rental housing market in the third quarter had a negative impact on BoligPortal. In addition, the momentum in Bekey’s business remains slower than we would have liked. On the other hand, the initiatives of our new strategy continue to show good momentum. I’m also very pleased to note that thanks to FK Distribution and Ofir, we’re well under way to improving EBIT for the fifth consecutive year,” said North Media’s Group Executive Director & CFO Kåre Wigh.
For further information, please contact:
Kåre Wigh, Group Executive Director & CFO, mobile +45 25 65 21 45
Management will review the Q3 2021 results in a conference call on 4 November at 11:00 CET. The conference call can be followed live at https://streams.eventcdn.net/northmedia/q3/
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