Preliminary financial results for 2023 and guidance for 2024
Announcement no. 1-2024
26 February 2024
North Media’s preliminary and unaudited financial results for 2023 were in line with the most recent guidance provided on 1 November 2023.
| DKKm | 2023 | Latest guidance |
| Revenue | 949 | 940 - 960 |
| EBITDA | 177 | - |
| EBIT | 150 | 145 - 160 |
Last Mile (FK Distribution) reported a 6% drop in revenue that was driven by consolidation among retailers, persistently high paper prices and declining advertising sales for local newspapers. As expected, the drop in volumes, which was essentially driven by structural factors, abated during the second half of 2023, taking the decline for the full year to 10%. EBIT amounted to DKK 154 million as the decline in distribution, logistics and capacity costs was not enough to offset the drop in revenue. The EBIT margin was 19.6%.
Digital Services reported a 4% increase in revenue, supported by BoligPortal delivering revenue of more than DKK 100 million for the first time thanks to increased advertising revenue from landlords. Both Ofir and Bekey reported a drop in revenue. EBIT came to DKK 10.4 million as BoligPortal’s strong performance was not enough to offset the setbacks reported by Ofir and Bekey. The EBIT margin was 6.3%.
Consolidated EBIT was furthermore affected by increased unallocated expenses, primarily related to the strategic acquisition of SDR Svensk Direktreklam AB at the end of 2023.
Based on the financial performance for the year and the objective of paying stable and attractive annual dividends, the Board of Directors recommends a dividend of DKK 4 per share for the financial year.
Guidance for 2024
As regards the guidance for 2024, SDR Svensk Direktreklam forms part of the Last Mile business.
| DKKm | 2024 |
| Revenue | 1,310 - 1,375 |
| EBITDA | 170 - 210 |
| EBIT | 110 - 150 |
North Media expects overall revenue to increase by about 40% in 2024, the main drivers being the acquisition of SDR Direktreklam and continued growth in BoligPortal, while revenue in the other businesses is expected to remain flat.
Henceforth, North Media will provide EBITDA guidance for purposes of reflecting its focus on profitability. EBITDA is expected to be in line with or slightly up on 2023 with the positive contribution from SDR Svensk Direktreklam expected to be fully or partially offset by a slight decline in FK Distribution and reduced results from 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.
The annual report for 2023 and detailed guidance for 2024 is scheduled for release on 28 February 2024.
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 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. I the event of any inconsistencies, the Danish version shall apply.
