Q3 2022 financial results impacted by market developments.
Announcement no. 21-2022
2 November 2022
North Media CEO Lasse Brodt commented on the performance:
“We saw the effects of rising inflation and reduced business activity in the third quarter, especially in terms of demand for FK Distribution’s services, while EBIT was mainly affected by higher wages paid to deliverers and by growth initiatives as in the preceding quarters. Our focus on long-term value creation and on retaining strong financial resources enables us the opportunity to continue the strategic development of our businesses even under volatile market conditions and to capitalise on market opportunities that may arise.”
Financial highlights:
| DKKm | Q3 | Q3 YTD | |||
| 2022 | 2021 | 2022 | 2021 | ||
| Revenue | 228.0 | 246.4 | 736.2 | 748.0 | |
| EBIT | 29.1 | 55.6 | 129.2 | 187.4 | |
| EBIT margin | 12.8% | 22.6% | 17.5% | 25.1% | |
| Return on securities | -18.7 | 14.6 | -229.3 | 76.8 | |
| Cash flows from operating activities | 30.0 | 59.9 | 123.2 | 126.5 | |
| Free cash flow | 26.3 | 58.0 | 119.5 | 132.2 | |
Q3 2022 results impacted by market developments
The financial results for Q3 2022 were impacted by rising inflation and reduced business activity in parts of society. The impact was especially visible in September, as volumes declined in Last Mile because customers experienced price increases for paper of up to 100% and due to a decline in the overall market for job ads. Revenue in the Last Mile business area (FK Distribution) was down by 9.8%, even with a 22% increase for the digital price comparison site ‘minetilbud’. Digital Services delivered 6% revenue growth, driven by Ofir and BoligPortal, which set yet another quarterly revenue record. The drop in EBIT and the EBIT margin was mainly due to higher salaries and expenses for our more than 10,000 deliverers in Last Mile and the cost of growth initiatives in Digital Services, which included the acquisition of Boligmanager in February 2022.
YTD financial results impacted by Q3 2022 performance
While North Media’s H1 2022 results were in line with expectations, the Group's Q3 performance has impacted the YTD results. The revenue decline was mainly due to a 4% drop in Last Mile (FK Distribution), whereas Digital Services delivered 12.8% growth.
FY 2022 group guidance is lowered
The Group has lowered its FY 2022 guidance. See company announcement no. 20 of 2 November 2022. Revenue is now expected to be in the DKK 995-1,010m range. EBIT is expected to be in the DKK 190-200m range.
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 3 November 2022 at 13:00 CET. Register on https://streams.eventcdn.net/northmedia/q1-2022/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 3 November 2022 at 15:00 CET (register through this link: https://hca.videosync.fi/north-media-praesentation-q3-2022-3-nov)
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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