Company announcement No 13-19
15 August 2019
The media group North Media A/S further improved its earnings in H1 2019. EBIT went up by 85%, whereas earnings before tax more than doubled.
The highlights for H1 were as follows (comparative figures for the same period of 2018 shown in brackets):
- Revenue decreased by 3% to DKK 553 million (DKK 570 million) as a result of lower volumes in FK Distribution and North Media Aviser. However, the decrease realised by FK Distribution was less than expected.
- EBIT before special items came to DKK 66 million (DKK 51 million). The increase was particularly achieved through optimisation and cost reductions.
- After special items of DKK 3 million (a negative DKK 14 million), reported EBIT came to DKK 68 million (DKK 37 million). FK Distribution, North Media Aviser and North Media Online saw improved earnings from operations, while BEKEY saw unchanged earnings.
- Further development of FK Distribution’s digital distribution of retail leaflets, eg through minetilbud.dk, and reinforcement of the activities of North Media Online.
- Net profit for the period came to DKK 112 million (DKK 50 million) including return on the Group’s securities portfolio of DKK 77 million (DKK 32 million).
- Looking at Q2 in isolation, revenue came to DKK 289 million (DKK 291 million), whereas EBIT before special items increased to DKK 40 million (DKK 21 million).
- The cash resources at 30 June amounted to DKK 393 million (DKK 320 million). North Media distributed dividend of DKK 55 million for H1 and bought back shares at DKK 19 million.
”2018 marked a performance turnaround for North Media, and we were satisfied to note further improvement in H1 with results better than expected at the beginning of the year. We’re keeping focus on improving and developing the core services of our existing businesses, while exploring the options generated by digitisation,” says Kåre Wigh, Group Executive Director & CFO of North Media A/S.
Outlook for 2019 maintained
On 25 June 2019, North Media adjusted its expectations for the year upwards (company announcement No 12-19), and these expectations are maintained:
- Revenue is expected to range from DKK 1,110 million to DKK 1,160 million (2018: DKK 1,145 million).
- EBIT before special items is expected to increase to DKK 120-140 million (2018: DKK 110 million).
All four business lines of the Group are expected to achieve earnings from operations for 2019 above or at the 2018 level. FK Distribution is still expected to generate the main part of the Group’s earnings. North Media Online expects to see positive earnings from operations following headway by both Lejebolig and Job. North Media Aviser expects to see slightly improved earnings driven by more efficient operating procedures and higher prices. BEKEY expects to see EBIT at or slightly above the 2018 level following high double-digit growth in sales to the home care services in Denmark.
For further information
Kåre Wigh, Group Executive Director & CFO, mobile +45 25 65 21 45
Attachment
