Announcement no. 12-2020
18 March 2020
In company announcement no. 02-20 of 6 February 2020, the Board of Directors of North Media A/S proposed a dividend of DKK 4.00 per share for the 2019 financial year.
In the same announcement, North Media A/S announced that the Group expected to report revenue for 2020 of DKK 1,075-1,125 million and operating profit (EBIT) before special items of DKK 160-190 million.
The Group’s financial results for January and February 2020 were in line with the original guidance. However, due to the plunge in Danish and US equity markets, the Group had incurred an unrealised capital loss of about DKK 72 million at 17 March 2020 on the proportion of the Group’s capital resources that is invested in shares. The current value of the securities portfolio is about DKK 328 million.
Due to the current corona pandemic, the situation in Denmark has changed dramatically and is now marked by a high degree of uncertainty as to economic developments in the remainder of 2020. Market conditions are changing rapidly and significantly. For this reason, our current full-year guidance for 2020 is hereby withdrawn. The Group’s revenue and profit for 2020 are expected to fall short of the original guidance.
In light of the negative and unpredictable outlook, the Board of Directors also amends its proposal for distribution of dividend of DKK 4.00 per share. The Board of Directors now recommends to the annual general meeting to be held on 27 March 2020 that no dividend be distributed in respect of the 2019 financial year.
The Board of Directors aims to exercise its right to distribute extraordinary dividends in 2020, but such extraordinary distribution and the level of dividend distributed, if any, will depend on the Group’s earnings and expectations in light of the corona pandemic.
We are determined to maintain operations and continue to provide services to our customers in all of the Group’s functions and businesses to the extent possible. At the same time, we give top priority to safeguarding the health and safety of our employees. For that purpose, we fully comply with the authorities’ recommendations and instructions.
The Group’s interim report for Q1 2020 is expected to be released on 7 May 2020 as per our financial calendar.
For further information, please call:
Mads Dahl Andersen, Chairman of the Board of Directors, mobile +45 20 42 09 85.
Kåre Stausø Wigh, Group Executive Director & CFO, mobile +45 25 65 21 45
This document is an unofficial translation of the Danish original. In the event of any inconsistencies, the Danish version shall apply.