Announcement no. 3-2025

7 March 2025

Preliminary unaudited results for 2024

North Media announces preliminary, unaudited financial results for 2024 with revenue and EBIT falling short of the most recent guidance provided on 5 November 2024. This is solely due to North Media writing down the carrying amount of assets for SDR Svensk Direktreklam with DKK 155 m. Subsequently, tangible assets of approx. DKK 100 m are outstanding for SDR Svensk Direktreklam. The write-down has no effect on liquidity.

 *Excluding discontinued activities in Ofir

The above figures for revenue and EBIT do not include the figures from Ofir, as Ofir’s data activities were sold at the beginning of 2025. Ofir’s figures are therefore no longer a part of ordinary operations in the consolidated financial statements. Ofir is presented as discontinued operations. If the columns had been set up including Ofir, revenue would have amounted to DKK 1,333m and EBIT DKK 67m. That is within the previously announced expectations.

Impairment of SDR Svensk Direktreklam

Traditionally, SDR Svensk Direktreklam signs annual agreements with its customers in the first quarter of the year, and it was assumed that the volume of signed agreements on printed matters for 2025 would be in line with 2024. However, some of SDR Svensk Direktreklam’s major customers have contracted for a substantially lower-than-assumed volume of printed matter in early 2025. This puts pressure on and drives up the costs of distribution of printed matter in Sweden, entailing a drop in the expected earnings. In addition, the transition to automated packaging has been more expensive than expected. The Group Management (the Board of Directors and the Executive Management) has therefore decided to write down the value of SDR Svensk Direktreklam’s assets with DKK 155 m. Subsequently SDR Svensk Direktreklam now represents tangible assets of approx. DKK 100 m. The Group Management remains convinced that SDR Svensk Direktreklam will strengthen the group’s segment, Last Mile. The expectation is still that SDR Svensk Direktreklam will deliver a positive operating result from 2026.

Profit development in 2024

Revenue for 2024 in the Last Mile business area (FK Distribution and SDR Svensk Direktreklam) grew by 49% to DKK 1,168m, driven by the newly acquired SDR Svensk Direktreklam business. Excluding SDR Svensk Direktreklam, revenue was flat. EBITDA declined, as expected, by 5% to DKK 157m, affected by integration costs, increased payroll costs for deliverers and the costs of developing the new technical platform for MineTilbud. EBIT was DKK -55m, affected by the write-down in SDR Svensk Direktreklam. EBIT in FK Distribution was DKK 124m and in SDR Svensk Direktreklam EBIT was DKK -179m.

In the Digital Services business area (BoligPortal and Bekey) revenue grew by 3% to DKK 134m, driven by BoligPortal. EBITDA fell by 57% to DKK 9m, impacted by the continued work to establish a solid infrastructure in Bekey and increased capacity costs of developing a single universe in BoligPortal. EBIT amounted to DKK 4m.

The Group’s consolidated EBIT was affected by increased unallocated costs, primarily related to the acquisition of SDR Svensk Direktreklam.

Dividend

Based on the financial result in 2024, the Board of Directors has decided that no dividend be paid for 2024. It remains North Media’s policy to pay a dividend that reflects earnings from ordinary operations, excluding returns on securities.

Guidance for 2025

North Media expects revenue to be on a level with 2024. The Last Mile business area is expected to report flat revenue, with a slight setback in FK Distribution due to a large retail customer not having renewed its annual agreement, while SDR Svensk Direktreklam is expected to generate revenue growth driven by insourcing of the invoicing of franchise customers. Digital Services (BoligPortal, MineTilbud and Bekey) are expected to deliver revenue growth, driven by BoligPortal. From 1 January 2025, MineTilbud will be included as an independent company in Digital Services.

The lower EBIT is driven by a decreasing EBIT in Last Mile as a result of the decrease in FK Distribution’s volume and increased transition and integration costs in SDR Svensk Direktreklam. The continued integration of SDR Svensk Direktreklam, including the full implementation of automated packing and other initiatives to improve profitability in the long term are expected to result in a significantly lower EBITDA compared with 2024. The EBIT guidance includes an expected loss on SDR Svensk Direktreklam in the region of DKK -45m, of which DKK 14 m. relates to depreciation on the remaining assets in SDR Svensk Direktreklam.
In Digital Services all three companies expect a minor increase in EBIT.

Publication of the annual report and detailed guidance for 2025
 
The work involved in preparing and deciding on a reassessment of the valuation of SDR Svensk Direktreklam has contributed to the Group Management announcing that the annual report for 2024, including a detailed guidance for 2025 is now not expected to be published until 14 March 2025.

For further information, please contact:
Group CEO Lasse Ingemann Brodt, tel. +45 20 24 32 92 

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 or digital access management solutions. North Media has two core business areas: Last Mile: FK Distribution and SDR Svensk Direktreklam Svensk Direktreklam are among the leading distributors of leaflets and local newspapers in Denmark and Sweden, respectively. MineTilbud is a leading digital offer platform. Digital Services: Two 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. 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.