Interim Report Q3 2019: North Media A/S reinforces earnings

Company announcement No 17-19

7 November 2019

North Media A/S further improved its earnings during the first nine months of 2019. EBIT before special items year-to-date (YTD) increased by 43%. The expectations for 2019 are adjusted upwards.

The highlights for the period were as follows (comparative figures for the same period of 2018 shown in brackets):

• Revenue decreased by 3% to DKK 815 million (DKK 837 million) as a result of lower volumes in FK Distribution and North Media Aviser. To some extent, price rises compensated for the decrease in the volumes of FK Distribution. Growth in North Media Online and BEKEY’s key segment.
• EBIT before special items came to DKK 95 million (DKK 66 million). The improvement is attributable to optimisations in FK Distribution, tight cost control in all segments and headway in revenue of North Media Online BoligPortal activities.
• EBIT of DKK 98 million (DKK 53 million) after special items of DKK +3 million (DKK -13 million).
• Profit after tax amounted to DKK 131 million (DKK 58 million). This includes return on the Group’s securities portfolio of DKK 79 million (DKK 41 million). 
• Cash flows from operating activities came to DKK 107 million (DKK 54 million). The increase is primarily attributable to the improved earnings from operations.
• Looking at Q3 in isolation, revenue came to DKK 262 million (DKK 268 million), whereas EBIT before special items came to DKK 29 million (DKK 16 million).
• Cash resources at 30 September amounted to DKK 425 million (DKK 324 million). During the year, North Media distributed dividends and bought back shares for a total of DKK 75 million. 

”We’re continuing to improve earnings from operations and are keeping focus on the earnings of all businesses. We’re continuing our efforts to develop the core services of our existing businesses, while exploring the possibilities of letting digital tools play an even greater role in our offer dissemination,” says Kåre Wigh, Group Executive Director & CFO of North Media A/S.  

Outlook for 2019

North Media increased its earnings expectations for the financial year 2019 6 November 2019 in company announcement No 16-19.

• Revenue is expected to range from DKK 1,110 million to DKK 1,140 million (previously from DKK 1,110 million to DKK 1,160 million). 
• EBIT before special items is expected to range from DKK 145 million to DKK 160 million (previously from DKK 120 million to DKK 140 million).

The upward adjustment is primarily attributable to the continued operation optimisations in FK Distribution having had a greater effect than expected in Q3 and an expectation of this development continuing in Q4.

For further information

Kåre Wigh, Group Executive Director & CFO, mobile

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