Interim report Q2 - earnings improvement, guidance updated, and dividend

Announcement no. 22-2020

19 August 2020

North Media delivered better-than-expected results for the first six months of 2020, despite a minor negative impact from the COVID-19 pandemic. Y-o-Y EBIT improvements in all three business areas. Highlights of the H1 2020 report (H1 2019 comparative numbers in brackets):   

Solid earnings improvement in first six months of 2020 despite a certain impact from the COVID-19 crisis

• Consolidated revenue largely unchanged at DKK 510 million (DKK 511 million).
• EBIT before special items of DKK 122 million (DKK 69 million). EBIT margin improved to 23.9% (13.5%) and return on invested capital (ROIC) more than doubled to 43.7% (20.4%).  
• Net profit for the period was DKK 138 million (DKK 112 million).
• FK Distribution lifted EBIT to DKK 118 million (DKK 74 million). Efficiency improvements, in particular the transition to one weekly distribution round, offset an increase in volumes lost due to the COVID-19 crisis.
• North Media Online improved EBIT to DKK 11 million (DKK 3 million) on 17% revenue growth driven by BoligPortal. Ofir improved earnings despite a COVID-19-driven drop in private sector job postings from March to May.
• BEKEY generated 25% revenue growth. The key business segment Homecare is now profitable and BEKEY continues to invest in access solutions for home delivery services and property managers.

Guidance for 2020 is updated

The guidance for earnings (EBIT before special items) in 2020 is updated:

• North Media now expects EBIT in the range of 215-245 for FY 2020 EBIT compared with DKK 166 million in 2019.
• The latest guidance announced 26 June was for EBIT in the DKK 200-230 million range.
• All three business areas are expected to generate year-on-year EBIT improvements.
• Consolidated FY 2020 revenue is now expected in the range of DKK 1,005-1,045 million compared with DKK 1,045.6 million in 2019.
• The latest guidance announced 26 June was for revenue in the range of DKK 990-1,040 million.
• Double-digit growth in both North Media Online and BEKEY expected to partially offset a drop in FK Distribution revenue of about 4%.
• Increased level of uncertainty persists due to COVID-19 and the consequences of the pandemic.

Dividend of DKK 4 per share

On 19 August 2020 as per company announcement 20-2020 the Board of Directors has resolved to pay an extraordinary dividend of DKK 4 per share (2018: DKK 3 per share). The decision was made because the ordinary dividend for 2019 was suspended in March due to the COVID-19 crisis.

• The total dividend to be distributed amounts to DKK 80.2 million, for a pay-out of DKK 72 million exclusive of treasury shares.
• The distribution is consistent with the objective of paying an attractive cash dividend to the shareholders supplemented by occasional share buybacks.  
• Since January 2016, the company has returned DKK 196 million to shareholders through dividends and buybacks.
• North Media intends to repay approximately DKK 3.8 million which the now divested North Media Aviser received from government relief funds to cover advertising revenue lost during the COVID-19 crisis. The Group has not received other means of support during the COVID-19 crisis.

“We’re well on track to improving EBIT for the fourth consecutive year thanks to a persistent focus on our core operations, operational improvements and greater cost efficiencies. The strong momentum and double-digit growth continues in North Media Online – especially in BoligPortal – and in BEKEY, and the efficiency improvements in FK Distribution have produced results sooner than anticipated,” said Kåre Wigh, Group Executive Director & CFO.

For further information, please contact: Kåre Stausø Wigh, Group Executive Director & CFO, mobile

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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