North Media A/S releases Annual Report 2020 and announces ambitions for period to 2023

Company announcement no. 01-2021

10 February 2021

The Board of Directors of North Media A/S has approved the audited annual report for 2020. Highlights of the report:

Record earnings in 2020

The Group recorded its best ever EBIT and full-year net profit in 2020. FK Distribution delivered most of the improvement, driven by efficiency enhancements. North Media Online (BoligPortal and Ofir) trebled its EBIT, driven by strong growth, and Bekey reduced its EBIT loss despite expansion costs. 

• Revenue at DKK 1,045m was in line with the previous year. FK Distribution’s revenue fell 2%. North Media Online and Bekey reported 20% and 17% growth respectively.
• EBIT before special items was DKK 240m, a DKK 74m improvement on 2019.   
• Net profit for the year was DKK 307m (2019: DKK 205m) including a return on securities of DKK 155m. 
• Cash flows from operating activities amounted to DKK 219m, up from DKK 132m in 2019.
• The Board of Directors proposes a dividend of DKK 5 per share in respect of the 2020 financial year. 

Earnings in 2021 expected in line with 2020

North Media expects its consolidated EBIT in 2021 to be in line with 2020 on slightly lower revenue. 

• EBIT before special items is expected in the DKK 230m-255m range on revenue of DKK 985m-1,025m.
• The Digital Services business area (BoligPortal, Ofir and Bekey) is expected to generate overall revenue of DKK 145m-155m and EBIT before special items of DKK 25m-30m. BoligPortal will see weaker growth in the first half of the year as revenue streams become subscription-based.
• The Last Mile business area (FK Distribution) is expected to generate revenue in the DKK 840m-870m range and EBIT before special items of DKK 210-230m.
• Uncertainty remains above normal due to COVID-19. The continued lockdown of large parts of the retail sector will have a negative impact on North Media’s guidance for revenue and EBIT.

Strategy and ambitions for 2022 and 2023

For Digital Services, we are looking for ~20% organic growth annually and for the EBIT margin to climb to ~25% by 2023. For Last Mile, we aim for 2023 revenue at the 2021 level with the EBIT margin at the  ~24% level.

• We plan to allocate up to DKK 200m for acquisitions, mainly of businesses offering the potential for positive synergies and scalability that match the Group’s activities and skills.
• With a view to growing its operations, Last Mile is exploring the potential for international expansion with packing taking place at the existing terminals in Denmark. Major investments will not be required.
• We expect annual consolidated revenue growth in the region of 3% in 2022-2023 (excluding acquisitions).
• Consolidated EBIT margin is expected at the ~24% level in 2023 (excluding acquisitions). 
• Subject to these targets being met, our ambition is to pay a dividend of DKK 5 per share each year from 2021 to 2023.

“We see an exciting growth potential for our Digital Services businesses. In focusing the North Media businesses in recent years, we have strengthened the digital platforms and established a strong infrastructure. Our businesses are now ready to be upscaled in Denmark, potentially followed by a move to international markets. Our growth businesses are supplemented by our value business FK Distribution, whose advanced logistical platform will enable it to continue to strengthen its core business while also developing new services, including expanding the relationship with Deutsche Post and potentially also providing packing services for third parties in adjacent markets.”

For further information, call 

Kåre Wigh, Group Executive Director & CFO, on mobile , e-mail:

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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