North Media A/S upgrades guidance for 2020

Announcement no. 18-2020

26 June 2020

North Media A/S upgrades its earnings guidance for 2020: EBIT before special items is now expected to be in the range of DKK 200-230 million. The previous guidance was for EBIT in line with the 2019 figure of DKK 160 million.

COVID-19 has had a negative impact on revenue, and future developments of and the consequences of COVID-19 remains subject to some degree of uncertainty. Still, the Group staying focused on its core business and on cost efficiency has had an effect sooner than previously expected. Accordingly, guidance is being upgraded because management believes the uncertainty and negative impact associated with the COVID-19 crisis will be less than previously anticipated, and also due to a very positive and better than expected performance of the North Media Online business area and BoligPortal in particular. FK Distribution is the largest contributor to the upgrade thanks to a substantial cost reduction in connection with the transition from two to one weekly distribution round.

“We will continue to execute on our strategy of creating and operating focused, profitable high-volume businesses, while consistently optimising and enhancing process efficiencies. We’re very pleased that our operations are robust enough for us to improve our earnings in such a challenging year affected by COVID-19,” said Kåre Wigh, Group Executive Director & CFO.  

The Group now expects to generate revenue in the range of DKK 990-1,040 million for 2020. In the most recent guidance for consolidated revenue, released through the 2019 annual report, revenue was expected to be in the range of DKK 1,075-1,125 million, including the revenue from the now divested activities in North Media Aviser.

It is important to point out that the updated guidance assumes a continuation of the current gradual reopening and normalisation of Danish society. A deterioration of the COVID-19 crisis can/will have a negative impact on the guidance provided.

The Board of Directors will consider, based on developments over the summer period, whether the company should pay an extraordinary dividend in the autumn of 2020 in place of the proposed dividend for 2019 which was suspended at the outbreak of the COVID-19 crisis.

The company's interim report remains scheduled for publication on 20 August 2020.

For additional 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.