North Media delivering Q1 earnings improvement
Announcement no. 17-2020
7 May 2020
Earlier today, the Board of Directors of North Media A/S approved the interim report for the first quarter of 2020. Highlights of the report (Q1 2019 comparative numbers in brackets):
Good progress in first quarter despite the certain impact from the COVID-19 crisis
- Revenue of DKK 275 million (DKK 264 million). 5% growth generated by continuing operations.
- North Media has kept all operations going since the COVID-19 outbreak, while adapting to the circumstances.
- EBIT before special items improved to DKK 63 million (DKK 25 million). The profit margin improved to 22.9% (9.6%).
- Strong earnings improvement by FK Distribution driven by efficiency improvements, including move from two to one weekly distribution round.
- North Media Online trebled earnings, driven by sustained growth in online traffic and in the supply of rental housing units on BoligPortal.
- BEKEY’s core segment Homecare produced a profit for the first time.
- As previously announced, North Media Aviser was divested effective from 1 May 2020.
Capital resources remaining solid
- Capital resources of DKK 471 million at March 31, 2020, as compared with DKK 485 million at 31 December 2019.
- Strong cash flows from operating activities almost offset the effects of the unrealised loss on securities and share buybacks during the quarter.
- Negative return on securities portfolio of DKK 45 million in the first quarter.
- In April, the securities portfolio provided a positive return of DKK 51 million.
Updated guidance for 2020
- North Media now guides for EBIT before special items in line with the 2019 figure of DKK 160 million. The full-year guidance had been suspended due to COVID-19 since 18 March.
- Due to COVID-19, market developments are subject to considerable uncertainty, especially in some parts of the retail sector.
“We’ve had a good start to the year. FK Distribution has transitioned from two to one weekly distribution round faster than we had expected, and Boligportal and BEKEY have both retained their strong momentum. However, COVID-19 is causing a lot of market uncertainty, and FK Distribution has seen a slight drop in leaflet volumes since the outbreak. It is difficult to predict how the rest of the year will unfold, but based on current trends, we believe an operating profit in line with the 2019 figure is realistic,” 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.
Attachment
