Q2 2023 financial results in line with expectations and full-year guidance range narrowed
Announcement no. 10-2023
16 August 2023
North Media CEO Lasse Ingemann Brodt commented on the results for Q2 2023:
“Our businesses delivered in line with our expectations in the second quarter of 2023. BoligPortal continued the positive performance in both revenue and earnings, while the other businesses continued to experience reduced activity. In the FK business, however, we also saw some customers planning to increase their distribution of leaflets, in response to a number of surveys showing that leaflets continue to drive sales. At the same time, we have taken a number of initiatives to increase awareness of Ofir and Bekey and step up the use of data for easier and faster interaction with customers – all to support the development of our businesses.”
Financial highlights:
| DKKm | Q2 | Q2 YTD | |||
| 2023 | 2022 | 2023 | 2022 | ||
| Revenue | 238.4 | 260.0 | 478.4 | 508.2 | |
| EBIT | 37.1 | 51.9 | 80.9 | 100.1 | |
| EBIT margin | 15.6% | 20.0% | 16.9% | 19.7% | |
| Return on securities | 61.1 | -115.7 | 164.9 | -210.6 | |
| Cash flows from operating activities | 28.2 | 56.0 | 85.3 | 93.2 | |
| Free cash flow | 27.7 | 58.1 | 81.3 | 93.2 | |
Performance by business area – Q2 2023
In line with expectations, Last Mile (FK distribution) reported a decline in revenue of 9.9%, driven by a drop in volumes which is still both cyclical, due to consolidation among retailers, and structural. For example, some electronics retail customers are planning to increase their leaflet volumes in the second half of 2023 after surveys have again shown that leaflets continue to drive sales. EBIT declined, as expected, by 25% to DKK 37.3m, affected by the lower revenue and reduced distribution and logistics costs. The EBIT margin was 18.9%.
BoligPortal again delivered improvements in revenue and earnings, and also acquired the outstanding 49% of the shares in Boligmanager earlier than planned in order to accelerate product development. However, BoligPortal's results were not enough to offset the reduced activity in both Ofir and Bekey. Digital Services revenue was flat, and EBIT was down by 24% to DKK 3.2m. The EBIT margin was 7.7%
Results for the year to date as expected
The consolidated revenue declined as expected, driven by reduced volumes in Last Mile (FK Distribution). The business area reported a 7.3% drop in revenue, while Digital Services was up by 1.7%, driven by BoligPortal. The reduced revenue in Last Mile sent EBIT lower, and the slight increase in Digital Services was not enough to offset the decline.
Financial guidance for 2023 narrowed
Based on financial results for the first half of 2023, the Group narrows its full-year guidance for 2023. Revenue is now expected in the DKK 935-970m range (previously DKK 920-975m). EBIT is expected in the DKK 135-160m range (previously DKK 125-160m).
For the Last Mile business area, the revenue guidance is narrowed to the DKK 775-800m range (previously DKK 760-800m) with EBIT projected at DKK 145-160m (previously DKK 135-160m). For the Digital Services business area, the revenue is now forecast in the DKK 160-170m range (previously DKK 160-175m), while the EBIT forecast is unchanged at DKK 0-10m.
Conference call
CEO Lasse Ingemann Brodt and CFO Kåre Wigh will present the interim report in a conference call (in English) on 17 August at 13:00 CEST. Use this to attend the conference call. The interim report will be presented in Danish on HC Andersen Capital’s platform on 17 August 2023 at 15:00 CEST. Please register using this .
Further information:
CEO Lasse Ingeman Brodt, tel.
CFO Kåre Wigh, tel.
North Media’s companies develop and operate platforms for transactions that bring businesses and consumers together, with a special focus on groceries, rental housing, jobs or digital access management solutions. FK Distribution is Denmark’s leading distributor of leaflets and local newspapers; it runs the digital platform ‘minetilbud’ and provides logistics services. BoligPortal is Denmark’s leading home rentals platform, offering services to both landlords and tenants. Ofir is Denmark’s most comprehensive jobs universe. Bekey provides digital access solutions for secured stairwells and private homes for the use of homecare services and companies delivering groceries, meal services, etc.
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