North Media (NORTHM) Q2 2024 earnings summary

Executive summary

• Revenue grew 47% year-over-year in Q2 2024 to DKK 351m, mainly due to the SDR acquisition and Last Mile segment, with SDR integration and new technologies introduced for Swedish leaflet distribution.

• Net profit for Q2 2024 was DKK 139.3m, up from DKK 77.2m in Q2 2023, with significant contribution from return on securities; Q2 YTD 2024 net profit was DKK 268.9m, up from DKK 193.6m.

• EBITDA increased to DKK 58m from DKK 44m in Q2 2023, driven by SDR and FK Distribution, while Digital Services had a negative impact.

• EBIT rose to DKK 41.1m from DKK 37.1m, but the EBIT margin declined to 11.7% from 15.6% due to higher costs and integration expenses.

• Digital Services segment saw flat revenue and earnings impacted by transformation and strategic reassessment costs.

Financial highlights

• Q2 2024 revenue: DKK 351m (Q2 2023: DKK 238m); H1 2024 revenue: DKK 678m (H1 2023: DKK 478m).

• Q2 2024 EBITDA: DKK 58m (Q2 2023: DKK 44m); H1 2024 EBITDA: DKK 97m (H1 2023: DKK 94m).

• Q2 2024 EBIT: DKK 41.1m (Q2 2023: DKK 37.1m); H1 2024 EBIT: DKK 51.5m (H1 2023: DKK 80.9m).

• Q2 2024 net profit: DKK 139.3m (Q2 2023: DKK 77.2m); H1 2024 net profit: DKK 268.9m (H1 2023: DKK 193.6m).

• Cash flow for H1 2024 was negative DKK 13m (H1 2023: positive DKK 81m); capital resources increased to DKK 1,012m.

Outlook and guidance

• Full-year 2024 revenue guidance raised to DKK 1,320–1,365m (previously DKK 1,310–1,355m), driven by FK Distribution.

• Group EBITDA guidance lowered to DKK 150–175m (previously DKK 170–200m) due to higher costs from technology implementation and automation.

• EBIT guidance adjusted to DKK 75–120m (previously DKK 95–125m).

• Last Mile revenue and EBITDA guidance slightly raised; Digital Services expects 3% revenue growth and lower profit due to increased development costs.

• Additional assumptions from 2023 Annual Report remain essentially unchanged.