16 August 2018
Company announcement no. 07-18
Massive headway at FK Distribution and focus on core business segments heavily improve North Media’s revenue and earnings in H1 2018
In H1 2018, North Media realised revenue of DKK 570 million, equivalent to growth of over 33% on H1 2017. EBIT before special items for the period comes to DKK 51 million and represents an improvement of DKK 57 million compared to last year.
”As expected, H1 2018 manifested itself in North Media making massive revenue and earnings headway, which has primarily been driven by considerable improvements at FK Distribution that have boosted revenue by 50% and the profit ratio from 4% to 14% during the period. FK Distribution has seen a large inflow of customers and a rise in volume. We have adjusted our operations to this large rise in volume while maintaining a satisfactory quality of distribution in most of the country”, says Kåre Wigh, Group Executive Director & CFO of North Media A/S.
Focus on the Group’s core business segments, and particularly on generating profitability, has also improved earnings of North Media Online and BEKEY by DKK 5 million and DKK 2 million, respectively, in H1 2018 whereas North Media Aviser has failed to realise the expected increase because of an unforeseen, heavy market decline.
The earnings expectations for the financial year 2018 are maintained and specified to be EBIT before special items ranging between DKK 75 million and DKK 95 million
The increase in group revenue and the improvement of earnings are in line with the expectations for 2018 that were announced when issuing the Annual Report for 2017. Overall, expectations are that North Media will realise revenue ranging between DKK 1,120 million and DKK 1,155 million for 2018 (previous expectations: DKK 1,090 million to DKK 1,155 million), equivalent to growth of 25% to 28% compared to 2017. EBIT before special items for 2018 is expected to be range between DKK 75 million and DKK 95 million (previous expectations: DKK 60 million to DKK 95 million) - a considerable improvement compared to the break-even realised in 2017.
For further information, please contact:
Group Executive Officer & CFO Kåre Wigh, mobile 25 65 21 45
Attachment
