3 August 2011
Company announcement no 09-11
Interim Report 2011 of North Media A/S
North Media A/S continues to realise solid earnings growth. EBIT for H1 2011 totalled DKK 80.8 million, which is DKK 30.6 million, or 60%, up on last year. EBIT expectations for 2011 are adjusted from DKK 120 million to 150 million to DKK 130 million to 150 million.
- The Group’s revenue for H1 2011 comes to DKK 594.3 million, a 7% increase compared to H1 2010. The increase in earnings is attributable to the Print segment with particularly distribution activities continuing to develop positively.
- Operating profit (EBIT) was DKK 80.8 million in H1 2011 against DKK 50.2 million in H1 2010, corresponding to an increase of DKK 30.6 million. This performance is considered satisfactory, representing a profit margin of 13.6% against 9.0% in H1 2010.
- Most of the earnings increase has been realised through printing activities with EBIT for H1 2011 coming to DKK 102.6 million, an improvement of DKK 24.5 million on H1 2010. The earnings increase is attributable to increasing sales and continued cost awareness.
- The online activities remain negatively influenced by the weak job advertisement market and costs for increasing marketing activities on Ofir. In H1 2011, revenue was slightly lower than in H1 2010. (EBIT) for H1 2011 is negative by DKK 23.9 million.
- During the first months of 2011, the Company focused on examining the business models of loss-making activities and market perspectives. In Q1 2011, the Company decided to close down Lokalia, and most recently it was decided to reduce the MatchWork activities in order to ensure equilibrium in terms of financial results for operations.
- Heavy investments are made in the new strategy of Ofir, which will have a negative impact on performance in the short run.
- FK Distribution has signed agreements corresponding to 75% of the expected revenue from large customers for 2012.
- As stated in Company announcement no. 04-11 of 10 March 2011, the remaining 33.3% of shares in GISAB has been sold, and the final selling price of SEK 255.5 million (approx. DKK 203 million) was paid on this date.
- In H1 2011, DKK 14.00 was paid in dividend per share, corresponding to total net dividend of DKK 274.6 million.
- At 30 June 2011, the Group had cash and cash equivalents of DKK 111.7 million and securities worth DKK 17.6 million. Its mortgage debt came to DKK 87.2 million. In H1 2011, the Group generated DKK 67.0 million in positive liquidity from operations.
- Expectations for the Group’s revenue for 2011 are maintained at DKK 1,175 million to 1,225 million.
- The Group’s expectations in terms of operating profit (EBIT) for 2011 are adjusted from DKK 120 million to 150 million to DKK 130 million to 150 million.
Please contact Lars Nymann Andersen, CEO, or Kåre Wigh, CFO, at +45 39 57 70 00 for further information.
The Interim Management Statement in its full is attached.
