Preliminary financial results for 2022 and guidance for 2023
Announcement no. 1/2023
6 February 2023
North Media releases preliminary, unaudited financial results for 2022. Financial results at the lower end of guidance provided on 2 November 2022.
Results for 2022
The Last Mile business area (FK Distribution) saw double-digit growth in the minetilbud and selected mail business, but its overall revenue declined 6% as high prices of paper and rising inflation made customers, especially those in the retail trade, reduce their formats, lower their page counts or cut down on leaflet frequencies. At 22.1%, Last Mile’s EBIT margin was affected by increased distribution costs, as expected, and, in the second half of the year, was also impacted by reduced volumes that were partially offset by increased productivity and cost savings.
Revenue in the Digital Services business area was up by 10%, driven by double-digit growth in BoligPortal and Ofir, while the EBIT margin came in at 7.9%. The business area accelerated investments in sales, marketing, technology and other growth initiatives, including the acquisition of Boligmanager, all of which produced good results for BoligPortal, while Ofir failed to win market share fast enough to offset a decline in the market in the second half of the year. Bekey did not manage to build new customer groups, and a new management has been appointed to create a foundation for scalability and growth.
Guidance for 2023 and financial ambitions
Guidance for 2023
North Media expects revenue and EBIT for 2023 to be lower than the respective 2022 figures. The broader guidance ranges reflect increased uncertainty driven by the high rate of inflation, rising interest rates, weak consumer confidence and the risk of an economic slump causing a drop in the level of activity in parts of society.
FK Distribution expects revenue and EBIT for 2023 to be lower than the respective 2022 figures. Physical volumes are expected to come under pressure from high prices of paper and challenges faced by certain customer groups despite the fact that leaflets remain the key cornerstone of retail sector marketing. In order to ensure continued growth in its digital operations, the company plans to strengthen the minetilbud.dk organisation, as well as its development, operations and data.
In the Digital Services business area, Ofir and Bekey are expected to generate lower EBIT than in 2022 on largely unchanged revenue. BoligPortal is expected to deliver double-digit revenue growth once again and to improve its earnings despite costs to develop and commercialise Boligmanager and for strengthening its Swedish site Bostadsportal.
In light of the persistent market volatility, North Media cancels previously announced financial ambitions for 2023-2024.
The annual report for 2022 and detailed guidance for 2023 is scheduled for release on 8 February 2023.
Lasse Brodt, Group CEO, +45 20 24 32 92
Kåre Wigh, Group CFO, +45 25 65 21 45
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.