Research

North Media (One-pager): Earnings upgrade on early signs of turnaround

Summary

North Media's Q2 2025 results exceeded expectations with an EBIT of DKK 32m, despite flat revenue year-over-year, indicating early signs of a turnaround.
We expect 2025 to be a gradual recovery year, driven by strategic cost reductions, restructuring in SDR, and a stabilizing digital segment.
North Media maintains its full-year EBIT and EBITDA guidance, supported by a strong balance sheet, solid cash generation, and valuation below peer averages.

This content is generated by AI. You can give feedback on it in the Inderes forum.

Read the latest North Media one-pager following the Q2 2025 interim report, which provides a brief overview of the business, updated financial performance, valuation perspectives relative to peers, and several key investment risks and opportunities.

Q2 2025 results were better than expected, with EBIT of DKK 32m despite flat revenue year-over-year. Last Mile performance improved, as early effects of the SDR automation plan helped the unit deliver a modest positive EBIT. BoligPortal continued to show solid growth (+7% YoY revenue), with a 28% EBIT margin, supporting the digital services, as Bekey and Dayli drag on the result, despite less negatives in Bekey after cost-cutting. North Media raised full-year EBIT and EBITDA guidance prior to the Q2 results, which were maintained.

The earnings upgrade followed a weak Q1 but suggests 2025 is shaping up as a gradual recovery year, underpinned by strategic cost reductions, results from restructuring in SDR, and a stabilising digital segment. While return on the securities portfolio remains volatile, with a heavy weighting in Nvidia, the investment case continues to benefit from a strong balance sheet, solid cash generation relative to market value, and valuation below peer averages.

To learn more about North Media, watch the Q2 2025 results presentation with CEO Lasse Ingemann Brodt and Group CICO Ask Illum Jessen here: https://www.inderes.dk/videos/north-media-praesentation-af-regnskabet-for-2-kvartal-2025

Disclaimer: HC Andersen Capital receives payment from North Media for a DigitalIR/Corporate Visibility agreement./ Philip Coombes, 16:25, 27 August 2025

Login required

This content is only available for logged in users

Create account

North Media A/S develops and operates platforms for transactions that bring businesses and consumers together. The platforms help customers find the right products, whether they are looking for groceries, rental housing or digital access management solutions. North Media is a market leader and has been listed on OMX Nasdaq Copenhagen since 1996. North Media’s focus is long-term value creation and stable return on capital and has a policy to pay out dividend based on the financial performance. North Media is organised into two business areas: 1) Last Mile comprises FK Distribution and SDR Svensk Direktreklam and both companies are among the leading distributors of leaflets and local newspapers in Denmark and Sweden, respectively. Last Mile is a mature business area with solid earnings and cash flows. 2) Digital Services consists of BoligPortal, Dayli and Bekey, all with the potential for growth, rising profitability, and scalability. BoligPortal is Denmark’s leading home rental platform, offering services to both landlords and tenants. Dayli (MineTilbud) is a leading digital offer platform. Bekey provides digital access solutions for secured stairwells and private homes for the use of homecare services and companies delivering parcels, groceries, meal services, etc. North Media has a strong focus on sustainability and ESG reporting, including the group’s impact, risks and opportunities within climate, environment, social matters and governance. North Media is committed to the Science Based Target initiative with the aim to reduce total CO2 emissions by 50% nominally by 2030 compared to 2018, and to achieve net-zero emissions by 2050.