Research

North Media (One-pager): Guidance narrowed lower despite operational progress

By Philip CoombesEquity Research Analyst

Summary

North Media has narrowed its full-year revenue guidance to DKK 1,270–1,305m and adjusted its EBITDA and EBIT guidance to DKK 105–126m and DKK 50–70m, respectively, due to short-term volume challenges in Last Mile.
Despite subdued operating cash flow from integration costs and lower earnings in SDR, operational improvements and reduced investment needs are expected to enhance the outlook into 2026.
The investment case is supported by efficiency gains in SDR, stable cash flows from FK Distribution and BoligPortal, and a valuation discount compared to peers, with market capitalization close to the value of its cash and securities portfolio.

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Read the latest North Media one-pager following the Q3 2025 interim report, which provides a concise overview of the company, updated financial performance, valuation perspectives relative to peers, and key investment risks and opportunities.

North Media narrowed its full-year revenue guidance to DKK 1,270–1,305m (from 1,270–1,315m) and narrowed its EBITDA and EBIT guidance to DKK 105–126m (from DKK 105-130m) and DKK 50–70m (from DKK 50-75m), respectively, reflecting short-term volume headwinds in Last Mile but continued operational stability across the group. While operating cash flow remains subdued due to temporary integration costs and lower earnings in SDR during the automation rollout, operational improvements into 2026, alongside lower investment needs, may improve the outlook again.

The investment case remains driven by efficiency gains in SDR, resilient cash flows from FK Distribution and BoligPortal, and a valuation discount relative to peers, with the company’s market capitalization still close to the value of its cash and securities portfolio.

Disclaimer: HC Andersen Capital receives payment from North Media for a digitalIR/Corporate Visibility agreement. / Philip Coombes 13:05 06/11/2025, Updated 11:38 10/11/2025

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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.