North Media (NORTHM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined to DKK 310.5 million from DKK 318.9 million year-over-year, with EBITDA dropping to DKK 10.6 million from DKK 40.9 million.

• Net profit for the period was a loss of DKK 114.9 million, compared to a profit of DKK 129.6 million in Q1 2024, mainly due to a negative return on securities.

• Full-year 2025 outlook is confirmed, with revenue expected between DKK 1,280–1,337 million and EBITDA between DKK 80–115 million.

Financial highlights

• Gross profit decreased to DKK 136.8 million from DKK 150.6 million year-over-year; gross margin at 44.1%.

• EBIT margin turned negative at -0.5% (Q1 2024: 3.8%).

• Free cash flow was negative DKK 35.4 million, compared to negative DKK 3.3 million in Q1 2024.

• Capital resources declined to DKK 720 million from DKK 951 million year-over-year.

• Net profit excluding return on securities was DKK 3.4 million, compared to DKK 8.2 million in Q1 2024.

Outlook and guidance

• Revenue for 2025 is projected at DKK 1,280–1,337 million, with EBITDA of DKK 80–115 million and EBIT of DKK 25–60 million.

• Assumes continued volume declines in FK Distribution (~4%) and SDR/local newspapers (~14–16%) for leaflets and local newspapers.

• Roll-out of automated packing in Sweden to be completed in H2 2025.

• Price increases and business model changes in SDR expected to drive revenue.