North Media (NORTHM) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 increased 47% year-over-year to DKK 351 million, mainly due to the SDR acquisition and growth in FK Distribution's print volume; excluding SDR, revenue rose 3%.

• EBITDA rose to DKK 58 million (Q2 2023: DKK 44 million), with a margin of 16.4%, driven by Last Mile and SDR, while Digital Services had a negative impact.

• EBIT for Q2 grew to DKK 41.1 million (Q2 2023: DKK 37.1 million), with an operating margin of 11.7%, but margin declined due to higher costs and integration expenses.

• Net profit for Q2 2024 was DKK 139.3 million, up from DKK 77.2 million, mainly due to strong returns on securities.

• Free cash flow was negative at DKK -5 million in Q2 and DKK -13 million in H1, impacted by working capital changes and COVID-19 debt repayment in SDR.

Financial highlights

• Q2 2024 revenue: DKK 351 million (Q2 2023: DKK 238 million); H1 2024 revenue: DKK 678 million (H1 2023: DKK 478 million).

• Q2 2024 EBITDA: DKK 58 million (Q2 2023: DKK 44 million); H1 2024 EBITDA: DKK 97 million (H1 2023: DKK 94 million).

• Q2 2024 EBIT: DKK 41.1 million (Q2 2023: DKK 37.1 million); H1 2024 EBIT: DKK 51.5 million (H1 2023: DKK 80.9 million).

• Net profit for H1 2024: DKK 268.9 million (H1 2023: DKK 193.6 million), mainly from securities returns.

• Capital reserves reached DKK 1,012 million by June 2024, supported by a DKK 297 million gain on securities.

Segment performance

• Last Mile contributed 88% of Q2 revenue and 100% of Q2 EBITDA, with strong integration of SDR and 4% growth in FK Distribution.

• SDR integration on track, with EBITDA increase despite integration costs; EBIT for Last Mile rose to DKK 47 million.

• Digital Services contributed 12% of Q2 revenue; revenue flat, with BoligPortal offsetting lower ad fees via new products, but EBIT declined due to transformation costs.

• Ofir and Bekey underperformed, with ongoing efforts to reposition and integrate services.

• Data Insights continued positive momentum after a Q1 contract win.