North Media (NORTHM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose to DKK 307m, up 38% year-over-year, mainly due to the SDR acquisition; YTD revenue reached DKK 985m.

• EBITDA for Q3 was DKK 15m, down from DKK 37m, impacted by platform development, payroll, and integration costs.

• Net profit for Q3 was a loss of DKK 69.7m, compared to a profit of DKK 17.0m in Q3 2023, affected by negative return on securities.

• Strategic investments in digital infrastructure, technology rollouts, and SDR integration impacted earnings.

• YTD EBIT was DKK 50.0m, down from DKK 110.7m last year.

Financial highlights

• Q3 EBITDA margin dropped to 4.9% from 16.5% in Q3 2023; Q3 EBIT margin was -0.5% (Q3 2023: 13.4%).

• Free cash flow in Q3 was DKK 22m (2023: DKK 40m); YTD free cash flow was DKK 9m (2023: DKK 121m).

• Capital resources at DKK 932m, with DKK 84m cash and DKK 848m in securities.

• Return on securities was negative DKK 86.5m in Q3, compared to negative DKK 8.6m in Q3 2023.

• Q3 gross profit increased to DKK 140.4m; gross margin was 45.8%.

Outlook and guidance

• Full-year 2024 revenue guidance adjusted to DKK 1,315–1,340m (previously DKK 1,320–1,365m).

• Group EBITDA outlook revised to DKK 140–160m (previously DKK 150–175m); EBIT expected at DKK 65–85m.

• Adjustments reflect accelerated tech implementation in Sweden, lower revenue in Ofir and Bekey, and margin pressure.