0MQ0 North Media A/s

New market situation and strategic focus improve financial performance in 2017 and strengthen the basis for heavily improved earnings in 2018

Company announcement no 01-18

22 February 2018

In 2017, North Media improved its financial performance and also heavily strengthened its basis for improved earnings in 2018.

PostNord’s withdrawal from the retail leaflet distribution market leads to many new contracts for FK Distribution. It is therefore essential to expand the capacity considerably. Operationally, this is a very demanding task that has the highest priority with FK Distribution, and one which also involves a heavy increase in costs. At North Media Aviser, we continue the execution of our metropolitan strategy and now have our geographical focus on the Capital and North-East Zealand.

All in all, this led to the Group realising revenue of DKK 899 million in 2017 – a 2% increase on 2016. EBIT before special items went up by DKK 26 million in 2017, and the profit realised for the year stands at DKK 28.0 million, which is an improvement of over DKK 90 million compared to 2016.

Revenue growth and heavy earnings improvement expected in 2018

In 2018, the Group expects to see heavy growth in both revenue and earnings, primarily because of new contacts signed by FK Distribution but also because of improved earnings at North Media Aviser, North Media Online and BEKEY. Overall, the Group expects revenue to range between DKK 1,090 million and DKK 1,155 million and EBIT before special items to be between DKK 60 million and DKK 95 million.

“We have been through some difficult years with unsatisfactory earnings, and this has called for unique support by our staff and considerable patience by our shareholders. Now we have turned this negative tide and laid the grounds for ensuring considerably improved earnings in 2018. Even though we have not yet produced the results, we would like to highlight the positive expectations by proposing distribution of dividend of DKK 1.50 per share for the financial year 2017. This is to mark our belief that we have now reached a turning point in value creation for our shareholders,” says Richard Bunck, Chairman of the Board of Directors of North Media A/S.

New chairmanship of North Media A/S ensures continuity

After 14 years of having chaired the Board of Directors of North Media A/S, founder and principal shareholder Richard Bunck has decided that 2018 will be the year to step back a pace. At North Media A/S’ Annual General Meeting on 13 April 2018 Mads Dahl Andersen is nominated for the Board of Directors and recommended as the new Chairman of the Board whereas Richard Bunck is recommended as new Vice-Chairman. Mads Dahl Andersen will therefore step down as Chief Executive Officer of FK Distribution A/S on 31 March 2018, and this position will be taken over by the current Sales Director, Lasse Ingemann Brodt, on 2 April 2018. Lasse Ingemann Brodt will also take over Mads Dahl Andersen’s seat on the Executive Board of North Media A/S.

”Most of North Media’s companies have been through a major transformation process in recent years and today they hold strong market positions. The course has been charted, and the interaction of printed and digital platforms develops well. So now the time is right to make this change that will ensure continuity, vision and power of execution. I am very happy that Mads and Lasse had accepted their new offices, and I look forward to continuing the close and active cooperation with both of them in my new role as Vice-Chairman of the Board of North Media,” says Richard Bunck.

For further information

• Chairman of the Board of Directors Richard Bunck, mobile +45 20 87 03 00
• Chief Executive Officer of FK Distribution Mads Dahl Andersen, mobile +45 20 42 09 85
• Group Executive Director & CFO Kåre Stausø Wigh, mobile + 45 25 65 21 45
• Chief Executive Officer of North Media Aviser Gorm Wesing Flyvholm, mobile +45 25 45 67 74
• Chief Executive Officer of North Media Online Henrik Løvig, mobile +45 61 79 94 31
• Chief Executive Officer of BEKEY Søren Holmblad, mobile +45 25 65 21 30.

Yours faithfully

North Media A/S

Kåre Stausø Wigh Group Executive Director & CFO

 

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