NORTH MEDIA A/S Revenue and profit for Q3 2014 are as anticipated, and earnings expectations for FY2014 remain unchanged. FK Distribution builds on NoAds+ success
6 November 2014
Company announcement no 08-14
- Group revenue for Q3 2014 comes to DKK 248.3 million, and EBIT stands at DKK 7.4 million. This performance is as anticipated.
- Expectations for Group EBIT for the year are maintained and estimated to range from DKK 55 million to DKK 65 million.
- Implementation of No Ads+ and other strategic initiatives progress as planned.
- The Group's net interest-bearing cash position is DKK 50.4 million, and capital resources come to DKK 241.3 million at 30 September 2014.
The Group's revenue for Q3 2014 is 5% up on the same quarter last year. FK Distribution's revenue declined as anticipated, primarily as a result of - in the eyes of North Media A/S - continued unfair and illegal competitive conduct on the part of Post Danmark. Newspaper activities, however, generated increased revenue for Q3 2014 compared to Q3 2013, thanks to the acquisition of eight local newspapers in the Copenhagen area on 1 November 2013.
Group EBIT for Q3 2014 is DKK 7.4 million, which is DKK 2.2 million up on Q3 2013. The Q3 2014 financial performance includes a DKK 3 million increase in amortisation of intangible assets related to the acquisition of the eight Copenhagen local newspapers. Despite FK Distribution's decline in revenue, the Group's performance has gone up thanks to a significant DKK 7.8 million improvement of the Online segment's financial performance. For Q3 2014, the Online segment realised a profit of DKK 2.4 million.
Retailers recognise the value of being selected by consumers at NoAds+. FK Distribution intensifies development of digital services for IOS and Android
During the first quarter of 2014, NoAds+ went nationwide. And already by the third quarter of 2014, retailers have recognised the importance of partaking in NoAds+. A retail chain/shop will find considerable value in, specifically and actively, being selected by a given consumer.
Activities at minetilbud.dk and the app versions are developed concurrently with new and unique services that supplement and support the traditional unaddressed distribution as well as the new segmented and addressed NoAds+ service. This way, all types and sizes of retailers are given the opportunity to convey their messages to their specific target group.
NejTak+, minetilbud.dk and the app versions are still supported by an extensive marketing campaign.
BEKEY continues to win the majority of municipal tenders for electronic access control
As expected, Q3 2014 saw multiple municipal tenders, and BEKEY continues to win most of them, even though competition has intensified. The implementation pace in the municipalities, however, is lower than anticipated and has a delaying effect on revenue growth. Aside from Danish municipalities, BEKEY's system is now also used in Sweden and Norway, and negotiations are underway with potential distributors in several other European countries.
Søndagsavisen and the eight Copenhagen mid-weeklies acquired did not realise the growth expected
As in the first two quarters of 2014, the market also proved weaker than expected in Q3. Thus, revenue growth for the newspaper activities turned out lower than predicted. Revenue from the Group's total newspaper activities, however, grew considerably as a result of the acquisition of eight Copenhagen newspapers. Operating and cost synergies from the purchase and efficiency improvements and optimisation of sales continue to contribute positively to the earnings growth.
Ofir's performance continues to improve thanks to cost reductions and increased sale of the e-recruitment system Emply
Sales of one of Ofir's main strategic products, the e-recruitment system Emply, developed positively, landing the expected number of new contracts and achieving very stable operations. However, revenue development for Ofir's other main product, sale of ads for media in Ofir's job universe, was unsatisfactory.
After restructuring Byggestart.dk in Q2 2014, Q3 saw the implementation of a new business concept
After the restructuring process, Byggestart.dk returned a break-even performance for Q3. During Q4 2014 and H1 2015, investments will be made in upping business volumes.
Specified expectations for Group revenue and financial performance for FY2014
The Group's revenue is expected to range from DKK 1,060 million to DKK 1,080 million for 2014. Group EBIT before special items is expected to range from DKK 55 million to DKK 65 million for FY2014 after ordinary amortisation and depreciation, which are expected to come to approx DKK 49 million.
Please contact Lars Nymann Andersen, CEO, at +45 39 57 75 76 or Kåre Wigh, CFO, at +45 39 57 75 25 for further information.
|
distributed by
|
