Annual Meeting Insights: North Media's Strategic Challenges and Growth
Insights from North Media's Annual General Meeting
The annual general meeting of North Media A/S was held to discuss recent developments and the company's future strategies.
Financial Performance Overview
During the meeting, the management presented an overview of the financial results from the past year. Although revenue soared by 42% in 2024, driven primarily by SDR, the operating results fell short of expectations, with a reported EBIT of DKK -75 million. This disappointing figure was largely influenced by impairments associated with SDR, as highlighted in a previous company announcement.
Revenue Breakdown by Segment
The Last Mile segment, which encompasses FK Distribution and SDR, reported a revenue increase of 49%. However, the EBITDA experienced a decrease of 5%, leading to an EBIT margin of -4.7%. This decline in profitability was primarily affected by the impairments tied to SDR.
Challenges in Digital Services
In contrast, the Digital Services sector, comprising BoligPortal and Bekey, only saw a 3% rise in revenue, mainly attributed to BoligPortal's performance. Meanwhile, the EBITDA plunged by 57% due to ongoing challenges faced by Bekey, resulting in an EBIT margin of 3.0%.
Future Projections and Expectations
Looking ahead, the company anticipates consolidated revenue for 2025 to range between DKK 1,280 million and DKK 1,337 million. The projected EBITDA is estimated to be between DKK 80 million and DKK 115 million, with an EBIT forecast of DKK 25 million to DKK 60 million.
Shareholder Engagement and Decisions
During the meeting, some shareholders voiced their concerns regarding the various challenges impacting SDR. Due to the unsatisfactory results, there was a board decision against issuing a dividend for 2024. Some shareholders expressed their disappointment regarding this decision while also advocating for the implementation of a share buyback program.
The shareholders also approved the presented remuneration report, reinforcing their support for the Board's transparency and accountability measures.
Treasury Shares Acquisition
The Board received authorization to acquire treasury shares amounting to 15% of the share capital, to be executed at the prevailing market price with a margin of plus or minus 5%. This authorization is intended to last for five years, concluding in 2030.
Board of Directors and Auditor Reappointments
The annual meeting re-elected the existing members of the Board of Directors. These members include Ole Elverdam Borch, Richard Bunck, Ulrik Holsted-Sandgreen, Ulrik Falkner Thagesen, and Ann-Sofie Østberg Bjergby. Furthermore, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab (PwC) was reappointed as the company's auditors, ensuring compliance and oversight of financial reporting.
Leadership Changes
Post-meeting, significant leadership roles were reaffirmed, with Ole Elverdam Borch taking on the position of Chairman and Richard Bunck serving as Vice-Chairman of the Board.
About North Media
North Media operates various platforms designed to seamlessly connect businesses and consumers. Their services extend to helping consumers discover essential products and services, whether seeking groceries, rental accommodations, or digital access solutions. The company boasts two main business areas: Last Mile and Digital Services.
The Last Mile segment, anchored by FK Distribution and SDR Svensk Direktreklam, remains a formidable force in the distribution of local newspapers and advertising in Denmark and Sweden. On the other hand, Digital Services includes innovative platforms such as BoligPortal, Denmark's foremost home rental service, MineTilbud, an acclaimed digital offering platform, and Bekey, which facilitates secure access solutions for various service providers.
Frequently Asked Questions
What were the key points discussed at the North Media AGM?
The AGM covered financial challenges, revenue growth in specific segments, and the strategy for future growth.
What challenges did North Media face in 2024?
North Media faced an unsatisfactory EBIT primarily due to impairments related to SDR, impacting overall profitability.
What are the revenue projections for North Media in 2025?
The company expects consolidated revenue for 2025 to fall between DKK 1,280 million and DKK 1,337 million.
How has shareholder sentiment been regarding dividends?
Shareholders expressed disappointment over the decision to forgo dividends for 2024 and suggested exploring a share buyback program.
Who are the incumbent members of the Board of Directors?
The re-elected board members include Ole Elverdam Borch, Richard Bunck, Ulrik Holsted-Sandgreen, Ulrik Falkner Thagesen, and Ann-Sofie Østberg Bjergby.
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