Company announcement no 01-19
7 February 2019
The change in market conditions and strong execution have in 2018 resulted in profitability of the Group being restored. Revenue went up by 27% to DKK 1,145 million, and EBIT before special items has improved and is in the black by DKK 110 million compared with break-even in 2017.
FK Distribution is generating the improvement
The massive improvement has been generated primarily with FK Distribution. Following years of unfair price competition, we were able to introduce a new pricing model in 2018 to ensure a fair price level and a consistent pricing structure. A heavy increase in customers and volume in 2018 led to a rise in revenue by DKK 39% and EBIT before special items by DKK 102 million.
North Media Online achieved break-even in H2 2018 and BEKEY reduced its loss considerably, whereas North Media Aviser produced a major loss and is now focusing on the capital area and North-East Zealand.
Balanced focus on maintaining satisfactory earnings and on business development and optimisation
”2018 was a satisfactory and expected watershed for North Media, not least in terms of earnings. It was also a year marked by heavy focus on development and adjustments so that we will have a basis for performing well also in future. This year has confirmed us in our view to maintain focus on our core services while digitalisation opening up opportunities for new business models”, says Kåre Wigh, Group Executive Director & CFO of North Media A/S.
North Media expects to maintain the 2018 earnings level in 2019. FK Distribution’s volume of printed matter is expected lower whereas EBIT of the other activities will improve.
Doubling of dividend, buy-back of shares and maintaining strong capital resources
In view of 2018 having developed satisfactorily and the positive expectations for 2019, the Board of Directors recommends that dividend of DKK 3.00 per share be distributed for 2018.
Furthermore, a share buy-back programme for up to 500,000 shares will be launched. A separate company announcement will be issued thereon today.
”At North Media, we have a strong desire to be able to yield attractive direct returns for our shareholders. Many years of declining financial performance was in 2018 turned into a satisfactory profit. So we are happy to be able to recommend a doubling of dividend on last year, to perform a share buy-back, and to maintain strong capital resources so that we have a basis for continuing to develop our business operations," Mads Dahl Andersen, Chairman of North Media A/S, closes.
For further information, please contact: Chairman of the Board of Directors Mads Dahl Andersen, mobile +45 20 42 09 85 Group Executive Director & CFO Kåre Stausø Wigh, mobile + 45 25 65 21 45
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