2023 was a good year with acquisitions and financial results as guided - Seite 2

Performance by business area in 2023
The economic climate and uncertain market conditions continued to impact several of North Media’s businesses during 2023. In the Last Mile business area (FK Distribution), the reduced revenue and earnings were driven by consolidation among retailers, persistently high prices of paper and declining advertising sales for local newspapers. Volumes dropped by 10% overall, essentially driven by structural factors. Market surveys showed once again that leaflets remain the most effective platform for promoting offers and converting these to sales.

The acquisition of SDR Svensk Direktreklam in late 2023 is a good example of North Media’s strategy to acquire, run and optimise high-volume businesses in areas where the Group possesses special strengths and insights and in markets similar to the Danish market. North Media also acquired software technology from Aviou in a minor deal to strengthen minetilbud’s market position.

In the Digital Services business area, BoligPortal delivered nine-digit revenue, at DKK 107 million, for the first time ever and record EBIT, driven by increased advertising revenue from landlords. The number of signed leases and move-in/out inspection reports also reached a record high in 2023. The performance in Ofir, the jobs portal, was affected by a drop new job postings relative to the record set in 2022, and it is essential for the Ofir business to become less cyclical and more scalable. Bekey’s results were not satisfactory, and we have taken steps to reevaluate the market approach in order to turn around the business.

Guidance for 2024
North Media announced its guidance for the Group on 26 February 2024. The table shows below the guidance ranges by business area:

DKKm	Revenue	EBITDA	EBIT
Group	1,310 - 1,375	170 – 210	110 – 150
Last Mile (FK Distribution, SDR Svensk Direktreklam)	1,145 - 1,195	175 – 205	127 – 157
Digital Services (BoligPortal, Ofir, Bekey)	165 - 180	0 – 10	-5 – 5
Unallocated expenses	-	-5	-13