North Media A/S
Interim management statement for Q1 2014

North Media A/S 

08.05.2014 08:04

Dissemination of a Adhoc News, transmitted by DGAP - a company of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.

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8 May 2014

Company announcement no 05-14

Execution of initiatives launched progresses as planned. Revenue and profit for
Q1 2014 are as anticipated, and earnings expectations for FY2014 remain
unchanged. 

  -- Group revenue for Q1 2014 is DKK 258.3 million and EBIT stands at DKK 11.7
     million. This performance is as anticipated.
  -- Group EBITDA for Q1 2014 is DKK 23.9 million.
  -- Total earnings expectations remain unchanged.
  -- Implementation of No Ads+ and other strategic
     initiatives progress as planned.
  -- The Group's net interest-bearing cash position is DKK 2.0 million, and
     capital resources come to DKK 212.2 million at 31 March 2014.

The Group's revenue and financial results for Q1 2014 were largely on a par
with Q1 2013. FK Distribution's revenue declined by 10% as expected, primarily
due to structural market developments, but also due to continued unfair
competition represented by Post Danmark, which cross-subsidises its prices.
Newspaper activities, however, helped to considerably up revenue for Q1 2014
compared to Q1 2013, mainly due to the acquisition in autumn 2013 of eight
local newspapers in the Copenhagen area. Further, revenue for Q1 2014 is
negatively influenced by Easter of 2013 falling in Q1 whereas Easter of 2014
fell in Q2. 

Group EBIT for Q1 2014 is DKK 11.7 million, which is DKK 4.1 million down on Q1
2013. This is mainly due to the financial results for 2014 including a further
DKK 3 million in amortisation of intangible assets relating to the acquisition
of eight local newspapers based in the Copenhagen area. Further, Easter
affected revenue negatively for 2014 as referred to above. 

FK Distribution continues to implement No Ads+
at www.minetilbud.dk. Having opted for No Ads+,
consumers only receive printed matter of their choice.
The post markets are changing fast. FK Distribution
develops solutions for future post markets, and therefore the company is in the
process of transforming its business into a high-tech distribution business
offering a product range catering for future needs. 

Except for the island of Bornholm, the No Ads+ product is offered to consumers
all over Denmark. In the week of 28 April 2014, a marketing campaign was
launched with a view to raising awareness about the product. In addition, FK
Distribution has extended its activities by offering addres­sed and segmented
distribution of printed matter. Work is progressing as planned, and the first
contracts have been signed with customers. The third most important measure
taken by FK Distribution is the refinement of its digital services.
Minetilbud.dk has been launched as a replacement for Forum.dk and
MinReklame.dk. Also, an updated web version with new features as well as
relaunched apps for IOS and Android are being tested. 

BEKEY continues rollout of the
electronic access control at the municipal market.
Q1 2014 saw fewer municipal tenders than expected. Not only Danish
municipalities use the BEKEY system, it is also being used in Malmö, Sweden.
The process of preparing the product for the private market is proceeding as
planned. 

Søndagsavisen and the eight Copenhagen
mid-weeklies acquired realised the synergies planned for.
At the beginning of 2014, the market for ads was weaker than expected. Revenue
from the Group's total newspaper activities, however, grew considerably as a
result of the acquisition of eight Copenhagen newspapers. The planned operating
and cost synergies plus enhanced efficiency and sales optimisation measures
were implemented according to plan. 

Ofir's sale of the Emply
recruitment system satisfied expectations.
One of Ofir's strategic focus areas, the electronic Emply recruitment system,
developed positively, landing the expected number of contracts and realising
very stable and satisfactory operations. The sale of the other key product,
namely ads for media in Ofir's job universe selected through the Ofir media
selection page, developed slightly below expectations. The planned cost
reduction measures were implemented as predicted. 

The implementation of Byggestart.dk's
revised concept progressed as planned in Q1-2014.
However, there are challenges with scalability of the business. During the
second quarter of 2014, Byggestart must show increased volume and the desired
revenue growth. 

BoligPortal.dk has maintained its leading
position in the market for advertising rental housing.
The rental housing market developed as expected in Q1 2014, and BoligPortal.dk
increased revenue by two-digit growth rates. Growth in the new market place for
self-sale of co-operative and owner-occupied dwellings, however, is lower than
expected. 

Expectations for Group revenue and
performance for FY2014 remain unchanged
Overall, the Group's revenue is expected to still range from DKK 1,060 million
to DKK 1,110 million for 2014. Group EBIT for 2014 is expected to remain in the
range of DKK 50 million to DKK 75 million for 2014. 

Please contact Lars Nymann Andersen, CEO, or Kåre Wigh, CFO, at +45 39 57 70 00
for further information. 



The Interim Management Statement in its full is attached.



This Interim Management Statement for Q1 2014 has been prepared in Danish and
English. The Danish text shall be the governing text for all purposes and in
case of any discrepancy the Danish wording shall be applicable.
News Source: NASDAQ OMX



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Language:     English
Company:      North Media A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010270347
WKN:          
 
End of Announcement                             DGAP News-Service
 
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