North Media A/S
Interim management statement for Q3 2014

North Media A/S 

06.11.2014 08:06

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

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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.
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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