Research

North Media (One-pager): FY2025 Cash generation underpins value in a structurally declining market

Summary

North Media A/S reported operational stabilization in 2025, with EBIT at DKK 66 million and free cash flow at DKK 69 million, and anticipates further improvement in 2026.
The company trades at a significant discount to peers, with 2025 EV/EBITDA at 0.9x and EV/EBIT at 1.6x, largely due to its large securities portfolio and net cash position.
The valuation is impacted by a structural decline in printed matter volumes and ongoing investments in loss-making units like Bekey and Dayli, alongside a mixed M&A history.
Key valuation triggers include demonstrating profitability for Bekey and Dayli, a successful M&A strategy, and a return to dividend payments.

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Today, we publish our updated North Media A/S investment case following the FY 2025 annual report and earnings call. North Media delivered operational stabilization in 2025, with EBIT recovering to DKK 66 mio. and free cash flow turning strongly positive at DKK 69 mio., while guiding for further improvement in 2026. The stock continues to trade at a significant discount to peers, driven to a significant extent by the large securities portfolio.

North Media trades at 2025 EV/EBITDA of 0.9x and EV/EBIT of 1.6x versus a 90/10 publishing/platform weighted peer median of 8.7x and 16.6x. On 2026E, the discount persists at 1.0x and 1.6x versus 6.6x and 12.4x — roughly 85–90% below comparables. This is explained by the securities portfolio: North Media holds net cash of DKK 779m (incl. HCA estimated securities values) against a market cap of ~DKK 908m, resulting in a very low implied EV. The market assigns little value to an operating business generating DKK 66m EBIT and DKK 69m FCF in 2025, with guidance for DKK 75–117m EBIT in 2026.

The valuation can be partly explained by an ongoing structural decline in printed matter volumes affecting North Media's largest Last Mile business unit. Additionally, ongoing investment in consistently loss-making Bekey and Dayli, and a mixed history of M&A, add some uncertainty regarding future investment decision making. Key triggers to close the valuation gap include demonstrating a clear path to profitability for Bekey and Dayli, which would narrow loss-making investments. Additionally, an M&A strategy with a mixed history of acquisitions can put pressure on valuation until a track record of value-creating M&A is proven. A sustained return to paying dividends may also support valuation gains.

Also catch up on the latest presentation of the annual 2025 results here: https://www.inderes.dk/en/videos/north-media-praesentation-af-arsregnskabet-for-2025

Disclaimer: HC Andersen Capital receives payment from North Media for a digitalIR/Corporate Visibility subscription agreement./ Philip Coombes 12:53 04/03/2026

North Media A/S develops and operates platforms for transactions that bring businesses and consumers together. The platforms help customers find the right products, whether they are looking for groceries, rental housing or digital access management solutions. North Media is a market leader and has been listed on OMX Nasdaq Copenhagen since 1996. North Media’s focus is long-term value creation and stable return on capital and has a policy to pay out dividend based on the financial performance. North Media is organised into two business areas: 1) Last Mile comprises FK Distribution and SDR Svensk Direktreklam and both companies are among the leading distributors of leaflets and local newspapers in Denmark and Sweden, respectively. Last Mile is a mature business area with solid earnings and cash flows. 2) Digital Services consists of BoligPortal, Dayli and Bekey, all with the potential for growth, rising profitability, and scalability. BoligPortal is Denmark’s leading home rental platform, offering services to both landlords and tenants. Dayli (MineTilbud) is a leading digital offer platform. Bekey provides digital access solutions for secured stairwells and private homes for the use of homecare services and companies delivering parcels, groceries, meal services, etc. North Media has a strong focus on sustainability and ESG reporting, including the group’s impact, risks and opportunities within climate, environment, social matters and governance. North Media is committed to the Science Based Target initiative with the aim to reduce total CO2 emissions by 50% nominally by 2030 compared to 2018, and to achieve net-zero emissions by 2050.