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North Media (Investment Case): Improved Q1 profit, but lowered guidance ceiling
Oversigt
- North Media reported improved Q1 2026 profitability with EBIT at DKK 4m and a 72% increase in EBITDA, but management lowered the top end of 2026 guidance due to weak performance in SDR and BoligPortal.
- 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.
- Valuation challenges are attributed to structural declines in printed matter volumes and investments in loss-making units like Bekey and SDR, with potential valuation improvements linked to profitability in these areas and resuming dividends.
- North Media's market cap is approximately DKK 845m, with net cash of DKK 758m, and the market assigns little value to its operating business despite generating DKK 66m EBIT and DKK 69m FCF in 2025.
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Today, we publish our updated North Media A/S investment case following the Q1 2026 report. North Media delivered improved Q1 profitability with EBIT rising to DKK 4m and EBITDA up 72%, though management cut the top end of 2026 guidance on a weak start in SDR and BoligPortal. 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 10.9x and 16.7x. On 2026E, the discount persists at 0.7x and 1.2x versus 6.6x and 11.8x, roughly 87–92% below comparables. This is explained by the securities portfolio: North Media holds net cash of DKK 758m (incl. securities values) against a market cap of ~DKK 845m, 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 75–103m 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 loss-making Bekey and SDR, 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 SDR, which would narrow loss-making investments, as Dayli began doing in Q1 2026. 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. / Jacob Frehr 12:00 03.06.2026
North Media udvikler og driver platforme til transaktioner mellem erhvervsliv og forbrugere. Platformene matcher forbrugerne med de rette produkter inden for dagligvarer, lejeboliger, og digitale adgangsløsninger. North Media er markedsledende og selskabet har været noteret på OMX Nasdaq Copenhagen siden 1996. North Media har fokus på langsigtet værdiskabelse og et stabilt afkast og har en politik om at udbetale et aktieudbytte baseret på de finansielle resultater. North Media består af to forretningsområder: 1) Last Mile udgøres af FK Distribution og SDR Svensk Direktreklam, der er blandt henholdsvis Danmarks og Sveriges førende distributører af tilbuds- og ugeaviser. Last Mile er et modent forretningsområde med god indtjening og pengestrømme. 2) Digital Services består af BoligPortal, Dayli og Bekey, som alle har potentiale for vækst, stigende indtjening og skalering. BoligPortal er Danmarks største formidler af lejeboliger og services til udlejere og lejere. Dayli (MineTilbud) er en førende digital tilbudsplatform. Bekey leverer digital adgang til låste opgange og hoveddøre for hjemmeplejen og leverandører af pakker, dagligvarer, måltidskasser m.fl. North Media arbejder systematisk med bæredygtighed og ESG-rapportering, inklusive selskabets påvirkninger, risici og muligheder inden for klima, miljø, sociale forhold samt ledelse. North Media har via sin tilslutning til Science Based Target initiative forpligtet sig til at reducere sine samlede CO2-udledninger med nominelt 50% inden 2030 i forhold 2018, og til at være netto-nul udledende i 2050.
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