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

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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 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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