North Media Reports Q3 2026 Earnings Growth Driven by Last Mile

North Media, a Danish media and distribution company, reported its third-quarter 2026 financial results, highlighting a 7% revenue growth and improved earnings, driven primarily by its distribution businesses. The company's performance in the quarter was marked by a 9% increase in revenue for its Last Mile division, which includes FK Distribution and SDR Svensk Direktreklam, bringing the total to DKK 268 million from DKK 247 million in the same period last year. This growth was attributed to an additional distribution week in Denmark, an increase in printed matter volumes, and a 131% rise in 'Selected mail' deliveries. SDR was positively impacted by deliveries associated with the Swedish parliamentary elections in September and higher prices.

In the Digital Services sector, which includes BoligPortal, Dayli, and Bekey, revenue remained stable at DKK 39 million, similar to the previous year. BoligPortal and Bekey saw revenue levels unchanged, while Dayli experienced an 11% decline due to slower-than-expected sales and licensing revenue. EBITDA in Digital Services remained unchanged at DKK 3 million, and EBIT was also steady at DKK 2 million, with an EBIT margin of 4%.

For the first nine months of 2026, North Media's revenue stood at DKK 915 million, marking a 3% decline from DKK 939 million in the same period last year. The Last Mile business area, while showing a flat performance by FK Distribution, did not offset a decline in SDR's printed matter volumes. In Digital Services, a slight increase in Bekey's performance was not enough to counter the declines in BoligPortal and Dayli. EBITDA for the period rose by 9% to DKK 78 million, driven by lower capacity costs in FK Distribution and reduced operating losses in Dayli and Bekey. EBIT increased by 14% to DKK 34 million, reflecting the EBITDA performance, with an EBIT margin of 3.7%.

Based on the year-to-date performance, North Media has narrowed its financial guidance for 2026. The company now expects revenue to range between DKK 1,248 million and DKK 1,268 million, down from the previously stated range of DKK 1,248 million to DKK 1,285 million. EBITDA is forecasted to be between DKK 122 million and DKK 132 million, compared to the previous guidance of DKK 122 million to DKK 142 million. EBIT is projected to be between DKK 64 million and DKK 74 million, down from the earlier range of DKK 64 million to DKK 84 million.