North Media: Soft Q1 combined with a guidance downgrade - ABG

Q1 revenues 4% below ABGSCe, EBIT DKK 10m vs. ABGSCe 33m
FY'24 guidance downgraded following more insights from SDR
Consensus to lower '24 EBITDA by 5-7%, EBIT by 15-20%


Q1 revenues 4% below ABGSCe, weak EBIT of DKK 10m

Q1 was overall soft. Revenues of DKK 327m came in 4% below ABGSCe at DKK 339m, with the former equating to 36% growth y-o-y (note that Q1 was the first quarter with SDR consolidated - excluding SDR, revenues would have declined 3% y-o-y). Q1 EBIT of DKK 10m, equating to a margin of merely 3% (down 15pp y-o-y), was a clear disappointment, coming in significantly below our DKK 33m estimate. However, note that DKK 14m of the DKK 23m deviation was driven by a non-cash one-off write-down of IT systems at SDR, with the remainder of the EBIT miss driven by the weaker-than-expected top-line. On a positive note, however, Q1 saw a DKK 156m gain on the securities portfolio (vs. our DKK 144m estimate), narrowing the EBT miss to 6%.