North Media: Rationale of SDR increasingly questionable - ABG

Very weak SDR guidance triggers hefty estimate cuts
Three key investor concerns unlikely to ease in the near term
FVR cut to DKK 36-70, net cash position of DKK 42/share


Very weak SDR guidance triggers hefty estimate cuts

Although North Media's FY'25 top-line guidance came in slightly ahead of our expectations, a clearly disappointing profitability guidance prompts us to make hefty cuts to '25e-'26e EBIT (down 53-31%). Particularly a much costlier integration of SDR weighs, with North Media expecting negative EBIT of ~DKK 45m for the segment in '25. In sum, we forecast '25e group EBIT of DKK 58m vs. guidance of DKK 25m-60m. Note that North Media has only published headline P&L figures, as the annual report will be released on 14 March (two days later than initially planned). We also incorporate Minetilbud into a standalone segment (previously included under FK Distribution).