North Media (Investment Case): Negative enterprise value after a second guidance cut
Summary
- North Media's H1 EBIT declined to DKK 17m from DKK 31m, prompting a second guidance cut for 2026 due to weak performance in SDR and BoligPortal.
- The company's stock trades at a significant discount to peers, with a 2025 EV/EBITDA of 0.9x and EV/EBIT of 1.6x, and a negative implied EV for 2026 due to a large securities portfolio.
- The market assigns no value to North Media's operating business despite generating DKK 66m EBIT and DKK 69m FCF in 2025, with 2026 EBIT guidance of DKK 64–84m.
- Valuation challenges are linked to structural declines in printed matter volumes, investments in loss-making units, and a mixed M&A history, with potential valuation improvements tied to profitability in SDR and capital distribution.
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Today, we publish our updated North Media A/S investment case following the Q2 2026 report. North Media saw H1 EBIT decline to DKK 17m from DKK 31m, as SDR losses and one-off costs outweighed gains in FK Distribution and Digital Services, and on 18 August management cut 2026 guidance for the second time this year on a weak 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 implied EV turns negative, at -0.7x and -1.2x versus 7.7x and 13.4x. This is explained by the securities portfolio: North Media holds net cash of DKK 906m (DKK 1,030m before debt) against a market cap of ~DKK 854m, leaving a clearly negative implied EV. The market now assigns no value to an operating business generating DKK 66m EBIT and DKK 69m FCF in 2025, with guidance for DKK 64–84m 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 SDR, where losses widened, and continued loss reduction in Dayli and Bekey. A sustained return to paying dividends, or a distribution of the large capital reserve, may also support valuation gains.
Also catch up on the latest presentation of the Q2 2026 results here: https://www.inderes.dk/videos/north-media-praesentation-af-regnskabet-for-2-kvartal-2026
Disclaimer: HC Andersen Capital receives payment from North Media for a digital IR/Corporate Visibility subscription agreement. /Rasmus Køjborg and Jacob Frehr 16:30 31.08.2026