Interim Report, January 1–June 30, 2019
During the first half of 2019, we continued to develop our business operations and structures to better respond to the changing needs of customers.
We achieved our key targets, with the Group’s net revenue showing a favorable trend and the Nordic Morning business area’s profitability before non-recurring items improving compared to the previous year.
Nevertheless, we are still on a journey of change. The digital transformation has a tremendous impact by introducing rapid technological progress to learning, marketing, customer behavior, and media consumption. We will continue to develop our business with the aim of changing our operating methods and improving our efficiency. We will also focus on the integration of our fragmented information systems structure to establish a more coherent platform for our business. The deployment of a new Group-wide ERP system is planned for January 2020.
While 2019 will be a challenging year due to our comprehensive investment and change program, the Group’s net revenue and profit before non-recurring items are expected to improve year-on-year.
The Nordic Morning Group’s consolidated net revenue was EUR 42.1 million (EUR 41.8 million). The Group’s gross margin before non-recurring items decreased from EUR 24.9 million to EUR 22.9 million and EBITDA before non-recurring items weakened from EUR 3.4 million to EUR 3.0 million. Operating profit for January–June amounted to EUR 0.3 million (EUR 1.1 million). The equity ratio at the end of the review period was 36.2 percent (37.8 percent). Cash and cash equivalents amounted to EUR 0.2 million (EUR 0.3 million) and net debt was EUR 12.5 million (EUR 14.2 million).
Anne Årneby, CEO Nordic Morning Group
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