Total revenues for the group were NOK 280.5 million in the third quarter 2023 vs NOK 271.4 million in the third quarter 2022.
Revenues for the media segment were 7.5 per cent higher than in 2022. The growth was partly driven by the currency impact on sales in foreign currencies. The growth in digital subscription revenues was 19 per cent in the quarter.
DN Media Group launched a cost program aiming at reducing the cost base with up to NOK 60 million with effect for 2024. At the end of the quarter, the program was progressing well. The program was completed as planned mid- October. NOK 12.7 million were accrued as one-off expenses related to the cost reduction program.
The SaaS segment showed a growth in recognized revenues of 7.7 per cent versus the year before, mainly reflecting currency impact on translation of the accounts to NOK. In their respective functional currencies, Mynewsdesk`s revenues increased by 3.8 per cent while Mention`s recognized revenues decreased by 3.8 per cent.
Development of products and support systems continues.
At the end of the quarter, the Group did not comply with a gearing covenant in the revolving credit facility agreement with its bank, due to slower than expected financial progress in both business areas. Discussions with the bank on corrective actions are progressing well. The intention is to obtain a temporary waiver from the relevant covenant. As a result of the non-compliance, the loan will be classified as short term debt in the balance sheet until the situation is resolved.