Newspaper & Mailroom

Schibsted ASA (SCH) – Interim Financial Statement Q2 2013

Friday 19. July 2013 - Today, Schibsted Media Group released its Q2 2013 report, which shows operating revenues of NOK 4.0 billion. The underlying revenue growth was 2 percent. The Online classifieds segment increased underlying revenues with 15 percent. The gross operating profit (EBITDA) was NOK 555 million (600 million). Excluding Online classifieds Investment phase, the EBITDA was NOK 800 million, compared to NOK 753 million in the same period in 2012.

– Schibsted Media Group continues to see growing online revenue making up for declining print revenue. Growth in earnings in the established online operations also compensate for lower print earnings, although total operating profit remains affected by our substantial investments in promising New ventures in the online classifieds area. Overall, online operations amounted to 45 percent of revenues and 60 percent of gross operating profit in the second quarter, CEO Rolv Erik Ryssdal says.
– Our largest established classifieds operations – in Norway, Sweden and France – show good growth, supported by new product offerings and price optimizations. The other established companies are also progressing well, although continued investments in market positioning hold back margins for some of these sites. In Spain, we have taken full control of Anuntis, and will sharpen the focus on growth in traffic and volume, Rolv Erik Ryssdal says.
– We remain committed to our New ventures in Online classifieds, and continue to invest to capture leadership positions in selected growth markets. We are pleased to see the volume of new ads on these sites increasing sharply, which we believe is a good leading indicator for future revenue generation, Rolv Erik Ryssdal says.
– The digital transformation is accelerating in the Media Houses. Monetization of mobile content is gathering headway, with VG and Aftonbladet claiming leadership in Norway and Sweden. We also continue to see positive results from the introduction of bundled print/online newspaper subscriptions. Traditional print revenues remain negatively affected by lower advertising revenues. Schibsted’s media houses focus on strengthening digital competence and resources, for instance within advanced data analytics. The transition program initiated in 2012 progresses as planned, with cost savings mitigating the print decline, CEO Rolv Erik Ryssdal says.
Highlights of Q2 2013
(Figures in brackets refer to the corresponding period in 2012. Underlying figures are adjusted for currency effects and acquisitions and divestments.)
Underlying group operating revenues increased 2 percent compared to Q2 2012, with underlying online classifieds revenue up 15 percent. Excluding Spain, the growth was 20%
EBITDA of NOK 555 million (600 million), and NOK 800 million (753 million) excluding investments in New Ventures in online classifieds
Online classifieds EBITDA margin of 26 percent, or 49 percent excluding investments in New Ventures
Continued growth and high margins in the French market leader Leboncoin.fr
Minority shareholders bought out in Spain. Sharpened focus on volume and traffic growth going forward
Good revenue growth for other established sites, margins being held back by continued investments to strengthen market positions
Strong growth in number of new ads in the investment phase sites, including Brazil
Online growth and cost reductions mitigate margin decline in Scandinavian media houses
Decline in print advertising, although at slower pace than in Q1
Digital transition and cost efficiency programs progress as planned