Newspaper & Mailroom

Schibsted ASA (SCH) – Interim Financial Statement Q4 2012

Wednesday 13. February 2013 - Today, Schibsted Media Group released its Q4 2012 report, which shows operating revenues of NOK 3.8 billion.

This was underlying and increase of 1 percent. The Online classifieds operations increased their revenues by 14 percent underlying. The revenues of the media houses in Norway and Sweden declined by underlying 2 and 4 percent, respectively.
– Q4 was another solid quarter for Schibsted Media Group. Our Online classifieds operations continue to perform well, capturing market shares and expanding products and service offerings. The Media houses are in the middle of a structural transition from print to online platforms. Our ambition is to create world class digital media houses, although the encouraging revenue increases in the online operations are not yet sufficient to compensate fully for the revenue decline in the print part of the business, CEO Rolv Erik Ryssdal says.
– Finn.no and our French site Leboncoin.fr were the main growth drivers in the Online classifieds operations. Blocket.se also performed well in a somewhat softer Swedish market. Over the past few years we have also created profitable number one positions in Italy, Austria and Malaysia. Our sites have strengthened their market leadership in 2012, lending further confidence in the business model and our return on investment over time. We are continuing to invest in our successful online classifieds concepts, and despite tough competition we see positive development also in early stage operations such as Bomnegócio.com in Brazil. We will concentrate on our core markets and expansion into selected new geographies. We aim for the number one positions in the markets where we are present, Rolv Erik Ryssdal says.
– In the Media Houses we are meeting the challenges in print media with cost reduction programs, and ongoing efficiency measures that are progressing as planned. At the same time we are allocating more resources to our digital activities, and here the results are encouraging. The declining trend in print advertising is expected to continue. Hence continued online growth and innovation will be crucial to secure the future with a fundament of high quality editorial products combined with healthy financial results, CEO Rolv Erik Ryssdal says.
Highlights of Q4 2012
(Figures in brackets refer to the corresponding period in 2011. Underlying figures are adjusted for currency effects and acquisitions and divestments.)
1 percent underlying growth in Group operating revenues. Online classifieds grew 14 percent underlying; 19 percent growth excluding the Spanish online classifieds operations.
Group EBITDA of NOK 497 million (549 million), with increased earnings in Online classifieds but decline in Media houses
Online classified report 28 percent EBITDA margin, and 42 percent EBITDA margin excluding Investment phase
Solid performance in the key established operations in Norway, France, and Sweden
Spanish operations hurt by weak economy and job market
Italy, Austria and Ireland reinforce market leadership while continuing to show revenue and profit growth
Strong traffic development and improved market positions in new markets, including Brazil
Media houses report 11 percent EBITDA margin in Norway and 13 percent in Sweden
Continued decline in Print advertising as the migration from print to online continues
Good Online growth in both Norway and Sweden, particularly from mobile activities
Comprehensive transition and cost reduction program ongoing and on track
Impairment loss of NOK 350 million, mainly in Spain, and NOK 179 million in Metro Sweden reflect weak economic environment and structural changes
Restructuring charges of NOK 257 million related to the transition program in the Media houses
Dividend payment of NOK 3.50 per share (unchanged) proposed for 2012; a balanced proposal in a period of significant online growth investments