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Schibsted ASA (SCH) – Interim Financial Statement Q3 2013

Thursday 31. October 2013 - Today, Schibsted Media Group released its Q3 2013 report, showing operating revenues of NOK 3.65 billion. The underlying revenues growth was 2 percent. The Online classifieds segements increased underlying revenues with 13 percent, 17 percent excluding Spain. The gross operating profit (EBITDA) was NOK 437 million (518 million). Excluding Online classifieds Investment phase, the EBITDA was NOK 672 million, 4 percent higher than in the same period in 2012.

– In the third quarter 2013 we have further developed our positions both in the online classifieds and in the media houses. We are satisfied with presenting a good quarter , where our operating profit (EBITDA), excluding increased investments in online classifieds New ventures, increased by 4 percent to NOK 672 million, CEO Rolv Erik Ryssdal says.
– We have achieved good growth in the key established online classifieds operations in Norway, Sweden and France during the third quarter, where we are strengthening our platform for future growth by developing new services and verticals. We are also seeing promising developments in other established operations like for instance in Italy, Austria and Ireland. In Spain, we see some early positive results of the recent refocus towards market share and traffic growth, Rolv Erik Ryssdal says.
– At the same time, we continue our significant investments in rolling out our proven online classifieds concepts in new markets. We are now implementing the new joint venture setup, where Telenor takes the role as an equal partner in selected markets in South America and Asia. Bringing Telenor in will give us even more operational and financial strength to pursue attractive number one positions, Rolv Erik Ryssdal says.
– In our media houses we see more and more clearly the results of our long term focus on digital development. Both mobile and web TV are growing very fast in terms of reach and revenues. New concepts have been launched successfully, for instance Aftonbladets “Brottcentralen” and VGTV’s new series. The digital advertising revenues increased by 18 percent in the media houses in the third quarter. For VG and Aftonbladet, digital now counts for close to two thirds of the total advertising revenues. These are encouraging signs for us in the midst of a rapid digital transition of our business, CEO Rolv Erik Ryssdal says.
Highlights of Q3 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 Q3 2012, with underlying online classifieds revenue up 13 percent. Excluding Spain, the growth was 17%.
EBITDA of NOK 437 million (518 million), and NOK 672 million (644 million) excluding investments in New Ventures in online classifieds
Online classifieds EBITDA margin of 24 percent. 47 percent (48%) excluding investments in New Ventures
Continued growth and high margins in Norway, Sweden and France
Good revenue growth for other established sites, margins being held back by continued investments to strengthen market positions
Sharpened focus on volume and traffic growth hampers growth and profitability in Spain going forward
Strong growth in key performance indicators like number of new ads in the investment phase sites, including Brazil
New ventures in emerging markets strengthened through new joint venture with Telenor
Online growth and cost reductions mitigate margin decline in Scandinavian media houses
Online advertising growth of 18 percent in the media houses. Mobile and web TV are key drivers
Continued decline for print advertising and circulation
Digital transition and cost efficiency programs progress as planned