Business News

Schibsted ASA (SCH) – Interim Financial Statement per 31.12.2008

Friday 27. February 2009 - At the Board meeting on 26 February 2009, the Board of Directors of Schibsted ASA approved the Interim Financial Statement as of December 31, 2008. Please find enclosed the Interim Report for Q4 2008.

Highlights in Q4 2008 – Weak classified ads markets, but continued good online growth

(Figures in brackets show the figures for the corresponding period in 2007.)
 
Weak classified ads markets, but continued good online growth
         The Group made a Q4 operating profit (EBITA) before income from associated companies of NOK 80 million (NOK 221 million). Including effects from associated companies, EBITA was NOK -100 million (NOK 247 million). Adjusted for impairment cost and restructuring charges relating to associates, the Group made an operating profit (EBITA) of NOK 62 million.
         The revenues from the Schibsted Group’s online activities grew by 17 percent to NOK 864 million in Q4. The operating margin was 10 percent (13%).
         Higher unemployment and weak real estate markets as a result of the financial crisis transforming into a real economic crisis have led to considerable falls in all of Schibsted’s printed classified ads markets. Online classified ads are also affected in the form of a weaker growth rate or, for some categories, a decline.
         The Group’s total operating revenues fell by 2 percent in Q4, with advertising revenues falling by 7 percent.
         The online-based classified ads operations in Scandinavia and Southern Europe are continuing to grow and deliver high margins.
         Product development and price increases relating to editorial products counteract the effect of VG’s and Aftonbladet’s reduced circulation volumes.
         The new products Hitta.se and Leboncoin.fr are continuing to improve and made a positive contribution to the Q4 operating results.
 
Extensive cost cuts and structural moves 
         Schibsted is applying strong measures to counteract the effect of the financial crisis and secure manoeuvrability financially. An extensive profitability programme with a combined effect of NOK 1 billion has been implemented in 2009.
         There will be an increased focus on structural measures. The establishment of Media Norge is continuing and Aftonbladet’s and Svenska Dagbladet’s operations will be coordinated in a new Schibsted Sverige.
         Investments in organic projects will be considerably less in 2009 than in 2008.
         The Group has agreed with its banking partners upon new financial covenants in its loan agreements, to ensuring greater financial flexibility. This gives room for manoeuvre and time to implement appropriate measures. 
         The Board of Directors proposes to distribute dividend of NOK 2.00 per share (NOK 6.00).
 
SCHIBSTED GROUP -Consolidated results per 31 December 2008
 
Q4
Q4
 
 
 
 
2007
2008
 
(NOK million)
2008
2007
3 622
3 536
 
Operating revenues
13 740
13 610
221
80
 
Operating profit (EBITA) before income from associated
companies 1)
895
1 028
26
(180)
 
Income from associated companies
(73)
149
247
(100)
 
Operating profit (EBITA) 1)
822
1 177
(8)
(1 542)
 
Impairment loss
(1 558)
(33)
10
(247)
 
Other revenues and expenses
482
102
177
(2 072)
 
Profit before taxes
(684)
1 028
 
1) Operating profit before impairment loss and other revenues and expenses.