Newspaper & Mailroom

Schibsted ASA (SCH) – Interim Financial Statement Q2 2012

Friday 10. August 2012 - Today Schibsted ASA released its Q2 2012 report, which shows operating revenues of NOK 3.6 billion, underlying an increase of 2 per cent compared to the same period in 2011. The Online classifieds operations increased their revenues by 16 per cent. The revenues of the media house operations in Schibsted Norge declined by 2 per cent, while Schibsted Sverige had a decline of 1 per cent.

– Q2 was a quarter where we saw continuing good growth for online classifieds. Our media houses continued to make further efforts adapting to structural change and softer advertising markets, CEO Rolv Erik Ryssdal says.
– The revenue growth for Online classifieds operations was 16 per cent in Q2. I am particularly satisfied with the continued strong development of our French online classifieds site Leboncoin.fr. Although this site is already highly successful, we are convinced that it still has a larger revenue potential in the years to come. In Scandinavia, Finn and Blocket show a steady development, and in Spain, Infojobs and Anuntis are doing a great job in a difficult market. Many of our new sites show a promising development says Rolv Erik Ryssdal.
– Our media houses are doing well in challenging markets. Despite operating in an environment where print publications are under pressure both from declining circulation and softer advertising markets, they continue to produce great content and to maintain a satisfactory profitability. Digital revenues grew at a good pace. We are also implementing various models for user payment for editorial content online, with promising results, says Rolv Erik Ryssdal
– The structural challenges in the media house business continue with tablets and smart phones accelerating the shift to digital platforms. In this environment we need to do two things: further strengthen our competence and capacity in the digital field and at the same time adjust the cost base. Schibsted aims to reduce cost by approximately NOK 500 million over the next two years in the subscription based newspapers of Norway and, Sweden, in addition to Spain. We are convinced that editorial products will be sought after and form the basis of a healthy and profitable business also in the digital future, says CEO Rolv Erik Ryssdal.
Highlights of Q2 2012
(Figures in brackets refer to the corresponding period in 2011.)
n 16 per cent growth in revenues for Online Classifieds and 50 per cent EBITDA margins in established businesses.
n Firm cost control and good online growth in the media houses in Norway and Sweden.
n Underlying growth in the Group’s operating revenues of 2 per cent.
n Group EBITDA NOK 596 million in Q2 2012 (NOK 675 million).
n Adjusted for growth initiatives that have been expensed in Online Classifieds, EBITDA was NOK 749 mill. (NOK 748 mill).
Strong growth and high margins for Online Classifieds
n Underlying growth of 23 per cent in operating revenues for Established phase operations in Schibsted Classified Media. Finn.no grew by 6 per cent, underlying.
n Operating revenues for Leboncoin.fr increased 62 per cent in Q2, and the site produced continued high margins. The website is one of Europe’s largest online classifieds sites measured by traffic.
n Subito.it in Italy, Willhaben.at in Austria and Donedeal.ie in Ireland strengthened their positions as profitable market leaders.
n Growth initiatives in Online classifieds reduced the EBITDA by NOK 153 million in Q2. This is NOK 80 million more than in Q2 2011 and the growth is primarily due to increased marketing.
Structural shift requires substantial investment in digital competence and reduced cost base
n 9 per cent decline in print advertising revenues. 10 per cent increase in online advertising.
n Particularly strong growth in revenues and traffic on mobile platforms.
n Circulation volume decline for single-copy newspapers was partly compensated by price increases.
n Continued transition and cost reductions in the media houses. New measures will be implemented in the next two year period. Mainly in subscription based newspapers in Norway and Sweden, in addition to Spain. Total effect expected to be around NOK 500 million. Further details to be released during Q3 2012.
n Strong editorial products will continue to be the fundament for a healthy and profitable business also in the digital future.