August 22, 2012 at 04:00 AM EDT
Schibsted ASA (SCH) - Details for restructuring plan in the media houses

The structural changes in the media landscape are happening faster than ever before. Tablets and smartphones accelerate the shift to digital platforms. In this context Schibsted`s media houses need to invest substantially in digital competence and at the same time reduce the cost base.

- The aim is to continue the digital transition in our media houses in order to gain as strong positions online as they enjoy today in traditional media. Strong editorial products will continue to be the fundament for healthy and profitable media house businesses also in the digital future, CEO Rolv Erik Ryssdal says.

In the Q2 2012 report Schibsted announced an ambition to reduce costs with a full year effect of approximately NOK 500 million over the next two years in the subscription based newspapers of Norway and Sweden, in addition to Spain. It is expected that around NOK 400 million of the savings will be made in the Norwegian subscription based media houses Aftenposten, Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen. Around SEK 50 million of cost reduction measures are planned in the Swedish media houses, mainly Svenska Dagbladet, and measures totalling NOK 40-50 million in full-year effect have already been implemented in the Spanish free newspaper operation.

A substantial part of the cost reductions will be realized through headcount reductions.

Restructuring charges of around NOK 300-350 million are linked to the cost reductions. Most of these will be charged to the P&L in the second half of 2012, on the "Other revenues and expenses" line.

Co-location in Oslo
It has been decided to co-locate Schibsted`s two major Oslo based media houses Aftenposten and VG at Akersgata 55, Oslo, where VG is located today. Akersgata is a newspaper street with rich traditions. It has a central location in Oslo, and is close to Norway`s key national institutions. This solution will facilitate more collaboration and provide the employees with good working environments.

For Schibsted, the main goals for the co-location are to create a good working environment, keep and strengthen the identity of the different units and achieve a positive overall financial effect. Finn.no, Schibsted Forlag and the Group headquarters will remain at their current premises in Oslo.

 

Contact persons:
Trond Berger, CFO. Tel: +47 916 86 695
Didrik Munch, CEO Schibsted Norge. Tel: +47 915 85 940

Oslo, 22 August 2012
SCHIBSTED ASA

Jo Christian Steigedal
VP Investor Relations

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)



This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

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(i) the releases contained herein are protected by copyright and other applicable laws; and
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information contained therein.

Source: Schibsted via Thomson Reuters ONE

HUG#1635456
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