November 07, 2012 at 01:00 AM EST
Schibsted ASA (SCH) - Interim Financial Statement Q3 2012

Today, Schibsted Media Group, released its Q3 2012 report, which shows operating revenues of NOK 3.5 billion, underlying an increase of 2 percent compared to the same period in 2011. The Online classifieds operations increased their revenues by 16 percent. The revenues of the media houses in Norway and Sweden declined by 2 and 1 percent, respectively.

- In Q3 we kept our underlying profit (EBITDA) stable compared to last year. That is satisfying in a challenging and dynamic media market, CEO Rolv Erik Ryssdal says.

- During the quarter we saw continued steady growth for our Online classifieds activities. The revenue growth for Online classifieds operations was 16 per cent in Q3. The very successful French online classifieds site Leboncoin.fr is still the most important growth driver. At the same time I am happy to see that the sites in Norway and Sweden continue to develop strongly with a high growth rate and good margins, Rolv Erik Ryssdal says.

- We continue to invest heavily in rolling our successful online classifieds concepts out in new markets. Positive developments in key markets, like Brazil, make us confident that the investments will yield good returns over time, Rolv Erik Ryssdal says.

- The Media houses suffer under an even stronger shift from print to online, but they continue their comprehensive transition program at full force. In Q3, the media houses experienced a print advertising decline of 12 per cent, or close to NOK 100 million, compared to the same period last year. We have seen signs of further deterioration of this trend in October. At the same time, we have been gaining market share in the online market.

- Our response is to strengthen our online efforts and reduce the cost level significantly in the print part of the business. This transition phase is a challenging process for the media houses and all the employees, and is expected to lead to softer margins for these operations than we have seen in the recent years, CEO Rolv Erik Ryssdal says.

Highlights of Q3 2012
(Figures in brackets refer to the corresponding period in 2011. Underlying figures are adjusted for currency effects and acquisitions and divestments)

  • Underlying growth in the Group`s operating revenues of 2 percent.
  • Group EBITDA NOK 514 million. Stable EBITDA excluding new ventures investments that were expensed. 
  • 17 percent underlying growth in revenues and 48 percent EBITDA margin for Online Classifieds ex. Investment phase.
  • Strengthened revenue- and profit growth momentum for key online classifieds operations in Norway and Sweden. Revenue growth of 47 percent in Leboncoin (France).
  • Revenue growth and reinforced market leader positions in the profitable online classifieds operations in Italy, Austria and Ireland.
  •  Investments in Online classifieds New ventures resulted in strong traffic development and improved market positions in new markets, including Brazil.
  • Firm cost control and good online growth in the media houses in Norway and Sweden. Migration from print to online puts pressure on print newspaper margins.
  • Comprehensive transition program under design in the Media Houses. Increased digital efforts combined with cost saving measures of NOK 500 million to be implemented during the coming two years.
  • Good revenue and profitability development for online activities in Media Houses.
Q3 Q3        As of Q3 Full year
2011 2012  (MNOK) 2012 2011 2011
3,380 3,524 Operating revenues     10,952     10,634     14,378
522 514 Gross operating profit (EBITDA) 1,531 1,636 2,185
15 % 15 % EBITDA margin 14 % 15 % 15 %
639 640 Gross operating profit (EBITDA) ex. Investment phase       1,949       1,895       2,597
19 % 18 % EBITDA margin ex. Investment phase 18 % 18 % 18 %
        342 346 Profit (loss) before taxes       1,098       1,179       1,331
2.00 2.06 Adjusted Earnings per share (EPS)        5.99        6.61        8.76

Schibsted invites to an analyst and press conference at Apotekergaten 10, Oslo, 7 November 2012 at 09.00 CET. The presentation will be transmitted live as a webcast on www.schibsted.com/ir.

A conference call with Q&A linked to the Q3 2012 results will take place 7 November 2012 at 14:00 CET. Please dial in at the following numbers:

International: +44 (0)20 7136 2054
From Norway: 800 56053
Conference code: 7941608

 

Contact person:
Trond Berger, CFO. Tel: +47 916 86 695

Oslo, 7 November 2012
SCHIBSTED ASA

Jo Christian Steigedal
VP Investor Relations


This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.



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

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Schibsted via Thomson Reuters ONE

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