Annual Report 2011

2011
Operations
Society
Corporate Governance
The Share
Annual Report
Financial Statements

Ryssdal

LETTER FROM THE CEO, read here

IMPORTANT EVENTS 2011

Schibsted Media Group has delivered good results for 2011.
A higher rate of investment in 2011 linked to the rolling-out of the online classified business in new markets
Focusing on creating further growth through the development of new income flows for established operations and by rolling out established concepts in new markets.
Developments in the advertising markets in Scandinavia were positive in the first half of 2011, followed by a somewhat weaker development in the second half of the year.
Revenues from online advertising were good throughout the year. The trend for paper was somewhat weaker.
New savings measures have been implemented to reduce the cost base.
In May 2011 the merger between Schibsted ASA and Media Norge was closed.
Considerable decline in the circulation of the Group’s single-copy sales newspapers
Increased use and popularity of smart phones and e-readers. Huge growth in the traffic to mobile services.
The development of user-payment models for digitally distributed editorial products is an important priority for the Group.

ANNUAL REPORT, read here

Revenues: Business segments

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2011 IN SHORT

We asked some photographers in Schibsted media to share their 2011pictures.

KEY FIGURES

Schibsted Media Group has delivered good results for 2011, in line with the result reported previous year. In the rapidly growing online-markets the market position was strengthened.


(NOK MILL.)	2011	2010
Operating revenues	14,378	13,768
Gross operating profit (EBITDA)	2,185	2,199
Gross operating margin (EBITDA)	15 %	16 %

KEY FIGURES

For definitions and more key figures, see here
For Schibsted share key figures, see here

(MNOK)	2011	2010	2009
Operating revenues	14,378	13,768	12,745
Operating expenses	(12,232)	(11,605)	(11,184)
Share of profit (loss) from associated companies	39	36	(67)
Gross operating profit (loss) (EBITDA)	2,185	2,199	1,494
Depreciation and amortisation	(505)	(588)	(662)
Impairment loss	(191)	(110)	(161)
Other revenues and expenses	(50)	1,909	(236)
Operating profit (loss)	1,439	3,410	435
Profit (loss) before taxes	1,331	3,399	279
Gross operating margin EBITDA (%)	15	16	12
MEDIA HOUSES SCANDINAVIA
Operating revenues	9,991	9,771	8,657
Gross operating profit (EBITDA)	1,275	1,324	755
Gross operating margin (EBITDA) (%)	13	14	9
MEDIA HOUSES INTERNATIONAL
Operating revenues	1,004	1, 009	1, 074
Gross operating profit (EBITDA)	38	60	10
Gross operating margin (EBITDA) (%)	4	6	1
ONLINE CLASSIFIEDS
Operating revenues	3,495	2, 938	2, 627
Gross operating profit (EBITDA)	1,076	972	803
Gross operating margin (EBITDA) (%)	31	33	31

ONLINE CLASSIFIEDS

In 2011 more than one third of Schibsted Media Group's operating revenues came from digital sources. 24 % came form the Online classifieds business area. The other 11 % came from the Media Houses.

ONLINE CLASSIFIEDS

Schibsted holds strong and profitable market positions in online classifieds in Norway, Sweden, France, Spain and Ireland. The business area also includes a portfolio of websites in the investment phase in several different markets.

2011 saw positive trends for online classifieds in all markets. This business area showed underlying growth in operating revenues (adjusted for currency fluctuations, closure of print publications, and acquisitions and disposals) of 21 per cent.

Online classified businesses, with the exception of those in investment phases, had an EBITDA margin of 43 per cent (41%).

FINN.NO

Norway's undisputed online marketplace leader continues its positive trend. Growth in operating revenues was 23 per cent. Total operating revenues amounted to NOK 1,135 million. (NOK 948 million.). Operating margin (EBITDA) was 47 per cent (45%).

FINN.NO IN 2011

SCHIBSTED CLASSIFIED MEDIA

Schibsted Classified Media has gained top positions with good growth and high profitability in a several markets. At the same time, new businesses are under establishment and the Blocket concept was launched in several new countries, including Brazil. Total operating revenues amounted to EUR 264.1 million (EUR 213.7 million). Operating margin (EBITDA) was 22 per cent (27%).

SCHIBSTED CLASSIFIED MEDIA IN 2011

HITTA.SE

Measured in traffic volumes, Hitta, a pure-play directory service, retains its position as the Swedish market leader. Mobile traffic volumes are increasing rapidly. Total operating revenues amounted to SEK 343 million (SEK 342 million). Operating margin (EBITDA) was 28 per cent (30%).

HITTA.SE IN 2011

MEDIA HOUSES

Media Houses Scandinavia

Media Houses Scandinavia showed a positive trend for advertising sales, a slightly weaker trend for print, and a decline in circulation revenues.

Media Houses International

The international media houses had an underlying growth in operating revenues, but the operating margin fell slightly due to the focus on increased distribution in France and the weak results for the Spanish operation.

MEDIA HOUSES

MEDIA HOUSES SCANDINAVIA

Media Houses Scandinavia showed a positive trend for advertising sales in 2011, a slightly weaker trend for print, and a decline in circulation revenues. The underlying growth in operating revenues was 2 per cent and equivalent to the growth in reported revenues.

Included in this business area are the media houses in Media Norge, VG, Schibsted Sverige, and the group's publishing operations. Finn.no is organizationally part of Media Norge, Hitta.se is owned by Schibsted Sverige, but both is reported as part of the online classifieds business area.

MEDIA HOUSES INTERNATIONAL

Schibsted Media Group’s media houses outside Norway and Sweden are located in Spain, France, Estonia, Latvia and Lithuania.

The operating margin (EBITDA) fell slightly due to the focus on increased distribution in France and the weak results for the Spanish operation. Spain is contending with extremely difficult macro-economic conditions for which no resolution is currently in sight. The result was burdened with costs for successful investments in product development.

In 2011 the international media houses had an underlying growth in operating revenues of two per cent.

MEDIA NORGE

Three of the four media houses in Media Norge reported improved operating profits for 2011. The online newspapers are improving their readership and financial results. The printing businesses were separated from the media houses. Total operating revenues amounted to NOK 4,615 million. (NOK 4,472 million). Operating margin (EBITDA) was 13 per cent (13%).

MEDIA NORGE IN 2011

SCHIBSTED SVERIGE

Schibsted Sverige comprises three central operations: Aftonbladet, Svenska Dagbladet and Schibsted Tillväxtmedier (portfolio of internet-based growth companies).Total operating revenues amounted to SEK 3,920 million (SEK 3,900 million). Operating margin (EBITDA) was 11 per cent (12%).

SCHIBSTED SWEDEN IN 2011

VG

In a market undergoing rapid change, the VG media house is strongly committed to digital products. During 2011 many of VG's users made the transition to VG's digital products on mobile phones and tablets. Total operating revenues amounted to NOK 1,906 million (NOK 1,909 milllion). Operating margin (EBITDA) was 16 per cent (18%).

VG IN 2011

20 MINUTES (FRANCE)

In France the free newspaper 20 Minutes had a growth in operating revenues of 16 per cent and consolidated its position as the country's most-read newspaper. Total operating revenues amounted to EUR 60.6 million. (EUR 52.4 million.). Operating margin (EBITDA) was 4 per cent (7%).

20 MINUTES IN 2011

20 MINUTOS (SPAIN)

The free newspaper 20 Minutos is Spain's most-read newspaper, with a weekday readership of 2.1 million. The financial crisis in Spain has led to a decline in the advertising market compared to 2010. Total operating revenues amounted to EUR 22.3 million (EUR 26.0 million). Operating margin (EBITDA) was -16 per cent (2%).

20 MINUTOS IN 2011

EESTI MEEDIA GROUP

Schibsted owns several companies in Estonia, Latvia and Lithuania. These are organized through the holding company Eesti Meedia Group. The Baltic market showed some improvement in 2011. Total operating revenues amounted to EUR 75.7 million (EUR 72.2 million). Operating margin (EBITDA) was 10 per cent (9%).

EESTI MEEDIA GROUP IN 2011