In 2011 Schibsted expanded into several new countries with its online classified services.. Combined with a high level of innovation in our traditional markets, this gives us a solid base for growth and value creation for our owners. For our newspapers this also provides a good platform for practicing independent journalism with a high level of quality.
The media industry is undergoing radical changes, and Schibsted Media Group places a lot of emphasis on playing a role in the new media reality. 2011 has seen a dramatic increase in media consumption via mobile devices. Schibsted also has good products in this area, and has witnessed strong growth in earnings for mobile products. The strong growth in mobile and other digital services is reflected in the continuing decline in the consumption of print media.
- The Group's gross operating profit (EBITDA) was NOK 2,185 million, in line with the result reported in 2010.
- EBITDA margin of 15 per cent (16%). Favorable development for online activities, in particular Online Classifieds, contributes positively. The rolling out of Online Classifieds impacts the EBITDA margin negatively by 3 per cent points.
- Schibsted Media Group achieved underlying growth in operating revenues of 6 percent in 2011. Reported revenue growth was 4 per cent.
- The Online Classifieds segment reported good growth, with an underlying increase in revenues of 21 per cent.
- The media houses reported an underlying increase in revenues of 2 per cent. Advertising revenues for print fell by 2 per cent while the online advertising revenues for the media houses increased by 18 per cent.
- Schibsted invested NOK 412 million in the rolling out of the Online Classifieds operations in new markets in 2011. This is NOK 187 million more than in 2010.
- Positive developments for Schibsted Tillväxtmedier’s growth companies in the web-based services sector in Sweden. A corresponding company, Schibsted Vekst, has been established in Norway and has started to develop concepts for online services also in Norway.
- Blocket concept introduced in additional new countries, including Brazil under the name Bomnegocio.com.
- Cost reductions with an annual effect of NOK 190-210 million for the Scandinavian newspaper operations decided. Effects to be realised during 2012 -2014, primarily in 2012.
- Acquisition of the online classifieds market leader in Ireland DoneDeal.ie.
- 36.3 per cent of the shares in Polaris Media, liked to which Schibsted since 2009 has had a total return swap, was sold to Swedish strategic media investors and a financial investor.
- Subito.it in Italy and Willhaben.at in Austria have strengthened their positions as market leaders, and were profitable in Q4.