Schibsted Media Group presents the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) approved by the EU.
|SCHIBSTED MEDIA GROUP (MNOK)||2011|| 2010
|Gross operating profit (EBITDA) before share profit (loss) from associated companies
|Share of profit (loss) from associated companies
|Gross operating profit (EBITDA)
|Depreciation and amortisation
|Other revenues and expenses
Operating revenues reported for the Group increased by four per cent from 2010 to 2011. The underlying growth (adjusted for acquisitions and disposals of enterprises and currency fluctuations) is six per cent. The increase in revenue stems from good growth within the Group’s online classified advertising and improved advertising markets for digital media within the media houses.
The Online Classifieds business area had an underlying growth in operating revenues from 2010 to 2011 of 21 per cent. The growth is driven by FINN, Blocket, Leboncoin and Anuntis. The established operations within Schibsted Classified Media have an underlying growth of 25 per cent from 2010 to 2011.
Underlying growth in advertising revenues was nine per cent. Advertising revenues from print fell by an underlying two per cent. Digital online advertising had an underlying growth from 2010 to 2011 of 18 per cent. Changes to readership habits and an acceleration in the transition to digital media have led to a considerable decline in the circulation of VG and Aftonbladet single-copy newspapers. Total single-copy revenues fell by an underlying seven per cent, while the development of total advertising revenues improved with an underlying increase of four per cent.
The Group’s total operating expenses experienced an underlying increase of seven per cent. Schibsted is investing significant amounts in the launch of online classifieds in new markets based on the Blocket technology and the roll-out rate increased in 2011. The projects are characterised by a short development phase and active marketing in order to build market positions and future growth. In 2011, the consolidated financial statements were charged by an operating loss (EBITDA) of NOK 412 million (225 million) due to the portfolio of classified websites in the investment phase. Adjusted for the costs of these roll-outs, there is an underlying growth in costs of less than five per cent.
The number of full-time employees in the online businesses is 33 percent of total full-time employees in the Schibsted Media Group. For print operations, the number of full-time employees is 62 percent of the total.
Depreciation and amortisation in the Group were reduced as a result of down-sizing of operations and the impairment of non-current assets and intangible assets.
Other revenues and expenses in 2011 of NOK 50 million (NOK 1.9 billion) mainly consist of restructuring costs of NOK 202 million. This is a result of the implementation of the initiative to reduce the cost base in the Media House Scandinavia segment. These costs are mainly related to cuts to the workforce in Media Norge, VG and Schibsted Norge.
Amendments to pension plans in certain subsidiaries have resulted in a gain of NOK 99 million. The amendments comprise amendments to benefits in existing plans and change from unfunded benefit plans to insurance of disability benefits.
In relation to the ongoing downscaling of the operations in Sandrew Metronome, gains on sale of subsidiaries and gains on sale of intangible assets are recognised in 2011 by NOK 10 million and NOK 33 million, respectively. Restructuring costs related to the ongoing downscaling of the operations amounted to NOK 28 million.
There was also a positive effect from recognising as income a provision related to a legal dispute settled in Sweden.