The effect of new revenue recognition in IFRS 15 implementation on Operating revenues and EBITDA for Group is NOK -22 million in Q1. Adjusted for this effect, Group revenues is 4,378 million, adjusted EBITDA is NOK 632 million.
“In Q1 we continued to further improve profitability and cash flow, driven by strong growth in Marketplaces and Schibsted Growth. EBITDA increased by 41 percent and we reduced our capital investments,” CEO Rolv Erik Ryssdal says.
“In our Marketplaces division, we continued to increase revenue, particularly in the professional verticals. Revenue growth in Q1 was 14 percent, adjusted for currency fluctuations. Our EBITDA improved by 47 percent. The development was particularly strong in Leboncoin.fr, Finn in Norway and our Spanish business. Our joint venture in Brazil is growing fast, and was profitable in Q1. At the same time, we reduced the losses in our investment phase operations considerably. We are pleased by this good result, particularly when activity in our markets was negatively affected by Easter and cold weather in Europe,” Ryssdal says.
“Our Publishing business also saw higher digital revenues. VG and Aftonbladet are growing well in terms of digital advertising, whereas the growth of Aftenposten, Svenska Dagbladet and the rest of our subscription papers is driven by digital subscriptions. High quality editorial products lie at the heart of our Publishing division, and I am proud to say that our newsrooms have collected several awards for investigative journalism during the last months,” Ryssdal says.
“In Q1, we are for the first time reporting Schibsted Growth as a separate segment. This unit has developed into a significant value driver for Schibsted, and it is time to create more transparency regarding its future development. Our most important driver is the personal finance company Lendo, which is growing rapidly across all its markets. In total, revenue growth for Q1 was 46 percent and EBITDA margin reached 44 percent,” Ryssdal says.
“Across our operations, we continue to strengthen our efforts within product and technology development. We are developing joint platforms and common components in order to take advantage of our global scale. At the same time, we will continue to maintain important capabilities in the local operations in order to innovate efficiently and adapt rapidly to market demand,” CEO Rolv Erik Ryssdal says.
Highlights of Q1 2018
Marketplaces: Revenues continue to increase
– Revenues up 14%* (17% in NOK); EBITDA margin up 6%-points to 30%
– Driving monetization by broadening product portfolio and footprint in verticals
– France, Spain, Norway and Brazil all showing strong developments in Q1
– Reducing investment phase losses
Publishing: Continued digital growth
– Growing digital subscriptions revenue with 26% in Q1; digital advertising revenues +7%
– Total revenue +3%, EBITDA margin 6% – managing the structural change, as expected
Schibsted Growth: Continues to expand
– Revenues up 21% to NOK 456m. EBITDA margin increased to 22%
– Personal finance portal Lendo increased revenues by 46% with 44% EBITDA margin
New accounting standards:
– The effect of IFRS 15 implementation on Operating revenue and EBITDA for Group is NOK -22 million in Q1 2018. This effect will ease off in the coming quarters, and the effect for Q2 to Q4 is expected to be less significant
– IFRS 16 for leases will be implemented Q1 2019. Current lease expenses indicate that this will have a positive impact of EBITDA in the magnitude of NOK 500 million
*) Including proportionate share of JVs, adjusted for currency and negative IFRS 15 impact.
Schibsted invites to an analyst and press conference at Akersgata 55 (note: new address), Oslo, 3 May 2018 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on www.schibsted.com/ir. CEO Rolv Erik Ryssdal, EVP CFO Trond Berger and CEO Schibsted Marketplaces Sondre Gravir will present at the analyst and press conference.
A conference call with Q&A linked to the Q1 2018 numbers will take place 3 May 2018 at 14:00 CET. Please dial in at the following numbers:
Norway: +47 2350 0296
Sweden: +46 (0)8 5065 3942
USA: +1 323-794-2423
UK/International: +44 (0)330 336 9411
Conference ID is 9386521.
A recording of the conference call will be made available at www.schibsted.com/ir.