“Q2 2015 was a good quarter for Schibsted. Our Online classifieds operations grew revenue by 16 percent and the gross operating profit increased by 32 percent. Over the last few quarters we have made significant steps forward when it comes to organic growth, structural agreements and bolt on acquisitions. We see potential for good value creation through in-market consolidation,” CEO Rolv Erik Ryssdal says.
“In Q2, our operations performed well in most markets. The development was positive in European established markets like France, Norway and Sweden. Spain was among the companies with the most noteworthy development, where the revenue growth is accelerating and margins are recovering well. This is not only on the back of the general economical improvements in the country, but also great execution by our staff there,” Rolv Erik Ryssdal says.
“During Q2 and so far in Q3, we have strengthened our positions in several online classifieds markets through acquisitions and partnerships. In Ireland, we have joined forces with Distilled Media, providing us with a leading position in the Irish real estate market as well as a stronger leadership in generalist and cars. In Mexico we have reinforced our leadership through the acquisition of Anumex,” Rolv Erik Ryssdal says.
“We are well equipped to continue to take part in consolidation in online classifieds markets. The successful establishment of a B share class in Q2 significantly increases our room for maneuver in this respect,” Rolv Erik Ryssdal says.
“Within Media Houses, we see continued growth in online revenues for most of our operations. However, the continued decline for print combined with the speed of change in the online markets creates concerns regarding the media houses profitability. Our competitors are increasingly global platforms, and we need to stay focused on developing our services fast. High quality, independent journalism is, and will remain, the fundament of our winning recipe,” Rolv Erik Ryssdal says.
“The advertising markets are in rapid development, and it is necessary to continue to develop our product offerings. Data driven, highly targeted products based on the technology platforms Schibsted is currently developing, is expected to be launched later this year and in 2016,” CEO Rolv Erik Ryssdal says.
Highlights of Q2 2015
(Figures in brackets refer to the corresponding period in 2014.)
- EBITDA of NOK 642 million, a growth of 12 percent.
- Online classifieds revenues grew by 16 percent, whereas the EBITDA grew 32 percent. EBITDA margin of 36 percent (32%); 45 percent (44%) excluding investments in New Ventures.
- 15-20 percent online classifieds revenue medium to long term growth target maintained
- 17 percent revenue growth in France in Q2, partly affected negatively by public holidays.
- High margins and improved growth rate in Finn.no. Blocket.se saw a stable revenue growth fuelled by new verticals.
- Accelerating revenue growth in Spain to 17 percent, and improved EBITDA margins.
- Revenue growth in Italy of 38 percent. Continued strong trend from Q1, and increased gap to main competitor.
- Strengthened positions in several markets through organic initiatives, joint ventures and acquisitions.
- New, strong leader formed in Ireland through combination with Distilled Media. Number one in real estate, generalist and cars.
- Leading position in Mexico strengthened by the acquisition of Anumex.
- Continued strong growth in key performance indicators in most markets such as Brazil, Chile and Finland.
- 91 percent growth in number of visits in June in the portfolio outside Europe.
- Continued good traction in Germany and UK for the mobile-only classifieds app Shpock.
- Mixed development in Media houses.
- Continued overall growth in online revenues. Steady growth in Aftonbladet, online revenue contraction in VG.
- Total circulation revenues for subscription newspapers in Norway were flat, supported by online growth.
- Print advertising continue to decline. Continuous work on adapting cost base.
- Steady growth and margin improvement for personal finance and price comparison services.
- B shares established, providing flexibility to pursue value creative M&A.
- Process to establish new ownership for free newspapers, Schibsted Forlag and Svenska Dagbladet. Reduced exposure to print media.
Schibsted invites to an analyst and press conference at Apotekergaten 10, Oslo, 17 July 2015 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on www.schibsted.com/ir.
A conference call with Q&A linked to the Q2 2015 numbers will take place 17 July 2015 at 14:00 CET. Please dial in at the following numbers:
Norway: 800 56 053
UK: 0800 279 4841
USA: 1877 280 2296
International: +44(0)20 3427 1910
Conference ID is 6953830
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733
Anders Christian Rønning, Investor Relations Officer. Tel: +47 916 05 660