“In Q3 2016 Schibsted reported its highest ever gross operating profit number for a third quarter. This was a result of continuing revenue growth and improved profitability margins in the online classifieds operations as well as online growth and significant cost reductions in the media houses,” CEO Rolv Erik Ryssdal says.
“In Online classifieds, we see continued high growth rates in France and steady high single digit growth in Scandinavia. As previously communicated, the growth in Spain has slowed down as a result of economical conditions. Other Developed operations, like Italy, Austria and Ireland are all growing well, and producing positive EBITDA for the second consecutive quarter,” Rolv Erik Ryssdal says.
“It is particularly pleasing to see that the operations in emerging markets, for example in Brazil, are showing great progress in terms of monetization. The combined losses in our joint venture operations in investment phase are reduced with more than 75 percent since Q3 2015. In Europe, our native app Shpock is repetitively setting new records in terms of traffic and engagement, and producing good return on the investments made there,” Rolv Erik Ryssdal says.
“Schibsted’s build-up of product and technology capabilities is progressing well, and new products and functionalities are being introduced regularly. In Q3, our new advertising platform was ramped further up, and within online classifieds, centrally developed components, like messaging functionality for marketplace apps, are being rolled out across our portfolio. Also, our next generation classifieds platform was launched in the first test market, Greece,” Rolv Erik Ryssdal says.
“Our newspapers in Norway and Sweden continue to face negative revenue development driven by rapid decline in print advertising. In Q3 we have managed to adapt the cost base fast enough to increase the EBITDA margin. It is also encouraging to see the number of digital subscribers growing rapidly. We believe this will be an important revenue driver for quality media in the future,” Rolv Erik Ryssdal says.
“The operations in Schibsted Growth continue to develop well. This goes for both personal finance sites, like Lendo, and price comparison,” CEO Rolv Erik Ryssdal says.
Highlights of Q3 2016
(Figures in brackets refer to corresponding quarter in 2015.)
- EBITDA ex. Investment phase of NOK 756 million, a growth of 13 percent. Total Online classifieds EBITDA ex. Investment phase grew 20 percent to NOK 670 million
- Continued positive high growth for Developed phase Online Classifieds
- Solid revenue growth and stable margins in France. Monetization of the jobs vertical starts in Q4 2016
- Sustained growth in Norway, continued strong momentum in Sweden
- 8 percent revenue growth in Spain. The growth rate was reduced in Q3 primarily as a result of lower display advertising growth
- 20 percent revenue growth and positive EBITDA in Other Developed phase operations, driven by continued good development in Italy, Austria and Ireland
- Online Classifieds Investment phase continues positive trend
- Revenue growth accelerated to 69 percent.
- Reduced investment spend in emerging markets
- OLX Brazil progressing well with rapid revenue growth and reduced expenses.
- Significant investments and rapid growth in UK and Germany for native app Shpock
- Tight cost control leads to improved EBITDA in media houses, even if advertising markets are challenging
- Strong inflow of digital subscribers
- The build-up of product and technology competence continues. New products and functionalities launched in Q3, like the next generation online classifieds platform in Greece and further ramp-up of Schibsted’s new advertising platform
- Acquisition of MB Diffusion, the leading online classifieds market place for agricultural and construction equipment in France was announced
Schibsted invites to an analyst and press conference at Apotekergata 10, Oslo, 4 November 2016 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, EVP CTO Rian Liebenberg and EVP CPO Terje Seljeseth will present at the analyst and press conference.
A conference call with Q&A linked to the Q3 2016 numbers will take place 4 November 2016 at 14:00 CET. Please dial in at the following numbers:
- Norway: 800 51084
- UK: 0800 358 6377
- USA: 800-347-6311
- International: +44 (0)20 7026 5967
Conference ID is 6860682.
- Trond Berger, CFO. Tel: +47 916 86 695
- Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733