“In Q3 Schibsted announced that we will spin off our international marketplaces businesses into a separate, listed company. This is a major strategic step for the Group, which will create new opportunity and shareholder value both for the new company, preliminarily called MPI, and for the remaining Schibsted. The plan is first day of trading for MPI in April 2019, and we have decided to apply for listing of MPI at the Oslo Stock Exchange,” CEO Rolv Erik Ryssdal says.
“Meanwhile, I am happy to report that our operations are developing strongly. Our Marketplaces operations are growing revenues well and improving their EBITDA margin. This is particularly driven by improved monetization in the verticals in key markets like France, Spain, Brazil and Norway. Sweden is still on the soft side,” Ryssdal says.
“The reduction in investment phase losses continues. Brazil is already producing good margins. Shpock enters a new phase with emphasized focus on a path to profitability, moving towards break-even during 2019,” Ryssdal says.
“Our publishing operations have experienced a slight revenue decline, but have been able to maintain solid operating margins in Q3, driven by good digital growth and tight cost control. High quality in our editorial products is paramount in order to continue to build long-term viable revenue models, and I am glad to see that the number of digital subscribers continues to develop positively,” Ryssdal says.
“In September, we announced the plan to roll our successful personal finance product Lendo out in three new markets, where we see significant potential for value creation. Although the revenue growth of Lendo was somewhat lower in Q3 than in previous few quarters, Schibsted sees personal finance and fintech as an exciting area of growth. Lendo currently is the most important initiative in this field, but we have several other exciting initiatives with promising development,” CEO Rolv Erik Ryssdal says.
Highlights of Q3 2018
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Marketplaces: Revenues continue to grow, and profits increase
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Revenue up 13 percent*; EBITDA margin up 2%-points to 35 percent*. Revenue from verticals grew 17 percent
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France, Spain, Norway and Brazil with strong development in Q3
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Lower margin in France due to acquisitions and increased marketing – Leboncoin.fr EBITDA margin in Q3 58 percent (61%).
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Investment phase losses are declining. Refocused ambitions for Shpock – moving towards break-even during 2019
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Publishing: Digital continues to grow
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1 percent total revenue decline; solid digital growth and 10 percent EBITDA margin (11%)
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Schibsted Growth: Continues to expand
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Continued growth for Lendo, but with lower rate than in previous quarters. Planning launch in three new markets
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International online marketplaces to be spun off and separately listed at Oslo Stock Exchange
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Kristin Skogen Lund appointed new CEO of Schibsted
*) Including proportionate share of JVs, adjusted for currency **) Excluding Hitta (divested Q3 2017)
Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 26 October 2018 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on https://www.schibsted.com/en/ir/. CEO Rolv Erik Ryssdal and EVP CFO Trond Berger will present at the analyst and press conference.
A conference call with Q&A linked to the Q3 2018 numbers will take place 26 October 2018 at 14:00 CET. The session will be held in English.
NOTE: To avoid waiting time when connecting to the call, please use the below link 5-10 minutes prior to start time, where you will be asked to type in your phone number and registration details. The Event Conferencing system will automatically call you back on the phone number you provide and place you into the event. Please note that the link will become active 15 minutes prior to the event: Link to join call: https://bit.ly/2yLsx3P
For manual dial-in, use the following number (note that this connection might take more time): +47 2100 2613. Passcode: 180160.
Contact persons:
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733
Oslo, 26 October 2018
SCHIBSTED ASA
Jo Christian Steigedal
Head of IR