1) Organisational changes
As a result of the growth both within the Newspaper business area and the Multimedia business area during the first half of 1998, Schibsted has implemented the following organisational changes. Sverre Munck, Executive Vice President and CFO at Schibsted ASA will become Executive Vice President for the Multimedia business area. Birger Magnus will continue as Executive Vice President for the Newspaper business area and as a member of the board of Schibsted Multimedia AS. New Executive Vice President and CFO will be appointed later.
2) Increased ownership in Postimees
Schibsted ASA has entered into an agreement with the majority shareholder of the Postimees group, Mr. Heldur Tõnisson, whereby Schibsted`s ownership will increase from 34% to 92.5%. The remaining 7.5% will be owned by the Tulevik Foundation which will retain special privileges with respect to the appointment of the Editor-in-Chief of the newspaper Postimees and the magazine Luup, to ensure that the publications` editorial traditions and integrity will be continued.
3) TV-alliance with Endemol
Schibsted and Dutch TV production conglomerate Endemol, which is one of the largest TV production companies in Europe, have reached an agreement in principle to form a strategic alliance in the TV production field in the Nordic countries. The alliance will make Schibsted and Endemol the largest independent TV producer in the Nordic countries.
The parties have signed a letter of intent with regard to a 35% participation of Endemol in Schibsted`s production company Metronome Film & Television. Endemol`s television production activities in Norway, Sweden, Denmark and Finland will be integrated in Metronome. Schibsted and Endemol estimates the annual revenues for the combined company to approximately NOK 400 million. Schibsted will remain the majority Metronome shareholder with more than 60% of the shares.
4) Increased losses in Multimedia
The operating losses for the Multimedia business area is estimated to NOK 160 million for 1998. This is significantly higher than earlier estimates. The increased losses is due to restructuring in Sweden, new activities and limited revenues from existing activities.
Oslo, 18. august, 1998