As previously announced in a press release to Oslo Stock Exchange, a productivity and profitability program is implemented as a consequence of the advertising market for printed newspapers and Internet, which is weaker than expected.
The program includes a strategic priority and focusing of the company’s activities on short term profitability and cash flow, with structural changes for some activities. The program, which is mainly cost related and includes all activities in Schibsted, is expected to give a positive effect of approx. NOK 300 million.
As a consequence of the productivity and profitability program, the targeted operating margin (before goodwill) for 2002 is in the range of 8-10%. A detailed cost reduction program is under implementation in the various companies. In addition, activities to improve the positive cash flow from operations will be implemented. These activities will bring restructuring expenses, which will be booked the second half-year 2001.