The cost reduction program announced in 2001 in Aftenposten is running according to schedule. However, the revenues so far in 2002 has declined more than expected and it is necessary for the company to adjust to a lower level of revenues for the years to come to ensure profitable operation. Further restructuring was therefore announced in connection with Schibsted’s presentation of first half of 2002. The ongoing restructuring work implies major structural changes in productivity and/or the organisation. The conclusions from the restructuring work carried through this fall will be on the agenda at the Board meeting in Aftenposten on December 5th 2002.
At this point in time the following summary of the work in Aftenposten can be made:
- It is not unlikely that the number of man-years in Aftenposten will be reduced considerably. This is necessary to ensure efficient and profitable operation.
- The preliminary budget for 2003, excluding effects from the restructuring work, does not provide sufficient profitability. It is yet to early to say which effects the restructuring work will entail. In addition to the focus on reduction of the cost level in Aftenposten the company actively seeks a way to ensure a positive development in the circulation as well as new sources of revenues going forward.
- During 2001 the advertising revenues in Aftenposten declined with NOK 140 million and as of September one has experienced a corresponding decline in percentage in 2002. There is a high degree of uncertainty linked to next year but the drop is expected to come to a halt during 2003, and the advertising revenues for the year is expected to be somewhat lower than for 2002.
Oslo, 18 October 2002