Aftonbladet launches free sheet

Schibsted ASA (SCH) , Published 15/09/2006 15:17:08

Aftonbladet has decided to launch the free sheet .SE in Stockholm, Gothenburg and Malmö. The launch date will be October 2nd this year, and the free sheet will be published on the weekdays Monday to Friday. At launch, the circulation will be approximately 300,000 copies.
.SE will strengthen the position of Aftonbladet in geographical areas where it has historically had a somewhat weaker position. Aftonbladet will through .SE consolidate its position as a leading national channel for brand advertising in Sweden. The advertising revenues of Aftonbladet as a media house are expected to increase significantly as a consequence of the strengthened coverage.
.SE is expected to contribute with an operating loss of approximately SEK 50 million in 2006. In 2007 the free sheet is expected to contribute with an operating loss of approximately SEK 135 million stand alone. Adjusted for extra advertising revenues for the Aftonbladet group, operating loss from the free sheet project is expected to be approximately SEK 80 million in 2007. .SE is expected to become profitable stand alone after three years of operation.
In accordance with earlier communications, new initiatives will contribute negatively with approximately NOK 350 to 370 million for the Schibsted group in 2006, included the free sheet in Sweden. There is an ongoing process in Schibsted related to the company’s product and marketing strategies, the outcome of which will give guidance for investments in new initiatives in 2007.
Contact persons:
CFO of Schibsted, Trond Berger tel.: +47 91 68 66 95
CEO of Aftonbladet, Carl Gyllfors tel.: +46 706 762 107
Oslo, September 15th 2006
Schibsted ASA