Schibsted today holds its Capital Markets Day in Oslo. The presentation material that is being used can be downloaded from Schibsted’s website www.schibsted.com/ir. The presentations can be followed by live webcast on the same site from 12:00 CET.
Main elements of the presentations are as follows:
· Schibsted’s strategy with two strategic pillars is reiterated. First, the group aims to further develop the position as a leading player within Online classifieds. The second strategic pillar is the strong Media houses with leading positions online and on print in Norway and Sweden as well as international.
· Schibsted today announced that the company has acquired full control over the third largest online classifieds site in Europe, Leboncoin.fr, through the purchase of the remaining 50% of the company at a price valuing the company at EUR 400 million on a 100% basis. This confirms the Group’s growth ambitions within Online classifieds. At the same time the strong position in the French market creates opportunities to develop new online business. The operating revenues in Leboncoin.fr are in 2010 expected to grow with around 100%. The revenue in first half 2010 was EUR 16 million and the operating margin (EBITDA) was 59%. The growth of Schibsted’s Online classifieds operations will in the future come through further development and innovation in existing operations, launches of proven concepts in new markets and targeted acquisitions in key markets.
· The Media houses in Schibsted continue their efforts to improve efficiency through higher degree of cooperation across units. This creates the fundament for continued capability for innovation and further strengthening of the editorial core products, and through this solid financial development in the future.
· Developing of models for user payment for online content is a high priority task for the Media houses in Schibsted. Several of the newspapers will launch paid for online products for the iPad in 2010 and 2011.
· Schibsted has through the Swedish company Schibsted Tillväxtmedier achieved good results from developing new online business based on the established strong traffic positions in Sweden. A similar organization will be established in Norway with the ambition to strengthen innovation and growth pace here as well.
Schibsted today released financial targets for the coming 3-5 years. The group will develop towards and meet the targets given a mid cycle environment. The most important targets are as follows:
· EBITA margin: 10-12%
· Growth in operating revenues: 5%
· Financial gearing: NIBD/EBITDA 1-2x. In special situations up to 3x, but with a plan to reduce to normal range
· Dividend policy: 25-40% of cash flow
· Equity ratio: 35-50%, minimum 25%
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, VP Investor Relations. Tel: +47 415 08 733
Oslo, 22 September 2010
Jo Christian Steigedal
VP Investor Relations
Schibsted is a Scandinavian media group with ambitions to be a leading player in Europe. The Group has market leading positions online and on print in Norway, Sweden and internationally through strong media houses and online classifieds operations. The growth strategy of Schibsted is founded on close interaction between brands, content and media platforms – print, online and mobile. Schibsted has 7,500 employees and operations in 26 countries. Operating revenues in 2009 were NOK 12.7 billion and operating profits (EBITA) were NOK 832 million. Schibsted is listed on the Oslo Stock Exchange (ticker: SCH).