Solid profit improvement for Schibsted
Schibsted ASA (SCH) today released its Q4 2009 report, showing operating revenues of NOK 3,57 billion, underlying flat since the same period in 2008. Operating profit (EBITA) was NOK 348 million. In the same period in 2008 the operating profit (EBITA) was negative with NOK 122 million.
The advertising revenues of Schibsted declined by 0.4 per cent in Q4 2009 compared with the same period in 2008, indicating a lower decline rate than earlier in 2009. Circulation revenues increased underlying with 2 per cent.
– We are very satisfied with improving our results considerably in Q4. Even in poor markets our online classifieds sites have demonstrated significant growth combined with margin improvement, CEO of Schibsted Rolv Erik Ryssdal says.
– Our profitability programme has been implemented according to plan, and Schibsteds employees have managed to take advantage of the difficult markets to enhance and strengthen our positions, Ryssdal says.
– The market conditions are still uncertain, and we continue to plan for challenging times, Ryssdal says.
Highlights in Q4 2009
(Figures in brackets refer to the corresponding period in 2008.)
-
In Q4 2009, the Group made an operating profit (EBITA) of NOK 348 million (-122 million).
-
The improvement in profitability is due to the successful implementation of the Group’s profitability programme combined with continued growth in online activities.
-
Q4 operating revenues increased by 10 per cent to NOK 3.6 billion. The increase was mainly due to Media Norge being included in the consolidated accounts as of Q3 2009. The underlying operating revenues decreased by 0.4 per cent.
-
The underlying advertising revenues fell by 0.1 per cent compared to Q4 2008.
-
Cash flow from operations NOK 618 million in Q4.
-
Schibsted’s revenues from online activities are continuing to grow well. In Q4, revenues from online classifieds in-creased by 14 per cent, and the operating margin (EBITA) were 25 per cent (14%). Online newspapers increased their revenues by 26 per cent, and had an operating mar-gin (EBITA) of 5 per cent (0%).
-
Schibsted completed its profitability programme on schedule in Q4. The measures produced an effect of NOK 1.2 billion in 2009 as a whole, and the programme is thus ahead of the planned NOK 1 billion. This is due to some of the measures being implemented sooner than originally planned. The programme has resulted in the number of employees being reduced by 800 in 2009.
-
Schibsted is continuing its efforts to focus on core operations and free up capital. In Q4, Schibsted divested its shares in Basefarm for NOK 130 million and its shares in Teleadress for SEK 60 million. A process to consider the sale of Schibsted Trykk’s property in Oslo has been initi-ated.
-
Schibsted continued to develop new online classified sites in Q4 2009. Websites based on the Blocket concept were launched in Indonesia and Finland. This concept was launched in Switzerland and Hungary in Q1 2010 and is thus now in place in 11 markets outside Sweden.
-
Proposed dividend is NOK 1.50 per share (NOK 0.00).
| Q4 | Q4 | Full year | ||
| 2008 | 2009 | (NOK million) | 2009 | 2008 |
| 3,231 | 3,566 | Operating revenues | 12,745 | 12,851 |
| (122) | 348 | Operating profit (EBITA) 1) | 832 | 766 |
| (1,542) | (80) | Impairment loss | (161) | (1,558) |
| (247) | (50) | Other revenues and expenses | (236) | 482 |
| (2,094) | 168 | Profit before taxes | 279 | (740) |
1) Operating profit before impairment loss and other revenues and expenses.
In connection with the release of the quarterly results, Schibsted invites to a presentation today, 19th February 2010 at 09.00 CET at the Schibsted premises in Apotekergaten 10 Oslo. An English language video recording of the presentation is available at the Schibsted web pages www.schibsted.com/ir. A conference call with Q&A will be held at 14.00 CET.
Please find attached interim report, presentation material, and spreadsheet with financial and analytical information.
Contact person:
Trond Berger, CFO. Tel: +47 916 86 695
Oslo, 19 February 2010
SCHIBSTED ASA
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 7,250 employees and operations in 23 countries. Operating revenues in 2009 were NOK 12.7 billion and operating profits (EBITA) were NOK 899 million. Schibsted is listed on the Oslo Stock Exchange (ticker: SCH).