Today Schibsted ASA (SCH) released its Q1 2011 report, which shows operating revenues of NOK 3.5 billion, underlying an increase of 7 per cent compared to the same period in 2010. Advertising revenues contributed with a growth of 14 per cent. EBITDA in Q1 was NOK 447 million, a growth of 7 per cent compared to the same period in 2010.
– I am very pleased to announce that for the seventh consecutive quarter Schibsted Media Group can present a quarterly result ahead of what we achieved in the same period in the previous year. This is the highest profit we have ever posted in a first quarter, CEO Rolv Erik Ryssdal says.
– While we had some help from the advertising markets this first quarter, credit is equally due to the hard efforts invested in product development and strengthening our market positions within Online Classifieds and large sections of our Media House operations. A high level of cost control is also a key factor for all operations, Mr. Ryssdal states.
The merger between Schibsted and Media Norge was resolved in Q1, and it was closed on 12 May.
– The merger is an important event for us. I personally believe that this merger is the best solution for all interested parties. Our Media House and Online Classifieds operations represent our two strategic pillars, and Media Norge has developed strong positions within both areas. The fact that the media houses in Media Norge, and the website Finn.no, performed well in Q1 is very encouraging, says Rolv Erik Ryssdal.
– The media industry is changing more rapidly than ever before. Our goal is to be at the forefront of the developments that shape both us and the rest of the industry. During the first months of 2011, we recorded an increase in both traffic and income from Online Classifieds and other Internet markets. The subscription-based newspapers are thriving, while the circulation volume for single copy newspapers has seen a substantial decline. We work in a dynamic industry and have to make continuous adaptations to our operations, CEO Rolv Erik Ryssdal says.
Highlights in Q1 2011
(Figures in brackets refer to the corresponding period in 2010.)
Improvement in result and good growth in revenues
- Underlying growth in operating revenues of 7 per cent.
- In Q1 2011, the Group made an EBITDA of NOK 447 million (418 million). This is the best result ever achieved by Schibsted Media Group in a first quarter.
- EBITDA margin of 13 per cent (13 %).
- Increased investment in the roll-out of online classified advertisements and product development for established operations such as Finn.no.
- Underlying growth in advertising revenues of 14 per cent driven by significant progress in online operations and growth for printed newspapers in Scandinavia.
Media houses continue to report good earnings
- Underlying growth of 2 per cent in the Media Houses Scandinavia revenues in Q1.
- Strong improvement in the results of Media Norge’s regional newspapers.
- The fall in circulation volumes for single copy newspapers is partly outweighed by price increases and cost reductions.
- Positive development for web-based growth companies in Norway and for Schibsted Tillväxtmedier in Sweden.
Strong growth and improved margins for Online Classifieds
- Underlying growth in operating revenues of 28 per cent for Online Classifieds. This took place in both established markets and the portfolio of newly created classified advertisement websites.
- Growth of 34 per cent in the EBITDA of established Schibsted Classified Media operations.
- The Schibsted Media Group is maintaining its rapid roll-out rate in new markets and this lowered the EBITDA by NOK 70 million in Q1. This is NOK 32 million more than in Q1 2010, mainly due to increased marketing activities.
- Leboncoin.fr continues to increase both traffic and revenues and is one of the largest Online Classifieds businesses in Europe.
- 31 per cent growth in revenues and improved margin for Finn.no, with other established operations also reporting healthy gains.
|Operating revenues||3 496||3 258||13 768|
|Gross operating profit (EBITDA)||447||418||2 199|
|Gross operating profit after depreciation and amortization (EBITA)||310||266||1 611|
|Profit (loss) before taxes||289||251||3 399|
|Earnings per share (EPS)||1,53||1,45||27,04|
|Adjusted Earnings per share (EPS)||1,41||1,41||9,72|
|Cash flow from operations per share (NOK)||2,40||2,43||19,73|
|Net interest bearing debt (NIBD)||1 990||2 389||1 820|
|Net interest bearing debt/EBITDA last 12 months||0,9||1,3||0,8|
|Equity share||42,8 %||37,4 %||42,4 %|
Trond Berger, CFO. Tel: +47 916 86 695
Oslo, 13 May 2011
Jo Christian Steigedal
VP Investor Relations