Today Schibsted ASA (SCH) released its Q3 2010 report, which shows operating revenues of NOK 3.29 billion, underlying a growth of 5 per cent compared to the same period in 2009. Advertising revenues contributed with a growth of 15 per cent. The operating profit (EBITA) in Q3 was NOK 412 million, a growth of 36 per cent compared to the same period in 2009.
– It is a pleasure for us in Schibsted Media Group to report third quarter figures that show a strong improvement in the results compared to the equivalent period in 2009, Mr. Rolv Erik Ryssdal, CEO of Schibsted Media Group says.
– The improvement is a result of both hard work on profitability improvement measures throughout the Group and growth in our media houses and online classifieds activities, Mr. Ryssdal says.
Schibsted continues its work on strengthening the activities in the media houses, and at the same time continues its efforts to develop Online classifieds operations in Scandinavia and internationally.
– In the third quarter, we were able to grow our profits at the same time as we increased our efforts to roll out new online classifieds activities outside our traditional core markets. This ensures that the Schibsted Media Group is building a strong foundation for innovation and growth in its operations combined with good value creation for its owners, Mr. Ryssdal says.
– We will continue to spend a lot of time and energy on positioning ourselves in a changing media sector. For example, we can see a negative trend for single-copy sales of newspapers and it will be very important to continue working on user-payment models for digitally distributed newspapers, says Mr Ryssdal.
Highlights in Q3 2010
Continued improvement in results in Q3
- In Q3 2010, the Group made an operating profit (EBITA) of NOK 412 million (303 million).
- Operating margin (EBITA) of 13 per cent (9%).
- Underlying growth in operating revenues of 5 per cent. Reported growth was 1 per cent, negatively affected by currency and divestments.
- The improvement is due to continued online growth combined with the effect of the Group’s profitability programme and positive developments in the Scandinavian advertising markets.
- Underlying growth of 15 per cent in the Media Houses’ and Online Classifieds’ advertising revenues compared to Q3 2009, driven by improvements in the online activities and most print categories in Scandinavia.
Growth and higher margins for Media Houses
- Underlying growth of 2 per cent in the Media Houses Scandinavia revenues in Q3. Advertising revenues rose by 15 per cent.
- The EBITA margin increased from 7 to 12 per cent driven by cost cuts and stronger positions, especially online, and improved advertising markets.
- Strong developments in Schibsted Tillväxtmedier’s online services in Sweden, such as consumer financing, price comparisons and a TV guide. These activities are growing sharply based on the Schibsted Media Group’s strong traffic and brand positions. Corresponding activities established in Norway.
Good growth in Online Classifieds. Higher roll-out rate in new markets
- Underlying growth of 20 per cent in Schibsted Media Groups Online Classifieds operating revenues in Q3. This growth came from both established markets and the portfolio of newly launched classifieds websites.
- Operating profit (EBITDA) increased by 30 per cent for Schibsted Classified Media activities in Established phase.
- The Schibsted Media Group is increasing its roll-out rate in new markets and this debited the operating profit by NOK 73 million in Q3, NOK 28 million more than in Q2 2010 and NOK 49 million more than in Q3 2009.
- In Q3, Schibsted Media Group agreed to increase its stake in Leboncoin.fr from 50 to 100 per cent, giving it full control over one of Europe’s biggest online classifieds sites.
New visual profile and name
- Schibsted has introduced the name Schibsted Media Group and a new visual profile in to reflect the Group’s profile as innovative, future-oriented and responsible.
- Schibsted Media Group’s profitability programme continued in Q3. Since 2008, the measures have had an accumulated effect of NOK 1.6 billion, compared to NOK 1.5 billion as at the end of Q2 2010. The programme is expected to produce an accumulated effect of NOK 1.7 billion by the end of 2010.
Main figures for the Group
|Q3||Q3||As of Q3||Full yr.|
|3 264||3 288||Operating revenues||10 061||9 179||12 745|
|489||567||EBITDA||1 637||953||1 494|
|303||412||EBITA 1)||1 187||484||832|
|250||343||Profit (loss) before taxes||1 557||111||279|
|1,46||1,99||Earnings per share (EPS)||10,31||4,32||4,74|
|1,37||2,27||Adjusted Earnings per share (EPS)||7,11||2,78||4,42|
|Cash flow from operations per share (NOK)||15,54||15,03||19,34|
|Net interest bearing debt (NIBD)||1 337||3 102||2 554|
|Net interest bearing debt/EBITDA last 12 months||0,6||2,4||1,7|
|Equity share||41,5 %||35,0 %||34,7 %|
1) Operating profit before impairment loss and other revenues and expenses.
Trond Berger, CFO. Tel: +47 916 86 695
Oslo, 12 November 2010
Jo Christian Steigedal
VP Investor Relations