Schibsted reduces the cost base of Schibsted Søk with NOK 130 million (NOK 90 million on group level)

Schibsted ASA (SCH) , Published 27/08/2007 13:07:42

A restructuring of the search services of Schibsted Søk in Norway and Sweden is now started with the aim of reducing the cost base with approx. NOK 130 million for Schibsted Søk (NOK 90 million on Schibsted group level). The operation of the search services will continue, and these services will still be a part of Schibsted’s ambition to be one of the leading media groups in Europe.
A restructuring charge in relation to write downs of technology licenses and the reduction of staff of approx. NOK 40-50 million will be booked in Q3.
The CEO of Schibsted Søk, Arild Nilsen, who entered the position on the 1st of August, admits that the cost reductions are considerable. – Sesam has become a popular search service with numerous users, but the number of users is not sufficient for creating revenues that may cover the present cost base. All areas of the business will be affected by the cost reductions, says Nilsen.
The cost reductions will only lead to limited changes in the search services of Schibsted Søk as experienced by its users. The search results will be as good as before, but they will be presented in a slightly different way. There is an ongoing work to define a new strategy for Schibsted Søk, and this new strategy will presented in relation to Schibsted’s Q3.
Contact persons:
CFO of Schibsted, Trond Berger tel.: +47 91 68 66 95
CEO of Schibsted Søk, Arild Nilsen tel.: +47 23 35 55 30
Chairman of the board of Schibsted Søk, Rolv Erik Ryssdal tel.: +47 91 60 02 00
Oslo, 27 August, 2007
Schibsted ASA