Today, Schibsted released its Q1 2023 results.
Transition in Nordic Marketplaces to unlock significant user and customer value over time
“For Schibsted, 2023 started off with an underlying¹ revenue growth of 1 per cent in Q1, driven by Nordic Marketplaces and Growth & Investments. EBITDA was subdued by higher personnel costs, cost inflation and revenue mix, ending at NOK 423 million, down 12 per cent compared to Q1 last year,” CEO Kristin Skogen Lund says.
“Nordic Marketplaces, which is dominating our Group EBITDA and market valuation, made important progress in its transition to a new, vertical-based operating model. This transition will unlock significant user and customer value over time as we presented at our Capital Markets Day in March. In the first quarter, underlying² revenues increased by 6 per cent thanks to solid classifieds revenue growth across all verticals except Jobs, while advertising was down due to market headwinds. EBITDA ended at NOK 420 million, 5 per cent below last year due to revenue mix and increased costs from new hires last year,” CEO Kristin Skogen Lund says.
“As outlined at our Capital Markets Day, our News Media operations in Norway and Sweden were affected by continued pressure in the print business, market headwinds in advertising, and general cost increases in a high inflationary environment. Despite continued strong, double-digit revenue growth in digital subscriptions, underlying² revenues in News Media decreased by 2 per cent in Q1. EBITDA was break-even, above the issued trading update driven by better advertising performance in Norway in late March. We expect continued volatile and tough advertising markets in the short-term, particularly in Sweden, and need to constantly adapt our cost base to the reduced revenues. This is addressed by the announced cost programme which will accelerate throughout the year,” CEO Kristin Skogen Lund says.
“Growth & Investments continued its upbeat trend across the portfolio from last quarter, with underlying¹ high single-digit revenue growth and improved profitability in Lendo and Prisjakt. In line with the announced new strategy for Lendo, focusing on profit growth, operations in Finland, Italy and Spain were ceased which will improve profitability throughout the year,” CEO Kristin Skogen Lund says.
“As a fearless force for change, my team and I will continue to seize the opportunities which arise in more uncertain times, and adapt our organisation to the current, more uncertain market environment, with an increased emphasis on efficiency and cost control. In this context, the successful transformation in Nordic Marketplaces, to strengthen our existing classifieds offerings and to accelerate the transition to transactional offerings, is a top priority. And we will continuously explore and develop options to reduce our ownership in Adevinta in a value creating way for our shareholders,” CEO Kristin Skogen Lund says.
This quarter’s highlights
- Group: Revenues of NOK 3,776 million, 1 per cent underlying¹ revenue growth. EBITDA of NOK 423 million, down 12 per cent YoY mainly driven by News Media.
- Nordic Marketplaces: 6 per cent underlying² revenue growth, driven by double-digit revenue growth in classifieds while advertising was down. EBITDA of NOK 420 million, 5 per cent down from last year driven by Jobs and Recommerce.
- News Media: Underlying² revenues 2 per cent down due to print business and market headwinds in advertising, particularly in Sweden. General cost increases in a high inflationary environment limit Q1 effect of announced cost programme, while effects from the programme will accelerate throughout the year. EBITDA at break-even, above the issued trading update driven by better advertising performance in Norway in late March.
- Delivery: Positive trends in Helthjem, with higher B2C and higher C2C volumes, while decline in Morgenlevering led to 1 per cent revenue decline and slightly negative EBITDA in Q1.
- Growth & Investments: High single-digit revenue growth and improved profitability across the portfolio led to an EBITDA of NOK 54 million, 90 per cent up from last year. Exit processes for Lendo and Prisjakt stopped due to market conditions.
|
|
First quarter |
Year |
||
|
(NOK million) |
2023 |
2022 |
Change |
2022 |
|
Schibsted Group |
|
|
|
|
|
Operating revenues |
3,776 |
3,648 |
4% |
15,272 |
|
– of which digital |
2,670 |
2,458 |
9% |
10,563 |
|
EBITDA |
423 |
480 |
(12%) |
2,406 |
|
EBITDA margin |
11% |
13% |
|
16% |
Alternative performance measures used in this release are described and presented in the section Definitions and reconciliations in the quarterly report.
Programme for the day, 28 April 2023:
07:00 CET
Publication of the Q1 results including interim report, presentation and financials and analytical information.
09:00 CET
CEO Kristin Skogen Lund and CFO Ragnar Kårhus will present the Q1 results as a virtual live webcast, including a Q&A session. The presentation and following Q&A session will be held in English. The webcast can be viewed live at:
https://channel.royalcast.com/landingpage/hegnarmedia/20230428_4/
It will not be possible to physically attend the presentation.
For the Q&A, participants can send in written questions via Slido.
Link: https://www.slido.com
Event code: 2760202
It will not be possible to ask questions by phone.
Press/media can reach out to Schibsted’s Head of External & CEO Communication, Øyvind Vormeland Salte (oyvind.salte@schibsted.com), to set up separate one-on-one interviews with CEO Kristin Skogen Lund.
A recording of the presentation will be available on our IR website shortly after the live webcast has ended.
Oslo, 28 April 2023
SCHIBSTED ASA
¹ Foreign exchange neutral basis and including pro-forma revenues for 3byggetilbud.dk A/S before Schibsted ownership
² Foreign exchange neutral basis
Disclosure regulation
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Contacts
- Jann-Boje Meinecke, VP, Head of Investor Relations, +47 941 00 835, jbm@schibsted.com
- Malin Langtvet, Investor Relations Officer, +47 916 86 710, ir@schibsted.com
About Schibsted
Schibsted is a family of digital brands with a strong Nordic position, and more than 5,000 employees. Millions of people enjoy interacting with our companies every day through our online marketplaces such as FINN, Blocket and Oikotie; our media houses including Aftenposten, VG and Aftonbladet; and digital services like Lendo. We also help new promising businesses grow. Our joint mission of empowering people in their daily lives is rooted in the values of our media heritage and a legacy of bold change. At our best, we are a fearless force for change in a society built on trust and transparency.
Schibsted is listed on Oslo Børs and has a sizable investment in Adevinta, a company that was spun off and publicly listed as a separate company on Oslo Børs in 2019.