Schibsted ASA : (SCH) - Interim Financial Statement Q3 2014

Today, Schibsted Media Group released its Q3 2014 report, showing operating revenues of NOK 3.56 billion. The Online classifieds segment increased its revenues underlying with 8 percent, 10 percent excluding Spain. The gross operating profit (EBITDA) was NOK 504 million (463 million).

"In Schibsted, we continue to focus on long term growth, and we are spending time and resources on strengthening our digital capabilities and develop our technological fundament. In October, we published our first Future Report:
http://schibstedfuturereport.com/, where we share some of the key trends that influence us and showcase some of the exciting things going on in our group," CEO Rolv Erik Ryssdal says.

"In Q3, the growth in online revenues and traffic continued. 55 percent of Schibsted's revenues came from online products, which is a growth from 48 percent in the same period last year," Rolv Erik Ryssdal says.

"Our Online classifieds operations have strengthened its market positions in the important French market, and we see good results of our many changes and improvements in Spain. At the same time we experience some headwind from the markets in Norway. In particular, the decline in the recruitment market is affecting the revenue growth rates there. I find it reassuring that Finn.no maintain high profit margins and at the same time keep working on innovation and development of the online market place of the future. This will ensure future revenue growth," Rolv Erik Ryssdal says.

"Schibsted continues its program of organic investments in new markets. We see strong growth in traffic across the portfolio, including markets like Brazil, Chile and Indonesia. As these markets mature, we will build significant value in these markets. Monetization is gradually being ramped up, and in Q3 the revenue growth rate in the investment phase portfolio was close to 70 percent," Rolv Erik Ryssdal says.

"Our Media Houses face significant challenges, as the print advertising market continues to decline rapidly. Our job is to adapt the cost base to the market development, and at the same time make sure we are at the forefront when it comes to online product offerings. Consumers and advertisers are embracing the changes we do, and it is encouraging to see that the subscription numbers for our newspapers show a positive trend as a result of our digital products," CEO Rolv Erik Ryssdal says.

Highlights of Q3 2014
(Figures in brackets refer to the corresponding period in 2013.)

• EBITDA of NOK 504 million (463 million). Excluding investments in New Ventures in Online classifieds, the Group EBITDA was NOK 623 million (673 million).
   
• Online classifieds EBITDA margin of 32 percent (26%), 44 percent (47%) excluding investments in New Ventures
  • 20 percent revenue growth and stable margins in France. Real estate monetization to be gradually ramped up.
  • Strong growth in volume as a result of freemium strategy for Finn.no. Revenue growth hampered by weak employment market in Norway.
  • Improved macro and better traffic development in Spain creates platform for revenue growth. The acquisition of Milanuncios is still being processed by the competition authorities. Schibsted expects that the acquisition will be cleared by the authorities during Q4 2014.
  • InfoJobs.net in Spain returned to growth in Q3, as the macro environment in Spain improves.
  • Building valuable market positions through investments in traffic growth in new markets. Strong growth in key performance indicators in most markets, including Brazil. In Chile and Finland, our online classifieds sites have gained a market leadership position.
  • Continued good traction in Germany and UK for mobile only classifieds app Shpock.
  • The traffic development is strong in most sites in the portfolio.
     
• Mixed development in Media houses.
  • Strong online positions and tight cost control secure overall revenue growth and firm margins for VG and Aftonbladet. Mobile and web TV main contributors to digital growth.
  • Increased subscription revenues for morning newspapers as a result of attractive digital products, which is offsetting some of the print advertising decline.
  • Accelerated print advertising decline. Continuous work on adapting cost base to the development.
  • Steady growth and margin improvement for personal finance services.

Schibsted invites to an analyst and press conference at Apotekergaten 10, Oslo, 30 October 2014 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on www.schibsted.com/ir:
http://www.schibsted.com/ir.

A conference call with Q&A linked to the Q3 2014 numbers will take place 30 October 2014 at 14:00 CET. Please dial in at the following numbers:

International: +44(0)20 3427 1905
From Norway: 800 56053
Conference code: 3958665

Contact persons:
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, VP Investor Relations. Tel: +47 415 08 733

Oslo, 30 October 2014
SCHIBSTED ASA

Jo Christian Steigedal
VP Investor Relations