Schibsted ASA (SCHA/SCHB) – Interim Financial Statement Q3 2019

Today, Schibsted Media Group released its Q3 2019 report.

Highlights of the quarter: 

• Nordic Marketplaces: Accelerated revenue growth, solid margins. Revenues in Norway +11 percent, Sweden +7 percent
• News Media: Solid growth in digital subscription revenues, reduced advertising revenues in Aftonbladet and VG
• Financial Services: Continued stable growth in Sweden, Norway is levelling out after a period of revenue decline
• Growth: Strong growth in Distribution, softer development in Prisjakt
• 18 percent EBITDA margin: Positive development in Nordic Marketplaces only partly offsetting margin decline in News Media and the effect of Lendo international expansion
• Adevinta revenues +15 percent (in EUR) and EBITDA margin +5 percent to 31 percent
• Share buybacks to continue after the Q3 report

Commenting on the report, CEO Kristin Skogen Lund says: “Schibsted continued the good development within our key strategic focus areas in Q3, contributing to 6 percent growth in operating revenues for the Group this quarter, including Adevinta. Group EBITDA reached NOK 1,045 million. Excluding Adevinta EBITDA was NOK 542 million. Online revenues from our Nordic operations continues to grow, increasing 4 percent in Q3.”

“Nordic Marketplaces grew 9 percent compared to last year. Finn in Norway delivered double digit revenue growth driven by the jobs and car verticals and display advertising, combined with margin improvement. Blocket in Sweden increased their growth momentum driven by revenues from the professional cars segment,” Skogen Lund says.

“Schibsted’s News Media operations had a somewhat more mixed performance in Q3. Digital subscription revenues continue to grow at a high phase. Digital advertising revenues though had a weak development in Q3, hampering operating margins. As in previous quarters this is primarily due to reduced digital advertising revenues in Aftonbladet as a result of the strong market contraction following the regulatory tightening of the gaming industry in Sweden. In Q3 we also experienced declining digital advertising revenues in VG in Norway in a competitive market. We will follow up the cost development in News Media closely going forward in order to address the negative margin effects of the revenue development we currently are facing,” CEO Kristin Skogen Lund says.

“Our Financial services segment regained its growth momentum in Q3. Lendo Sweden continued to grow double-digit, the revenue level in Lendo Norway was at a more stable level on a month by month basis and the geographic roll-out in Denmark is getting traction. Our newly launched operations in Poland and Austria have a slower development,“ Skogen Lund says.

Within Schibsted’s Growth portfolio, the distribution business continues to show strong revenue growth. “This is driven by the launch of new and innovative products and tech solutions supporting the strong megatrend of growth within ecommerce, the last being the launch of our new subscription-based delivery service Svosj. Prisjakt though had a flattening revenue development and reduced margin performance in Q3, influenced by reduced user engagement,” CEO Kristin Skogen Lund says.

Adevinta continues its strong development with revenues growing 15 percent measured in EUR in Q3, combined with margin improvements primarily driven by their French and Global Market operations.

“Schibsted is presently in a strong financial position. We will stay disciplined in terms of capital allocation and keep an optimal capital structure over time as previously communicated. We will seek to deploy capital into selected value creating M&A and other growth opportunities primarily close to our core businesses when opportunities arise. Schibsted will continue its previously communicated share buyback program into Q4 in order to reach the 2 percent target for buybacks,” Kristin Skogen Lund says.

	Third quarter			Year to date
(NOK million)	2019	2018	Change		2019	2018
Schibsted Group excl. Adevinta
Operating revenues	3,032	3,008	1%		9,337	9,236
- of which online revenues	1,844	1,769	4%		5,645	5,423
EBITDA	542	511	6%		1,517	1,364
EBITDA margin	18%	17%			16%	15%
EBITDA excl. IFRS 16	457	511	-11%		1,262	1,364
Schibsted Group incl. Adevinta
Operating revenues	4,600	4,358	6%		13,974	13,317
EBITDA	1,045	865	21%		2,961	2,371
EBITDA margin	23%	20%			21%	18%
EBITDA excl. IFRS 16	926	865	7%		2,604	2,371

Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 25
October 2019 at 09:00 CET. The presentation will be held in English and transmitted
live as a video webcast on https://www.schibsted.com/ir/. CEO Kristin Skogen
Lund and CFO Ragnar Kårhus will present at the analyst and press conference.

A conference call with Q&A linked to the Q3 2019 numbers will take place 25 October 2019 at 14:00 CET. The session will be held in English.

NOTE: To avoid waiting time when connecting to the call, please use the below link 5-10 minutes prior to start time, where you will be asked to type in your phone number and registration details. The Event Conferencing system will automatically call you back on the phone number you provide and place you into the event. Please note that the link will become active 15 minutes prior to the event: Link to join call: https://bit.ly/2MhnakV

For manual dial-in, use the following number (note that this connection might take more time): +47
2350 2008. Passcode: 851733. For additional phone numbers, please visit https://www.schibsted.com/ir/.

A recording of the conference call will be made available at https://www.schibsted.com/ir/.

Contact persons:
Ragnar Kårhus, CFO. Tel: +47 917 917 52 
Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733

Oslo, 25 October 2019
SCHIBSTED ASA

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• Q3 2019 Financials and Analytical Info
• Q3 2019 Report
• Q3 2019 Presentation

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