Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q1 2016

Today, Schibsted Media Group released its Q1 2016 report. EBITDA ex. Investment phase increased 25 percent to NOK 635 million. 

"Schibsted Media Group has had a good start to 2016. Online Classifieds' operating revenues continued to grow well", CEO Rolv Erik Ryssdal says.

"The operations in France and Spain have had a steady, high growth rate. The strong traffic positions in those markets make it possible to grow revenues both by introducing new services and through price optimization in the verticals", Rolv Erik Ryssdal says.

"We continue to invest substantially in organic development of our online classifieds operations. It is great to see firm evidence of return on investments for example through the strong growth in traffic and engagement in an important market like Brazil. We are also building a strong position in Mexico, where our site Segundamano.mx is the leader in terms of traffic and engagement", Rolv Erik Ryssdal says.

"In selected European markets, we continue our investments in the native mobile market place Shpock. The service develops very well in significant markets like UK and Germany", Rolv Erik Ryssdal says.

"The changes in consumer and advertiser behaviour continue to affect our media houses in Norway and Sweden. A positive sign is the newspapers' number of digital subscribers. Premium journalistic content presented in a modern way across platforms appeals to a large number of consumers. However, the advertising markets particularly in Norway are tough, and we need to constantly adapt our cost base to the reduced revenues", Rolv Erik Ryssdal says.

"Our efforts to build global product and tech capabilities has continued with full speed in Q1 2016. We have launched several new products, including geographical ad targeting in Norway. Our roadmap for new products is ambitious going forward, so we can continue to deliver improved products for consumers within both online classifieds and media houses", Rolv Erik Ryssdal says.

Highlights of Q1 2016
(Figures in brackets refer to corresponding quarter in 2015.)

• EBITDA ex. Investment phase of NOK 635 million, a growth of 25 percent. Reported EBITDA NOK 421 million (376 million). Total Online classifieds EBITDA ex. Investment phase grew 37 percent to NOK 640 million.
• Continued solid revenue growth in Online Classifieds in Q1. France grew 19 percent and Spain grew 18 percent.
• Leboncoin.fr has signed direct contracts with 90 percent of customers of the former bundle real estate package P3.
• Steady revenue growth and firm margins for Online Classifieds in Scandinavia.
• 42 percent revenue growth in Other Developed Online Classifieds, driven by good development in Italy, Austria and Ireland.
• Continued strong growth in key performance indicators in Investment phase markets.
  • 61 percent growth in revenues, adjusted for currency fluctuations
  • 51 percent growth in number of visits per month in the Investment phase portfolio in Q1.
  • Strong momentum in mobile migration
  • Shpock gains market shares in Germany and UK, excellent start in Italy. Significant app updates in Q1.
• There is an increased uncertainty around the acquisition of Hemnet. Schibsted expects a discussion with the Swedish Competition Authority regarding potential commercially viable remedies.
• Continued investments in product and technology providing future operational growth lever.
• Challenging market for media houses.
  • Comprehensive cost measures under implementation
  • Significant uptake of digital newspaper subscriptions
  • Media House Sweden's online revenues grew 11 percent in Q1. Online now represents 54 percent of total revenues.
• Profit before taxes NOK 219 million, down from NOK 846 million in Q1 2015. Q1 2015 included gains of 740 million (compared to 24 in Q1 2016).
• Improved free cash flow.

Schibsted invites to an analyst and press conference at Apotekergaten 10, Oslo, 11 May 2016 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on www.schibsted.com/ir.

A conference call with Q&A linked to the Q1 2016 numbers will take place 11 May 2016 at 14:00 CET. Please dial in at the following numbers:

Norway: 800 56054
UK: 020 3427 1905
USA: 1877 280 1254
International: +44(0)20 3427 1913

Conference ID is 1328764

Contact persons:
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733

Oslo, 11 May 2016
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR