Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2016

Today, Schibsted Media Group released its Q2 2016 report. EBITDA ex. Investment phase increased 10 percent to NOK 831 million.

"We are happy to report another quarter where our Online Classifieds operations grew well both in terms of revenue and gross operating profit. At the same time, our Media Houses improved their profitability compared to the same quarter in 2015 in a challenging advertising market", CEO Rolv Erik Ryssdal says.

"Within online classifieds the operations in France and Spain continued the good development, and the growth rate in Norway picked up in Q2. Leading traffic positions provide the foundation to increase revenues backed by both increased ad volumes, enhanced products and price optimization", Rolv Erik Ryssdal says.

"We continue to see positive development of our significant organic investments aiming to build market positions in new areas. Our native mobile app Shpock is developing rapidly in several European markets", Rolv Erik Ryssdal says.

"Schibsted is investing significant amounts in product and technology. Technology for targeted advertising is one area of focus, and our new advertising solutions are now being rolled across our portfolio. This will enable Schibsted to take part in the expected growth in digital advertising markets in the years to come", Rolv Erik Ryssdal says.

"Nevertheless, our newspapers in Norway and Sweden are facing negative revenue development as print advertising continues to decline. Continuous cost adaptions are necessary to maintain acceptable profitability. At the same time, it is encouraging to see that the number of digital subscribers to the newspapers continues to grow rapidly. Schibsted aims to be at the forefront when it comes to presenting premium editorial content in a modern way, which appeals to consumers", CEO Rolv Erik Ryssdal says.

Highlights of Q2 2016
(Figures in brackets refer to corresponding quarter in 2015.)

• EBITDA ex. Investment phase of NOK 831 million, a growth of 10 percent. Total Online classifieds EBITDA ex. Investment phase grew 15 percent to NOK 722 million.
• Continued positive development for Developed phase Online Classifieds.
  • Solid revenue growth and good margins in France and Spain.
  • Sustained growth in Norway, continued strong momentum in Sweden.
  • 37 percent revenue growth in Other Developed phase Online Classifieds, driven by continued good development in Italy, Austria and Ireland.
• Online Classifieds Investment phase continues positive trend.
  • 56 percent revenue growth.
  • Reduced investment spend in emerging markets.
  • Significant investments and rapid growth in UK and Germany for native app Shpock.
• Challenging advertising markets, tight cost control in media houses.
  • Strong inflow of digital subscribers.
  • Improved margin level as a result of cost savings.
• Continued ramp up of product and technology competence, building platforms for next generation online classifieds services, media houses and long term growth in online advertising.
• Hemnet acquisition terminated by Schibsted because the Swedish Competition Authority informed that the transaction in its current form will not be cleared.

Schibsted invites to an analyst and press conference at Apotekergaten 10, Oslo, 19 July 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 Q2 2016 numbers will take place 19 July 2016 at 14:00 CET. Please dial in at the following numbers:

Norway: 800 56053
UK: 0800 279 4841
USA: 1877 280 2342
International: +44(0)20 3427 1904

Conference ID is 7079348

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

Oslo, 19 July 2016
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR