Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2017

Today, Schibsted Media Group released its Q2 2017 report. EBITDA ex. Investment phase increased 6 percent to NOK 880 million.

"We are happy to report that Schibsted delivered record high gross operating profits in Q2 2017. This is a result of good performance in both Online classifieds, Publishing and Schibsted Growth," CEO Rolv Erik Ryssdal says.

"Within Online classifieds, we continue to see good revenue growth combined with operational leverage. The improvement is particularly driven by strong progress in the verticals. We aim to strengthen this further by speeding up the development of more products and tools for professional customers on our market places," Rolv Erik Ryssdal says

"In our largest online classifieds markets, we have during Q2 continued to strengthen our market position in the verticals. This is driven by product improvements and good execution in the markets. Revenues are growing at a healthy rate, even though the development of display advertising is slow in most countries," Rolv Erik Ryssdal says

"The decrease in investments in emerging markets continued in Q2. At the same time, the operational metrics of Shpock have been favorable, which means less need for investments in this marketplace both in Q2 and going forward," Ryssdal says

"Towards the end of Q2 we closed the acquisition of Telenor's 25 percent of OLX in Brazil. Through this transaction, we have increased our exposure to a highly interesting market. OLX has an excellent market position which can be gradually monetized more. The Brazilian market has a long runway of online growth ahead," Ryssdal says

"Our publishing activities have continued their positive profit trend. We are continuing to be at the forefront when it comes to product development, and our newspapers have made several important editorial achievements during Q2. Tight cost control combined with first class digital innovation leads to improved margins. The development has been particularly strong in VG in Norway," CEO Rolv Erik Ryssdal says.

Highlights of Q2 2017
(Figures in brackets refer to corresponding quarter in 2016. Online classifieds pro forma numbers include proportional consolidation of joint ventures and associates)

• EBITDA ex. Investment phase of NOK 880 million, a growth of 6 percent
• Online classifieds pro forma* revenue growth of 16 percent, adjusted for currency fluctuations. Total Online classifieds EBITDA ex. Investment phase grew 11 percent to NOK 802 million
• Continued progress in Developed phase of Online Classifieds
  • 19 percent revenue growth and increased margins in France, driven by good growth in car, real estate and jobs verticals, initiated monetization of jobs and the acquisition of MB Diffusion
  • 13 percent revenue growth in Norway driven by verticals and personal finance
  • 24 percent revenue growth in Spain. Strengthened trend in jobs and cars, whereas real estate and display advertising continues to grow slowly. Acquisition of Habitaclia contributes positively
  • Unchanged revenues in Sweden affected positively by cars and jobs, whereas display advertising and Services contributed negatively
• Transaction to increase ownership in Brazil to 50% closed in Q2. Good revenue growth and reduced losses in Investment phase operations
  • Continued revenue growth in excess of 100 percent in OLX Brazil in 1H. Clear aim to reach break-even during 2017
  • Strong growth in operational metrics for Shpock. Investments reduced in Q2 vs Q1, and further reductions expected in 2H
• Tight cost control and digital product innovation leads to improved EBITDA margins in publishing activities
  • Strong quarter for VG with increased revenues and margin expansion
• Continued high growth rate in the Schibsted Growth portfolio in Sweden. Personal finance portal Lendo.se grew revenues 42 percent

Schibsted invites to an analyst and press conference at Apotekergata 10, Oslo, 18 July 2017 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on www.schibsted.com/ir. CEO Rolv Erik Ryssdal and EVP CFO Trond Berger will present at the analyst and press conference.

A conference call with Q&A linked to the Q2 2017 numbers will take place 18 July 2017 at 14:00 CET. Please dial in at the following numbers:

Norway: 800 51084
UK: 0800 279 7204
USA: 866-548-4713
International: +44 (0)330 336 9412

Conference ID is 4391266.

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

Oslo, 18 July 2017
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR