Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2018

Today, Schibsted Media Group released its Q2 2018 report. The revenue grew 6 percent to NOK 4,602 million, whereas the EBITDA grew 29 percent to NOK 895 million.

"Schibsted's positive development continued in Q2, with an all-time high EBITDA result. At the same time, we reduced our capital investments and increased our cash flow," CEO Rolv Erik Ryssdal says.

"We continued to grow our Marketplaces division as planned, and the revenue was 16 percent higher than in Q2 last year, adjusted for currency fluctuations. The EBITDA of the division increased by 33 percent. Professional verticals are the main growth drivers, and our key markets France, Norway, Spain and Brazil all contributed well to the achievement. The losses of our investment phase operations decreased considerably," Ryssdal says.

"In our Publishing business, the digital revenue continued to grow well in Q2. This is driven by both digital advertising and growth in digital subscriptions. Editorial products with high quality and important contribution to society combined with a healthy, sustainable financial development is the priority for the publishing division. A continued high pace of innovation and digital product development is essential to secure long term viable and profitable business models," Ryssdal says.

"Schibsted Growth has developed into an important value driver for Schibsted. The most significant asset is the personal finance company Lendo, which continues to grow well, and had an EBITDA margin of 41 percent in Q2. We see an exciting potential for Lendo also outside the current geographies," Ryssdal says.

"In all our operations we continued to strengthen our product and tech efforts to speed up the development and streamline coordination of the initiatives. The organizational adjustment that we announced late last year is completed, which means that we will be able to realize scale benefits and at the same time move swiftly in order to adapt rapidly to market demand and take advantage of local opportunities," CEO Rolv Erik Ryssdal says.

Highlights of Q2 2018

• Marketplaces: Revenues continue to grow, and profits increase
  • Revenues up 16%*; EBITDA margin up 5%-points to 35%*
  • France, Spain, Norway and Brazil with strong development in Q2
  • Lower margin in France due to acquisitions and increased marketing - Leboncoin.fr EBITDA margin 58 percent
  • Investment phase losses are declining
• Publishing: Digital continues to grow
  • Stable revenue development with solid digital growth and 8% EBITDA margin
• Schibsted Growth: Continues to expand
  • Revenues up 12% to NOK 455 million. EBITDA margin increased to 26%
  • Lendo is growing well, looking into new market opportunities

             
*) Including proportionate share of JVs, adjusted for currency.

Schibsted invites to an analyst and press conference at Akersgata 55), Oslo, 17 July 2018 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on https://www.schibsted.com/en/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 2018 numbers will take place 17 July 2018 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/2tRrIVk

For manual dial-in, use the following number (note that this connection might take more time): +47 2350 0187. Passcode: 181100. For additional local phone numbers, please visit https://www.schibsted.com/en/ir/.

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

Oslo, 17 July 2018
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR