Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2019

Today, Schibsted Media Group released its Q2 2019 report.

"In Q2 Schibsted continued the strong development in most of our key focus areas. Financially, Schibsted is well on track, with an EBITDA of NOK 557 million, when excluding the contribution from Adevinta. For the whole group we surpassed the NOK 1 billion mark for EBITDA for the first time in a single quarter,” CEO Kristin Skogen Lund says.

"The digital revenue growth continues, driven by the verticals in our marketplaces operations, but even more from consumers signing up for digital news subscriptions. In our Next portfolio, we are happy to highlight that Lendo Sweden continued to grow well. The investments we are making in geographical roll-out of Lendo are on track, and early indications from the Danish operation are positive,” CEO Kristin Skogen Lund says.

"Our News Media operations performed well in a challenging market in Q2. Digital subscription revenue continued to grow fast, and the cost control is good, resulting in improved operating margin. Within digital advertising, the trends are somewhat mixed. Our main challenge lies in Aftonbladet, where the strong market contraction for the gaming industry due to regulatory tightening has resulted in reduced advertising spend,” CEO Kristin Skogen Lund says.

"The market slowdown for Lendo Norway has been stronger than anticipated. We believe, however, a more regulated industry is the right way forward to ensure a healthy market - like we have today in Sweden. Moving into a phase of adaptation to these new regulations, Lendo and the industry in general stands the risk of seeing moderate figures for some time,” CEO Kristin Skogen Lund says.

"Adevinta, which was successfully spun off in April 2019, continues its strong development. The company is able to strengthen its position supported by an impressive pipeline of new products in key markets - improving the value proposition for customers,” CEO Kristin Skogen Lund says.

"After the Adevinta spin-off, Schibsted maintains a strong financial position. We do see interesting opportunities to deploy capital into M&A and other growth opportunities. At the same time, we will seek to keep an optimal capital structure, and over time leverage up to our communicated range of debt, which is higher than the current level. The Board has resolved to initiate a share buyback program to this end,” CEO Kristin Skogen Lund says.

Highlights of Q2 2019

• Nordic Marketplaces: Revenues continue to grow, increased EBITDA
  • Revenues up 6 percent driven by vertical growth of 11%; EBITDA margin up 1%-points to 48 percent
  • Marketplaces Norway with 7% revenue growth
  • Confirmed growth trend in Blocket; +2% Y/Y
• News Media: Growing digital revenues driven by subscriptions
  • 2 percent revenue decrease in Q2; 1% digital growth driven by digital subscription revenue; increased EBITDA margin. Revenue development in Aftonbladet negatively affected by reduced advertising spending by gaming companies
• Financial Services: Continued growth in Sweden, slowdown in Norway due to regulations
  • Positive KPIs in newly launched Lendo Denmark. Rollouts in new geographies affect margins negatively in the ramp-up phase, as planned
• Schibsted Growth: Continues to expand
  • Prisjakt and Distribution with continued good development in Q2
• Adevinta: Solid growth and margin expansion
  • Continued revenue growth driven by France and Spain. Margin expansion helped by reduced investment phase losses
• The Board of Schibsted ASA has resolved to initiate a buyback of up to 2% of outstanding Company shares during Q3 2019

Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 16 July 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 Trond Berger will present at the analyst and press conference.

A conference call with Q&A linked to the Q2 2019 numbers will take place 16 July 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/2XBaIyG

For manual dial-in, use the following number (note that this connection might take more time): +47 2350 0187. Passcode: 117267. 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:
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733

Oslo, 16 July 2019
SCHIBSTED ASA

Attachments

• Q2 2019 Report
• Presentation of Q2 2019
• Financials and Analytical info Q2 2019