Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q4 2017

Today, Schibsted Media Group released its Q4 2017 report. Revenues grew 10 percent to NOK 4,455 million, whereas the EBITDA was NOK 695 million (501 million).

"Q4 concluded a strong 2017 for Schibsted, with profit improvement throughout the whole year. In Q4 alone, the EBITDA growth was 39 percent. The positive development is a result of great efforts in both Online classifieds, Publishing and Schibsted Growth," CEO Rolv Erik Ryssdal says.

"In the fourth quarter Schibsted's online classifieds operations continue to develop according to our ambitious plan, delivering 20 percent currency adjusted revenue growth and improved EBITDA margin. Our established operations were progressing well, and our investment phase companies have reduced their losses according to plan. Going forward, we aim to continue to grow revenue and profit by leveraging our leading local market positions to improve monetization in the verticals as well as reducing losses in investment phase operations. At the same time, we will benefit from our joint scalable products and technology," Ryssdal says.

"Our publishing operations delivered good results once again. The growth in digital subscribers continued, and our product focus within digital advertising is bearing fruit, leading to a solid digital revenue growth within publishing. We are developing our publishing operations towards long term viable digital businesses, and we need to further strengthen the two revenue sources and at the same time adapt the cost base. The very foundation of this is our high quality independent journalism", Ryssdal says.

"In both divisions, we are working to roll new digital products out in the market. For example, in Q4, improved tools for professionals were rolled out in the classifieds verticals, and within Media, the feedback to our new news apps has been good," Ryssdal says.

"Schibsted Growth has continued its positive development, particularly driven by the personal finance segment. Lendo experienced a strong end of the year, with revenue growth of 41 percent in Sweden, and the EBITDA margin exceeded 50 percent," Ryssdal says.

Highlights of Q4 2017
(Online classifieds pro forma numbers include proportional consolidation of joint ventures and associates)

• EBITDA ex. Investment phase of NOK 845 million, a growth of 24 percent
• Online classifieds pro forma revenue growth of 20 percent, adjusted for currency fluctuations. Total Online classifieds EBITDA ex. Investment phase grew 27 percent to NOK 786 million
• Vertical driven growth in Developed phase, Online Classifieds
  • 20 percent revenue growth in France, driven by good growth in car and real estate verticals
  • 18 percent revenue growth in Norway driven by verticals and personal finance
  • 27 percent revenue growth in Spain. Strong trend in jobs and cars verticals
  • Unchanged revenues in Sweden affected positively by cars and jobs, whereas display advertising and Services contributed negatively
• 66 percent revenue growth and significantly reduced losses in Investment phase operations
  • Continued high revenue growth in OLX Brazil in Q4
  • Strong growth in operational metrics for Shpock. Continued trend of reduced investments
• Tight cost control and digital product innovation leads to stable EBITDA margins in publishing activities
• Continued high growth rate in the Schibsted Growth portfolio in Sweden. Personal finance portal Lendo.se grew revenues 41 percent with stable, high margins
• New organizational model implemented in December. Aim to strengthen local execution and global scale. Operations organized in two divisions; Marketplaces and Media
• Successful placement of B-shares, raising equity of NOK 2.5 billion
• Dividend of NOK 1.75 per share proposed for 2017

Schibsted invites to an analyst and press conference at Apotekergata 10, Oslo, 8 February 2018 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 Q4 2017 numbers will take place 8 February 2018 at 14:00 CET. Please dial in at the following numbers:

Norway: +47 2350 0296
Sweden: +46 (0)8 5065 3942
USA: +1 323-794-2093
UK/International: +44 (0)330 336 9412

Conference ID is 6863160.
A recording of the conference call will be made available at 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, 8 February 2018
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR