Earnings Release • Apr 26, 2024
Earnings Release
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Schibsted ASA (SCHA/SCHB) - Interim Report Q1 2024
26.4.2024 07:00:31 CEST | Schibsted | Half yearly financial reports and audit
reports / limited reviews
Today, Schibsted released its Q1 2024 results.
Commencing a transformational year to realise our full potential
"In the quarter, we made important progress related to the major, structural
changes which we announced in November and December. Alongside these processes,
we are currently developing comprehensive measures to adjust the organisation
and cost base for a new setting and a more challenging macroeconomic
environment," CEO Kristin Skogen Lund says.
"We were pleased to see that the Adevinta offer, which values our current stake
at approximately NOK 40 billion, received all required regulatory approvals
which leads to an expected settlement of the transaction on 29 May 2024. In
March, we could announce a final agreement with the Tinius Trust, relating to
the sale of our news media operations. The transaction, which will be presented
to the Annual General Meeting for shareholder approval, is a key milestone in
transforming today's Schibsted into two more focused companies. Finally, we
concluded our work on the capital return package related to the cash proceeds of
the two transactions, amounting to a total of approximately NOK 29 billion. The
proposed package is in line with our focus on shareholder returns and a strong
financial position," CEO Kristin Skogen Lund says.
"Operationally, our financial performance in Q1 was negatively affected by the
continued volatile macroeconomic environment and the structural changes in the
company. Underlying¹ Group revenues decreased by 1 per cent to 3,794 million
compared to the same period last year. EBITDA ended at 454 million, up 7 per
cent due to News Media," CEO Kristin Skogen Lund says.
"Nordic Marketplaces saw a solid, double-digit increase in average revenue per
ad, ARPA, across most verticals, and transactional revenues continued to grow
well. This resulted in an underlying¹ growth of 9 per cent in Classifieds
revenues despite the volatile macroeconomic environment which continued to
affect volumes, and proves our strong business model. Total underlying¹ revenues
for Nordic Marketplaces increased by 6 per cent, affected by declining
advertising revenues. EBITDA ended at NOK 411 million, down 2 per cent compared
to Q1 last year. The decrease is mainly explained by investments in
transactional models and the transition towards a unified technology platform.
Concurrently, the ongoing reorganisation of the Group is hampering the
implementation of cost measures," CEO Kristin Skogen Lund says.
"Despite a volatile advertising market and a continued decline in the print
business, News Media's profitability improved considerably compared to Q1 last
year as a result of cost reductions from the cost programme which was announced
last year," CEO Kristin Skogen Lund says.
"In Growth & Investments, macroeconomic factors continued to lead to reduced
demand for Lendo and Prisjakt, resulting in a revenue decline. To address the
uncertainty and downturn in these businesses, we have started to implement cost
measures which led to lower operating costs and partly mitigated the decline in
EBITDA," CEO Kristin Skogen Lund says.
"While we are happy with and proud of our achievements over the last few months
related to the aforementioned transformational transactions, we acknowledge that
the cost development needs to be addressed in Nordic Marketplaces, and Schibsted
Marketplaces as the remaining company. The ongoing reorganisation associated
with the separation of our media business is currently creating constraints on
our ability to take necessary cost measures. While this is anticipated to impact
our financial performance adversely in the short-term, we want to emphasise the
temporary nature of these effects. We are actively updating our strategy for
Schibsted Marketplaces and developing comprehensive measures to adapt the
organisation and cost base to the new setting. Schibsted Marketplaces continues
to operate robust businesses with unique market positions and our ambitions
remain high. We are eager to share the results of our strategic work at the
upcoming Capital Markets Day, scheduled for Q4 this year," CEO Kristin Skogen
Lund says.
This quarter's highlights
? Group: Revenues of 3.794m, down 1% YoY on an underlying¹ revenue basis. EBITDA
of 454 million, up 7 per cent due to News Media.
? Nordic Marketplaces: 6% underlying¹ revenue growth, while Classifieds revenues
were up 9% driven by ARPA. EBITDA of NOK 411 million, down 2 per cent YoY driven
by investments in transactional models and the transition towards a unified
technology platform. Ongoing reorganisation of the Group is temporarily
hampering the implementation of cost measures.
? News Media: Significant profitability improvement, driven by reduced costs.
EBITDA of NOK 61 million, up from break-even EBITDA in Q1 last year.
? Delivery: EBITDA of NOK 1 million, slightly up YoY, despite continued revenue
decline due to reduced costs.
? Delivery: Revenue decline of 12 per cent. EBITDA of NOK 20 million,
significantly up YoY and QoQ, driven by improved profitability in Helthjem.
? Growth & Investments: 12 per cent underlying¹ revenue decline, driven by Lendo
and Prisjakt which are affected by macroeconomic factors. Cost measures partly
mitigated the decline in EBITDA which ended at NOK 40 million.
? Decided to temporarily pause current financial targets for Nordic
Marketplaces.
| First quarter | Full Year
---------------------------------------------------------
(NOK million) | 2024 | 2023 | Change | 2023
---------------------------------------------------------
Schibsted Group | | | |
---------------------------------------------------------
Operating revenues | 3,794 | 3,776 | 0% | 15,756
---------------------------------------------------------
- of which digital | 2,772 | 2,670 | 4% | 11,383
---------------------------------------------------------
EBITDA | 454 | 423 | 7% | 2,519
---------------------------------------------------------
EBITDA margin | 12% | 11% | | 16%
¹ Foreign exchange neutral basis
Alternative performance measures used in this release are described and
presented in the section Definitions and reconciliations in the quarterly
report.
Programme for the day, 26 April 2024:
07:00 CET
Publication of the Q1 results including interim report, presentation, and
financials and analytical information.
09:00 CET
CEO Kristin Skogen Lund and CFO Per Christian Mørland will present the Q1
results as a virtual live webcast, followed by a Q&A session at which also EVP
Nordic Marketplaces and Delivery Christian Printzell Halvorsen will attend. The
presentation and following Q&A session will be held in English. The webcast can
be viewed live at:
https://channel.royalcast.com/landingpage/hegnarmedia/20240426_1/
For the Q&A at the end of the presentation, we invite analysts to ask questions
in a live format by using the raise-hand-feature in Microsoft Teams.
Microsoft Teams link:
https://teams.microsoft.com/l/meetup-join/19%3ameeting_MmRmM2VmOGYtN2VhMy00ODI1L
WE2YTEtNTRiNjgyNWMxOTM1%40thread.v2/0?context=%7b%22Tid%22%3a%226f6d5d78-35df-4e
19-83aa-7efcf9b475bc%22%2c%22Oid%22%3a%222475081b-3683-4421-90d7-20303166e40e%22
%7d
Meeting-ID: 379 326 598 028
Password: yF8Boq
It will also be possible to send in written questions through the webcast
player.
A recording of the presentation will be available on our IR website shortly
after the live webcast has ended.
Oslo, 26 April 2024
SCHIBSTED ASA
DISCLOSURE REGULATION
This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.
CONTACTS
* Daniel Frykholm, VP, Head of Group Communication, +46 70 206 77 86,
* Jann-Boje Meinecke, VP, Head of Investor Relations, +47 941 00 835,
* Malin Ebenfelt, Investor Relations Officer, +47 916 86 710, [email protected]
* Øyvind Vormeland Salte, Communication Director Norway, +47 992 39 021,
ABOUT SCHIBSTED
Schibsted is a family of digital brands with a strong Nordic position, and more
than 5,000 employees. Millions of people enjoy interacting with our companies
every day through our online marketplaces such as FINN, Blocket and Oikotie; our
media houses including Aftenposten, VG and Aftonbladet; and digital services
like Lendo. We also help new promising businesses grow. Our joint mission of
empowering people in their daily lives is rooted in the values of our media
heritage and a legacy of bold change. At our best, we are a fearless force for
change in a society built on trust and transparency.
Schibsted is listed on Oslo Børs and has a sizable investment in Adevinta, a
company that was spun off and publicly listed as a separate company on Oslo Børs
in 2019.
ATTACHMENTS
Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/3068/4392/Download%20announcement
%20as%20PDF.pdf
Results presentation Q1 2024.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/3068/4388/Results%20presentation%
20Q1%202024.pdf
Schibsted Financials and Analytical Info Q1 2024.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/3068/4389/Schibsted%20Financials%
20and%20Analytical%20Info%20Q1%202024.pdf
Interim Report Q1 2024.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/3068/4390/Interim%20Report%20Q1%2
02024.pdf
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