Earnings Release • Feb 7, 2024
Earnings Release
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Schibsted ASA (SCHA/SCHB) - Interim Report Q4 2023
7.2.2024 07:00:00 CET | Schibsted | Half yearly financial reports and audit
reports / limited reviews
Today, Schibsted released its Q4 2023 results.
A new chapter for Schibsted, unleashing its full value creation potential
"For Schibsted, Q4 was characterised by the announcement of two transformational
milestones. For a start, we made important progress in the execution of our
ownership in Adevinta as we announced our support for the voluntary offer for
Adevinta in November. Our decision to engage in the transaction was carefully
considered, aiming to identify the most certain and value accretive solution for
both Schibsted and our shareholders. This move not only ensures substantial cash
proceeds at an attractive valuation, but also allows us to maintain a stake in
the future growth potential through a minority reinvestment," CEO Kristin Skogen
Lund says.
"Subsequently, we announced in December that our largest shareholder, the Tinius
Trust, seeks to acquire our news media operations. If finalised, this
transaction sets the stage for a transformative restructuring of Schibsted into
two, more focused, companies; a media company fully owned by the Tinius Trust,
and a publicly listed marketplaces company. Pending a final agreement with the
Tinius Trust and approval by the general meeting, we are confident that this
move will strengthen the growth prospects and potential of these businesses,"
CEO Kristin Skogen Lund says.
"Financially, we delivered another solid quarter, taking into account that the
macroeconomic development in the Nordic region remains challenging as central
banks try to navigate the delicate balance between sustaining growth and
managing inflationary pressure. Group revenues were NOK 4,082 million in Q4,
stable compared to the corresponding quarter last year looking at underlying¹
revenues. EBITDA ended at NOK 684 million, 5 per cent up from Q4 last year," CEO
Kristin Skogen Lund says.
"Nordic Marketplaces achieved an underlying¹ revenue growth of 6 per cent in Q4,
despite continued market headwinds in the Job vertical. The increase can be
ascribed to solid performance in Mobility, Real Estate, and Recommerce,
illustrating the relevance of our marketplaces and value that we create for our
customers and users. EBITDA was 3 per cent below last year at NOK 418 million,
mainly driven by the decline in Jobs, and increased costs to drive new business
models in Mobility, Real Estate and Recommerce," CEO Kristin Skogen Lund says.
"Continuing the positive development in the previous quarter, News Media's
profitability improved in Q4 which was driven by the ongoing cost programme.
EBITDA was NOK 266 million, and margin ended at 13 per cent, while underlying¹
revenues were stable compared to the same period last year," CEO Kristin Skogen
Lund says.
"Similar to the third quarter, performance in Growth & Investments was affected
by lower top- and bottom-line in Lendo, driven by challenging macroeconomic
factors," CEO Kristin Skogen Lund says.
"After a thorough evaluation of the merits of our options, and given the
anticipated change in our corporate structure, we have taken the decision to
wind down and exit our investment in Viaplay," CEO Kristin Skogen Lund says.
"While the development in Q4 shows that we are not immune to the current
macroeconomic environment, our products continue to have high engagement and
reach. This makes a meaningful difference in people's lives, and positions
Schibsted and our core businesses well to deliver on our ambitions and goals in
the years to come," CEO Kristin Skogen Lund says.
This quarter's highlights
* Transformational milestones announced²:
* Adevinta ownership: Unlocking more than 20 years of sustained value
creation in Adevinta by reducing our stake by 60 per cent, providing
substantial cash proceeds at completion; remaining stake offering
incremental value upside.
* Schibsted structure: Initiated process to sell Schibsted's news media
operations to the Tinius Trust, giving both News Media and Nordic
Marketplaces the best possible conditions for value creation.
* Group: Revenues of NOK 4,082 million, underlying¹ stable YoY. EBITDA of NOK
684 million, up 5 per cent YoY mainly driven by News Media.
* Nordic Marketplaces: Solid underlying¹ revenue growth of 6 per cent, driven
by Mobility, Real Estate and Recommerce. EBITDA of NOK 418 million, 3 per
cent below last year, mainly driven by the decline in Jobs, and increased
costs to drive new business models.
* News Media: Underlying¹ revenues stable YoY. Considerable profitability
improvement driven by cost reductions, leading to an EBITDA of NOK 266
million, and a margin of 13 per cent.
* After a thorough evaluation of the merits of our options, and given the
anticipated change in our corporate structure, we have taken the decision to
wind down and exit our investment in Viaplay.
* 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: 7 per cent underlying¹ revenue decline, mainly driven
by Lendo which is affected by macroeconomic factors. EBITDA down 30 per cent
YoY, driven by Lendo and SMB.
* Dividend of NOK 2.00 per share proposed for 2023.
| Fourth quarter | Year to date
----------------------------------------------------------------------------
(NOK million) | 2023 | 2022 | Change | 2023 | 2022 | Change
----------------------------------------------------------------------------
Schibsted Group | | | | | |
----------------------------------------------------------------------------
Operating revenues | 4,082 | 3,988 | 2% | 15,756 | 15,272 | 3%
----------------------------------------------------------------------------
- of which digital | 2,978 | 2,821 | 6% | 11,383 | 10,563 | 8%
----------------------------------------------------------------------------
EBITDA | 684 | 651 | 5% | 2,519 | 2,406 | 5%
----------------------------------------------------------------------------
EBITDA margin | 17% | 16% | | 16% | 16% |
¹ Foreign exchange neutral basis
² Adevinta offer, and sale of news media operations pending; for more details
please refer to the stock exchange releases made on 21 November 2023, and 11
December 2023
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, 7 February 2024:
07:00 CET
Publication of the Q4 results including interim report, presentation, and
financials and analytical information.
09:00 CET
CEO Kristin Skogen Lund and EVP CFO Per Christian Mørland will present the Q4
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/20240207_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_MjNmZDY0MDMtMTdlOS00M2FlL
TgzZjgtNmZjNmM0NGQ5NWEz%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: 331 471 202 637
Password: m7oUVb
It will also be possible to send in written questions through the webcast
player.
Press/media can reach out to Øyvind Vormeland Salte ([email protected]
), Communication Director, Norway, to set up separate one-on-one interviews with
CEO Kristin Skogen Lund.
A recording of the presentation will be available on our IR website shortly
after the live webcast has ended.
Oslo, 7 February 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
* Jann-Boje Meinecke, VP, Head of Investor Relations, +47 941 00 835,
* Malin Ebenfelt, Investor Relations Officer, +47 916 86 710, [email protected]
ATTACHMENTS
Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2896/4039/Download%20announcement
%20as%20PDF.pdf
Results presentation Q4 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2896/4033/Results%20presentation%
20Q4%202023.pdf
Schibsted Financials and Analytical Info Q4 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2896/4034/Schibsted%20Financials%
20and%20Analytical%20Info%20Q4%202023.pdf
Interim Report Q4 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2896/4038/Interim%20Report%20Q4%2
02023.pdf
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