Earnings Release • Apr 28, 2023
Earnings Release
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Schibsted ASA (SCHA/SCHB) - Interim Report Q1 2023
28.4.2023 07:00:01 CEST | Schibsted | Half yearly financial reports and audit
reports / limited reviews
Today, Schibsted released its Q1 2023 results.
Transition in Nordic Marketplaces to unlock significant user and customer value
over time
"For Schibsted, 2023 started off with an underlying¹ revenue growth of 1 per
cent in Q1, driven by Nordic Marketplaces and Growth & Investments. EBITDA was
subdued by higher personnel costs, cost inflation and revenue mix, ending at NOK
423 million, down 12 per cent compared to Q1 last year," CEO Kristin Skogen Lund
says.
"Nordic Marketplaces, which is dominating our Group EBITDA and market valuation,
made important progress in its transition to a new, vertical-based operating
model. This transition will unlock significant user and customer value over time
as we presented at our Capital Markets Day in March. In the first quarter,
underlying² revenues increased by 6 per cent thanks to solid classifieds revenue
growth across all verticals except Jobs, while advertising was down due to
market headwinds. EBITDA ended at NOK 420 million, 5 per cent below last year
due to revenue mix and increased costs from new hires last year," CEO Kristin
Skogen Lund says.
"As outlined at our Capital Markets Day, our News Media operations in Norway and
Sweden were affected by continued pressure in the print business, market
headwinds in advertising, and general cost increases in a high inflationary
environment. Despite continued strong, double-digit revenue growth in digital
subscriptions, underlying² revenues in News Media decreased by 2 per cent in Q1.
EBITDA was break-even, above the issued trading update driven by better
advertising performance in Norway in late March. We expect continued volatile
and tough advertising markets in the short-term, particularly in Sweden, and
need to constantly adapt our cost base to the reduced revenues. This is
addressed by the announced cost programme which will accelerate throughout the
year," CEO Kristin Skogen Lund says.
"Growth & Investments continued its upbeat trend across the portfolio from last
quarter, with underlying¹ high single-digit revenue growth and improved
profitability in Lendo and Prisjakt. In line with the announced new strategy for
Lendo, focusing on profit growth, operations in Finland, Italy and Spain were
ceased which will improve profitability throughout the year," CEO Kristin Skogen
Lund says.
"As a fearless force for change, my team and I will continue to seize the
opportunities which arise in more uncertain times, and adapt our organisation to
the current, more uncertain market environment, with an increased emphasis on
efficiency and cost control. In this context, the successful transformation in
Nordic Marketplaces, to strengthen our existing classifieds offerings and to
accelerate the transition to transactional offerings, is a top priority. And we
will continuously explore and develop options to reduce our ownership in
Adevinta in a value creating way for our shareholders," CEO Kristin Skogen Lund
says.
This quarter's highlights
* Group: Revenues of NOK 3,776 million, 1 per cent underlying¹ revenue growth.
EBITDA of NOK 423 million, down 12 per cent YoY mainly driven by News Media.
* Nordic Marketplaces: 6 per cent underlying² revenue growth, driven by
double-digit revenue growth in classifieds while advertising was down. EBITDA
of NOK 420 million, 5 per cent down from last year driven by Jobs and
Recommerce.
* News Media: Underlying² revenues 2 per cent down due to print business and
market headwinds in advertising, particularly in Sweden. General cost
increases in a high inflationary environment limit Q1 effect of announced
cost programme, while effects from the programme will accelerate throughout
the year. EBITDA at break-even, above the issued trading update driven by
better advertising performance in Norway in late March.
* Delivery: Positive trends in Helthjem, with higher B2C and higher C2C
volumes, while decline in Morgenlevering led to 1 per cent revenue decline
and slightly negative EBITDA in Q1.
* Growth & Investments: High single-digit revenue growth and improved
profitability across the portfolio led to an EBITDA of NOK 54 million, 90 per
cent up from last year. Exit processes for Lendo and Prisjakt stopped due to
market conditions.
| First quarter | Year
------------------------------------------------------
(NOK million) | 2023 | 2022 | Change | 2022
------------------------------------------------------
Schibsted Group | | | |
------------------------------------------------------
Operating revenues | 3,776 | 3,648 | 4% | 15,272
------------------------------------------------------
- of which digital | 2,670 | 2,458 | 9% | 10,563
------------------------------------------------------
EBITDA | 423 | 480 | (12%) | 2,406
------------------------------------------------------
EBITDA margin | 11% | 13% | | 16%
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, 28 April 2023:
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 Ragnar Kårhus will present the Q1 results as a
virtual live webcast, including a Q&A session. 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/20230428_4/
It will not be possible to physically attend the presentation.
For the Q&A, participants can send in written questions via Slido.
Link: https://www.slido.com
Event code: 2760202
It will not be possible to ask questions by phone.
Press/media can reach out to Schibsted's Head of External & CEO Communication,
Øyvind Vormeland Salte ([email protected]), 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, 28 April 2023
SCHIBSTED ASA
¹ Foreign exchange neutral basis and including pro-forma revenues for
3byggetilbud.dk - http://3byggetilbud.dk A/S before Schibsted ownership
² Foreign exchange neutral basis
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 Langtvet, Investor Relations Officer, +47 916 86 710, [email protected]
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/17847482/2294/3150/Download%20announcement
%20as%20PDF.pdf
Interim Report Q1 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2294/3144/Interim%20Report%20Q1%2
02023.pdf
Results presentation Q1 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2294/3148/Results%20presentation%
20Q1%202023.pdf
Financials and Analytical Info Q1 2023.pdf -
https://kommunikasjon.ntb.no/ir-files/17847482/2294/3149/Financials%20and%20Anal
ytical%20Info%20Q1%202023.pdf
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