Vend Marketplaces ASA

Quarterly Report • Jul 16, 2021

After a very strong first quarter, we are happy to see an even stronger development through the second quarter, driven by solid market recovery. Underlying¹ revenues grew 18 percent compared to a COVID-19 affected last year, but even more importantly we also delivered a 9 percent underlying¹ growth compared to 2019. Driven by the strong revenue growth, we achieved an EBITDA of NOK 743 million in Q2, up from NOK 498 million in the same period last year. The strong increase in EBITDA was driven by Nordic Marketplaces and News Media.

Revenues from Nordic Marketplaces grew by an underlying¹ 32 percent in the quarter, mainly driven by a strong development in job verticals in all markets, but especially in Norway. At the same time, the real estate and motor verticals across the markets have also shown a positive development compared with the same period last year, as has the development in advertising revenues. In Finland, we are seeing a clear increase in traffic on Oikotie after the integration with Tori has now been completed. This supports a positive underlying¹ income development in all main verticals in Finland during the quarter.

News Media had another strong quarter, where underlying² revenues grew 10 percent in combination with continued good traction on the cost program. The revenue growth in News Media is driven by a significant uplift in digital advertising revenues, also compared to 2019, in addition to continued strong growth in revenues from digital subscriptions.

Within Financial Services, Lendo's underlying² revenues returned to growth in the quarter, although banks continued to be restrictive in their lending practices. Distribution continued to record strong growth on top of an amplified quarter last year, when online shopping trends increased as result of the COVID-19 outbreak. Prisjakt, on the other hand, showed a slight underlying² revenue decline and affected EBITDA negatively compared to last year due to product investments.

On 25th June, Adevinta finally completed the acquisition of eBay Classifieds Group, creating the world's largest online classifieds platform. As a result of the transaction, Schibsted's ownership share has been reduced to 33 percent of Adevinta's total outstanding share capital. Since Schibsted then no longer has a controlling ownership position in the company, the ownership interest at the time of the transaction is remeasured at fair value in our balance sheet, calculated based on Adevinta's share price at the date of closing. This has led to a significant accounting gain, amounting to NOK 60 billion. The value of the retained interest is together with the value of the shares distributed to shareholders at the time of the spin off a strong sign of the significant value creation to shareholders coming out of Schibsted's long term strategic focus on shaping the global classified industry.

The closing of the eBay transaction also means that we can finally welcome our Danish colleagues to the Schibsted family, which we have been looking forward to since last summer. Together, we will be very well equipped to develop and grow the next generation of online classified businesses in the Nordic region.

Lastly, Schibsted has implemented a new organizational model from 1st July, which links marketplaces with distribution, sharpens focus on venture investments and financial services, and paves the way for an even more ambitious company-wide growth agenda. The new organizational model builds on Schibsted's proven foundation, and is all about matching businesses that can make each other better, while at the same time giving all our businesses the focus and direction they need to grow. In addition, we will increase our efforts further to shape and execute a holistic investment strategy. The aim is to identify additional opportunities for investments, growth and transformation, potentially broadening Schibsted's portfolio of businesses and brands. In connection with this, we are very happy to introduce a new member to our Schibsted Group Executive Management team. In Q3, Andrew Kvålseth will join as our new Chief Investment Officer.

• Kristin Skogen Lund, CEO

¹ Foreign exchange neutral basis and including pro-forma Oikotie revenues in Q2 2020

² Foreign exchange neutral basis

• Closing of Adevinta's acquisition of eBay Classifieds Group, and Schibsted's acquisition of eBay Classifieds' Danish operations, strengthening our position as the Nordic online classifieds champion.
• Significant accounting gain of NOK 60 billion from Adevinta fair value recognition at closing.
• Underlying¹ revenue growth of 18 percent ensured strong quarterly EBITDA of NOK 743 million, 49 percent above last year and 33 percent higher than 2019.
• Nordic Marketplaces: Accelerated underlying¹ revenue growth of 32 percent, primarily driven by the Job vertical. Strong EBITDA margin of 55 percent in Norway and 43 percent in Sweden.
• News Media: Continued strong performance with underlying² revenue growth of 10 percent, driven by re-bounce in digital advertising in addition to continued strong growth in digital subscriptions. Strong EBITDA margin of 14 percent.
• Financial Services: Underlying² revenues in Lendo returned to growth vs. somewhat weak comparables. Solid EBITDA margin, increasing slightly YoY.
• Growth: Underlying² revenue growth of 16 percent on top of an amplified quarter last year, driven by Distribution. EBITDA decline YoY driven by Prisjakt investments in product development.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Schibsted Group
Operating revenues	3,619	3,073	18%	7,019	6,099	15%
- of which digital	2,353	1,851	27%	4,461	3,677	21%
EBITDA	743	498	49%	1,338	783	71%
EBITDA margin	21%	16%		19%	13%
Operating revenues per segment
Nordic Marketplaces	1,047	753	39%	1,924	1,496	29%
News Media	1,947	1,802	8%	3,792	3,572	6%
Financial Services	271	252	8%	550	545	1%
Growth	689	604	14%	1,434	1,148	25%
EBITDA per segment
Nordic Marketplaces	489	341	43%	849	639	33%
News Media	275	148	86%	481	184	>100%
Financial Services	39	31	26%	89	69	29%
Growth	13	33	(61%)	48	14	>100%
Other/Headquarters	(73)	(54)	(34%)	(128)	(123)	(4%)

Historical income statement figures have been re-presented due to the classification of Adevinta as a separate item under "Discontinued operations" (see Note 6).

Alternative performance measures (APMs) used in this report are described at the end of the report.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Classifieds revenues	833	590	41%	1,535	1,183	30%
Advertising revenues	136	106	29%	244	207	18%
Other revenues	78	57	36%	145	106	37%
Operating revenues	1,047	753	39%	1,924	1,496	29%
EBITDA	489	341	43%	849	639	33%
EBITDA margin	47%	45%		44%	43%

Revenue growth in Nordic Marketplaces accelerated in all three countries during the second quarter, primarily driven by the Job vertical.

Oikotie numbers were included from mid-July 2020 onwards and affected the revenue growth positively. On a foreign exchange neutral basis, and adjusting the Q2 2020 figures with pro-forma numbers for Oikotie, revenues increased 32 percent compared to Q2 last year.

EBITDA increased significantly compared to Q2 last year due to the consolidation of Oikotie and the strong revenue growth. On a foreign exchange neutral basis, and adjusting the Q2 2020 figures with pro-forma numbers for Oikotie, EBITDA increased 41 percent compared to Q2 last year.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Classifieds revenues	538	366	47%	968	749	29%
Advertising revenues	64	49	30%	113	99	14%
Other revenues	69	54	27%	123	102	20%
Operating revenues	670	469	43%	1,203	949	27%
EBITDA	370	244	51%	638	455	40%
EBITDA margin	55%	52%		53%	48%

Marketplaces Norway delivered a strong 43 percent revenue growth compared to Q2 last year. As in the previous quarter, the growth was primarily driven by higher volumes, supported by improved ARPA, in the Job vertical.

"Traditional" Motor (excluding Nettbil) experienced volume growth compared to Q2 last year in addition to an increased demand for upsale products towards the end of the quarter.

Increased volume was also the main driver for revenue growth in Real estate this quarter, although a high demand continues to result in less need for republishments.

The travel vertical has started a slight upgoing trend, in line with the ease of COVID-19 related travel restrictions.

Advertising revenues ended 30 percent above Q2 last year and 16 percent above Q2 2019. The increase was driven by both direct and programmatic advertising.

The strong EBITDA margin in Q2 is driven by higher revenues. Costs are somewhat lower than planned due to longer time lines to fill vacant positions within the product and technology function.

	Second quarter		Year to date
(SEK million)	2021	2020	Change	2021	2020	Change
Classifieds revenues	234	207	13%	440	411	7%
Advertising revenues	50	43	17%	90	82	10%
Other revenues	4	3	52%	8	3	>100%
Operating revenues	288	252	14%	537	496	8%
EBITDA	124	106	17%	228	209	10%
EBITDA margin	43%	42%		43%	42%

Revenues in Marketplaces Sweden increased by 14 percent, driven by all main verticals including advertising.

The Motor vertical saw a solid growth driven by higher professional volumes and the premium product "Bump", and the Jobs vertical experienced an accelerated revenue growth driven by volume recovery.

EBITDA margin slightly above last year driven by revenues, partly offset by investments in marketing and product development.

	Second quarter		Year to date
(EUR million)	2021	2020	Change	2021	2020	Change
Classifieds revenues	6.1	1.0	>100%	12.3	2.0	>100%
Advertising revenues	2.2	1.1	95%	4.0	2.4	69%
Other revenues	1.2	0.1	>100%	2.4	0.1	>100%
Operating revenues	9.5	2.2	>100%	18.7	4.5	>100%
EBITDA	1.4	0.0	>100%	1.8	0.4	>100%
EBITDA margin	15%	1%		9%	8%

The table above consists of Schibsted's Finnish Marketplaces, Tori and Oikotie. Oikotie numbers were included from mid-July 2020 onwards, driving the growth compared to Q2 last year. Adjusting Q2 2020 figures with pro-forma numbers, classifieds revenues increased year-on-year in Q2 across all verticals, especially within Jobs. Advertising revenue turned around from last quarter, with 30 percent growth compared to last year.

EBITDA was affected by investments in marketing, product and technology in the quarter.

	Second quarter			Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Advertising revenues	711	552	29%	1,318	1,105	19%
-of which digital	536	392	37%	987	764	29%
Subscription revenues	690	657	5%	1,389	1,289	8%
-of which digital	311	263	18%	621	505	23%
Casual sales	282	315	(10%)	555	621	(11%)
Other revenues	264	279	(5%)	530	557	(5%)
Operating revenues	1,947	1,802	8%	3,792	3,572	6%
Personnel expenses	(684)	(641)	7%	(1,334)	(1,301)	3%
Other expenses	(988)	(1,014)	(3%)	(1,977)	(2,087)	(5%)
Operating expenses	(1,672)	(1,654)	1%	(3,311)	(3,388)	(2%)
EBITDA	275	148	86%	481	184	>100%
EBITDA margin	14%	8%		13%	5%

News Media continued the strong performance from the last quarters with an increase in both revenue and EBITDA margin compared to Q2 last year. The foreign exchange neutral revenue growth of 10 percent was driven by significant growth in digital advertising and continued strong growth in subscriptions. Driven by both volume and ARPU, digital subscriptions continued to grow even with stronger comparable numbers from last year. Advertising, both digital and print, grew compared to last year. The growth was both driven by lower comparable numbers from last year, but also a very strong advertising market overall.

The cost reduction program of NOK 500 million is still progressing according to plan. Q2 2020 was heavily impacted by COVID-19 cost reductions, and as these effects are diminishing, the operating expenses increased slightly compared to last year.

EBITDA increased by NOK 127 million compared to Q2 last year, and margin was strong at 14 percent.

Split revenue per brand	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
VG	503	421	19%	959	825	16%
Aftonbladet	408	359	14%	784	699	12%
Subscription Newspapers	793	770	3%	1,568	1,550	1%
Other	244	252	(3%)	481	499	(4%)
Operating revenues	1,947	1,802	8%	3,792	3,572	6%

VG

VG delivered another quarter with strong revenue growth of 19 percent compared to Q2 last year. This was driven by digital revenues from both subscription and advertising. VG had significant positive effects on advertising revenues from the strong advertising market in Q2, particularly within video, content and premium display formats.

Aftonbladet

Aftonbladet posted strong revenue growth of 18 percent on a foreign exchange neutral basis compared to Q2 last year. Similar to VG, revenue growth was driven by digital subscription and advertising revenues.

Subscription Newspapers

The subscription newspapers continued the good trend from the end of last quarter, and experienced an increase in revenues compared to Q2 last year. The main driver was growth in digital subscriptions and advertising.

Other

Other consists of New Models (for example TV.nu, Klart.se and Omni), Schibsted's printing facilities and centralized functions in Norway and Sweden. Revenues declined 3 percent compared to Q2 last year driven by printing services, somewhat outweighed by revenue growth in New Models.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Operating revenues	271	252	8%	550	545	1%
EBITDA	39	31	26%	89	69	29%
EBITDA margin	14%	12%		16%	13%

The revenue development within Financial Services turned positive from last quarter, with 13 percent revenue growth on a foreign exchange neutral basis compared to Q2 last year. This was mainly due to weak comparable numbers in Q2 2020 as this quarter was most affected by COVID-19 restrictions.

Even though Lendo continued to experience higher prices in performance marketing channels due to increased competition, the EBITDA was stable due to revenue growth and lower geographical expansion investments.

Lendo Group	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Operating revenues	238	208	14%	480	458	5%
EBITDA	34	25	33%	83	68	22%
EBITDA margin	14%	12%		17%	15%

The increase in revenues in Lendo Group was mainly due to weak comparable numbers from last year, as Lendo's revenues were strongly affected by COVID-19. Lendo experienced revenue growth compared to Q2 last year on a foreign exchange neutral basis in most countries, except Denmark. The growth was primarily driven by increased demand from customers, while conversion rates are still below pre-pandemic levels.

EBITDA margin increased slightly compared to Q2 last year driven by underlying efficiency improvement and reduced investments in international expansion.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Operating revenues	689	604	14%	1,434	1,148	25%
EBITDA	13	33	(61%)	48	14	>100%
EBITDA margin	2%	5%		3%	1%

Continuing from the last quarters, Distribution experienced high activity levels with increased e-commerce volumes compared to last year, driven by both HeltHjem and Morgenlevering.

On a foreign exchange neutral basis, revenues grew by 16 percent compared to Q2 last year. Driven by investments in product development, EBITDA in Schibsted Growth decreased compared to last year.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Operating revenues	475	382	24%	998	736	36%
EBITDA	11	8	48%	41	7	>100%
EBITDA margin	2%	2%		4%	1%

Distribution currently has operations in Norway and consists of the legacy newspaper distribution and "Distribution New Business" (mainly HeltHjem Netthandel, Morgenlevering and Zoopit). The Distribution New Business experienced strong growth in Q2 last year due to increased online shopping trends during COVID-19 restrictions. This year, Distribution New Business continued the strong performance and delivered high revenues compared to Q2 last year.

Even with strong comparable numbers from Q2 last year, HeltHjem Netthandel grew 61 percent in revenues compared to Q2 last year and almost tripled the EBITDA. Morgenlevering continued to deliver strong revenue growth with 45 percent growth compared to Q2 last year.

	Second quarter		Year to date
(NOK million)	2021	2020	Change	2021	2020	Change
Operating revenues	87	94	(7%)	176	168	5%
EBITDA	22	36	(38%)	47	48	(1%)
EBITDA margin	25%	38%		27%	28%

The revenue in Prisjakt decreased by 2 percent on a foreign exchange neutral basis compared to Q2 last year, driven by lower traffic and hence click revenues. Prisjakt experienced a strong boost in e-commerce in Q2 2020 as a result of the pandemic outbreak. As this effect has declined throughout the year, the year-over-year development shows a slight decrease in revenues compared to last year.

The total cost base has increased compared to Q2 last year mainly driven by investments in product development. Slight decrease in revenue, combined with increased cost resulted in lower margin compared to last year.

Other and HQ had a negative EBITDA of NOK 73 million in Q2, which was an increased deficit of NOK 18 million compared to last year.

The year-over-year increase was primarily driven by increased activity compared to a significantly low cost level last year, as result of the pandemic outbreak with actions such as reversal of bonuses and lower employer taxes.

Based on Adevinta's stand-alone reporting, revenues increased by 33 percent in Q2 2021 to EUR 193 million, compared to Q2 2020, demonstrating further recovery across the board.

Operating expenses increased by 31 percent in Q2 2021, compared to Q2 2020, due to strong marketing investment in France, an increase in personnel costs in the absence of government subsidies and an increase in transactional costs due to the ramp-up of the services.

Uncertainty from the COVID-19 pandemic and related restrictions is reduced in line with increased vaccination levels. Effects from the pandemic are still evident within the society and hence in the economy, and new user habits seem to have come to stay. Consumers and businesses seek convenient, reliable, and safe ways to buy and sell products and services. As a result, digital transformation has accelerated across many industries which brings new possibilities for our Nordic Marketplaces and businesses like Distribution and Prisjakt. Consumers continue to show high interest in our independent, high quality journalism to stay informed about the pandemic, politics and society at large.

After witnessing resilience during the pandemic and an increased recovery across all markets in Nordic Marketplaces during the first half of 2021, we remain confident in the growth potential of this business and keep our medium- to long-term target to grow annual revenues by 8-12 percent for this segment. In 2021, growth will be at the high end of this range or potentially even above, due to the strong re-bounce effects we are observing, especially in the job vertical, when society now returns to a more normal situation again. We expect that the growth going forward primarily will be driven by three things. First, by leveraging our Nordic market positions driven by the development of better products and value-added services for our verticals. Second, the transformation to next generation marketplaces. And finally, by expanding into new marketplaces. The high growth ambitions and the transformation towards the next generation of marketplaces will require increased investments in product and technology over time. The costs within these functional areas will therefore increase going forward. This will potentially have a negative effect on margins as the costs occur, as will the effect from lower margins on some of the new transactional services that will be launched.

The pandemic initially had a significant negative effect on digital advertising revenues within News Media. The last two quarters though have shown significant improvement in digital advertising, with Q2 revenues growing strongly YoY with a solid increase also compared to 2019. Looking ahead, the most important matter is the continued transition to a future oriented, digitally focused news organization with an even stronger emphasis on our subscription business. Already today, News Media has a strong and loyal customer base in As a result, gross operating profit (EBITDA) increased by 37 percent in Q2 2021, compared to Q2 2020. Gross operating profit (EBITDA) for the quarter amounted to EUR 53 million compared to EUR 39 million in Q2 2020.

For more details, please refer to Adevinta's trading update for Q2 published 15 July 2021 on www.adevinta.com/ir.

Norway and Sweden with close to 1.3 million subscriptions in total, to be further strengthened with the acquisition of PodMe in Q2 2021. News Media will continue to pursue opportunities to further capitalize on these positions, which will enable us to secure News Media's long-term financial profitability and safeguard its high relevance for society. News Media announced a cost program of NOK 500 million in Q1 2020 (the net effect will be reduced by inflation and wage increases) to accelerate the digital transformation of the business. The implementation of the program is progressing well with around NOK 330 million of cost savings per Q2 2021. On the back of these good underlying trends and our strategy, we expect an annual low single-digit revenue growth in the medium-term and a medium-term EBITDA margin for News Media in the range of 10-12 percent. Depending on the further development in the advertising market, both revenues and margins in 2021 may end up in the upper part of or slightly above our mid-term guidance.

Within Next (Financial Services and Growth), Lendo is expected to grow well over time. In the shorter term, the COVID-19 pandemic has led to a slower revenue development, as banks have been more restrictive due to increased macroeconomic uncertainty. Driven by increased competition in Sweden, we have lately also observed increased unit costs in performance marketing channels and expect this trend to continue. The investment into new markets for Lendo will continue. In Q4 2020 we started to launch the service in Spain, and in Q2 2021 we entered the Portugese market. Lendo's expansion is expected to affect EBITDA negatively with around NOK 70-80 million in 2021. In Distribution, we expect continued strong revenue growth and will continue to focus on new and innovative product and tech solutions supporting the strong megatrend of growth within e-commerce which will lead to some investments.

Across all business areas, use of data is getting more and more important for a wide range of purposes – from development to personalization of products and services. At the same time, collection and utilization of data has become increasingly complex due to development in the regulatory framework as well as technical restrictions, such as tracking prevention implemented by internet browsers. Schibsted has good progress on a Group wide data strategy and our goal is to ensure sustainable use of data going forward.

Schibsted's consolidated operating revenues in the first half of 2021 totaled NOK 7,019 million, up 15 percent compared to last year. The Group's gross operating profit (EBITDA) amounted to NOK 1,338 million, equivalent to a growth rate of 71 percent.

Depreciation and amortisation were NOK -454 million (NOK -393 million), mainly related to software, licenses, and right-of-use assets (leasing). Other income in the first half of 2021 were NOK 74 million (NOK 129 million), mainly related to gain from remeasurement of previously held equity interests in PodMe. Other expenses were NOK -76 million (NOK 70 million) related to the acquisition of the Danish eBay classifieds company and integration of Oikotie, and headcount reductions. Other income and expenses are disclosed in note 4.

Operating profit in the first half of 2021 amounted to NOK 761 million (NOK 402 million).

The Group reported a tax expense of NOK -128 million (20%) compared to an income of NOK 236 million (75%) in the first half of 2020. The reported tax rate is positively affected by nontaxable gains and deductible losses from hedging the acquisition of eBay Denmark, offset by the recognized impairment loss on goodwill.

Profit (loss) after taxes from discontinued operations (Adevinta business) amounted to NOK 59,970 million (NOK -468 million). Profit in Adevinta is adjusted for the effect of not depreciating, amortising, and impairing of non-current assets and for discontinuing the equity method for associated companies and joint ventures in Adevinta. This affected profit (loss) from discontinued operations positively by NOK 304 million after tax in the first half of 2021. Profit (loss) after taxes from discontinued operations includes a NOK 60 billion gain related to loss of control of Adevinta. For further details see note 2 and note 6.

Basic earnings per share in the first half of 2021 was NOK 259.95 compared to NOK 1.10 in the first half of 2020. Basic earnings per share from continuing operations in the first half of 2021 was NOK 2.03 compared to NOK 2.25 in the first half of 2020.

Adjusted earnings per share from continuing operations in the first half of 2021 is NOK 2.41 compared to NOK 2.00 in the first half of 2020.

Net cash flow from operating activities excluding discontinued operations was NOK 977 million for the first half of 2021, compared to NOK 419 million in the same period of 2020. The increased cash flow is mainly explained by increased EBITDA, a positive change in working capital and reduced tax payments.

Net cash flow from investing activities excluding discontinued operations was NOK -3,534 million for the first half of 2021, compared to NOK -348 million in the same period of 2020. The increased cash outflow is mainly related to the acquisition of eBay Denmark and PodMe.

Net cash flow from financing activities excluding discontinued operations was NOK 2,086 million for the first half of 2021 compared to NOK -319 million in the same period of 2020. Financing activities is mainly related to net change in interestbearing borrowings, due to repayment of a NOK 600 million bond with maturity in May 2021 and drawing a NOK 3.3 billion bridge facility in connection with the closing of the acquisition of eBay Denmark. Schibsted also paid out dividend of NOK 468 million during the first half of 2021. Please see note 7 for more details on cash flow from continuing operations.

In discontinued operations, net cash flow from operating activities, investing activities and financing activities were NOK 341 million (NOK 587 million), NOK -1,380 million (NOK -360 million) and NOK -392 million (NOK 2,441 million) respectively.

The carrying amount of the Group's assets increased by NOK 36,298 million to NOK 84,776 million during the first half of 2021, mainly related to remeasurement of the investment in Adevinta as an associate at fair value. Schibsted's equity ratio is 84 percent at the end of June 2021, compared to 33 percent the end of 2020.

Schibsted has a well-diversified loan portfolio with loans from both the Norwegian bond market, a group of relationship banks and the Nordic Investment bank. A bond (FRN) of NOK 600 million was repaid at maturity 6 May.

The bridge loan facility was drawn by NOK 3.3 billion at closing of the acquisition in Denmark at the end of June and the remaining facility amount is cancelled. In addition, Schibsted had a revolving credit facility of EUR 300 million which was not drawn as of 30 June 2021. This facility has successfully been refinanced by a new EUR 300 million multi-currency revolving credit facility. The new facility was signed 9th of July and has a term of 5 years, with two 1-year extension options. The new facility is not drawn and secures a strong liquidity buffer going forward.

The cash balance at the end of June 2021 was NOK 727 million giving a net interest-bearing debt of NOK 5,696 million. Including the undrawn facility, the liquidity reserve amounts to NOK 3,778 million. Dividend for 2020 of NOK 2.00 per share was paid in May, totally amounting to NOK 468 million.

Following the completion of Adevinta's acquisition of eBay Classifieds Group on 25 June 2021, Schibsted lost control over Adevinta and ceased to consolidate Adevinta with effect from closing of the acquisition. The retained ownership interest in Adevinta will be accounted for as an associate and share of profit (loss) of Adevinta will be reported with one quarter lag commencing Q4 2021.

See note 2 and note 6 for further details.

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Operating revenues	3,619	3,073	7,019	6,099	12,908
Raw materials and finished goods	(129)	(100)	(275)	(193)	(454)
Personnel expenses	(1,366)	(1,189)	(2,665)	(2,410)	(4,905)
Other operating expenses	(1,380)	(1,286)	(2,741)	(2,713)	(5,422)
Gross operating profit (loss)	743	498	1,338	783	2,126
Depreciation and amortisation	(233)	(199)	(454)	(393)	(829)
Share of profit (loss) of joint ventures and associates	(22)	(4)	(23)	(34)	(44)
Impairment loss	(91)	(13)	(97)	(13)	(61)
Other income	64	63	74	129	146
Other expenses	(45)	(59)	(76)	(70)	(237)
Operating profit (loss)	415	285	761	402	1,101
Financial income	4	7	8	24	37
Financial expenses	(58)	(53)	(114)	(110)	(197)
Profit (loss) before taxes	362	239	655	316	941
Taxes	(57)	264	(128)	236	128
Profit (loss) from continuing operations	305	503	527	552	1,068
Profit (loss) from discontinued operations	60,471	(34)	59,970	(468)	(233)
Profit (loss)	60,776	469	60,497	84	836
Profit (loss) attributable to:
Non-controlling interests	(135)	(1)	(310)	(173)	(22)
Owners of the parent	60,911	471	60,807	257	858
Earnings per share in NOK:
Basic	260.36	2.01	259.95	1.10	3.67
Diluted	259.92	2.01	259.48	1.10	3.66
Earnings per share from continuing operations in NOK:
Basic	1.18	2.09	2.03	2.25	4.30
Diluted	1.18	2.08	2.03	2.25	4.29

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Profit (loss)	60,776	469	60,497	84	836
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension liabilities	-	(93)	-	(393)	(148)
Cash flow hedges	(51)	-	672	-	(1,626)
Change in fair value of equity instruments	(2)	(16)	(1)	(17)	(18)
Share of other comprehensive income of joint ventures and associates	-	-	(1)	(1)	(1)
Income tax relating to items that will not be reclassified	(50)	20	(21)	87	53
Items that may be reclassified to profit or loss:
Foreign exchange differences	740	(1,079)	(318)	792	148
Accumulated exchange differences reclassified to profit or loss on disposal of foreign operation	480	-	587	-	22
Cash flow hedges and hedges of net investments in foreign operations	(31)	166	130	(267)	(223)
Share of other comprehensive income of joint ventures and associates	5	2	4	2	(2)
Income tax relating to items that may be reclassified	17	(29)	(31)	65	48
Other comprehensive income	1,109	(1,030)	1,022	267	(1,745)
Total comprehensive income	61,885	(561)	61,519	351	(909)
Total comprehensive income attributable to:
Non-controlling interests	18	(405)	(87)	76	(661)
Owners of the parent	61,867	(156)	61,606	274	(249)

(NOK million)	30 Jun 2021	30 Jun 2020	31 Dec 2020
Intangible assets	9,420	19,014	6,018
Property, plant and equipment and investment property	499	745	480
Right-of-use assets	1,516	2,735	1,620
Investments in joint ventures and associates	69,883	4,062	922
Deferred tax assets	716	588	690
Other non-current assets	132	344	101
Non-current assets	82,166	27,489	9,832
Contract assets	267	226	173
Trade receivables and other current assets	1,617	3,147	1,792
Cash and cash equivalents	727	6,282	1,306
Assets held for sale	-	-	35,375
Current assets	2,610	9,655	38,646
Total assets	84,776	37,144	48,478
Paid-in equity	7,026	6,990	7,028
Other equity	64,120	3,696	3,151
Equity attributable to owners of the parent	71,145	10,686	10,178
Non-controlling interests	112	6,402	5,675
Equity	71,257	17,088	15,853
Deferred tax liabilities	641	1,020	351
Pension liabilities	1,065	1,450	1,154
Non-current interest-bearing loans and borrowings	6,344	5,297	3,090
Non-current lease liabilities	1,388	2,579	1,503
Other non-current liabilities	389	411	317
Non-current liabilities	9,827	10,757	6,416
Current interest-bearing loans and borrowings	79	3,133	678
Income tax payable	122	115	74
Current lease liabilities	298	446	286
Contract liabilities	632	1,227	600
Other current liabilities	2,562	4,378	2,537
Liabilities held for sale	-	-	22,034
Current liabilities	3,692	9,299	26,209
Total equity and liabilities	84,776	37,144	48,478

The statement of cash flows is prepared in accordance with applicable accounting standards and includes cash flows from discontinued operations. For detailed information on cash flows from continuing operations, see note 7.

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Profit (loss) before taxes from continuing operations	362	239	655	316	941
Profit (loss) before taxes from discontinued operations	205	61	(130)	(247)	154
Depreciation, amortisation and impairment losses	326	374	552	710	1,226
Net effect pension liabilities	(24)	4	(79)	(42)	(7)
Share of loss (profit) of joint ventures and associates, net of dividends received	24	(18)	36	9	52
Taxes paid	(198)	(174)	(397)	(333)	(819)
Sales losses (gains) non-current assets and other non cash losses (gains)	(31)	(58)	522	(124)	(189)
Non-cash items and change in working capital and provisions	(61)	39	159	717	1,043
Net cash flow from operating activities	602	467	1,318	1,005	2,402
-of which from continuing operations	678	320	977	419	1,292
-of which from discontinued operations	(76)	146	341	587	1,110
Development and purchase of intangible assets and property, plant and equipment	(276)	(295)	(545)	(553)	(1,069)
Acquisition of subsidiaries, net of cash acquired	(2,947)	-	(2,975)	(76)	(2,025)
Proceeds from sale of intangible assets, investment property and property, plant and equipment	10	115	15	115	116
Proceeds from sale of subsidiaries, net of cash sold	(1,278)	14	(1,125)	99	426
Net sale of (investment in) other shares	(64)	(59)	(127)	(139)	(254)
Net change in other investments	45	(117)	(157)	(155)	(3,302)
Net cash flow from investing activities	(4,510)	(342)	(4,914)	(708)	(6,109)
-of which from continuing operations	(3,110)	(183)	(3,534)	(348)	(2,654)
-of which from discontinued operations	(1,400)	(159)	(1,380)	(360)	(3,455)
Net change in interest-bearing loans and borrowings	2,700	2,538	2,699	2,530	3,276
Payment of principal portion of lease liabilities	(131)	(105)	(253)	(193)	(419)
Change in ownership interests in subsidiaries (Note 2)	-	(61)	(227)	(61)	(91)
Capital increase	-	-	-	8	8
Net sale (purchase) of treasury shares	7	3	17	(104)	(90)
Dividends paid	(542)	(54)	(542)	(60)	(61)
Net cash flow from financing activities	2,034	2,322	1,694	2,121	2,624
-of which from continuing operations	2,155	(164)	2,086	(319)	(498)
-of which from discontinued operations	(120)	2,487	(392)	2,441	3,122
Effects of exchange rate changes on cash and cash equivalents	31	(142)	(48)	(2)	(105)
Net increase (decrease) in cash and cash equivalents	(1,842)	2,305	(1,951)	2,417	(1,188)
Cash and cash equivalents at start of period	2,569	3,977	2,678	3,866	3,866
Cash and cash equivalents at end of period	727	6,282	727	6,282	2,678
-of which cash and cash equivalents in assets held for sale	-	-	-	-	1,371
-of which cash and cash equivalents excluding assets held for sale	727	6,282	727	6,282	1,306

	Attributable	Non
(NOK million)	to owners of the parent	controlling interests	Equity
Equity as at 31 Dec 2020	10,178	5,675	15,853
Profit (loss) for the period	60,807	(310)	60,497
Other comprehensive income	799	223	1,022
Total comprehensive income	61,606	(87)	61,519
Share-based payment	(2)	(8)	(10)
Dividends paid to owners of the parent	(468)	-	(468)
Dividends paid to non-controlling interests	16	(139)	(123)
Change in treasury shares	17	-	17
Business combinations	-	15	15
Loss of control of subsidiaries	-	(5,249)	(5,249)
Changes in ownership of subsidiaries that do not result in a loss of control (Note 2)	(134)	(95)	(229)
Share of transactions with the owners of joint ventures and associates	(67)	-	(67)
Equity as at 30 Jun 2021	71,145	112	71,257
Equity as at 31 Dec 2019	10,498	6,383	16,882
Profit (loss) for the period	257	(173)	84
Other comprehensive income	18	249	267
Total comprehensive income	274	76	351
Capital increase	-	8	8
Share-based payment	23	4	27
Dividends paid to non-controlling interests	15	(60)	(45)
Change in treasury shares	(104)	-	(104)
Loss of control of subsidiaries	-	(2)	(2)
Changes in ownership of subsidiaries that do not result in a loss of control	(2)	(8)	(10)
Share of transactions with the owners of joint ventures and associates	(19)	-	(19)
Equity as at 30 Jun 2020	10,686	6,402	17,088

The condensed consolidated interim financial statements comprise the Group and the Group's interests in joint ventures and associates. The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim financial statements are unaudited. All numbers are in NOK million unless otherwise stated. Tables may not summarise due to rounding.

The accounting policies adopted in preparing the condensed consolidated financial statements are consistent with those followed in preparing the Group's annual financial statements for 2020.

Adevinta is classified as a discontinued operation until loss of control as disclosed in Note 2 Changes in the composition of the group. Previous periods are re-presented, reflecting Adevinta as discontinued for all reported periods until loss of control. The re-presentation affects the income statement and related note disclosures.

In July 2020, Schibsted announced that its subsidiary Adevinta ASA had signed an agreement to acquire 100% of eBay Classified Group being the global classifieds operations of eBay Inc (eBay). The transaction was completed on 25 June 2021. Under the terms of the agreement, eBay received a consideration of USD 2.5 billion in cash and approximately 540 million shares in Adevinta representing an ownership interest of 44.1% of the capital and 33.3% of the votes.

The share issue of Adevinta ASA diluted the ownership interest of Schibsted in Adevinta to 33.1% of the capital and 39.5% of the votes, thereby resulting in Schibsted losing control of Adevinta. The accounting gain recognised in relation to loss of control amounts to NOK 60 billion. The gain primarily reflects the difference between the fair value of the retained interest in Adevinta being recognised and the carrying amounts of Adevinta as a subsidiary being derecognized. Further, the net gain reflects reclassification of accumulated translation differences and transaction cost. The loss of control affects consolidated cash flows negatively by the cash of Adevinta being disposed of. The gain is included in the line item Profit (loss) after taxes from discontinued operations. See note 6 Assets held for sale and discontinued operations.

Subsequent to loss of control, the retained interest in Adevinta will be accounted for as an associate applying the equity method of accounting. Share of profit (loss) recognised will reflect Schibsted's share of profit (loss) as reported by Adevinta with appropriate adjustments for depreciation and amortisation of non-current assets based on their fair values when equity accounting commences. As Adevinta will be issuing interim financial statements later than Schibsted, share of profit (loss) of Adevinta will be reported with a one quarter lag.

During the first half year of 2021, Schibsted (continuing operations) invested NOK 2,956 million related to business combinations, whereof NOK 2,830 is related to the acquisition of eBay Classifieds Scandinavia ApS. The amount comprises cash consideration transferred reduced by cash and cash equivalents of the acquiree.

As part of Adevinta's acquisition of eBay Classified Group, Schibsted acquired the Danish operations of eBay Classified Group (DBA.dk and bilbasen.dk) from Adevinta through the acquisition of 100% of the shares of eBay Classifieds Scandinavia ApS. With the completion of the acquisition, Schibsted added a strong online classifieds business with solid margins to its portfolio and obtained access to a digitally advanced and attractive market for online classifieds. The transaction was completed on 25 June 2021 with consolidation in practice commencing at the end of June 2021.

In June 2021, Schibsted obtained control over the Swedish premium podcast company PodMe AB through increasing its ownership interest from 48% to 91% through acquisition of shares. The brand will be central in Schibsted's strategy for subscription-based podcasts. The previously held ownership interest was accounted for as an associate and was remeasured at fair value at the acquisition date resulting in a gain of NOK 50 million recognised in the line item Other income.

Schibsted has also been involved in other minor business combinations.

Due to pre-completion restrictions on access to financial information, Schibsted has not been able to perform the valuations of assets acquired and liabilities assumed, required for a final purchase price allocation. The allocations recognised for the acquired businesses are preliminary, reflecting an allocation primarily to intangible assets including goodwill.

In November 2020,the Norwegian Competition Authority (NCA) resolved to prohibit the business combination between Schibsted and Nettbil, which was acquired in December 2019. Schibsted appealed the decision to the Norwegian Competition Tribunal. In May Schibsted received the decision from the Norwegian Competition Tribunal, confirming the NCA's decision that Schibsted was not allowed to acquire Nettbil. The decision may be appealed to the Court of Appeal within 27 August 2021, and Schibsted is currently considering the next steps.

The cash outflow from changes in ownership interests in subsidiaries of NOK 227 million in the first half of 2021 relate to Adevinta ASA having purchased treasury shares.

Schibsted has done some minor adjustments to the reporting structure effective Q1 2021. Certain operations (Tv.nu, Klart Vädertjänster, Vinguiden Nordic, Omni.se and Schibsted Tilväkstmedier Annonsförsälning) are transferred between Growth and News Media, and the definition of Classifieds revenues within Nordic Marketplaces is updated. The adjustments are made to reflect changes in internal reporting and monitoring of the businesses. Operating segments and disaggregation of revenues for 2020 have been restated retrospectively to give comparable information.

Schibsted's operating segments are Nordic Marketplaces, News Media, Financial Services and Growth.

Nordic Marketplaces comprises online classified operations in Norway (Finn), Sweden (Blocket) and Finland (Tori and Oikotie). These operations provide technology-based services to connect buyers and sellers and facilitate transactions, from job offers to real estate, cars, travel, consumer goods and more. Nordic Marketplaces also includes adjacent businesses such as Nettbil and Qasa.

News Media comprises news brands such as VG, Aftenposten, Bergens Tidende in Norway and Aftonbladet and Svenska Dagbladet in Sweden both in paper and digital formats, in addition to printing plant operations in the Norwegian market.

Financial Services consists of a portfolio of companies in the digital personal finance space, mainly in Norway and Sweden. Lendo is the key brand in the portfolio, offering digital marketplaces for consumer lending.

Growth consists of a portfolio of digital companies operating mainly in Norway and Sweden, such as Prisjakt. In addition, the distribution operations in Norway deliver not only newspapers but also parcels for businesses and consumers.

Other / Headquarters comprises operations not included in the other reported operating segments, including the Group's headquarter Schibsted ASA and other centralised functions including Product and Technology.

Eliminations comprise intersegment sales. Transactions between operating segments are conducted on normal commercial terms.

In the operating segment information presented, Gross operating profit (loss) is used as measure of operating segment profit (loss). For internal control and monitoring, Operating profit (loss) is also used as measure of operating segment profit (loss).

	Nordic				Other /
	Market	News	Financial		Head	Elimina
Second quarter 2021	-places	Media	Services	Growth	-quarters	-tions	Schibsted
Operating revenues	1,047	1,947	271	689	158	(494)	3,619
-of which internal	27	173	-	144	150	(494)	-
Gross operating profit (loss)	489	275	39	13	(73)	-	743
Operating profit (loss)	410	159	(74)	19	(99)	-	415
Second quarter 2020
Operating revenues	753	1,802	252	604	177	(516)	3,073
-of which internal	19	199	1	142	156	(516)	-
Gross operating profit (loss)	341	148	31	33	(54)	-	498
Operating profit (loss)	303	63	(3)	4	(81)	-	285
Year to date 2021
Operating revenues	1,924	3,792	550	1,434	319	(999)	7,019
-of which internal	49	350	1	296	303	(999)	-
Gross operating profit (loss)	849	481	89	48	(128)	-	1,338
Operating profit (loss)	689	265	(43)	21	(171)	-	761

Year to date 2020
Operating revenues	1,496	3,572	545	1,148	344	(1,007)	6,099
-of which internal	41	373	1	292	300	(1,007)	-
Gross operating profit (loss)	639	184	69	14	(123)	-	783
Operating profit (loss)	564	33	3	(34)	(164)	-	402
Year 2020
Operating revenues	3,181	7,459	1,100	2,517	668	(2,017)	12,908
-of which internal	84	739	2	597	594	(2,017)	-
Gross operating profit (loss)	1,336	750	203	109	(272)	-	2,126
Operating profit (loss)	1,043	385	90	(48)	(368)	-	1,101

	Nordic				Other /
	Market	News	Financial		Head	Elimina
Second quarter 2021	-places	Media	Services	Growth	-quarters	-tions	Schibsted
Classifieds revenues	833	-	-	-	-	-	832
Advertising revenues	136	711	-	47	-	(51)	843
-of which digital	136	536	-	47	-	(50)	670
Subscription revenues	-	690	-	64	-	-	753
-of which digital	-	311	-	64	-	-	374
Casual sales	-	282	-	-	-	-	282
Other revenues	78	235	271	579	142	(414)	890
Revenues from contracts with customers	1,047	1,918	271	689	142	(466)	3,601
Revenues from lease contracts, government grants and others	-	30	-	-	16	(28)	18
Operating revenues	1,047	1,947	271	689	158	(494)	3,619
Second quarter 2020
Classifieds revenues	590	-	-	-	-	-	590
Advertising revenues	106	552	-	53	-	(58)	653
-of which digital	106	392	-	53	-	(56)	495
Subscription revenues	-	657	-	61	-	(1)	717
-of which digital	-	263	-	61	-	-	324
Casual sales	-	315	-	-	-	-	315
Other revenues	57	253	252	490	161	(430)	784
Revenues from contracts with customers	753	1,776	252	604	161	(488)	3,058
Revenues from lease contracts, government grants and others	-	26	-	-	16	(27)	15
Operating revenues	753	1,802	252	604	177	(516)	3,073

Year to date 2021
Classifieds revenues	1,535	-	-	-	-	(1)	1,534
Advertising revenues	244	1,318	-	89	-	(102)	1,549
-of which digital	244	987	-	89	-	(99)	1,221
Subscription revenues	-	1,389	-	128	-	-	1,516
-of which digital	-	621	-	128	-	-	748
Casual sales	-	555	-	-	-	-	555
Other revenues	145	472	550	1,216	286	(838)	1,831
Revenues from contracts with	1,923	3,734	550	1,433	286	(942)	6,985
customers
Revenues from lease contracts,	-	58	-	1	33	(57)	34
government grants and others
Operating revenues	1,924	3,792	550	1,434	319	(999)	7,019
Year to date 2020 Classifieds revenues	1,183	-	-	-	-	(1)	1,183
Advertising revenues	207	1,105	-	92	-	(99)	1,305
-of which digital	207	764	-	92	-	(95)	968
Subscription revenues	-	1,289	-	119	-	(1)	1,407
-of which digital	-	505	-	119	-	-	625
Casual sales	-	621	-	-	-	-	621
Other revenues	105	508	545	936	313	(852)	1,556
Revenues from contracts with customers	1,496	3,523	545	1,148	313	(953)	6,071
Revenues from lease contracts,	1	49	-	-	32	(53)	28
government grants and others
Operating revenues	1,496	3,572	545	1,148	344	(1,007)	6,099
Year 2020
Classifieds revenues	2,486	-	-	-	-	(1)	2,485
Advertising revenues	449	2,377	-	203	-	(200)	2,829
-of which digital	449	1,694	-	203	-	(193)	2,153
Subscription revenues	-	2,658	-	249	-	(2)	2,905
-of which digital	-	1,088	-	249	-	-	1,336
Casual sales	-	1,256	-	-	-	-	1,256
Other revenues	244	1,015	1,100	2,065	604	(1,702)	3,326
Revenues from contracts with	3,179	7,307	1,100	2,517	604	(1,906)	12,800
customers
Revenues from lease contracts, government grants and others	1	153	-	-	64	(110)	107
Operating revenues	3,181	7,459	1,100	2,517	668	(2,017)	12,908

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Gain on sale of subsidiaries, joint ventures and	5	(1)	8	66	75
associates
Gain on sale of intangible assets, property, plant and	2	51	2	51	51
equipment and investment property
Gain from remeasurement of previously held equity	50	-	50	-	-
interests in business combinations achieved in stages
Gain on amendments and curtailment of pension plans	7	13	13	13	21
Total other income	64	63	74	129	146
Restructuring costs	(30)	(59)	(43)	(70)	(134)
Transaction-related costs	(15)	-	(32)	(1)	(101)
Loss on sale of subsidiaries, joint ventures and	-	-	-	-	(2)
associates
Total other expenses	(45)	(59)	(76)	(70)	(237)

For further information on Gain from remeasurement of previously held equity interests, see Note 2.

Transaction-related costs in first half of 2021 mainly relate to the acquisition of eBay Denmark.

Impairment loss of NOK -97 million in first half of 2021 includes impairment of goodwill, primarily related to Compricer.

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Interest income	2	7	5	23	29
Net foreign exchange gain	-	-	-	-	3
Other financial income	3	-	3	1	5
Total financial income	4	7	8	24	37
Interest expenses	(50)	(46)	(94)	(89)	(176)
Net foreign exchange loss	(1)	(3)	(7)	(12)	-
Other financial expenses	(7)	(4)	(13)	(9)	(21)
Total financial expenses	(58)	(53)	(114)	(110)	(197)
Net financial items	(53)	(46)	(106)	(86)	(161)

Adevinta was classified as a disposal group held for sale with effect from the date of Adevinta signing the agreement to acquire 100 percent of eBay Classified Group (20 July 2020) and until control was lost. The assets and liabilities of Adevinta were presented separately within current items in the statement of financial position. No depreciation, amortisation or impairment losses are recognised for non-current assets while being part of a disposal group classified as held for sale. Further, the use of the equity method of accounting is discontinued for investments in joint ventures and associates of a disposal group. Adevinta represented a separate major line of business and was therefore classified as a discontinued

operation with effect from signing of the agreement. The posttax profits of discontinued operations are presented in a separate line item in the income statement. Previous periods are re-presented.

Profit (loss) after taxes from discontinued operations includes a NOK 60 billion gain related to loss of control of Adevinta in the first half of 2021.

See also note 2 Changes in the composition of the group.

Profit (loss) from discontinued operations can be analysed as follows:

	Second quarter		Year to date	Year
(NOK million)	2021	2020	2021	2020	2020
Operating revenues	1,937	1,572	3,799	3,364	7,133
Operating expenses	(1,406)	(1,152)	(2,725)	(2,528)	(5,189)
Gross operating profit (loss)	532	420	1,074	835	1,944
Depreciation and amortisation	-	(162)	-	(303)	(337)
Share of profit (loss) of joint ventures and associates	-	22	-	25	15
Impairment loss	-	-	-	-	-
Other income	3	8	3	8	76
Other expenses	(484)	(40)	(1,179)	(57)	(500)
Operating profit (loss)	51	248	(102)	508	1,199
Net financial items	154	(188)	(28)	(755)	(1,045)
Profit (loss) before taxes	205	61	(130)	(247)	154
Taxes	(176)	(95)	(342)	(221)	(387)
Profit (loss) after taxes from discontinued operations	29	(34)	(472)	(468)	(233)
Gain on loss of control	60,411	-	60,411	-	-
Related income tax expense	30	-	30	-	-
Profit (loss) from discontinued operations	60,471	(34)	59,970	(468)	(233)
Other comprehensive income from discontinued	843	(953)	1,107	383	(1,723)
operations
Total comprehensive income from discontinued	61,314	(987)	61,077	(85)	(1,956)
operations
Total comprehensive income from discontinued
operations attributable to:
Non-controlling interests	(12)	(421)	(137)	48	(728)
Owners of the parent	61,326	(566)	61,214	(133)	(1,228)
Earnings per share from discontinued operations in NOK:
Basic	259.18	(0.07)	257.92	(1.15)	(0.63)
Diluted	258.74	(0.07)	257.45	(1.15)	(0.63)

Intra-group eliminations between continuing and discontinued operations are attributed to discontinued operations as that approach is considered to provide the most relevant information related to results of continuing operations on an ongoing basis. This attribution results in certain deviations in amounts presented for discontinued operations above and amounts previously reported for Adevinta as an operating segment.

The effects from not including depreciation, amortisation, impairment and discontinuing the equity method affect profit (loss) from discontinued operations positively by NOK 851 million before taxes and by NOK 741 million after taxes in the first half of 2021. In the first half of 2021 profit (loss) after taxes from discontinued operations also included a NOK -437 million loss related to Adevinta's disposal of Yapo.cl, in addition to the loss reported in Adevinta.

The consolidated statement of cash flows includes the following cash flow related to continuing operations:

	Second quarter		Year to date		Year
(NOK million)	2021	2020	2021	2020	2020
Profit (loss) before taxes from continuing operations	362	239	655	316	941
Depreciation, amortisation and impairment losses	326	213	552	406	890
Net effect pension liabilities	(29)	-	(89)	(49)	(44)
Share of loss (profit) of joint ventures and associates, net of dividends received	22	4	23	34	44
Taxes paid	(54)	(32)	(159)	(184)	(371)
Sales losses (gains) non-current assets and other non cash losses (gains)	(57)	(50)	(59)	(116)	(124)
Non-cash items and change in working capital and provisions	108	(54)	54	13	(45)
Net cash flow from operating activities from	678	320	977	419	1,292
continuing operations
Development and purchase of intangible assets and property, plant and equipment	(158)	(170)	(317)	(309)	(602)
Acquisition of subsidiaries, net of cash acquired	(2,944)	-	(2,956)	-	(1,951)
Proceeds from sale of intangible assets, investment property and property, plant and equipment	7	115	11	115	116
Proceeds from sale of subsidiaries, net of cash sold	-	12	-	97	94
Net sale of (investment in) other shares	(60)	(29)	(115)	(102)	(173)
Net change in other investments	45	(111)	(157)	(149)	(138)
Net cash flow from investing activities from	(3,110)	(183)	(3,534)	(348)	(2,654)
continuing operations
Net change in interest-bearing loans and borrowings	2,700	-	2,699	-	(2)
Payment of principal portion of lease liabilities	(84)	(75)	(162)	(125)	(285)
Change in ownership interests in subsidiaries	-	(39)	-	(39)	(69)
Capital increase	-	-	-	8	8
Net sale (purchase) of treasury shares	7	3	17	(104)	(90)
Dividends paid	(468)	(54)	(468)	(60)	(61)
Net cash flow from financing activities from	2,155	(164)	2,086	(319)	(498)
continuing operations

Second quarter Year to date Year (NOK million) 2021 2020 2021 2020 2020 Profit (loss) before taxes 362 239 655 316 941 Tax (expense) income based on weighted average tax rates* (79) (53) (143) (71) (211) Prior period adjustments 2 - 2 - (3) Tax effect of share of profit (loss) from joint ventures and associates (5) (1) (4) (7) (9) Tax effect of impairment loss on goodwill, joint ventures and associates (19) (2) (19) (2) (7) Tax effect of other permanent differences 50 10 47 21 1 Current period unrecognised deferred tax assets (7) (11) (11) (26) (36) Re-assessment of previously unrecognised deferred tax assets - 320 - 320 393 Tax (expense) income recognised in profit or loss (57) 264 (128) 236 128 *Weighted average tax rates 21.8% 22.1% 21.8% 22.4% 22.5%

The relationship between tax (expense) income and accounting profit (loss) before taxes is as follows:

Tax effect of other permanent differences for the first half of 2021 include tax effects from hedge accounting, gain from remeasurement of previously held equity interests and other non-deductible operating expenses.

We confirm that, to the best of our knowledge, the condensed set of financial statements for the first half-year of 2021 has been prepared in accordance with IAS 34 Interim Financial Statements, as endorsed by the EU, and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the Group taken as a whole.

To the best of our knowledge we confirm that the interim management report includes a fair review of important events during the accounting period, and their impact on the financial statements for the first half-year, together with a description of the principal risks and uncertainties that the company is facing during the next accounting period and any major transactions with related parties.

Oslo, 15 July 2021 Schibsted ASA's Board of Directors

Ole Jacob Sunde (board chair)	Karl-Christian Agerup	Rune Bjerke
Torbjörn Ek	Satu Huber	Hugo Maurstad
Hans K. Mjelva	Anna Mossberg	Ingunn Saltbones
Philippe Vimard	Eugénie van Wiechen	Kristin Skogen Lund (CEO)

The condensed consolidated financial statements are prepared in accordance with international financial reporting standards (IFRS). In addition, management uses certain alternative performance measures (APMs). The APMs are regularly reviewed by management and their aim is to enhance stakeholders' understanding of the company's performance and financial position alongside IFRS measures.

APMs should not be considered as a substitute for, or superior to, measures of performance in accordance with IFRS.

APMs are calculated consistently over time and are based on financial data presented in accordance with IFRS and other operational data as described and reconciled below.

As APMs are not uniformly defined, the APMs set out below might not be comparable to similarly labelled measures by other companies.

Schibsted has done some minor adjustments to the reporting structure effective from first quarter 2021. Certain business areas are transferred from Growth to News Media and affected APMs are restated retrospectively to give comparable information. See note 3 Operating segments and disaggregation of revenues for more information.

With effect from first quarter 2021 Schibsted has ended the reporting of underlying tax rate. Due to changes in the composition of the Group, the previous APM does no longer provide increased understanding of deviations between accounting and taxable profits and a better measure of taxes payable by the Group, in addition to the information included in note 8 Income taxes.

Measure	Description	Reason for including
EBITDA	EBITDA is earnings before depreciation and amortisation, other income and other expenses, impairment, joint ventures and associates, interests and taxes. The measure equals gross operating profit (loss).	Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance.
EBITDA margin	Gross operating profit (loss) / Operating revenues	Shows the operations' performance regardless of capital structure and tax situation as a ratio to operating revenue.

	Second quarter		Year to date		Year
Reconciliation of EBITDA	2021	2020	2021	2020	2020
Gross operating profit (loss)	743	498	1,338	783	2,126
= EBITDA	743	498	1,338	783	2,126

Measure	Description	Reason for including
Liquidity reserve	Liquidity reserve is defined as the sum of cash and cash equivalents and Unutilised drawing rights on credit facilities.	Management believes that liquidity reserve shows the total liquidity available for meeting current or future obligations.

	30 Jun	31 Dec
Liquidity reserve	2021	2020	2020
Cash and cash equivalents	727	6,282	1,306
Unutilized drawing rights	3,052	7,638	6,806
Liquidity reserve	3,778	13,921	8,112

Measure	Description	Reason for including
Net interest-bearing debt	Net interest-bearing debt is defined as interest-bearing loans and borrowings less cash and cash equivalents and cash pool holdings. Interest-bearing loans and borrowings do not include lease liabilities.	Management believes that net interest-bearing debt provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. The use of net interest-bearing debt does not necessarily mean that the cash and cash equivalent and cash pool holdings are available to settle all liabilities in this measure.

	30 Jun	31 Dec
Net interest-bearing debt	2021	2020	2020
Non-current interest-bearing loans and borrowings	6,344	5,297	3,090
Current interest-bearing loans and borrowings	79	3,133	678
Cash and cash equivalents	(727)	(6,282)	(1,306)
Net interest-bearing debt	5,696	2,147	2,462

Measure	Description	Reason for including
Earnings per share adjusted (EPS (adj.))	Earnings per share adjusted for items reported as other income, other expenses and impairment loss, net of any related taxes and non-controlling interests.	The measure is used for presenting earnings to shareholders adjusted for transactions and events not considered by management to be part of operating activities. Management believes the measure enables evaluating the development in earnings to shareholders unaffected by such non-operating activities.

	Second quarter		Year to date		Year
Earnings per share - adjusted - total	2021	2020	2021	2020	2020
Profit (loss) attributable to owners of the parent	60,911	471	60,807	257	858
Other income	(67)	(71)	(77)	(137)	(223)
Other expenses	529	99	1,256	127	736
Impairment loss	91	13	97	13	61
Gain on loss of control of discontinued operations	(60,411)	-	(60,411)	-	-
Taxes and Non-controlling interests related to Other income and expenses, Impairment loss and Gain on loss of control of discontinued operations	(232)	(37)	(522)	(47)	(214)
Profit (loss) attributable to owners of the parent - adjusted	819	475	1,150	213	1,218
Earnings per share – adjusted (NOK)	3.50	2.03	4.91	0.91	5.21
Diluted earnings per share – adjusted (NOK)	3.50	2.03	4.91	0.91	5.20

Earnings per share - adjusted	Second quarter		Year to date		Year
- continuing operations	2021	2020	2021	2020	2020
Profit (loss) attributable to owners of the parent	60,911	471	60,807	257	858
-of which continuing operations	276	488	475	527	1,006
-of which discontinued operations	60,635	(17)	60,332	(271)	(148)
Profit (loss) attributable to owners of the parent -	276	488	475	527	1,006
continuing operations
Other income	(64)	(63)	(74)	(129)	(146)
Other expenses	45	59	76	70	237
Impairment loss	91	13	97	13	61
Taxes and Non-controlling interests related to Other	(7)	(10)	(12)	(14)	(37)
income and expenses and Impairment loss
Profit (loss) attributable to owners of the parent -	341	487	563	468	1,120
adjusted

Earnings per share – adjusted (NOK)	1.46	2.08	2.41	2.00	4.79
Diluted earnings per share – adjusted (NOK)	1.45	2.08	2.40	2.00	4.78

Measure	Description	Reason for including
Revenues on a foreign exchange neutral basis	Growth rates on revenue on a foreign exchange neutral basis are calculated using the same foreign exchange rates for the period last year and this year.	Enables comparability of development in revenues over time excluding the effect of currency fluctuation.

Reconciliation of revenues on a foreign	Nordic	News	Financial		Other/HQ,
exchange neutral basis	Marketplaces	Media	Services	Growth	Eliminations	Total
Revenues current quarter 2021	1,047	1,947	271	689	(336)	3,619
Currency effect	23	27	14	8	(3)	69
Revenues adjusted for currency	1,069	1,975	285	698	(339)	3,688
Revenue growth on a foreign exchange neutral basis	42%	10%	13%	16%	0%	20%
Revenues current quarter 2020	753	1,802	252	604	(339)	3,073

Measure	Description	Reason for including
Revenues on a foreign exchange neutral basis adjusted for business combinations	Growth rates on revenue on a foreign exchange neutral basis adjusted for business combinations are calculated including comparable figures for Oikotie and using the same foreign exchange rates for the period last year and this year.	Enables comparability of development in revenues over time excluding the effect of business combinations and currency fluctuation.

Reconciliation of revenues on a foreign
exchange neutral basis adjusted for	Nordic	News	Financial		Other/HQ,
business combinations	Marketplaces	Media	Services	Growth	Eliminations	Total
Revenues current quarter 2021	1,047	1,947	271	689	(336)	3,619
Currency effect	23	27	14	8	(3)	69
Revenues adjusted for currency	1,069	1,975	285	698	(339)	3,688
Revenue growth on a foreign exchange neutral basis adjusted for business combinations	32%	10%	13%	16%	(0%)	18%
Revenues current quarter 2020 (presented)	753	1,802	252	604	(339)	3,073
Revenues in Oikotie current quarter 2020	56	-	-	-	-	56
Revenues current quarter 2020 adjusted for business combinations	809	1,802	252	604	(339)	3,129

Currency rates used when converting	Second quarter		Year to date		Year
profit or loss	2021	2020	2021	2020	2020
Swedish krona (SEK)	0.9951	1.0340	1.0048	1.0066	1.0226
Euro (EUR)	10.0894	11.0202	10.1767	10.7361	10.7250