Vend Marketplaces ASA

Earnings Release • May 6, 2020

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q1 2020

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q1 2020

Today, Schibsted released its Q1 2020 results.

Highlights of the quarter

* Group revenues increased by 5 percent in Q1 2020

* Q1 revenues for Schibsted ex Adevinta decreased by 2 percent (4 percent

currency adjusted)

* Q1 EBITDA for Schibsted ex Adevinta came in 32 percent lower than last year

at NOK 285 million

* Nordic Marketplaces: Revenue growth slowdown particularly affected by COVID-

19 from mid-March, leaving Norway revenues flat compared to last year, while

revenues in Sweden increased driven by Motor. Underlying flat EBITDA margin

in Norway, Sweden with lower margin driven by investments in sales and

product and technology capabilities.

* News Media: Exceptional growth in traffic and digital subscription revenues

in March, but substantial drop in advertising revenues due to COVID-19 from

mid-March and gaming regulation in Sweden led to a significant EBITDA

decline year-on-year in Q1. Cost program targeting NOK 500 million cost

reductions by 2021.

* Financial Services: Continued growth in Lendo Sweden. Reduced investments in

international expansion.

* Growth: Solid revenue growth driven by Distribution. EBITDA decline driven

by higher cost level and a decline in revenues for advertising driven

services due to COVID-19.

* Adevinta: Revenues increased by 8 percent, EBITDA margin of 23 percent

(based on Adevinta's stand-alone reporting in EUR).

* Given the uncertainties introduced by the COVID-19 pandemic, the Board

proposed to cancel the dividend for 2019.

Comments from the CEO

"Taking into consideration the huge impact the COVID-19 pandemic has on everyday

life, global economic activity and our businesses, the first quarter of 2020 is

satisfactory for the Group. We have initiated a range of measures to adapt to

the uncertain situation, and at the same time continued to deliver fully

functional services. In this context, I would highlight that our News Media

operations have played a tremendously important role during the crisis,

providing users with balanced and trustworthy information," CEO Kristin Skogen

Lund says.

"Financially, we have seen a negative impact on revenues during the last weeks

of March, and April has developed similarly. For the quarter, our revenues,

excluding the contribution from Adevinta, declined by 2 percent. Adjusted for

the sharp weakening of the Norwegian krone since mid-February towards other

major currencies, revenues declined 4 percent," CEO Kristin Skogen Lund says.

"Nordic Marketplaces saw a slower revenue growth in Q1. In Norway, the revenue

development was flat, driven by a revenue decline in the job and travel

verticals due to lower volumes balanced out by revenue growth in advertising and

other verticals. In Sweden, our renewed approach to the car market has continued

to prove successful and revenues continued to grow in Q1," CEO Kristin Skogen

Lund says.

"News Media has seen traffic records over the last weeks, but experiences a

significant drop in advertising revenues, partly compensated by good growth in

digital subscriptions. Advertising performance was rather stable in Norway

compared to last year, up until mid-March, whereas Sweden was still affected by

the regulatory tightening of the gaming industry imposed in early Q2 2019," CEO

Kristin Skogen Lund says.

"Lendo in Sweden delivered another quarter with double-digit revenue growth,

whereas Norway and Finland slowed down further. We continue to see good

development for Lendo in the Danish market, even though this is at an earlier

stage. We have taken the decision to close down the Lendo operation in Poland

and to change the operating model and significantly scale down the operations in

Austria," CEO Kristin Skogen Lund says.

"Our Growth portfolio had a mixed development in Q1, with Distribution

continuing to perform well, further fuelled by the e-commerce growth during the

COVID-19 outbreak, whereas revenues in advertising driven services declined,"

CEO Kristin Skogen Lund says.

"The described negative revenue trends led to a significant drop in operating

margin in Q1. Going forward, we will continue to implement measures to ensure

adequate operational and financial robustness during a period of significant

turmoil and uncertainty. The most important initiative is a cost program for

News Media to accelerate the transition to a future oriented, digital

sustainable news organization. This is implemented to safeguard the News Media

operations' long-term financial health and high relevance in society. Building

on the measures which we announced at the Q4 2019 presentation, the total

program includes cost reductions of around NOK 500 million. Implementation has

started with first effects occurring during the second half of 2020. Full effect

will be in place in 2021," CEO Kristin Skogen Lund says.

"In April, Schibsted refinanced a NOK 1 billion bond loan maturing later this

year, and we are presently in a solid financial position. This means that we are

well prepared to navigate in the current rough waters, and at the same time

preserve capacity to act on opportunities that might occur," CEO Kristin Skogen

Lund says.

First quarter

(NOK million) 2020 2019 Change

---------------------------------------------------------------------

Schibsted excluding Adevinta

Operating revenues   3,026   3,089 -2%

- of which digital   1,826   1,813 1%

EBITDA   285   418 -32%

EBITDA margin 9% 14%

---------------------------------------------------------------------

Schibsted Group including Adevinta

Operating revenues   4,818   4,576 5%

EBITDA   700   856 -18%

EBITDA margin 15% 19%

---------------------------------------------------------------------

Alternative performance measures used in this release are described and

presented in the section Definitions and reconciliations in the quarterly

report.

As a result of the COVID-19 pandemic, our Q1 2020 presentation will be held as

an English language webcast only on 06 May 2020 at 09:00 CET. Consequently, it

will not be possible to attend the presentation in person. Participants can send

in written questions through the webcast player.

The presentation will be webcasted live at: Schibsted ASA Webcast Q1 2020

(https://channel.royalcast.com/webcast/hegnarmedia/20200506_4/)

You may also follow the presentation on YouTube: Schibsted ASA YouTube Q1 2020

(https://www.youtube.com/watch?v=Zwkte1Bh55U&feature=youtu.be)

CEO Kristin Skogen Lund and EVP CFO Ragnar Kårhus will present.

A recording of the event will be available on the IR website shortly after the

live webcast has ended.

Conference call for investors and analysts - Q&A session

Time: 06 May 2020 at 14:00 CET

Questions relating to the results will be answered in a conference call. The

session will be held in English.

NOTE: To avoid waiting time when connecting to the call, please use the link

below 5-10 minutes prior to start time, where you will be asked to type in your

phone number and registration details. The event conferencing system will

automatically call you back on the phone number you provide and place you into

the event. Please note that the link will become active 15 minutes prior to the

event: Link to join call: Click to join

(https://events.globalmeet.com/Public/EventMeet/ZW5jPTNTQXlHcWdydlBWR2pGU0JEOGow

UHRzaHl1NW5jVGVodEtGUTJ0WFZJNjdTSFFMRWZNcFJUUT09)

For manual dial-in, use the following number (note that this connection might

take more time):

Norway: +47 2350 0187

Sweden: +46 (0)8 5033 6546

UK: +44 (0)330 336 9401

US: +1 323-794-2095

Passcode: 76 20 73

A recording of the conference call will be made available at schibsted.com/ir/.

Contact persons:

Ragnar Kårhus, CFO, +47 917 91 752

Jann-Boje Meinecke, Head of IR, +47 941 00 835

Atle Lessum, Head of Schibsted Group Communications, +47 415 05 645

Oslo, 06 May 2020

SCHIBSTED ASA

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act