Vend Marketplaces ASA

Earnings Release • Feb 13, 2020

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q4 2019

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q4 2019

Today, Schibsted released its Q4 2019 results.

Highlights of Q4 2019

* Group revenues increased by 8% in Q4 2019

* Q4 revenues for Schibsted ex Adevinta increased 1%

* Q4 EBITDA for Schibsted ex Adevinta came in 3% lower (-21% excluding

IFRS 16) than last year at NOK 460m

* Nordic Marketplaces: Solid revenue growth at a somewhat lower pace,

increased EBITDA despite investments in Sweden. Revenues in Norway +6

percent despite somewhat lower volumes in jobs, Sweden +8 percent.

* News Media: Continuous good growth in digital subscription revenues, reduced

advertising revenues, in particular in Sweden, leading to a decline of 35%

(excluding IFRS 16) in EBITDA year-over-year.

* Financial Services: Continued growth in Lendo Sweden, Norway with stable

development compared to last quarter but down YoY.

* Growth: Solid revenue and EBITDA growth driven by Distribution and Prisjakt.

* Adevinta: Revenues increased by 16 percent, stable EBITDA margin of 26

percent compared to Q4 last year (based on Adevinta's stand-alone reporting

in EUR).

* Proposed dividend of NOK 2.00 per share for 2019

Comments from the CEO

"Q4 2019 was a satisfactory quarter for Schibsted. Nordic Marketplaces had a

revenue growth of 6 percent and EBITDA increased despite investments in Sweden.

Revenue growth for this segment was slower than in previous quarters as Finn in

Norway has seen slightly lower volumes for real estate and lower volumes for

jobs compared to last year which have continued in the start of 2020," CEO

Kristin Skogen Lund says.

"In News Media, digital subscription revenues continued to grow well and our

Norwegian operations continued to show stable margins. However, overall EBITDA

for News Media was significantly lower compared to Q4 last year driven by a

significant drop in advertising revenues, particularly in Sweden. As in previous

quarters, this is primarily caused by the strong market contraction following

the regulatory tightening of the gaming industry, mainly affecting Aftonbladet.

News Media has started implementing initiatives to address the negative margin

development by reinforcing our product offerings to strengthen the value

proposition to our customers, and by initiatives to reduce costs and improve

efficiencies throughout the whole value chain," CEO Kristin Skogen Lund says.

"Financial Services delivered revenue growth of 4 percent (3 percent currency

adjusted) compared to last year driven by continued double-digit growth for

Lendo Sweden, while Lendo Norway and Finland declined compared to last year.

Looking at the geographical expansion of Lendo, Denmark continued its positive

development and on the back of this, we are planning a soft launch in Spain

during 2020. As we have mentioned during Q3, Lendo will implement a new

organization structure which is expected to be effective from Q1 2020. This is

done to reduce complexity and costs and to strengthen the execution of Lendo's

ambitious international growth agenda," CEO Kristin Skogen Lund says.

"Our Growth portfolio showed strong revenue growth driven by our new

Distribution business and EBITDA came in significantly higher than last year. We

are also happy to see that Prisjakt showed solid financial performance this

quarter driven by high volumes during Black Week," CEO Kristin Skogen Lund says.

"In order to create further growth and create new digital winners, which is at

the core of Schibsted's strategy, we are further building capabilities within

data and tech. We believe that this will help us to leverage our strong reach,

market insights and vast access to data across our strong brands. At the same

time, these initiatives have a negative financial impact on the HQ/Other

operating segment, which had a larger EBITDA loss in Q4 compared to the same

quarter in 2018 and Q3 2019," CEO Kristin Skogen Lund says.

Adevinta completed the year with another good quarter and reported a revenue

growth of 16 percent and a stable EBITDA margin of 26 percent measured in EUR

compared to Q4 last year, driven by the performance in France, Spain and Brazil.

"As we have already presented last quarter, Schibsted is presently in a strong

financial position. We still see interesting opportunities to deploy capital

into M&A and other growth opportunities. Our previously communicated share

buyback program will be continued as we have not reached our 2% target yet. In

accordance with our dividend policy, the Board has proposed an ordinary dividend

of NOK 2.00 per share for 2019," CEO Kristin Skogen Lund says.

Fourth quarter   Full-year

(NOK million) 2019 2018 Change   2019 2018 Change

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

Schibsted excluding Adevinta

Operating revenues   3,316   3,275 1%     12,653   12,511 1%

- of which online revenues   2,016   1,943 4%     7,661   7,367 4%

EBITDA   460   476 -3%     1,977   1,840 7%

EBITDA margin 14% 15%     16% 15%

EBITDA excl. IFRS 16    377   476 -21%     1,639   1,840 -11%

Schibsted Group including

Adevinta

Operating revenues   5,101   4,742 8%     19,075   18,059 6%

EBITDA   944   897 5%     3,906   3,268 20%

EBITDA margin 19% 19%     20% 18%

EBITDA excl. IFRS 16    822   897 -8%     3,427   3,268 5%

Alternative performance measures used in this release are described and

presented in the section Definitions and reconciliations in the quarterly

report.

Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 13

February 2020 at 09:00 CET. The presentation will be webcasted live

at schibsted.com/ir/ (https://www.schibsted.com/ir/). It will be presented in

English. Participants can send in written questions through the webcast player.

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

Conference call for investors and analysts - Q&A session

Time: 13 February 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: https://bit.ly/39bzfRi

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

take more time):

+47 2350 0187

Passcode: 86 13 43

For additional phone numbers, please visit schibsted.com/ir/

(https://www.schibsted.com/ir/).

Contact persons:

Ragnar Kårhus, CFO, +47 917 91 752

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

Oslo, 13 February 2020

SCHIBSTED ASA

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act