Interim / Quarterly Report • Jul 17, 2015
Interim / Quarterly Report
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| Highlights of Q2 20153 | |
|---|---|
| Group profit development4 | |
| Online Classifieds 6 |
|
| Established operations |
7 |
| France – Leboncoin.fr |
7 |
| SCM Spain |
7 |
| Sweden – Blocket.se/Bytbil.se |
7 |
| Norway – Finn.no |
8 |
| Other Established operations |
8 |
| Investment phase | 8 |
| Schibsted Norge media house9 | |
| Verdens Gang (VG) media house |
9 |
| Subscription-based newspapers | 9 |
| Schibsted Sverige media house | 10 |
| Aftonbladet media house | 10 |
| Subscription-based newspaper - Svenska Dagbladet (SvD) | 10 |
| Schibsted Growth | 11 |
| Cash flow and capital factors |
11 |
| Outlook | 11 |
| Interim Financial Statement |
13 |
| Key figures |
22 |
ROLV ERIK RYSSDAL CEO
Q2 2015 was a good quarter for Schibsted. Our Online classifieds operations grew revenue by 16 percent and the gross operating profit increased by 32 percent. Over the last few quarters we have made significant steps forward when it comes to organic growth, structural agreements and bolt on acquisitions. We see potential for good value creation through in-market consolidation.
In Q2, our operations performed well in most markets. The development was positive in European established markets like France, Norway and Sweden. Spain was among the companies with the most noteworthy development, where the revenue growth is accelerating and margins are recovering well. This is not only on the back of the general economical improvements in the country, but also great execution by our staff there.
During Q2 and so far in Q3, we have strengthened our positions in several online classifieds markets through acquisitions and partnerships. In Ireland, we have joined forces with Distilled Media, providing us with a leading position in the Irish real estate market as well as a stronger leadership in generalist and cars. In Mexico we have reinforced our leadership through the acquisition of Anumex.
We are well equipped to continue to take part in consolidation in online classifieds markets. The successful establishment of a B share class in Q2 significantly increases our room for maneuver in this respect.
Within Media Houses, we see continued growth in online revenues for most of our operations. However, the continued decline for print combined with the speed of change in the online markets creates concerns regarding the media houses profitability. Our competitors are increasingly global platforms, and we need to stay focused on developing our services fast. High quality, independent journalism is, and will remain, the fundament of our winning recipe.
The advertising markets are in rapid development, and it is necessary to continue to develop our product offerings. Data driven, highly targeted products based on the technology platforms Schibsted is currently developing, is expected to be launched later this year and in 2016.
| Q2 | Q2 | 1 half-year | FY | |
|---|---|---|---|---|
| 2014 | 2015 (MNOK) | 2015 | 2014 | 2014 |
| 3,834 | 3,803 Operating revenues | 7,497 | 7,544 | 14,975 |
| 574 | 642 Gross operating profit (EBITDA) | 1,018 | 984 | 1,941 |
| 15 % | 17 % EBITDA margin | 14 % | 13 % | 13 % |
| 711 | 740 Gross operating profit (EBITDA) ex. Investment phase | 1,242 | 1,262 | 2,444 |
| 19 % | 20 % EBITDA margin ex. Investment phase | 17 % | 17 % | 16 % |
| (216) | (107) Share of profit (loss) of joint ventures and associated companies | 247 | (418) | (841) |
| 190 | 440 Profit (loss) before taxes | 1,286 | 291 | 382 |
| 0.13 | 0.62 Adjusted Earnings per share (EPS) | 2.72 | (0.22) | (0.73) |
(Figures in brackets refer to the corresponding period in 2014.)
Online classifieds revenues grew by 16 percent in Q2. In the first half-year the growth was 14 percent. Schibsted Norge Media House revenues declined by 9 percent while Schibsted Sverige Media House revenues increased by 1 percent in Q2. In the first half-year the growth rates for the two media house segments were -7 percent and -3 percent, respectively.
Group operating revenues declined by 1 percent both in Q2 and in the first half-year.
Reported operating expenses decreased by 3 percent in Q2 and 1 percent in the first half-year.
There is continuous work in the media houses to adapt the cost base to the market, where print advertising declines and online increases. Within the online activities, cost are increasing as a result of more development and marketing.
The Group's gross operating profit in Q2 (EBITDA) was NOK 642 million (574 million). In the first half-year, the EBITDA was NOK 1,018 million (984 million).
EBITDA ex. investments in New ventures in the Online classifieds segment was in Q2 2015 NOK 740 million (711 million), whereas it was NOK 1,242 milion (1,262 million) for the first half-year. The EBITDA margin was 17 percent in Q2 and 15 percent in the corresponding quarter last year. In the first half-year the EBITDA margin was 14 percent (13%).
EBITDA margin ex. New ventures was 20 percent (19%) in Q2, whereas it was 17 percent (unchanged) in the first halfyear. The growth in the Group's online activities made a
positive contribution, while declining circulation revenues and declining print advertising revenues contributed negatively.
In Q2 2015 Other income and expenses were NOK 97 million (-30 million). The sale of Schibsted's 50 percent share of the Swiss online classifieds service Tutti and car4you was the main reason for the positive result. For the first half-year Other income and expenses were NOK 364 million (15 million). In addition to the effect in Q2, the sale of Aspiro to Project Panther Bidco Ltd. in March resulted in a sales gain of NOK 238 million.
Share of profit from joint ventures and associated companies was NOK -107 million (-216 million), whereas it was NOK 247 milion (-418 million) in the first half-year. In Q1 2015 the figure included a gain on sale of approximately NOK 450 million related to Schibsted Media Group's agreement with Naspers, Telenor and Singapore Press Holdings. The negative result in Q2 was driven by continued investments in new online classifieds ventures.
Operating profit was NOK 510 million (216 million) in Q2 and NOK 1,383 million (346 million) in the first half-year.
Net financial items were NOK -70 million (-26 million) in Q2. In the first half-year there amounted to NOK -97 million (-55 million). The increased costs are mainly a consequence of foreign exchange losses.
In Q2 profit before taxes was NOK 440 million (190 million) and taxes were NOK -172 million (-162 million). In the first half-year profit before taxes was NOK 1,286 million (291 million) and taxes were NOK -284 million (-287 million).
Earnings per share – adjusted were NOK 0.62 (NOK 0.13) in Q2.
Underlying growth in revenues, where the figures are adjusted for currency effects, acquisitions and divestments, and
where joint ventures and associated companies are included using proportionate consolidation, was 12 percent for Online classifieds in Q2. In the first half-year the growth was 11 percent.
Schibsted Norge media house had an underlying decline in revenues of 8 percent in Q2 and 6 percent in the first halfyear. Schibsted Sverige media house had an underlying revenue increase of 1 percent in Q2 and an underlying decrease of 1 percent in the first half-year.
Group revenues were unchanged underlying in Q2 whereas they increased by 1 percent underlying in the first half-year.
There were increased expenses in Online classifieds, where the activity was higher both in Q2 and in the first half-year. Underlying, Group operating expenses decreased by 1 percent in Q2. In the first half-year, underlying operating expenses increased by 1 percent.
Schibsted Media Group's agreement with Naspers, Telenor and Singapore Press Holdings to establish joint ventures and associated companies for the development of online classifieds platforms in four key markets - Brazil, Indonesia, Thailand and Bangladesh - closed on 9 January 2015 after all conditions precedent were satisfied. This resulted in a gain of about NOK 450 million booked in Q1 2015.
30 January 2015 Project Panther Bidco Ltd, a company controlled by S. Carter Enterprises, LLC, launched a public offer to acquire all the shares of Aspiro AB for the price of SEK 1.05 per share. The offer valued the equity of Aspiro at SEK 464 million, and was settled in cash. Schibsted owned approximately 75% of the shares in Streaming Media AS, which in turn owned approximately 76% of the shares in Aspiro. The transaction closed in March 2015, and resulted in a gain of NOK 238 million.
Schibsted and Naspers entered into an agreement 12 February 2015 whereby Schibsted acquired Naspers' OLX operation in Hungary. Naspers acquired Schibsted's online classifieds operations in Romania and Portugal. The Hungarian and Romanian transactions have been completed. The completion of the transaction in Portugal is subject to clearance by the Portuguese competition authorities. Schibsted will as a result become the leading online classified player in Hungary.
On 12 February 2015 Schibsted agreed to divest its 50 percent of the online classifieds operations in Switzerland (Tutti.ch and Car4You.ch) to the existing partner Tamedia. Schibsted has received a consideration of EUR 15 million.
The transaction was approved by of the Swiss Competition Commission and the transaction was closed in Q2 2015.
To ensure that Schibsted has the financial flexibility to participate in value accretive growth initiatives going forward, the company introduced a new class of low-voting B-shares on 1 June 2015. This scheme provides Schibsted with full equity capital market access while preserving the central role of the Tinius Trust and Blommenholm Industrier in supporting Schibsted.
The establishment of this new class B was done through a split of the Company's shares so that for every A-share each shareholder received one B-share. The B-shares are ordinary, fully-paid shares carrying equal rights in all respects except that the B-shares are low-voting shares with 1/10 of the voting power of the A-shares.
The establishment of the B share class was approved by the Annual General Meeting 8 May 2015, and the share split was effective on 1 June 2015.
Schibsted Media Group has placed a conditional offer to acquire the Swedish online real estate vertical Hemnet. The offer is for the entire company, which is owned by Swedbank Fastighetsbyrå (34%) ("Fastighetsbyrån"), Mäklarsamfundet (25%), Fastighetsmäklarförbundet FMF (25%) ("FMF") and Svensk Fastighetsförmedling (16%).
Fastighetsbyrån and Svensk Fastighetsförmedling have accepted the offer, which gives Schibsted 50% of the shares in Hemnet. The offer has been communicated to the other owners, and discussions with them are ongoing. The offer values Hemnet at SEK 1,500 million (EV) on a 100 percent basis.
Hemnet had revenues of SEK 119 million with an EBITDA of SEK 26 million in 2013. Revenues in 2014 were SEK 162 million with an EBITDA of SEK 34 million. Hemnet invoice all real estate sellers directly and the sum on the invoice is split 50/50 between Hemnet and the realtors. Good growth and synergies with Blocket Bostad are expected. Finn Real Estate in Norway has twice the revenue of Hemnet in a market with half the population.
An acquisition of Hemnet will amplify Blocket's successful entry into the online classifieds real estate market which started with the launch of Blocket Bostad in 2011.
Schibsted Sverige and MittMedia have signed a letter of intent for future cooperation in Sweden by forming a new media group for subscription newspapers. The new media group will consist of Svenska Dagbladet and Mittmedia's 18 local subscription newspapers in Northern Sweden, as well as a majority share of MittMedia's subsidiary Promedia, which owns ten local subscription newspapers in Mid Sweden. Based on relative valuations Schibsted is expected to have an ownership share of 30 percent in the new media group.
Schibsted Media Group acquired the Mexican online classifieds site Anumex in Q2 2015. Schibsted's fully owned existing online classifieds site Segundamano.mx is the largest online classifieds site in Mexico in terms of traffic, content and brand recognition. Anumex contributes to strengthen this position.
Schibsted Media Group sold Schibsted Forlag AS and EBOK.NO to the Norwegian book publishing company Forlagshuset Vigmostad & Bjørke. The transaction was closed in Q2.
Schibsted received an offer from the Belgian group Rossel to buy Schibsted's 50 percent stake in the free newspaper 20 Minutes France in May 2015. If agreement on terms is reached, the deal is subject to a standard approval process with the French Competition Authorities. The transaction is estimated to close around October 2015. 20 Minutes France had revenues of EUR 46.5 million and EBITDA of EUR 0.9 million in 2014 on a 100% basis. Based on indicative terms Schibsted will recognize a small accounting gain.
In June 2015, Schibsted accepted an offer from Heraldo for the Spanish free newspaper 20 Minutos. The transaction is expected to close shortly. 20Minutos Spain had revenues of EUR 15 million and EBITDA of EUR -4.2 million in 2014. The financial effects from the transaction are immaterial to Schibsted.
Schibsted Media Group and the Irish online media company Distilled Media joined forces in the Irish online classifieds market by combining the sites DoneDeal.ie, Daft.ie and Adverts.ie in Q3 2015. The new company will have leading positions in the generalist, cars and real estate segments in Ireland.
Schibsted and Distilled Media will own 50 percent each of the new company. For accounting purposes Schibsted will fully consolidate the new company.
The new setup is expected to generate synergies for example within advertising sales and marketing investments.
The combined entity had revenues in the first six months of 2015 of around EUR 9.4 million. The EBITDA margin was 15 percent.
Schibsted Media Group operates Online classifieds companies in 24 markets. Operations in Norway, Sweden, France, Spain, Italy, Austria, Ireland, Malaysia, Colombia and Hungary are in Established phase, whereas online classifieds sites in Investment phase operate in several international markets.
| Q2 | Q2 | 1 half-year | FY | |
|---|---|---|---|---|
| 2014 | 2015 (MNOK) | 2015 | 2014 | 2014 |
| 1 225 | 1 419 Operating revenues | 2 718 | 2 376 | 4 741 |
| 529 | 615 EBITDA ex. Investment phase | 1 076 | 983 | 1 905 |
| 44 % | 45 % EBITDA margin ex. Inv. phase | 41 % | 42 % | 41 % |
| 392 | 517 EBITDA | 852 | 705 | 1 402 |
| 32 % | 36 % EBITDA margin | 31 % | 30 % | 30 % |
Operating revenue growth was 16 percent. Outside Norway, the operations had a revenue growth of 21 percent.
EBITDA margin ex. Investment phase 45 percent (44%). Margins were supported by good revenue growth in France and continued increased revenue growth in Spain.
A conditional offer to acquire the real estate vertical Hemnet in Sweden was made in May 2015. The offer is still pending acceptance from part of shareholders.
The Mexican online classifieds site Anumex was acquired in June 2015.
Investments in New ventures that reduce the EBITDA were NOK 98 million in Q2 2015 compared to NOK 137 million in Q2 2014. In addition, there were investments in joint ventures and associated companies, not affecting the EBITDA (included in EBIT), of NOK 97 million (219 million).
| Q2 | Q2 | 1 half-year | ||
|---|---|---|---|---|
| 2014 | 2015 Leboncoin.fr (MEUR) | 2015 | 2014 | 2014 |
| 39,6 | 46,4 Operating revenues | 89,3 | 75,4 | 150,7 |
| 27,2 | 29,8 EBITDA | 60,1 | 51,7 | 101,5 |
| 69 % | 64 % EBITDA margin | 67 % | 69 % | 67 % |
Operating revenues grew by 17 percent in Q2, and EBITDA margin was 64 percent (69%). The revenue growth came from a broad range of sources, driven by national display sales and real estate listings. The revenue growth was affected negatively by calendar effects related to higher number of public holidays.
Shift in marketing spend from Q1 to Q2 affected EBITDA margins.Both new approved ads per day and entering visits continue to grow.
The positions in real estate and recruitment are also strong in terms of volume and traffic. The cooperation agreement with Spir Communication in the real estate market expired at the end of 2014. During Q3 and Q4 2014, Leboncoin.fr sold standalone subscriptions to real estate agents, competing with Spir, who was selling bundle packages including listings on Leboncoin. The main revenue uplift is expected in 2016 since most of the customers in the old bundle package are committed until Q4 2015.
Leboncoin.fr remains the clearly leading online classifieds marketplace in France. (Source: Comscore, May 2015).
| Q2 | Q2 | 1 half-year | ||
|---|---|---|---|---|
| 2014 | 2015 SCM Spain (MEUR) | 2015 | 2014 | 2014 |
| 21,2 | 24,7 Operating revenues | 47,5 | 42,1 | 84,7 |
| 3,6 | 7,4 EBITDA | 10,1 | 7,0 | 14,0 |
| 17 % | 30 % EBITDA margin | 21 % | 17 % | 17 % |
Revenues in SCM Spain increased by 17 percent in Q2. The growth is both driven by improved performance of the sites, particularly job, real estate and generalist as well as by an improved macro environment.
The unemployment rate is gradually coming down, but is still among the highest in Europe. The volumes of active job offers on the job portal InfoJobs.net has grown considerably since late 2013.
The EBITDA margin in SCM Spain increased to 30 percent in Q2 compared to 17 percent in the same period in 2014.
Integration of Milanuncios.com is ongoing.
Blocket/Bytbil's operating revenues were SEK 255 million, which represented a growth of 10 percent, including Servicefinder from Q1 2015, a professional classifieds services portal. EBITDA was SEK 135 million (135 million), implying an EBITDA margin of 53 percent (58%).
Both the real estate and jobs verticals are growing fast. Blocket Jobb had 51 percent more ads online and 107 percent more page views in June 2015 than the year before. In Q2 car ad volumes shifted somewhat from C2C to B2C, where average revenue per car is lower in B2C. Traffic continues to migrate from desktop to mobile.
In May 2014, Finn converted its business model for the private miscellaneous vertical Finn Torget to a freemium model. For Q2 2015, this move reduced revenues and EBITDA by around NOK 6 million. The change was made in order to further strengthen the traffic and user engagement on Finn, and the effect has been very positive. So far in 2015 the number of listings has increased by 93 percent. Going forward, Finn will develop more new products including social mechanisms, payment solutions, targeted advertising and recommended content.
Finn.no's revenues increased 4 percent in Q2 (classifieds services portal Mitt Anbud included from Q1 2015). The move to freemium model for private miscellaneous affected the growth rate negatively by around 2 percent. Job volumes on Finn have over time fluctuated with the general employment market, where there has been a decline so far in 2015.
In Q2 the EBITDA margin was 51 percent (48%).
The Italian site Subito.it is the leading generalist and car site in its market. Subito had a revenue growth of 38 percent in Q2. Subito.it is the 6th largest web site in Italy overall when it comes to traffic measured by page views (source: Comscore, May 2015).
The Irish online classifieds site DoneDeal.ie is the leading generalist site in Ireland. The site has continued to develop well with good growth in revenues and traffic. Schibsted Media Group and the Irish online media company Distilled Media has agreed to join forces in the Irish online classifieds market by combining the highly successful sites DoneDeal.ie, Daft.ie and Adverts.ie. The new company will have leading positions in the generalist, cars and real estate markets. Schibsted and Distilled Media will own 50 percent each of the new company. For accounting purposes Schibsted will fully consolidate the new company.
The Austrian site Willhaben.at is the leader in the generalist and real estate market. The site has also a strong position in the car market, and the site is the sixth largest site in Austria among all online sites when it comes to traffic measured by page views (source: Comscore, May 2015). In Q2 2015 revenues continued to grow well.
Hasznaltauto.hu is the leading car classifieds site in Hungary. The site shows good revenue growth, and has healthy margins.
Malaysian Blocket copy Mudah.my is the clear market leader in online classifieds in Malaysia, and has strong positions in generalist, cars and real estate.
In Q2 the investment charged to the Schibsted EBITDA was NOK 98 million (137 million). The investments first and foremost comprise marketing initiatives. Mainly, the businesses in this phase are launched based on the successful Swedish Blocket concept. There were also investments in joint ventures and associated companies of NOK 97 million (219 million) which were not included in EBITDA (included in EBIT).
In most markets, the return on the investments is positive in terms of improved reach for the sites and strengthened positions compared with competitors. An indicator of investment yield in a build-up phase is the number of new ads inserted to the sites per day. In Q2 2015 the average daily figure for the companies in Investment phase was 388,000, an increase of 70 percent compared to Q2 2014.
The Brazilian operation merged with the main competitor OLX during Q1 2015, as a result of the joint venture agreement with Naspers. Number of new ads per day in Q2 2014 on the old site Bomnegocio was 69,000 whereas the combined olx.com.br site had 186,000 new ads per day in Q2 2015. Visits per month are about 2.9 times higher on the combined site in June 2015 than in the old Bomnegocio.com.br site in June 2014.
Also in SnT Classifieds, the development in Yapo.cl in Chile is good. The site has obtained a leading position in the classifieds market. The number of new ads per day in Q2 2015 was on average 40 percent higher than in the same period in 2014.
The Anumex acquisition in Mexico completed in Q2 2015 reinforces Segundamano.mx's leadership position. All traffic measures are growing significantly and the site is the largest online classifieds site in Mexico.
Jofogas in Hungary shows very good traffic development post merger with OLX. Visits and page views are around 2 times higher. Jofogas is on clear path towards increased monetization and positive EBITDA.
Among the most developed sites in the Investment Phase portfolio is Tori.fi in Finland. The number of new ads per day in Q2 2015 was on average 46 percent higher than in the same period in 2014. The site is now the largest online classifieds site in Finland, and has around 5 times more page views than its closest competitor (source: Comscore May 2015).,
The native mobile app Shpock is growing fast in its key markets Germany, Austria and UK. The app is the most downloaded marketplace app in Europe. Shpock is preparing to launch in additional markets.
The media houses in Schibsted Norge mainly comprise single-copy print and online newspapers in VG, the subscription-based newspapers Aftenposten, Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen, printing and distribution operations and the online growth company Schibsted Vekst.
| 1 half-year | |||
|---|---|---|---|
| 2014 | 2015 (MNOK) | 2015 2014 |
2014 |
| 1 591 | 1 450 Operating revenues | 2 915 3 133 |
6 217 |
| 176 | 118 EBITDA | 186 277 |
537 |
| 11 % | 8 % EBITDA margin | 6 % 9 % |
9 % |
Revenues declined 9 percent. Circulation revenues - print and online combined – decreased 2 percent. There was revenue decline for online operations of 4 percent. Online advertising revenues declined 9 percent while advertising revenues for print newspapers declined 23 percent. Total advertising revenues declined 18 percent.
The cost level is reduced as a result of several cost efficiency measures over the past few years. At the same time the decline in advertising revenues and investments in digital activities put pressure on the EBITDA margin.
The work on optimizing the structure of our media houses in order to adapt the cost base to the market conditions will be continued.
Verdens Gang publishes the leading single-copy newspaper in Norway. The online edition, VG.no, is the largest online newspaper in Norway and among the leading websites irrespective of category.
| Q2 | Q2 | 1 half-year | FY | |
|---|---|---|---|---|
| 2014 | 2015 Verdens Gang (MNOK) | 2015 | 2014 | 2014 |
| 512 | 454 Operating revenues | 912 | 1,004 | 2,009 |
| 330 | 302 of which offline |
598 | 650 | 1,292 |
| 182 | 152 of which online |
314 | 354 | 717 |
| 83 | 64 EBITDA | 117 | 155 | 328 |
| 16 % | 14 % EBITDA margin | 13 % | 15 % | 16 % |
The VG Group's operating revenues decreased by 11 percent.
Online revenues declined 16 percent in Q2 2015. There are several factors that contribute to the drop. The market has developed towards more fragmented advertising spend among major ad buyers, which has led to some loss of market share for the largest sites in the market, like VG.no. In addition, VG lost contracts with certain large advertising customes in the first half. The football World Cup in Q2 2014 implies particularly tough comparison figures. Measures are being implemented, which are likely to contribute to an improved development going forward.
Web-TV shows good growth in usage and revenues compared to 2014.
The number of subscribers to the VG+ premium digital subscription product is growing rapidly, and has reached 57,500 in June. The number is 35 percent higher than one year earlier.
Print circulation revenues declined with 2 percent due to continued negative trend for the volumes, whereas price increases contributed positively.
The print newspaper's advertising revenues of NOK 38 million is a decrease by NOK 21 million compared to Q2 2014. The underlying trend of structural decline continues.
The EBITDA margin was 14 percent (16%). Costs were reduced with 9 percent.
Schibsted Norge's subscription-based newspapers include the media houses in four of the largest cities in Norway: Aftenposten, Bergens Tidende, Fædrelandsvennen and Stavanger Aftenblad.
Operating revenues declined by 9 percent.
Advertising revenues declined by 16 percent. The print advertising revenues declined by 21 percent, whereas digital advertising revenues increased by 6 percent.
Weekday circulation volume has declined by 5 percent in the first six months of 2015. Total circulation revenues were
The EBITDA margin was 9 percent, behind the 12 percent margin in Q2 2014. Total operating expenses were reduced by 6 percent, helped by the profitability measures announced in Q3 2012 and continuous work on adapting the cost base to the markets.
Schibsted Forlag was sold during Q2 2015 and figures are only included until May 2015.
Schibsted Sverige consists of two key business areas: Publishing, where Aftonbladet (print single-copy newspaper and online newspaper) and Svenska Dagbladet (print morning subscription-based newspaper and online newspaper) are the main units, and Schibsted Growth (web-based growth companies including Hitta.se).
| Q2 | Q2 | 1 half-year | |||
|---|---|---|---|---|---|
| 2014 | 2015 (MNOK) | 2015 | 2014 | 2014 | |
| 946 | 958 Operating revenues | 1 844 | 1 898 | 3 762 | |
| 89 | 109 EBITDA | 182 | 175 | 385 | |
| 9 % | 11 % EBITDA margin | 10 % | 9 % | 10 % |
Operating revenues increased by 1 percent. Falling circulation and advertising revenues for printed newspapers contributed negatively, whereas online activities increased their revenues by 12 percent.
EBITDA increased as a result of the online growth and tight cost control.
Aftonbladet is the leading media house in both print and online news in Sweden. Aftonbladet's single-copy newspaper is Sweden's largest newspaper, and Aftonbladet.se is the clear leader in online news.
Operating revenues decreased 5 percent compared to Q2 2014. Online revenues increased by 8 percent. Print advertising revenues dropped by 23 percent, which represent a stable, negative trend.
The print circulation volume on weekdays declined by 19 percent in the first half of 2015 compared to the same period in 2014. The rate of decline is stable compared to previous quarters. Total circulation revenues fell 5 percent in Q2, curbed by digital subscription growth and price increases.
Operating expenses decreased 8 percent in Q2 2015 compared to Q2 2014. The EBITDA margin was 14 percent (11%). The decline in cost was partly because of high cost levels in Q2 2014, as a result of the Football World Cup.
Svenska Dagbladet is the third largest subscription newspaper in Sweden and holds a particularly strong position in the Stockholm region.
| Q2 | Q2 | 1 half-year | ||
|---|---|---|---|---|
| 2014 | 2015 SvD (MSEK) | 2015 | 2014 | 2014 |
| 246 | 243 Operating revenues | 471 | 488 | 960 |
| 12 | 19 EBITDA | 31 | 14 | 35 |
| 5 % | 8 % EBITDA margin | 7 % | 3 % | 4 % |
Operating revenues declined 1 percent.
Circulation revenues are boosted by an underlying positive volume development for print and digital subscribers. Total circulation revenues were unchanged in Q2 compared to the same period one year ago.
The print advertising revenues decreased 11 percent. The market continued its structural migration from print advertising. Total online revenues grew 32 percent.
SvD's EBITDA increased from SEK 12 million to SEK 19 million, as the operating cost were reduced by 4 percent. Focus is on adapting the cost base to the market development.
Schibsted Growth consists of a portfolio of web-based growth companies. These companies benefit from the strong traffic positions and brands of Schibsted's established operations in Sweden.
Excluding Hitta.se, the underlying revenue increase of Schibsted Growth was 24 percent. Total reported growth was 8 percent, hampered by the revenue decline in the online directory service ("yellow pages") Hitta.se of 7 percent.
The revenue and EBITDA growth was good both for the personal finance services and for the price comparison service Prisjakt. In addition to sustained solid improvement in Sweden, Prisjakt develops well in selected other markets like Norway, UK and New Zealand.
EBITDA margin increased to 20 percent (18%) despite a 22 percent EBITDA decline in Hitta.se.
Main features in the first half of 2015 compared to the first half of 2014:
Net cash flow from operating activities was NOK 362 million in the first half of 2015, which is in line with the first half of 2014 (NOK 348 million).
Net cash flow from investing activities was NOK -616 million in the first half of 2015, compared to NOK -790 million in the first half of 2014. The Group has invested NOK 254 million (321 million) in fixed and intangible assets. Net payments related to business combinations were NOK 425 million (101 million). Proceeds from the sale of subsidiaries, businesses and other ownership interests were NOK 552 million (12 million). Payments related to investments in other shares came to NOK 554 million (371 million). The majority of the investments in other shares are related to capital contributions to lossmaking joint ventures and associates.
Net cash flow from financing activities was NOK 20 million in the first half of 2015, compared to NOK -305 million in the first half of 2014. Dividends paid to owners of the parent and non-controlling interests were NOK 547 million (492 million). Net change in interest bearing debt totaled NOK 668 million (324 million) and net cash payments from changes in ownership interests amount to NOK -110 million (-142 million).
The carrying amount of the Group's assets increased by NOK 201 million to NOK 18,075 million during the first half of 2015. The Group's net interest bearing borrowings increased by NOK 944 million to NOK 3,027 million. The Group's equity ratio was 39 percent at the end of Q2 2015 and 38 percent at the end of 2014.
Schibsted has two long term revolving credit facilities of totally EUR 425 million. None of the facilities were drawn as of 30 June. One of the facilities, the revolving credit facility of EUR 300 million, has been extended by one year and the new maturity of the facility is now 15 July 2020. There is still one more extension option with possibility of extending the facility to 15 July 2021. In June, Schibsted ASA entered into a new long term loan agreement of EUR 50 million with the Nordic Investment Bank. The loan will be repaid by semiannual installments from 2019 and the final maturity is in June 2025.
Including cash and cash equivalents, the liquidity reserve at the end of Q2 2015 was NOK 4.2 billion.
Schibsted sees continued revenue growth potential and a good margin outlook for its portfolio of established online classifieds sites. On a mid- to long-term horizon the target for annual revenue growth remains at 15‒20 percent.
Our leading French site Leboncoin.fr holds significant longterm potential in new verticals and products, such as real estate and jobs. The monetization of real estate will gradually be ramped up during 2015 and into 2016 as a consequence of the expiry of the bundle agreement with Spir where the last contract ends year-end 2015. Leboncoin.fr now only sells new real estate listings exclusively on a stand-alone basis. Most of the additional uplift in number of new customers is expected to come as of Q1 2016.
Our online classifieds positions in Spain are strengthened through the integration of Milanuncios.com and through positive traffic development on existing sites. Together with positive macroeconomic development, this forms a good platform for continued revenue growth in 2015.
The Italian online classifieds site Subito.it continues to develop well with strong revenue growth. Volume and conversion increases as well as display advertising revenue. Schibsted reiterates that 2015 will be an investment year in Subito.it.
New product offerings and continuous price optimization are
key operations in Norway, Sweden and France. Several product initiatives form the basis for the next-generation online marketplace. A somewhat weaker macroeconomic trend in Norway may have a negative effect on certain revenue categories going forward, mainly recruitment.
Schibsted will focus on value creative in-market consolidation going forward. This can be achieved both through bolton acquisitions and through partnerships.
Our strategy of building online classifieds positions in new markets will continue. As a result of the joint venture agreement with Naspers, the investments are expected to be reduced from EUR 156 million in 2014 to around EUR 100 million in 2015. Some of the investments will be in joint ventures and associated companies, which are not included in the EBITDA.
The media houses in Schibsted will continue the transformation into world-class digital media houses based on strong editorial products. This involves investments in digital competence and technology such as payment solutions (SPiD), CRM systems, mobile platforms, web TV, strengthened sales units, and continued development of the consumer finance offering.
Overall, the structural digital shift and the transformation process are expected to lead to some margin contraction for Schibsted's media houses compared to the levels in recent years. Our subscription-based newspapers are expected to produce EBITDA margins in the range of 0‒10 percent, whereas VG and Aftonbladet are likely to have margins in the range of 10‒15 percent.
The build-up of Schibsted's central technology and product development resources will continue in the second half of 2015. Central teams are established to develop common tech platforms for both media houses, online classifieds, for advertising and login services. Our ambition is to increase efficiency in the development process, the speed of roll out and quality of new services and free up time and resources for innovation and true product development.
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | |||
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| 3,834 | 3,803 Operating revenues | 7,497 | 7,544 | 14,975 |
| (179) | (144) Raw materials and finished goods | (305) | (351) | (696) |
| (1,405) | (1,460) Personnel expenses | (2,947) | (2,832) | (5,564) |
| (1,676) | (1,557) Other operating expenses | (3,227) | (3,377) | (6,774) |
| 574 | 642 Gross operating profit (loss) | 1,018 | 984 | 1,941 |
| (112) | (119) Depreciation and amortisation | (237) | (226) | (467) |
| (216) | (107) Share of profit (loss) of joint ventures and associated companies | 247 | (418) | (841) |
| - | (3) Impairment loss | (9) | (9) | (131) |
| (30) | 97 Other income and expenses | 364 | 15 | 8 |
| 216 | 510 Operating profit (loss) | 1,383 | 346 | 510 |
| 17 | 2 Financial income | 16 | 29 | 46 |
| (43) | (72) Financial expenses | (113) | (84) | (174) |
| 190 | 440 Profit (loss) before taxes | 1,286 | 291 | 382 |
| (162) | (172) Taxes | (284) | (287) | (509) |
| 28 | 268 Profit (loss) | 1,002 | 4 | (127) |
| 22 | 29 Profit (loss) attributable to non-controlling interests | 100 | 33 | 53 |
| 6 | 239 Profit (loss) attributable to owners of the parent | 902 | (29) | (180) |
| 0.03 | 1.11 Earnings per share (NOK) | 4.20 | (0.13) | (0.84) |
| 0.03 | 1.11 Diluted earnings per share (NOK) | 4.20 | (0.13) | (0.84) |
| 0.13 | 0.62 Earnings per share - adjusted (NOK) | 2.72 | (0.22) | (0.73) |
| 0.13 | 0.62 Diluted earnings per share - adjusted (NOK) | 2.72 | (0.22) | (0.73) |
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | ||||
|---|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 | |
| 28 | 268 Profit (loss) | 1,002 | 4 | (127) | |
| Other comprehensive income: | |||||
| Items that will not be reclassified to profit or loss: | |||||
| - | - | Remeasurements of defined benefit pension liabilities Income tax relating to remeasurements of defined benefit |
49 | - | (804) |
| - | - | pension liabilities Share of other comprehensive income of joint ventures and |
(13) | - | 217 |
| - | - | associated companies | (2) | (6) | (42) |
| Items that will be reclassified subsequently to profit or loss: | |||||
| 79 | 23 | Exchange differences on translating foreign operations | (269) | (45) | 435 |
| 5 | (14) | Hedges of net investments in foreign operations Income tax relating to hedges of net investments in foreign |
4 | 11 | (24) |
| (1) | 4 | operations | (1) | (3) | 7 |
| Share of other comprehensive income of joint ventures and | |||||
| (1) | - | associated companies | - | 2 | - |
| 82 | 13 Other comprehensive income | (232) | (41) | (211) | |
| 110 | 281 Comprehensive income | 770 | (37) | (338) | |
| 20 | 32 Comprehensive income attributable to non-controlling interests | 88 | 27 | 53 | |
| 90 | 249 Comprehensive income attributable to owners of the parent | 682 | (64) | (391) |
| 30.06. | 30.06. | 31.12. | |
|---|---|---|---|
| (NOK million) | 2015 | 2014 | 2014 |
| Intangible assets | 11,855 | 10,366 | 11,906 |
| Investment property and property, plant and equipment | 1,196 | 1,608 | 1,287 |
| Investments in joint ventures and associated companies | 1,199 | 548 | 547 |
| Other non-current assets | 458 | 195 | 536 |
| Non-current assets | 14,708 | 12,717 | 14,276 |
| Inventories | 14 | 54 | 56 |
| Trade and other receivables | 2,884 | 2,727 | 2,797 |
| Cash and cash equivalents | 469 | 458 | 745 |
| Current assets | 3,367 | 3,239 | 3,598 |
| Total assets | 18,075 | 15,956 | 17,874 |
| Equity attributable to owners of the parent | 6,930 | 6,897 | 6,560 |
| Non-controlling interests | 136 | 187 | 230 |
| Equity | 7,066 | 7,084 | 6,790 |
| Non-current interest-bearing borrowings | 2,334 | 2,551 | 2,132 |
| Other non-current liabilities | 2,886 | 2,076 | 3,641 |
| Non-current liabilities | 5,220 | 4,627 | 5,773 |
| Current interest-bearing borrowings | 1,162 | 90 | 696 |
| Other current liabilities | 4,627 | 4,155 | 4,615 |
| Current liabilities | 5,789 | 4,245 | 5,311 |
| Total equity and liabilities | 18,075 | 15,956 | 17,874 |
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | |||
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| 190 | 440 Profit (loss) before taxes Gain on remeasurement in business combinations achieved in stages |
1 286 | 291 | 382 |
| (3) | - and remeasurement of contingent consideration |
- | (40) | (91) |
| 112 | 122 Depreciation, amortisation and impairment losses | 246 | 235 | 598 |
| 243 | 122 Share of profit of joint ventures and associated companies, net of dividends received |
(232) | 445 | 877 |
| (195) | (319) Taxes paid | (532) | (496) | (635) |
| (1) | (127) Sales losses (gains) non-current assets | (418) | (11) | (121) |
| 63 | 142 Change in working capital | 12 | (76) | 220 |
| 409 | 380 Net cash flow from operating activities | 362 | 348 | 1 230 |
| (344) | (327) Net cash flow from investing activities | (616) | (790) | (1 580) |
| 65 | 53 Net cash flow before financing activities | (254) | (442) | (350) |
| 60 | 137 Net cash flow from financing activities | 20 | (305) | (116) |
| 26 | (6) Effects of exchange rate changes on cash and cash equivalents | (42) | 3 | 9 |
| 151 | 184 Net increase (decrease) in cash and cash equivalents | (276) | (744) | (457) |
| 307 | 285 Cash and cash equivalents at start of period | 745 | 1 202 | 1 202 |
| 458 | 469 Cash and cash equivalents at end of period | 469 | 458 | 745 |
| 01.01. - 30.06.2015 | attributable to owners of |
Equity | Non- controlling interests |
Equity | |
|---|---|---|---|---|---|
| (NOK million) | the parent | ||||
| Equity at start of period Comprehensive income |
6,560 682 |
230 88 |
6,790 770 |
||
| Transactions with the owners | (312) | (182) | (494) | ||
| Share-based payment | 29 | - | 29 | ||
| Dividends paid to owners of the parent | (376) | - | (376) | ||
| Dividends to non-controlling interests | 15 | (171) | (156) | ||
| Change in treasury shares | 8 | - | 8 | ||
| Loss of control of subsidiaries | - | (3) | (3) | ||
| Changes in ownership of subsidiaries that do not result in a loss of control | 5 | (8) | (3) | ||
| Share of transactions with the owners of joint ventures and associated companies | 7 | - | 7 | ||
| Equity at end of period | 6,930 | 136 | 7,066 | ||
| 01.01. - 30.06.2014 | Equity | Non- | Equity | ||
| attributable | controlling | ||||
| to owners of | interests | ||||
| (NOK million) | the parent | ||||
| Equity at start of period | 7,325 | 261 | 7,586 | ||
| Comprehensive income | (64) | 27 | (37) | ||
| Transactions with the owners | (364) | (101) | (465) | ||
| Capital increase | - | 8 | 8 | ||
| Share-based payment | 24 | - | 24 | ||
| Dividends paid to owners of the parent | (376) | - | (376) | ||
| Dividends to non-controlling interests | 26 | (116) | (90) | ||
| Changes in ownership of subsidiaries that do not result in a loss of control | (38) | 7 | (31) | ||
| Equity at end of period | 6,897 | 187 | 7,084 | ||
| 01.01. - 31.12.2014 | Equity | Non- | Equity | ||
| attributable | controlling | ||||
| to owners of | interests | ||||
| (NOK million) | the parent | ||||
| Equity at start of period | 7,325 | 261 | 7,586 | ||
| Comprehensive income | (391) | 53 | (338) | ||
| Transactions with the owners | (374) | (84) | (458) | ||
| Capital increase | - | 23 | 23 | ||
| Share-based payment | 37 | - | 37 | ||
| Dividends paid to owners of the parent | (376) | - | (376) | ||
| Dividends to non-controlling interests | 26 | (133) | (107) | ||
| Change in treasury shares | 8 | - | 8 | ||
| Business combinations | - | 5 | 5 | ||
| Changes in ownership of subsidiaries that do not result in a loss of control | (69) | 21 | (48) | ||
| Equity at end of period | 6,560 | 230 | 6,790 |
The condensed consolidated financial statements of Schibsted ASA for the second quarter of 2015 were approved at a meeting of the Board of Directors on 16 July 2015. The figures in the statements have not been audited.
Schibsted Media Group is one of Scandinavia's leading media groups. The major businesses are in Norway, Sweden, France and Spain, but the Group also has operations in other countries in Europe, Latin America, Asia and Africa. Schibsted's operations are divided in three operating segments: Online classifieds, Schibsted Norge media house and Schibsted Sverige media house. Schibsted's main operations are within classifieds, print and online newspapers and growth online businesses adjacent to media and classifieds. See note 3 Operating segment disclosures.
The parent company Schibsted ASA is a public limited liability company and its head office is located at Apotekergaten 10, Oslo (Norway). Schibsted shares are from 1 June, 2015, split in A-shares and B-shares, traded on the Oslo Stock Exchange under ticker SCHA and SCHB.
The condensed consolidated interim financial statements comprise Schibsted ASA and its subsidiaries and the Group's interests in joint ventures and investments in associates. The interim financial statements are prepared in compliance with IAS 34 Interim Financial Reporting. The condensed interim financial statements do not include all information and disclosures required in the annual financial statement, and should be read in conjunction with the consolidated financial statements for 2014.
The accounting policies applied by the Group in these interim financial statements are consistent with those of the financial year 2014. Earnings per share and cash flow from operating activities per share for previous periods have been adjusted to reflect the share split in June 2015.
Schibsted has in the first half year invested NOK 398 million related to acquisition of subsidiaries and businesses (business combinations). Schibsted has in addition paid NOK 27 million of contingent consideration related to prior year's business combinations (mainly Compricer AB).
In February 2015, Schibsted acquired Naspers' OLX online classifieds operation in Hungary. Schibsted will as a result become the leading online classified player in Hungary.
In June 2015, Schibsted acquired 100% of the shares of Anuncios Clasificados de Mexico, S.A. de C.V., a company operating the online classifieds site Anumex.com. Schibsted thereby strengthens its leading position in Mexico.
Net assets of NOK 419 million acquired in business combinations are preliminary recognised, primarily as goodwill and other intangibles assets.
Schibsted has in the first half of 2015 invested NOK 110 million related to increased ownership interests in subsidiaries. The majority of the amount invested is related to increase in ownership interest in Lets deal AB from 51% to 95.6%.
In February 2015, Schibsted sold its online classifieds operation in Romania to Naspers.
In March 2015, Schibsted disposed of its 75.94% interest in Aspiro AB after accepting a public offer. Schibsted's interest was held by Streaming Media AS, a subsidiary in which Schibsted held a 74.62% interest.
In June 2015, Schibsted sold its book publishing company Schibsted Forlag and its digital book store EBOK.NO.
A gain of NOK 275 million from sale of subsidiaries and businesses is recognised in profit or loss in the line item Other income and expenses.
In the second quarter of 2015, Schibsted disposed of its share in a joint venture operating online classifieds operations in Switzerland (Tutti.ch and Car4You.ch). Schibsted also disposed of its interest in the associated company Metro Nordic Sweden AB. A net gain of NOK 139 million from the sale of shares in joint ventures and associated companies is recognised in the line item Other income and expenses.
In November 2014, Schibsted, Naspers, Telenor and Singapore Press Holdings (SPH) agreed to establish partnerships for the development of their online classifieds platforms in four key markets - Brazil, Indonesia, Thailand and Bangladesh. The transactions were closed in January 2015 and the companies were then established. The ownership structure in the companies is as follows:
Brazil: 50% Naspers and 50% SnT Classifieds
Indonesia: 64% Naspers and 36% 703 Search
Thailand: 55.9% 702 Search and 44.1% Naspers
Bangladesh: 50.3% SnT Classifieds and 49.7% Naspers
As part of the transaction 701 Search transferred its online classifieds operations in the Philippines to Naspers. Online classified operations in certain other markets in Asia and Latin America were also transferred between the parties. SnT Classifieds is an equal shareholding joint venture between Schibsted and Telenor and is accounted for as a joint venture (equity accounting). 701 Search, 702 Search and 703 Search are partnerships between Schibsted, Telenor and SPH accounted for as associated companies (equity accounting). A net gain of approximately NOK 450 million, primarily related to Brazil, is recognised in profit or loss in the line item Share of profit (loss) of joint ventures and associated companies reflecting Schibsted's share of gains recognised by SnT Classifieds, 701 Search, 702 Search and 703 Search. The transaction was cash neutral and is not expected to have any significant tax effects.
In July 2015, Schibsted and the Irish online media company Distilled Media agreed to join forces in the Irish online classified market by combining the sites DoneDeal.ie, Daft.ie and Adverts.ie. Schibsted and Distilled Media will each own 50% of the new company.
Schibsted reports three operating segments; Online classifieds, Schibsted Norge media house and Schibsted Sverige media house.
Operating segment Online classifieds comprises all the Group's online classifieds operations worldwide.
Operating segment Schibsted Norge media house comprises the media houses VG, Aftenposten, Bergens Tidende, Stavanger Aftenblad and Fædrelandsvennen, printing and distribution operations, and the publishing house Schibsted Forlag (sold in June 2015).
Operating segment Schibsted Sverige media house comprises Publishing, where Aftonbladet and Svenska Dagbladet are the main units, and Schibsted Growth, a portfolio of internet-based growth companies (including the online directory service Hitta).
Other comprises operations not included in the three reported operating segments, including 20 Minutes in Spain and France, Aspiro (sold in March 2015) and Mötesplatsen.
Headquarters comprise the Group's headquarters Schibsted ASA and centralised functions within finance, real estate and IT.
Eliminations comprise intersegment sales. Transactions between operating segments are conducted on normal commercial terms. Headquarters has the majority of its operating revenues from other operating segments. Intragroup operating revenues of the reported operating segments are not material.
The division into operating segments corresponds to the management structure and the internal reporting to the Group's chief operating decision maker, defined as the CEO. The division reflects an allocation based partly on the type of operation and partly on geographical location.
In the operating segment information presented, Gross operating profit (loss) is used as measure of operating segment profit or loss. For internal control and monitoring, Operating profit (loss) is also used as measure of operating segment profit or loss.
Information about operating revenues and profit (loss) by operating segment is as follows:
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | |||
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| Operating revenues | ||||
| 1,225 | 1,419 Online classifieds | 2,718 | 2,376 | 4,741 |
| 1,591 | 1,450 Schibsted Norge media house | 2,915 | 3,133 | 6,217 |
| 946 | 958 Schibsted Sverige media house | 1,844 | 1,898 | 3,762 |
| 129 | 55 Other | 153 | 252 | 493 |
| 93 | 91 Headquarters | 187 | 186 | 373 |
| (150) | (170) Eliminations | (320) | (301) | (611) |
| 3,834 | 3,803 Total operating revenues | 7,497 | 7,544 | 14,975 |
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | |||
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| Gross operating profit (loss) | ||||
| 392 | 517 Online classifieds | 852 | 705 | 1,402 |
| 176 | 118 Schibsted Norge media house | 186 | 277 | 537 |
| 89 | 109 Schibsted Sverige media house | 182 | 175 | 385 |
| (16) | (6) Other | (32) | (39) | (100) |
| (67) | (96) Headquarters | (170) | (134) | (283) |
| 574 | 642 Total gross operating profit (loss) | 1,018 | 984 | 1,941 |
| 01.04. - 30.06. 01.04. - 30.06. | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. | |||
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| Operating profit (loss) | ||||
| 133 | 482 Online classifieds | 1,179 | 250 | 439 |
| 94 | 64 Schibsted Norge media house | 84 | 145 | 242 |
| 76 | 88 Schibsted Sverige media house | 151 | 153 | 333 |
| (15) | (5) Other | 196 | (51) | (111) |
| (72) | (119) Headquarters | (227) | (151) | (325) |
| - | - Eliminations | - | - | (68) |
| 216 | 510 Total operating profit (loss) | 1,383 | 346 | 510 |
Impairment loss consists of:
| 01.04. - 30.06. | 01.04. - 30.06. | 01.01. - 30.06. | 01.01. - 30.06. | 01.01. - 31.12. |
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| - | - Impairment loss goodwill | - | - | (4) |
| Impairment loss other intangible assets and | ||||
| - | (3) property, plant and equipment |
(18) | (9) | (127) |
| Impairment loss investments in associated | ||||
| - | - companies |
9 | - | - |
| - | (3) Total | (9) | (9) | (131) |
Other income and expenses consist of:
| 01.04. - 30.06. | 01.04. - 30.06. | 01.01. - 30.06. | 01.01. - 30.06. | 01.01. - 31.12. |
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| (34) | (29) Restructuring costs | (43) | (36) | (239) |
| 1 | Gain (loss) on sale of subsidiaries, joint ventures and associated companies 127 |
414 | 11 | 27 |
| Gain on sale of intangible assets, property, plant | ||||
| - | and equipment and investment property - |
3 | - | 89 |
| Gain from remeasurement of previously held equity | ||||
| 3 | - interest in business combination achieved in stages |
- | 40 | 40 |
| - | (2) Acquisition related costs | (10) | - | (10) |
| - | 1 Other | - | - | 101 |
| (30) | 97 Total | 364 | 15 | 8 |
In the first half-year of 2015, Schibsted has recognised a gain of NOK 414 million from sale of subsidiaries, joint ventures and associated companies. See note 2.
Net financial items consist of:
| 01.04. - 30.06. | 01.04. - 30.06. | 01.01. - 30.06. | 01.01. - 30.06. | 01.01. - 31.12. |
|---|---|---|---|---|
| 2014 | 2015 (NOK million) | 2015 | 2014 | 2014 |
| (30) | (32) Net interest expenses | (58) | (53) | (103) |
| 10 | (37) Net foreign exchange gain (loss) | (34) | 9 | (10) |
| (6) | (1) Net other financial income (expenses) | (5) | (11) | (15) |
| (26) | (70) Net financial items | (97) | (55) | (128) |
The development in the number of shares outstanding and average number of shares outstanding is as follows:
| 01.04. - 30.06. 01.04. - 30.06. 2014 |
2015 | 2015 | 01.01. - 30.06. 01.01. - 30.06. 01.01. - 31.12. 2014 |
2014 | |
|---|---|---|---|---|---|
| 107,348,540 | 107,432,299 Shares outstanding at start of period | 107,421,397 | 107,348,540 | 107,348,540 | |
| 49,323 | 6,112 Decrease in treasury shares before share split | 17,014 | 49,323 | 72,857 | |
| - | 107,438,411 Share split | 107,438,411 | - | - | |
| - | 96,446 Decrease in treasury shares after share split | 96,446 | - | - | |
| 107,397,863 | 214,973,268 Shares outstanding at end of period | 214,973,268 | 107,397,863 | 107,421,397 | |
| 605,752 | 1,033,962 Treasury shares at end of period | 1,033,962 | 605,752 | 582,218 |
On 8 May 2015, the Annual General Meeting of Schibsted ASA approved a split of the Company's shares and establishing of a new class of B-shares. The split was completed 1 June 2015 and the shareholders received one B-share for each A-share. The B-shares are low-voting shares with one vote per share while the A-shares have 10 votes per share. After the share split, the share capital of Schibsted ASA is NOK 108,003,615 divided on 108,003,615 A-shares with a nominal value of NOK 0.50 and 108,003,615 B-shares with a nominal value of NOK 0.50. Shares outstanding at 30 June 2015 comprise 107,534,857 A-shares and 107,438,411 B-shares.
Decrease in treasury shares is related to an employee saving plan and other share-based payment programmes. Consideration received related to treasury shares sold amounts to NOK 8 million.
Average number of shares outstanding, used for calculating Earnings per share were 214,866,638 in the first half year of 2015 and 214,882,552 for the second quarter of 2015. Comparable numbers for corresponding periods in 2014 were 214,730,924 and 214,764,394. Average number of shares outstanding is adjusted retrospectively as if shares issued in share split were outstanding also in previous periods presented to give comparable information on Earnings per share.
| 01.01. - 30.06. | 01.01. - 30.06. | 01.01. - 31.12. | |
|---|---|---|---|
| 2015 | 2014 | 2014 | |
| Financial key figures | |||
| Underlying growth in operating revenues | 1 % | 2 % | 1 % |
| Operating revenues for operating segments | |||
| Online classifieds | 2,718 | 2,376 | 4,741 |
| Schibsted Norge media house | 2,915 | 3,133 | 6,217 |
| Schibsted Sverige media house | 1,844 | 1,898 | 3,762 |
| EBITDA ex. Investment phase | 1,242 | 1,262 | 2,444 |
| EBITDA (gross operating profit (loss)) | 1,018 | 984 | 1,941 |
| Operating margin | |||
| EBITDA ex. Investment phase | 17 % | 17 % | 16 % |
| EBITDA (gross operating profit (loss)) | 14 % | 13 % | 13 % |
| Operating margins operating segments (EBITDA) | |||
| Online classifieds ex. Investment phase | 41 % | 42 % | 41 % |
| Online classifieds | 31 % | 30 % | 30 % |
| Schibsted Norge media house | 6 % | 9 % | 9 % |
| Schibsted Sverige media house | 10 % | 9 % | 10 % |
| Equity ratio | 39 % | 44 % | 38 % |
| Interest-bearing borrowings (NOK million) | 3,496 | 2,641 | 2,828 |
| Net interest-bearing debt (NOK million) | 3,027 | 2,183 | 2,083 |
| Cash flow from operating activities per share (NOK) | 1.68 | 1.62 | 5.73 |
| CAPEX | 254 | 321 | 630 |
| 01.01. - 31.03. 01.04. - 30.06. 01.07. - 30.09. 01.10. - 31.12. 01.01. - 31.03. 01.04. - 30.06. | ||||||
|---|---|---|---|---|---|---|
| 2014 | 2014 | 2014 | 2014 | 2015 | 2015 | |
| (NOK million) | ||||||
| Operating revenues | 3,710 | 3,834 | 3,557 | 3,874 | 3,694 | 3,803 |
| Gross operating profit (loss) | 410 | 574 | 504 | 453 | 376 | 642 |
| Operating profit (loss) | 130 | 216 | 216 | (52) | 873 | 510 |
| Profit (loss) before taxes | 101 | 190 | 199 | (108) | 846 | 440 |
| Profit (loss) | (24) | 28 | 60 | (191) | 734 | 268 |
We confirm that, to the best of our knowledge, the condensed set of financial statements for the first half year of 2015 has been prepared in accordance with IAS 34 Interim Financial Statements, 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, and that the interim management report provides a true and fair overview of important events during the accounting period and their impact on the financial statements for the first half year, of principal risks and uncertainties that the company is facing during the next accounting period and of major transactions with related parties.
Oslo, 16 July 2015 Schibsted ASA's Board of Directors
WWW.SCHIBSTED.COM/IR PAGE 23
Schibsted ASA Apotekergaten 10, P.O. Box 490 Sentrum NO-0105 Oslo
Tel: +47 23 10 66 00 Fax: +47 23 10 66 01 E-mail: [email protected] www.schibsted.com
Investor information: www.schibsted.com/ir
| Q2 report 2015 | 17 July 2015 | ||
|---|---|---|---|
| Q3 report 2015 | 30 October 2015 | ||
| Q4 report 2015 | 19 February 2016 | ||
| Q1 report 2016 | 11 May 2016 | ||
| Annual General Meeting 2016 | 11 May 2016 | ||
| Q2 report 2016 | 19 July 2016 | ||
| Q3 report 2016 | 4 November 2016 | ||
| For information regarding conferences, roadshows etc., please visit www.schibsted.com/en/ir/Financial-calendar/ | |||
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