SEB Nordic Conference
Trond Berger, CFO Copenhagen 9 January 2014
Two strategic pillars
Online Classifieds Media Houses
New Online Services
We aim to be the global number 1 in Online Classifieds Seizing the digital growth opportunity in core markets Powerful brands and digital platforms reaching ever more readers Technology Advanced
data analytics
Customer insights
Payment services
Organization & Competence
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platforms
Digital transformation is accelerating
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Online Classifieds Long term growth track record
Revenue development, Online Classifieds NOK million
Well balanced portfolio with steady development Online classifieds
Steady growth, investments in new market positions Online classifieds
- Clear leader in jobs, cars, real estate and generalist
- Building new verticals like professional services and personal finance
- Focus on product development to meet competition from social networks
- Certain free services considered on the generalist vertical
Solid position in France, room for further monetization of verticals
- Leading classifieds portal, top 5 web page in France
- Clear leader in generalist. Number 1 in cars
- Increasingly demanding comparable figures
- Current real estate cooperation agreement expires at the end of 2014
- Modest adaption of the market offering in 2014 to prepare for the transition
Source traffic rank: Comscore nov 2013 (page views)
Steady revenue growth, investments in new verticals Online classifieds
- Strong leader in generalist and cars
- Steady growth in a mature vertical
- Building positions in real estate and jobs
Solid positions with good potential in Spain
| Strong positions in all verticals |
|
|
| Generalist: #1/#2 |
|
|
| Cars: #1 |
|
|
Real estate:
shared
#1 |
|
|
| Jobs: #1 |
|
|
- Substantially increased focus on traffic growth
- Reduced monetization, increased marketing cost in Q4 2013 and 2014
- Complete product makeover (all verticals except InfoJobs)
- Talent and best practice from Schibsted
Profitable market leaders in several markets
| Country |
Position |
Visits
per month |
| Italy |
Leading
in Generalist and Cars |
80
million (+24% Y/Y) |
| Austria |
Leading
in Generalist and Real
estate
Close to leading position in Cars |
21 million (+51% Y/Y) |
| Ireland |
Leading
in Generalist and the car
market |
17 million (+11% Y/Y) |
| Malaysia |
Leading
in Generalist, positive
development in
cars and real estate |
35 million (+58%) |
Source traffic data: Schibsted internal figures web+mobile October 2013
Continued investments in Online classifieds New ventures
- Significant step up in investments in 2013 has yielded strong growth in traffic and volume
- On a clear path to leadership in several markets
- Continued high investments in New ventures to be expected going forward
Significant investments and strong growth in Brazil
- Fierce competition against OLX in Brazil
- Continued high level of investments in Q4 2014, which will continue in 2014
- Schibsted's Bomnegocio site performs better than OLX on quality and user engagement KPIs
Media houses
World class digital media houses
Steady online growth and continued print decline
- 25% online revenue share in media houses
- 29% in VG and Aftonbladet
- 15% in Norwegian subscription papers
- Schibsted Growth a pure play online growth setup
- 16% growth in online advertising revenues Jan-Sep 2014
- Continued decline for print advertising –
- 15% decline Jan-Sep 2014
World class digital media houses
Single copy papers: Strong online growth and cover-price increases
11% 14% 12% 0 400 800 1200 1600 Jan-Sep 11Jan-Sep 12Jan-Sep 13 Million NOK Offline revenues Online revenues EBITDA margin
Online advertising share 64% in Q3 13 (54% in Q3 12) Main digital growth drivers are mobile and web TV
Continued online growth and print decline World class digital media houses
Schibsted Norge
- Strong regional and national market positions
- Focus on online growth from advertising and digital subscription models
- Tight cost control in the print operations to offset continuous print advertising decline
Digital subscription models launched in all newspapers
- Digital payment models are launched for all titles in Scandinavia
- Subscriptions to premium content in VG and Aftonbladet
- Metered model in Aftenposten
- Freemium models in regionals
- SPiD login used in all papers
- Positive response in the market
Mobile fuelled online advertising growth continues
Mobile traffic soars, and… …mobile ARPU increases
- Mobile advertising revenues +134% Y/Y in Q3
- Mobile ARPU +58% Y/Y in VG and Aftonbladet combined
- Schibsted controls the superior sites in the Nordic mobile market
- Aftonbladet reaches 4 times as many readers as its closest competitor in Sweden
- VG reaches twice as many as its closest competitor in Norway
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Strategic steps in 2014
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Strategic position 2014
Solid, broad digital footprint in Scandinavia
A global leader in Online classifieds with continued strong growth prospects
However…
- Competition from global online companies
- For instance Google, Facebook, Linkedin, Ebay, Amazon, Naspers
- Need for constant innovation and rapid product development for instance on mobile platforms
- Require top competence in tech and data analytics
Building joint competence and services for both strategic pillars
22 SEB COPENHAGEN 2014
Global recruiting of new competence within data analytics and technology
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Creating a robust platform for scalability and growth
Building up web TV offering in Norway and Sweden
Tapping in to a fast growing, large market potential
- Web TV advertising market 2013 NOK 540 million*
- Growth forecast +37% in 2014*
- Schibsted market share ~15-20% first nine months 2013
- Short term investment phase with negative EBITDA of around NOK 50 million
Clear strategic direction