Vend Marketplaces ASA

Earnings Release • Jul 16, 2019

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2019

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q2 2019

Today, Schibsted Media Group released its Q2 2019 report.

"In Q2 Schibsted continued the strong development in most of our key focus

areas. Financially, Schibsted is well on track, with an EBITDA of NOK 557

million, when excluding the contribution from Adevinta. For the whole group we

surpassed the NOK 1 billion mark for EBITDA for the first time in a single

quarter," CEO Kristin Skogen Lund says.

"The digital revenue growth continues, driven by the verticals in our

marketplaces operations, but even more from consumers signing up for digital

news subscriptions. In our Next portfolio, we are happy to highlight that Lendo

Sweden continued to grow well. The investments we are making in geographical

roll-out of Lendo are on track, and early indications from the Danish operation

are positive," CEO Kristin Skogen Lund says.

"Our News Media operations performed well in a challenging market in Q2. Digital

subscription revenue continued to grow fast, and the cost control is good,

resulting in improved operating margin. Within digital advertising, the trends

are somewhat mixed. Our main challenge lies in Aftonbladet, where the strong

market contraction for the gaming industry due to regulatory tightening has

resulted in reduced advertising spend," CEO Kristin Skogen Lund says.

"The market slowdown for Lendo Norway has been stronger than anticipated. We

believe, however, a more regulated industry is the right way forward to ensure a

healthy market - like we have today in Sweden. Moving into a phase of adaptation

to these new regulations, Lendo and the industry in general stands the risk of

seeing moderate figures for some time," CEO Kristin Skogen Lund says.

"Adevinta, which was successfully spun off in April 2019, continues its strong

development. The company is able to strengthen its position supported by an

impressive pipeline of new products in key markets - improving the value

proposition for customers," CEO Kristin Skogen Lund says.

"After the Adevinta spin-off, Schibsted maintains a strong financial position.

We do see interesting opportunities to deploy capital into M&A and other growth

opportunities. At the same time, we will seek to keep an optimal capital

structure, and over time leverage up to our communicated range of debt, which is

higher than the current level. The Board has resolved to initiate a share

buyback program to this end," CEO Kristin Skogen Lund says.

Highlights of Q2 2019

* Nordic Marketplaces: Revenues continue to grow, increased EBITDA

* Revenues up 6 percent driven by vertical growth of 11%; EBITDA margin up

1%-points to 48 percent

* Marketplaces Norway with 7% revenue growth

* Confirmed growth trend in Blocket; +2% Y/Y

* News Media: Growing digital revenues driven by subscriptions

* 2 percent revenue decrease in Q2; 1% digital growth driven by digital

subscription revenue; increased EBITDA margin. Revenue development in

Aftonbladet negatively affected by reduced advertising spending by

gaming companies

* Financial Services: Continued growth in Sweden, slowdown in Norway due to

regulations

* Positive KPIs in newly launched Lendo Denmark. Rollouts in new

geographies affect margins negatively in the ramp-up phase, as planned

* Schibsted Growth: Continues to expand

* Prisjakt and Distribution with continued good development in Q2

* Adevinta: Solid growth and margin expansion

* Continued revenue growth driven by France and Spain. Margin expansion

helped by reduced investment phase losses

* The Board of Schibsted ASA has resolved to initiate a buyback of up to 2% of

outstanding Company shares during Q3 2019

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Year to date  (NOK million) Second quarter

2018 2019  Key figures 2019 2018 ? %

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

Schibsted excluding Adevinta

6,228 6,305  Operating revenues 3,216 3,191 1 %

3,654 3,801   - of which online revenues 1,959 1,915 2 %

854 975  EBITDA 557 518 8 %

14 % 15 %  EBITDA margin 17 % 16 %

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

Consolidated Group Figures

8,959 9,374  Operating revenues 4,798 4,602 4 %

1,506 1,916  EBITDA 1,060 895 18 %

17 % 20 %  EBITDA margin 22 % 19 %

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

Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 16

July 2019 at 09:00 CET. The presentation will be held in English and transmitted

live as a video webcast on https://www.schibsted.com/ir/. CEO Kristin Skogen

Lund and CFO Trond Berger will present at the analyst and press conference.

A conference call with Q&A linked to the Q2 2019 numbers will take place 16 July

2019 at 14:00 CET. The session will be held in English.

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

link 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/2XBaIyG

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

take more time): +47 2350 0187. Passcode: 117267. For additional phone numbers,

please visit https://www.schibsted.com/ir/.

A recording of the conference call will be made available at

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

Contact persons:

Trond Berger, CFO. Tel: +47 916 86 695

Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733

Oslo, 16 July 2019

SCHIBSTED ASA