Schibsted Q3 2024: Operating Revenues up 11% YoY as Recruitment Divestment Confirmed

Schibsted, the Oslo-based publicly listed marketplace operator has released its financial results for the third quarter of 2024.

Highlights include:

• Operating revenues of NOK 2.6 billion ($238 million) increased by 11% from the same period in 2023
• EBITDA grows 17% YoY to NOK 670 million ($61.25 million)
• EBITDA margin grows slightly to 26%, up from 24% in the same period last year.
• Nordic Marketplaces segment achieves solid 8% revenue growth to NOK 1.4 billion ($134 million)
• Nordic Marketplaces EBITDA grows 12% to NOK 565 million ($51.6 million)
• Real estate marketplaces revenues grew 19% YoY to NOK 295 million ($27 million)

If it looks like Schibsted is underperforming, that's because the company adjusted its financial reporting earlier this year.

Schibsted's performance has been heavily weighted towards classifieds revenues ever since it divested from its news and media segment. In June, Schibsted underwent a significant makeover, selling off its news and media business to major shareholder Tinius Trust to focus on four key verticals—mobility, jobs, real estate and recommerce.

The real estate marketplaces segment grew revenues 19% to NOK 295 million, driven primarily by the leading Norwegian horizontal marketplace Finn.no—which it took total control of in May 2024—but advertising revenues dipped by 18% YoY.

Schibsted said improved Classifieds revenues were driven by "increased ARPA - average revenue per ad in all verticals - combined with growth in transactional revenues."

However, Schibsted has now confirmed it will divest from the recruitment sectors in Sweden and Finland citing overwhelming challenges in displacing the respective market leaders.

Schibsted acquired JobbSafari from Denmark-based JobIndex in 2019 and Oikotie from Finland-based Sanoma the following year—but has announced these job boards will be closed.

Schibsted may be correct in this decision: Classified revenues from the Jobs Marketplace segment dropped 2% YoY while advertising revenues dropped 84%.

But Schibsted's job vertical in Norway is performing well and will not be sold or closed.

A press release also added that Schibsted plans to divest the majority of its venture portfolio to streamline its operations by "exiting operations that are not considered core."

Christian Printzell Halvorsen, CEO at Schibsted Marketplaces, said:

"When I took over as CEO [May 2024], I committed to simplifying our organization and sharpening our focus. The actions we’ve announced today are decisive steps in that direction, significantly contributing to our ongoing journey of streamlining our organization and our portfolio.

"We have a tremendous opportunity to build on our strong market positions, and these steps will enable us to concentrate on our four verticals, where we see the greatest potential for growth and long-term value creation. We expect to initiate sales processes for these entities in the next nine months."