Norway’s media conglomerate Schibsted has delivered strong results in its latest Q2 2017 report citing publishing as one of the main drivers of growth within the company.
Highlights of Q2 2017
- EBITDA ex. Investment phase of NOK 880 million, a growth of 6 percent
- Online classifieds pro forma* revenue growth of 16 percent, adjusted for currency fluctuations. Total Online classifieds EBITDA ex. Investment phase grew 11 percent to NOK 802 million
- Continued progress in Developed phase of Online Classifieds:
- 19 percent revenue growth and increased margins in France, driven by good growth in car, real estate and jobs verticals, initiated monetization of jobs and the acquisition of MB Diffusion
- 13 percent revenue growth in Norway driven by verticals and personal finance
- 24 percent revenue growth in Spain. Strengthened trend in jobs and cars, whereas real estate and display advertising continues to grow slowly. Acquisition of Habitaclia contributes positively
- Unchanged revenues in Sweden affected positively by cars and jobs, whereas display advertising and Services contributed negatively
Schibsted CEO Rolv Erik Ryssdal said there were three main determiners that contributed to Schibsted’s positive outlook.
“We are happy to report that Schibsted delivered record high gross operating profits in Q2 2017. This is a result of good performance in both Online classifieds, Publishing and Schibsted Growth,” he said.
The Norwegian company is a leader in the online classifieds market and owns French property portal Leboncoin, which has previously been a revenue driver for the company. Ryssdal said the company’s classifieds business was still a driver of revenue.
“Within Online classifieds, we continue to see good revenue growth combined with operational leverage,” he said. “The improvement is particularly driven by strong progress in the verticals. We aim to strengthen this further by speeding up the development of more products and tools for professional customers on our market places.”
“In our largest online classifieds markets, we have during Q2 continued to strengthen our market position in the verticals. This is driven by product improvements and good execution in the markets. Revenues are growing at a healthy rate, even though the development of display advertising is slow in most countries.”
“The decrease in investments in emerging markets continued in Q2. At the same time, the operational metrics of Shpock have been favorable, which means less need for investments in this marketplace both in Q2 and going forward,” Ryssdal says
“Towards the end of Q2 we closed the acquisition of Telenor’s 25 percent of OLX in Brazil. Through this transaction, we have increased our exposure to a highly interesting market. OLX has an excellent market position which can be gradually monetized more. The Brazilian market has a long runway of online growth ahead,” Ryssdal says
“Our publishing activities have continued their positive profit trend. We are continuing to be at the forefront when it comes to product development, and our newspapers have made several important editorial achievements during Q2. Tight cost control combined with first class digital innovation leads to improved margins. The development has been particularly strong in VG in Norway.”