Schibsted Media Group has just announced a 10 per cent increase in EBITDA to NOK 831 million for Q2 2016.
The company reports its online classifieds operations grew well both in terms of revenue and gross operating profit during the quarter while its Media Houses also improved their profitability compared to the same quarter in 2015 despite a challenging advertising market.
CEO Rolv Erik Ryssdal says online classifieds operations in France and Spain continued their development, and the growth rate in Norway picked up.
“Leading traffic positions provide the foundation to increase revenues backed by both increased ad volumes, enhanced products and price optimization,”, Ryssdal says.
“We continue to see positive development of our significant organic investments aiming to build market positions in new areas.”
Ryssdal adds Schibsted’s native mobile app Shpock is developing rapidly in several European markets.
“Schibsted is investing significant amounts in product and technology,” he says.
“Technology for targeted advertising is one area of focus, and our new advertising solutions are now being rolled across our portfolio.
“This will enable Schibsted to take part in the expected growth in digital advertising markets in the years to come.”
Nevertheless, the company’s newspapers in Norway and Sweden are facing negative revenue development as print advertising continues to decline.
“Continuous cost adaptions are necessary to maintain acceptable profitability,” Ryssdal concedes.
“At the same time, it is encouraging to see that the number of digital subscribers to the newspapers continues to grow rapidly.
Schibsted aims to be at the forefront when it comes to presenting premium editorial content in a modern way, which appeals to consumers.”
Highlights of Q2 2016
- EBITDA ex. Investment phase of NOK 831 million, a growth of 10 percent. Total Online classifieds EBITDA ex. Investment phase grew 15 per cent to NOK 722 million.
- Continued positive growth for development phase online classifieds.
- Solid revenue growth and good margins in France and Spain.
- Sustained growth in Norway, continued strong momentum in Sweden.
- 37 per cent revenue growth in Other Developed phase Online Classifieds, driven by continued good development in Italy, Austria and Ireland.
- Online Classifieds Investment phase continues positive trend.
- 56 per cent revenue growth.
- Reduced investment spend in emerging markets.
- Significant investments and rapid growth in UK and Germany for native app Shpock.
- Challenging advertising markets, tight cost control in media houses.
- Strong inflow of digital subscribers.
- Improved margin level as a result of cost savings.
- Continued ramp up of product and technology competence, building platforms for next generation online classifieds services, media houses and long term growth in online advertising.
- Hemnet acquisition terminated by Schibsted because the Swedish Competition Authority informed that the transaction in its current form will not be cleared.