16.7.2021 07:00:00 CEST | Schibsted | Half yearly financial reports and audit
reports / limited reviews

Today, Schibsted released its Q2 2021 results

Accelerated revenue growth

"After a very strong first quarter, we are happy to see an even stronger
development through the second quarter, driven by solid market recovery.
Underlying¹ revenues grew 18 percent compared to a COVID-19 affected last year,
but even more importantly we also delivered a 9 percent underlying¹ growth
compared to 2019. Driven by the strong revenue growth, we achieved an EBITDA of
NOK 743 million in Q2, up from NOK 498 million in the same period last year. The
strong increase in EBITDA was driven by Nordic Marketplaces and News Media," CEO
Kristin Skogen Lund says.

"Revenues from Nordic marketplaces grew by an underlying¹ 32 percent in the
quarter, mainly driven by a strong development in job verticals in all markets,
but especially in Norway. At the same time, the real estate and motor verticals
across the markets have also shown a positive development compared with the same
period last year, as has the development in advertising revenues. In Finland, we
are seeing a clear increase in traffic on Oikotie after the integration with
Tori has now been completed. This supports a positive underlying¹ income
development in all main verticals in Finland during the quarter," CEO Kristin
Skogen Lund says.

"News Media had another strong quarter, where underlying² revenues grew 10
percent in combination with continued good traction on the cost program. The
revenue growth in News Media is driven by a significant uplift in digital
advertising revenues, also compared to 2019, in addition to continued strong
growth in revenues from digital subscriptions," CEO Kristin Skogen Lund says.

"Within Financial Services, Lendo's underlying² revenues returned to growth in
the quarter, although banks continued to be restrictive in their lending
practices. Distribution continued to record strong growth on top of an amplified
quarter last year, when online shopping trends increased as result of the
COVID-19 outbreak. Prisjakt, on the other hand, showed a slight underlying²
revenue decline and affected EBITDA negatively compared to last year due to
product investments," CEO Kristin Skogen Lund says.

"On 25th June, Adevinta finally completed the acquisition of eBay Classifieds
Group, creating the world's largest online classifieds platform. As a result of
the transaction, Schibsted's ownership share has been reduced to 33 percent of
Adevinta's total outstanding share capital. Since Schibsted then no longer has a
controlling ownership position in the company, the ownership interest at the
time of the transaction is remeasured at fair value in our balance sheet,
calculated based on Adevinta's share price at the date of closing. This has led
to a significant accounting gain, amounting to NOK 60 billion. The value of the
retained interest is together with the value of the shares distributed to
shareholders at the time of the spin off a strong sign of the significant value
creation to shareholders coming out of Schibsted's long term strategic focus on
shaping the global classified industry," CEO Kristin Skogen Lund says.

"The closing of the eBay transaction also means that we can finally welcome our
Danish colleagues to the Schibsted family, which we have been looking forward to
since last summer. Together, we will be very well equipped to develop and grow
the next generation of online classified businesses in the Nordic region," CEO
Kristin Skogen Lund says.

"Lastly, Schibsted has implemented a new organizational model from 01 July,
which links marketplaces with distribution, sharpens focus on venture
investments and financial services, and paves the way for an even more ambitious
company-wide growth agenda. The new organizational model builds on Schibsted's
proven foundation, and is all about matching businesses that can make each other
better, while at the same time giving all our businesses the focus and direction
they need to grow. In addition, we will increase our efforts further to shape
and execute a holistic investment strategy. The aim is to identify additional
opportunities for investments, growth and transformation, potentially broadening
Schibsted's portfolio of businesses and brands," CEO Kristin Skogen Lund says.

"In connection with this, we are very happy to introduce a new member to our
Schibsted Group Executive Management team. In Q3, Andrew Kvålseth will join as
our new Chief Investment Officer. Andrew brings over 20 years of leadership
experience across a range of investment, digital, and commercial leadership
roles. This includes extensive experience from leading VC investments, internal
corporate ventures and corporate M&A teams. He also brings significant
commercial leadership experience from founding and growing an e-commerce company
as CEO, to leading an online payments company, to his current role as Group
Chief Commercial Officer in Ooredoo, the Qatar based global telecom and media
company. He also has a broad international perspective having lived and worked
across the US, Europe, Middle East and Asia," CEO Kristin Skogen Lund says.

Highlights of the quarter

 * Closing of Adevinta's acquisition of eBay Classifieds Group, and Schibsted's
   acquisition of eBay Classifieds' Danish operations, strengthening our
   position as the Nordic online classifieds champion
 * Significant accounting gain of NOK 60 billion from Adevinta fair value
   recognition at closing
 * Underlying¹ revenue growth of 18 percent ensured strong quarterly EBITDA of
   NOK 743 million, 49 percent above last year and 33 percent higher than 2019
 * Nordic Marketplaces: Accelerated underlying¹ revenue growth of 32 percent,
   primarily driven by the Job vertical. Strong EBITDA margin of 55 percent in
   Norway and 43 percent in Sweden.
 * News Media: Continued strong performance with underlying² revenue growth of
   10 percent, driven by re-bounce in digital advertising in addition to
   continued strong growth in digital subscriptions. Strong EBITDA margin of 14
   percent.
 * Financial Services: Underlying² revenues in Lendo returned to growth vs.
   somewhat weak comparables. Solid EBITDA margin, increasing slightly YoY.
 * Growth: Underlying² revenue growth of 16 percent on top of an amplified
   quarter last year, driven by Distribution. EBITDA decline YoY driven by
   Prisjakt investments in product development.

 

              | Second  |         |         | Year to date | 
              | quarter |         |         |              | 
(NOK million) | 2021    | 2020    | Change  | 2021         | 2020    | Change 
 Schibsted    |         |         |         |              |         | 
Group         |         |         |         |              |         | 
 Operating    |  3,619  |  3,073  | 18%     |  7,019       |  6,099  | 15%
revenues      |         |         |         |              |         | 
 - of which   |  2,353  |  1,851  | 27%     |  4,461       |  3,677  | 21% 
digital       |         |         |         |              |         | 
 EBITDA       |  743    |  498    | 49%     |  1,338       |  783    | 71%
 EBITDA       | 21%     | 16%     |         | 19%          | 13%     | 
margin        |         |         |         |              |         | 

 

Alternative performance measures used in this release are described and
presented in the section Definitions and reconciliations in the quarterly
report.

 

Webcast presentation including Q&A 16 July at 09:00 CET

 

CEO Kristin Skogen Lund and CFO Ragnar Kårhus will present the Q2 results as a
live webcast, including a Q&A session. The presentation and following Q&A
session will be held in English. The webcast can be viewed live at 
https://bit.ly/3yCyPzU.

For the Q&A, participants can send in written questions via Slido at 
https://app.sli.do/event/mnzqrudf (event code: 051602). It will not be possible
to ask questions by phone.

As a result of the COVID-19 pandemic, it will not be possible to attend the
presentation in person at our headquarters in Oslo.

 

Press/media can reach out to Schibsted's Head of External Communications & Brand
Management, Nathalie Kåvin (nathalie.kavin@schibsted.com), to set up separate
one-on-one interviews with CEO Kristin Skogen Lund.

 

A recording of the presentation will be available on our IR website shortly
after the live webcast has ended.

 

 

¹ Foreign exchange neutral basis and including pro-forma Oikotie revenues in Q2
2020

² Foreign exchange neutral basis

 

 

Oslo, 16 July 2021

SCHIBSTED ASA

 

 



DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.

CONTACTS

 * Malin Langtvet, Investor Relations Officer, +47 916 86 710, ir@schibsted.com 
 * Nathalie Kåvin, Head of External Communications & Brand Management, +47 934
   01 363, nathalie.kavin@schibsted.com 

ABOUT SCHIBSTED

Schibsted is a family of digital brands with a strong Nordic position, and more
than 5,000 employees. Millions of people enjoy interacting with our companies
every day through our online marketplaces such as FINN, Blocket and Oikotie