Today, Schibsted released its Q3 2020 results.
Comments from the CEO
“Q3 marks an exceptional quarter for Schibsted. Based on a long-term strategy and efforts, and as a next major step after the spin-off in 2019, Adevinta announced in July a definitive agreement to acquire eBay Classifieds Group. The acquisition will create the largest online classifieds Group in the world and I, together with our Board of Directors and the management team, am confident that this will further strengthen the value creation potential for Schibsted and the rest of Adevinta’s shareholders,” CEO Kristin Skogen Lund says.
“Related to the same transaction, Schibsted will acquire eBay Classifieds’ leading online classifieds businesses DBA.dk and Bilbasen.dk in Denmark. Together with the recent acquisition of Oikotie in Finland, this will enhance our position as the Nordic online classifieds champion, well positioned for further growth,” CEO Kristin Skogen Lund says.
“Furthermore, we achieved a very strong quarterly EBITDA while currency adjusted revenues were flat compared to last year. Since the initial revenue contraction at the onset of the pandemic in Q1, revenues have improved, and our businesses are in good – some even in better – positions. Within Nordic Marketplaces, underlying revenues are still down compared to last year, but website traffic has stabilized at a higher level than pre-COVID-19 and listings have improved over the last couple of months. In News Media, both traffic and engagement figures are higher, and our subscriptions business – which is a key focus for the continued transformation of our media businesses – continues to grow. Distribution and Prisjakt, our e-commerce enabling businesses, have seen continued strong growth as well – driven by increased online shopping trends due to social distancing,” CEO Kristin Skogen Lund says.
“As a result of the revenue recovery, and strongly supported by tightened cost control and temporary cost savings, all business areas achieved good margins in the third quarter. In particular News Media delivered an extraordinary strong margin as the cost program has progressed faster than previously planned and due to lower costs driven by remote work,” CEO Kristin Skogen Lund says.
“Looking ahead, I am excited about our long-term possibilities based on our strong positions and capabilities. Nevertheless, visibility remains limited in the short-term. Revenue development throughout the third quarter was characterized by an exceptionally strong July when people vacationed in their home countries rather than going abroad. Furthermore, the last weeks' increase in COVID-19 infections in the Nordics and all over Europe has led to more volatility and uncertainty,” CEO Kristin Skogen Lund says.
Highlights of the quarter:
- Reaching the next major step for Adevinta after the spin-off in 2019 as it announced the definitive agreement to acquire eBay Classifieds Group. Related to the transaction, Schibsted will acquire eBay Classifieds’ leading online classifieds businesses DBA.dk and Bilbasen.dk in Denmark.
- Very strong EBITDA of NOK 678 million while currency adjusted revenues were flat compared to last year.
- Nordic Marketplaces: Revenues continued to improve compared to Q2 driven by Real estate and Motor, declining 3 percent YoY (on a foreign exchange neutral basis and adjusted for the acquisition of Oikotie) due to COVID-19. EBITDA margin of 47 percent in Norway and Sweden.
- News Media: Strong growth for digital subscriptions continued, advertising revenues with further improvement QoQ with digital advertising revenues increasing YoY. Extraordinary strong EBITDA margin of 15 percent driven by cost savings from the cost program which progresses faster than planned and reduced variable costs driven by remote work.
- Financial Services: Revenue growth still impacted by COVID-19, particularly in Lendo Sweden as banks have continued to be more restrictive in their lending practices, while Lendo Norway increased YoY. Strong EBITDA margin in Lendo due to improved cost and marketing efficiency, and lower expansion investments.
- Growth: Another quarter with good revenue growth due to Prisjakt and Distribution which have benefited from increased online shopping trends driven by COVID-19. EBITDA growing QoQ and YoY driven by higher revenues.
| Third quarter | Year to date | ||||||
| (NOK million) | 2020 | 2019 | Change | 2020 | 2019 | Change | |
| Schibsted Group | |||||||
| Operating revenues | 3,188 | 3,032 | 5% | 9,287 | 9,337 | (1%) | |
| - of which digital | 1,971 | 1,771 | 11% | 5,648 | 5,513 | 2% | |
| EBITDA | 678 | 542 | 25% | 1,461 | 1,517 | (4%) | |
| EBITDA margin | 21% | 18% | 16% | 16% | |||
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:
CEO Kristin Skogen Lund and CFO Ragnar Kårhus will present the Q3 results in a combined webcast and conference call on 28 October at 09:00 CET. The presentation and following Q&A session will be held in English. The webcast can be viewed live at schibsted.com/ir (link: https://bit.ly/31JTS5G).
Participants who would like to ask questions at the end of the presentation can dial in using one of the telephone numbers listed below. It will not be possible to ask questions on the web via chat.
Dial-in details:
Please join the event 5-10 minutes prior to scheduled start time.
Norway: +47 2100 2610
Sweden: +46 (0)8 5033 6574
Finland: +358 (0)9 7479 0361
Denmark: +45 35 15 80 49
UK: +44 (0)330 336 9125
US: +1 929-477-0402
Other locations: Please choose one of the above
Confirmation code: 1289976
A recording of the presentation will be available on the IR website shortly after the live webcast has ended.
Please note that the moderated Q&A session after the presentation will replace the conference call for investors and analysts previously held at 14:00 CET.
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.
Contact persons:
Jann-Boje Meinecke, Head of IR, +47 941 00 835
Malin Langtvet, IR Officer, +47 916 86 710
Nathalie Kåvin, Head of External Communications & Brand Management, +47 934 01 363
Oslo, 28 October 2020
SCHIBSTED ASA
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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