Annual report 2012

Analysis of the 2012 financial statements

Schibsted Media Group presents its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) that are approved by the EU.

Operating revenues
Operating expenses
Gross operating profit (EBITDA) before share profit (loss) from associated companies
Share of profit (loss) from associated companies
34 39
Gross operating profit (EBITDA)
2,028 2,185
Depreciation and amortisation
(479) (505)
Impairment loss
(548) (191)
Other income and expenses
(257) (50)
Operating profit
744 1,439


Operating revenues
Gross operating profit (EBITDA)
EBITDA margin
14% 15%
Gross operating profit (EBITDA) ex. SCM Investment phase
EBITDA margin ex. SCM Investment phase
17% 18%
SCM Investment phase
(530) (412)

Operating revenues reported for the group increased by three percent from 2011 to 2012. The underlying growth (adjusted for acquisitions and disposals of enterprises and currency fluctuations) is also three percent. The increase in income stems from good growth within the Group’s online classifieds as well as digital media within the media houses.

The Online classifieds segments had underlying growth in operating revenues from 2011 to 2012 of 16 percent. This growth was mainly driven by Leboncoin, Finn and Blocket. The established operations within Schibsted Classified Media had an underlying growth of 16 percent from 2011 to 2012.

Underlying growth in advertising revenues from 2011 to 2012 was four percent (including online classifieds). The structural migration from print to online caused the advertising revenues from print to decrease by an underlying nine percent. Online newspaper advertising had underlying growth of 14 percent. Changes to readership habits and acceleration in the transition to digital media have led to a considerable decline in the circulation volumes of the single-copy newspapers VG and Aftonbladet. The decline in volumes was partly compensated by price increases, and total single-copy newspaper circulation revenues fell by an underlying six percent. The subscription newspapers are facing the same challenges with declines in circulation, though on a smaller scale. The circulation revenues from subscription-based newspapers increased by an underlying one percent.

The Group’s total operating expenses experienced an underlying increase of four percent. In order to capture opportunities in the market and build number-one positions, Schibsted is investing significant amounts in the launch of online classifieds in new markets based on Blocket technology, and the roll-out rate increased in 2012. The projects are characterized by a short development phase and active marketing in order to build market positions and future growth. In 2012, the consolidated financial statements were charged by an operating loss (EBITDA) of NOK 530 million (NOK 412 million) from the portfolio of classified websites in the investment phase. In addition, Schibsted has invested in digital competence and technology. Schibsted Payment (SPiD), CRM systems, mobile platforms and web TV are examples. At the same time, costs in the print newspapers have been reduced.

The number of full-time employees in the online businesses is 38 (33) percent of total full-time employees in the Schibsted Media Group. For print operations, the number of full-time employees is 56 (62) percent of the total.

The impairment loss of NOK 548 million (NOK 191 million) is a result of negative trends in certain markets. The losses are related to the Group’s online classifieds operations in Spain and the Group’s 35 percent ownership interest in Metro Nordic Sweden AB.

Other income and expenses in 2012 of net NOK 257 million (NOK 50 million) consist mainly  of restructuring costs of NOK 283 million, relating mainly to the announced cost efficiency program for the subscription newspapers in Norway, Sweden and the free newspaper in Spain. A write-down of inventories was carried out in Schibsted Forlag with NOK 23 million. Gains from remeasurement of previously held equity interests in business combinations achieved in stages relate to Aspiro and Let's Deal with NOK 57 million.

Saved pages

Select/Unselect all

Schibsted ©