The Board of Directors of Schibsted aims to improve the shareholders’ yield through long-term growth in the share price and dividend. The Board will make efforts to ensure that the company’s shares achieve a price that, in so far as possible, reflects the company’s long-term earnings ability.
Schibsted is based on strong positions in the Scandinavian media market, especially in the newspaper sector. The earnings and cash flow from these operations are characterised by cyclical fluctuations, but Schibsted’s strong brands indicate the company will have a stable position in the long term. During periods of economic contraction, interesting opportunities may arise for a company that has maintained its capital strength.
Dividend policy
In future, Schibsted will place greater emphasis on having a fixed dividend payout ratio that, over time, is to be 25-40 per cent of the Group’s cash flow per share. In addition, the Board wishes the dividend payments to be stable over time. In years of economic contraction, the dividend level will be maintained in so far as the Group’s capital structure permits this. Such a dividend level will mean that Schibsted’s direct yield is competitive both in the Norwegian market and compared to other European media companies.
The Group’s strategic direction and ownership structure place some restrictions on the Group’s capital structure. The combination of a stable increase in the dividend and an opportunity to repurchase shares is regarded as a suitable tool for adjusting the Group’s capital structure.