Schibsted today arranges a Capital Markets Day in Barcelona. The presentation material that is being used can be downloaded from Schibsted's webside www.schibsted.com/ir
. The presentations can be followed by live webcast on the same site.
Main elements of the presentations are as follows:
- Schibsted follows three lines of strategy. Firstly, the Group will build dominant market positions through mediahouses. In addition the Group works along a product strategy, where certain concepts will be launched as greenfields in selected markets. The third element of the strategy is building capabilities in European top class. The Group is establishing a program for Continuous Improvements ("Lean") with the purpose of enhancing work processes and increase efficiency in the Group.
- Schibsted is the largest player within online classifieds in Europe, and continues its growth efforts here and in other selected markets. Online classifieds implies an attractive growth opportunity, and strong number one positions are highly profitable. The growth will come both through enhanced focus, developing existing operations, new launches based on proven business models and targeted acquisitions in key markets and verticals.
- Aftenposten launches a profitability program, aiming to reduce annual cost base in the print newspaper with approx NOK 100 million within 2011. At least NOK 50 million of the reductions will be realized in 2009. The cost reductions will entail one off restructuring charges of NOK 60-70 million, mainly in connection with voluntary staff reductions. It is a goal to implement as much as possible of the reductions in work force in 2009. Lay offs are not expected. In addition to the described program, there are ambitions to further reduce cost with NOK 60 million within 2011 through other measures.
- Due to the current market situation, the IPO of Media Norge is postponed. A new timeline for further process in connection with Media Norge is under consideration.
- The overall growth strategy of Schibsteds is following two main tracks. The first is organic growth initiatives, which will cost 300-350 million in 2008. In 2009, the most important ventures will be within online classifieds, online directory services and online newspapers. A normalized level of investments in organic initiatives will be NOK 200-300 million. In addition, the development in the financials markets through the last period has given Schibsted a better opportunity than what has been the case earlier to do profitable acquisitions. Possible acquisitions will mainly be within online activities or activities that can create a foundation for developing online activities.
In Norway the advertising markets in the volatile summer months have so far been moderately softer than in the same period last year. This goes particularly for the real estate market in Aftenposten.
In Sweden , there have been no substantial changes through the summer months compared with the trend earlier in 2008.
The Spanish market is still challenging in macroeconomic terms. In Schibsted's online operations in Spain a growth rate in the range of 15-25 percent is expected in Q3 2008. At present time, there is in InfoJobs expected invoicing in Q3 on the same level as in the same period in 2007.
CFO Trond Berger, tel: +47 91 68 66 95
Oslo, 12 September 2008
Jo Christian Steigedal, IR Officer