Schibsted ASA (OSE: SCH) released its Q1 2012 interim report on Friday morning. The media group’s operating revenue of 3.6 billion is 5% higher than last year but down 3% sequentially. Operating profit (EBIT) of 310 million was higher on both counts. The group called the result stable Growth in Online Classifieds revenue neared 20% where as mediahouse revenues were mostly relatively flat even taking the online share into account.
Q1 2012 Revenue mix was as follows:
Mediahouses offline advertising 25%
Online Classifieds 24%
Media houses single copy, media houses online, media house subscription and media houses other 16,13, 12 and 10%.
The total share of online operations is 37% but its quarterly contribution to EBITDA climbed to 61%.
Scandinavian sites Finn and Blocket/BytBil continued to show double digit revenue growth. Leboncoin franchise in France maintained very fast growth. Ominously InfoJobs.net performed poorly, especially in Spain, with operations in Brazil being the exception. The group said it is approaching its targets of number 1 position in the chosen segment in various geographies.
Structural decline in single copy newspapers sold in Scandinavia continues. Subscription based newspapers are also showing a weaker trend. The group has been raising prices and cotting cost to try to counter it, targeting customers with the most inelastic demand of the service. Still more have been jumping ship and the company says that the need for more efficiency measures and reorganization exists. Within the annual cost cutting program in effect, nearly 200 jobs will be cut.
If the debt crisis worsens again, traditional advertising is expected to decline fast but online classifieds revenue is more robust. Investors did not like the uncertainty and the stock has now entered correction territory after twice testing 220 NOK level in April. It closed at 190 going into the weekend and will be trading ex-dividend on Monday.
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