Vend Marketplaces ASA · OSL:VEND

Vend Marketplaces ASA — Schibsted Media Group — Q2 2011 Earnings Presentation

56 slides from Vend Marketplaces ASA's earnings presentation, August 2011

  1. Slide 1: Quarterly results Q2 2011

    w SCHIBSTED MEDIA GROUP Quarterly results Q2 2011 Rolv Erik Ryssdal, CEO Trond Berger, CFO

  2. Slide 2: Disclaimer

    Disclaimer This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted asa ("Schibsted" or the "Company") exclusively for information purposes, and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments. Reasonable c

  3. Slide 3: Agenda

    Agenda  Q2 highlights  Online classifieds in Q2  Media Houses in Q2  Income statement and Financials  Outlook

  4. Slide 4: Q2 2011 highlights

    Q2 2011 highlights  Continued profit improvement and top line growth in Q2  EBITDA NOK 683 million (652 in Q2 2010). Excluding organic initiatives in Online classifieds, the EBITDA improved with NOK 59 million  Underlying revenue growth 6%  Another strong quarter for Online classifieds  Online

  5. Slide 5: Q2 2011 highlights

    Q2 2011 highlights Underlying Revenue Change EBITDA margin Q2 2011 y/y* Q2 11 Q2 10 Group 3 758 6% 18 % 19 % Media Houses Scandinavia 2 592 3% 15 % 16 % Media Houses International 276 5% 9% 11 % Online Classifieds 915 22 % 37 % 37 % - of which Established operations 870 21 % 47 % 45 % *) Growth adju

  6. Slide 6: Revenue split Q2 2011

    Revenue split Q2 2011 Total revenue MNOK 3,758 Online share 36% Media Houses Online online classifieds 12 % 24 % Media Houses Media offline Houses advertising other 28 % 7% Media Houses single copy 18 % Media Houses subscription 11 % Q2 2011 6

  7. Slide 7: Continued EBITDA growth in Q2

    Million NOK 100 200 300 400 500 600 700 800 0 EBITDA Q2 2010 652 Media Norge ex 15 Finn VG (4) SCH Sverige (28) Media Houses (8) other Online 81 classifieds Established Online Increased classifieds New investment in (28) Blocket roll outs Investments 3 Other Q2 2011 Continued EBITDA growth in Q2 EBI

  8. Slide 8: Agenda

    Agenda  Q2 highlights  Online classifieds in Q2  Media Houses in Q2  Income statement and Financials  Outlook

  9. Slide 9: Online classifieds: continued strong growth and high margins

    Online classifieds Continued strong growth and high margins +22%* 1000 100 % 900 90 % 800 80 % 700 70 % 600 60 % MNOK 47% 45% 500 50 % 400 40 % 300 30 % 200 20 % 100 10 % 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 Revenue EBITDA margin EBITDA margin ex SCM New Ventures *) Underlying growth, adju

  10. Slide 10: Strong growth and high margins in Finn.no

    Online classifieds Strong growth and high margins in Finn.no  EBITDA* of NOK 147 million in Q2* (NOK 129 mill), Finn.no 350 70 %  Q2 EBITDA margin 48% (50%) 300 60 % 250 50 %  Operating revenues NOK 305 million, and 200 50 % 48 % 40 % underlying revenue growth of 25%**, helped by MNOK 150 30 % vo

  11. Slide 11: Stable growth rate and high margins in Blocket/Bytbil

    Online classifieds Stable growth rate and high margins in Blocket/Bytbil  EBITDA of SEK 109 million in Q2 (SEK 103 mill) Blocket/Bytbil 200 100 %  Q2 operating margin 58% (61%) 80 % 150  Operating revenues SEK 189 million, a growth of 60 % MSEK 100 61 % 58 % 40 % 11% driven by volume, price adjus

  12. Slide 12: Strong growth and margin development in Spain and France

    Online classifieds Strong growth and margin development in Spain and France SCM Southern Europe*  EBITDA EUR 20.2 million in Q2 (EUR 13.5 mill) 50 80 %  EBITDA margin 50% vs 45%* 40 60 %  27% growth in revenues compared to Q2 2010 on 30 MEUR 50 % 40 % a comparable base 20 45 % 10 20 %  Spain: Co

  13. Slide 13: Leboncoin.fr continues its strong traffic and revenue growth

    Leboncoin.fr continues its strong traffic and revenue growth  Continued strong growth and high margins in Q2 2011  Revenues increased 70% Y/Y  New products for professional customers  5.3 billion monthly page views in Q2 11, a growth of 49% Y/Y  Better than projected development since acquisiti

  14. Slide 14: Blocket copy launched in Brazil

    Blocket copy launched in Brazil  Existing legacy business in Brazil revamped  New brand, Bomnegocio.com, introduced  New general manager with extensive experience from SCM roll outs in Europe  Blocket “look and feel” as well as technology  355,000 ads on the site Q2 2011 14

  15. Slide 15: Brazil, a fast growing market suited for the Blocket model

    Brazil, a fast growing market well suited for the Blocket model  Large and fast growing market  GDP growth +4,1% 2012E  Internet penetration +19% 2010. Number of broadband connections growing well  Well suited for online classifieds growth  Early stage, but critical mass of internet users and s

  16. Slide 16: Recap: Three stages of development for online classifieds

    Recap: Three stages of development for online classifieds Asset phase Main focus Assets (not exhaustive) Established phase • Create/maintain value • Blocket leadership based on • Infojobs Spain sustained volume leadership • Anuntis Spain • Leboncoin Investment phase • Gain clear volume • Subito.it S

  17. Slide 17: Established European footprint combined with growth opportunities

    Online classifieds Established European footprint combined with growth opportunities Revenue EBITDA Highly profitable #1 positions Q2 2011 margin All verticals Norway MNOK 305 48% Cars + Sweden MNOK 164 58% general Cars + general France Jobs General MNOK 318 50% Spain Real estate Cars Operations in

  18. Slide 18: Agenda

    Agenda  Q2 highlights  Online classifieds in Q2  Media Houses in Q2  Income statement and Financials  Outlook

  19. Slide 19: Good progress for user paid online products

    Media Houses Scandinavia Good progress for user paid online products  Most successful product so far is Aftonbladet Plus (web premium content)  Currently more than 100,000 subscribers  Several iPad products converted from free to paid in June 2011  Early days, but promising development  Around

  20. Slide 20: Media Houses: improvement for Media Norge, challenging tabloids

    Media Houses Improvement for Media Norge, challenging volume development for tabloids +3%* 3000 30 % 2500 25 % MNOK 2000 20 % 1500 15 % 1000 10 % 500 5% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 Revenue EBITDA margin *) Underlying growth, adjusted for currency effects, acquired/divested operati

  21. Slide 21: Continued improvement in Media Norge

    Media Houses Scandinavia Continued improvement in Media Norge  Q2 advertising revenues in Media Norge ex. Finn.no Media Norge media houses increased 1.5% 1200 30 % 1000 25 %  Recruitment +5% 800 16 % 16 % 20 % MNOK  Real estate flat 600 15 % 400 10 %  Circulation revenues increased 4% as a resul

  22. Slide 22: Growth in Media Norge media houses

    Media Houses Scandinavia Growth in Media Norge media houses Aftenposten Bergens Tidende Stavanger Aftenblad Fædrelandsvennen 600 3% 30 % 300 25 % 200 20 % +4% 140 35 % +7% +4% 500 25 % 250 20 % 120 30 % 160 16 % 400 20 % 200 19 % 16 % 100 25 % 15 % 120 15 % 12 % 300 15 % 150 17 % 80 20 % 18 % 10 % 8

  23. Slide 23: Weaker circulation and advertising development in Sweden

    Media Houses Scandinavia Weaker circulation and advertising development in Sweden Schibsted Sverige media house*  Schibsted Sverige Q2 EBITDA SEK 111 million 1200 30 % (147 million) 1000 25 % 800 20 %  MSEK 15 % Reduced single copy circulation 600 11 % 15 % 400 10 %  Softer advertising developmen

  24. Slide 24: Circulation and ad volume decline hamper Aftonbladet

    Media Houses Scandinavia Circulation and ad volume decline hamper Aftonbladet Print 600 30 %  Q2 EBITDA SEK 45 million (SEK 69 million) 500 25 %  Advertising revenue decreased by 6% compared to a MSEK 400 20 % very strong Q2 2010 13 % 300 10 % 15 % 200 10 %  Circulation revenue decline 10%, partl

  25. Slide 25: Strong growth for Tillväxtmedier

    Media Houses Scandinavia Strong growth for Tillväxtmedier  Strong growth and profit Schibsted Tillväxtmedier ex. Hitta improvement in the portfolio of 200 20 % online growth companies 150 15 %  Price comparison and financial MSEK 100 10 % services among the most important 50 4% 5% 2% contributors

  26. Slide 26: Positive effect from price increases, margins sustained in VG

    Media Houses Scandinavia Positive effect from price increases, margins sustained in VG Print  Circulation volume decline of 11% on weekdays YTD 500 50 % 400 40 %  Circulation revenues increased 3% in Q2 Y/Y as a consequence of increased price and publishing days MNOK 300 30 % 17 % 17 % 200 20 % 

  27. Slide 27: Good growth in France and Baltics. Still challenging in Spain

    Media Houses International Good growth in France and Baltics. Still challenging in Spain 20 40 % Baltics  Good advertising growth in Estonia 15 30 % MEUR 10 14 % 20 %  Advertising growth both for tv station 10 % 5 10 % Kanal 2 and for newspapers 0 0% Q2 10 Q2 11  Firm cost control and margin impr

  28. Slide 28: Agenda

    Agenda  Q2 highlights  Online classifieds in Q2  Media Houses in Q2  Income statement and Financials  Outlook

  29. Slide 29: Income statement Schibsted Group – headlines for Q2 2011

    Income statement Schibsted Group – headlines for Q2 2011  Revenues NOK 3.8 billion (3.5 billion)  Total revenue underlying +6% Y/Y  Advertising revenue Online classifieds and Media Houses +9%  Operating profit (EBITDA) NOK 683 million (NOK 652 million)  Includes NOK 28 million in increased inve

  30. Slide 30: Income statement Schibsted Group

    Income statement Schibsted Group Full year (NOK million) Q2 2011 Q2 2010 2010 Operating revenues 3 758 3 515 13 768 Operating expenses (3 088) (2 876) (11 605) Income from associated companies 13 13 36 Gross operating profit (EBITDA) 683 652 2 199 Depreciation and amortization (134) (143) (588) Redu

  31. Slide 31: Print advertising revenues Scandinavian newspapers

    Print advertising revenues Scandinavian newspapers 1 200 1 000 800 600 400 200 - 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 Q1 Q2 Q3 Q4 Note: Print advertising revenues for Aftenposten, Bergens Tidende, Stavanger Aftenblad, Fædrelandsvennen, VG, Aftonbladet, and

  32. Slide 32: Key financial figures

    Key financial figures Earnings per share Cash flow from operations per share NOK NOK 20 12 16,7 10 8,99 16 8,04 8 12 6 5,09 6,87 4,24 4,45 4,12 4,20 8 4 3,57 2,43 2,40 4 3,22 1,46 1,41 1,99 1,53 2 0,62 0 0 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Note

  33. Slide 33: Strong balance sheet

    Strong balance sheet Debt maturity profile  NIBD/EBITDA 1.0 at end of Q2 3 500  Total liquidity reserve of NOK 3.5 3 000 billion 2 500 Mill. NOK  Sufficient long term financing in 2 000 place 1 500 1 000 500 - <1 <2 <3 <4 <5 >5 yr yrs yrs yrs yrs yrs Other interest-bearing debt Bonds and CP's Dra

  34. Slide 34: Tight cost control in Media Houses, increased marketing within online

    Tight cost control in Media Houses, increased marketing within online Main increase in SCM and Finn.no 3100 114 3088 Head count increase in Online operations. Reductions in print 3000 74 44 39 2900 19 2876 2800 Higher paper prices, lower volume in Scandinavia. Increased distribution in 20 Minutes. 2

  35. Slide 35: Continued efforts to streamline operations and reduce cost

    Continued efforts to streamline operations and reduce cost  Market situation closely monitored in the light of the uncertainty in international financial markets  Efforts to streamline operations and reduce expenses continues in 2011  Tight control of headcount development – one of the most impor

  36. Slide 36: All Online classifieds expansion cost in SCM taken over the P&L

    All Online classifieds expansion cost in SCM taken over the P&L EBITDA development 1 400 1 273 NOK million 1 200 1 153 1 131 1 070 +10% 1 000 +130% +6% +131% 800 600 501 464 400 200 - 1H 09 1H 10 1H 11 Reported EBITDA EBITDA ex New Ventures Q2 2011 36

  37. Slide 37: Agenda

    Agenda  Q2 highlights  Online classifieds in Q1  Media Houses in Q1  Income statement and Financials  Outlook

  38. Slide 38: Outlook

    Outlook  Uncertainty in global financial markets. In case of persistent uncertainty, ad markets can be affected negatively  Online classifieds expected to continue to grow well, and are also less cyclical  Continued weak trend expected for single copy sold newspapers. More stable circulation expe

  39. Slide 39: SCHIBSTED

    Oy SCHIBSTED MEDIA GROUP

  40. Slide 40: Appendices

    Appendices Spreadsheet containing detailed Q2 2011 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q2 2011 40

  41. Slide 41: Schibsted ASA basic data

    Schibsted ASA basic data Ticker Oslo Stock Exchange: SCH Reuters: SBST.OL Bloomberg: SCH NO Number of shares (11 August 2011) 108,003,615 Treasury shares (11 August 2011) 314,055 Number of shares outstanding 107,689,560 Free float* 74% Share price (11 Aug 2011) NOK 139.70 Market cap (11 Aug 2011) NO

  42. Slide 42: Top 20 shareholders

    Top 20 shareholders Rank Name Holding Share 1 Blommenholm Industrier AS 28 188 589 26,1 % 2 Folketrygdfondet 8 547 009 7,9 % 3 JPMorgan Chase Bank, Nordea Treaty Account * 7 161 018 6,6 % 4 NWT Media As 4 545 815 4,2 % 5 Bank Of New York Mellon * 3 584 391 3,3 % 6 Skandinaviska Enskilda Banken * 2 0

  43. Slide 43: Shareholder analysis

    Shareholder analysis Rank Fund Manager Shares 1 Blommenholm Industrier AS 28,188,589 26.1 % 2 Fidelity Investments 8,960,220 8.3 % 3 Folketrygdfondet 8,547,009 7.9 % 4 Taube Hodson Stonex Partners 4,989,748 4.6 % 5 NWT Media ASA 4,545,815 4.2 % 6 Tw eedy Brow ne 4,504,275 4.2 % 7 Handelsbanken Asset

  44. Slide 44: Circulation development - YTD

    Circulation development - YTD Circulation Change Change Circulation Change Per Q2 2011 2010-2011 revenue 2010-2011 Media Norge w eekdays Media Norge Sunday 418 717 289 545 (7 808) (4 836) (1,8)% (1,6)% } 647 a) 2,1 % Verdens Gang w eekdays Verdens Gang Sunday 210 315 201 845 (25 249) (10 896) (10,7)

  45. Slide 45: Advertising – Print editions

    Advertising – Print editions Volum e 1) Change Revenues Change Per Q2 2011 2010-2011 (NOK m illion) 2010-2011 Media Norge 69 625 4,0 % 1 073 6,1 % Verdens Gang 5 728 (2,6) % 181 (12,1) % Aftonbladet 2) 8 728 (8,7) % 207 (2,4) % Svenska Dagbladet 2) 12 706 (6,4) % 268 (0,4) % 1) Column meters 2) SEK

  46. Slide 46: Advertising revenues Media Norge

    Advertising revenues Media Norge 2008 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Offline advertising revenues 648 696 519 574 481 489 393 503 471 543 428 550 524 549 Aftenposten 350 380 251 293 250 248 198 256 237 279 216 277 271 279 Bergens Tidende 133 152 105 124 103 105 88 112 106 1

  47. Slide 47: Advertising revenue split Aftenposten print newspaper

    Advertising revenue split Aftenposten print newspaper Aftenposten AS Figures in NOK million Q1 07 Q2 07 Q3 07 Q4 07 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Total classified 228 233 193 193 208 215 141 135 137 128 106 121 129 147 117 123 143 145 Recruitment 113 106 79 93

  48. Slide 48: Key financial figures

    Key financial figures Per Q2 Per Q4 2011 2010 2010 2009 Operating profit (EBITDA) (NOK million) 1,130 1,070 2,199 1,494 Operating margins (%): Operating margin (EBITDA) 15.6 15.8 16.0 11.7 Operating margin (EBITA) before ass. companies 11.6 11.2 11.4 7.0 Operating margin (EBITA) 11.8 11.4 11.7 6.5 E

  49. Slide 49: Capital structure

    Capital structure Per Q2 Per Q4 2011 2010 2010 2009 Investments (NOK million): Operational investments (capex) 213 155 427 390 Shares and other holdings 657 55 1 880 196 Interest bearing debt (NOK million) 3 167 2 198 2 478 3 809 Net interest bearing debt (NOK million) 2 297 1 501 1 820 2 554 Intere

  50. Slide 50: Market leading newspapers in Norway and Sweden

    Market leading newspapers in Norway and Sweden Schibsted owns six of top ten Schibsted owns two of top seven paid newspapers in Norway newspapers in Sweden Daily readership (‘000) Penetration¹ Daily readership (‘000) Penetration² 22% 1 078 15% 884 17% 962 13% 663 431 11% 821 11% 315 8% 544 8% 266 7%

  51. Slide 51: Market leading positions online in Norway and Sweden

    Market leading positions online in Norway and Sweden Million Million Sweden Unique Norway Unique Site visitors Site visitors 1 Aftonbladet.se 4.8 1 VG Nett 3.5 2 blocket.se 4.3 2 NRK.no 2.5 3 Hotmail 3.7 3 Finn.no 2.4 4 hitta.se 3.3 4 Dagbladet.no 2.2 5 Expressen 2.4 5 MSN 1.9 6 Eniro.se 2.2 6 Start

  52. Slide 52: Daily reach for Media Houses in Sweden

    Daily reach for Media Houses in Sweden – print and online Aftonbladet 2 522 Expressen, GT, Kvällsposten 1 607 DN 1 116 GP 588 Sydsvenskan 361 0 500 1000 1500 2000 2500 3000 Number of daily readers for media house online and print platforms Source: SIFO approved calculation of Orvesto internet, Ovest

  53. Slide 53: Number 1 positions in Spain, France and Italy

    Number 1 positions in Spain, France and Italy Market Site Market position No. 1 recruitment No. 1 generalist classifieds Spain No. 1 cars No. 1/2 real estate No. 3 news site No. 3 recruitment No. 1 general merchandise France No. 3 news site Source: Google AdPlanner, Unique No. 1 in recruitment Visit

  54. Slide 54: Historical development

    Historical development 1839 Chr. Schibsted Forlag (publishing house) 2005 Acquisition of Hitta.se founded 2005 Launch of Sesam and acquisition of 1860 Christiania Adresseblad launched in Oslo – Internettkatalogen renamed Aftenposten in 1861 2006 Schibsted International Classifieds & Search – 1966 Ta

  55. Slide 55: Investor information

    Investor information  Visit Schibsted’s homepages  www.schibsted.com/ir  Jo Christian Steigedal, VP Investor Relations jcs@schibsted.no Tel: +47 2310 6600 Schibsted ASA Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00. Fax: +47 23 10 66 01. E-mail: schibsted@schibsted.no

  56. Slide 56: SCHIBSTED

    Oy SCHIBSTED MEDIA GROUP

Schibsted Media Group — Q2 2011 Earnings Presentation on 6ix