Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Schibsted ASA (SBBTF, Financial) reported a 9% year-on-year increase in group revenues for Q3, reaching NOK2.6 billion.
- The group EBITDA improved by 17% to NOK670 million, driven by strong performance in Nordic marketplaces and the delivery segment.
- The company successfully executed a strategic transformation by selling its media business, generating approximately NOK24 billion.
- Schibsted ASA (SBBTF) initiated a share buyback program and returned a special cash dividend, each amounting to NOK2 billion.
- The real estate segment saw a 12% revenue increase, with significant growth in Sweden's rental platform Qasa, which grew by 85%.
Negative Points
- Advertising revenues faced headwinds, with a 19% decline in the mobility segment due to market volatility and dissynergies from the media split.
- The jobs marketplace experienced challenges, particularly outside Norway, with a 3% decline in total jobs revenues due to strong competition in Sweden and Finland.
- Total costs increased by 5% year-on-year, driven by marketing campaigns and investments in new business models.
- The company anticipates muted revenue growth in Q4 due to advertising pressures, portfolio simplification, and challenging volumes in mobility and jobs.
- Schibsted ASA (SBBTF) plans to exit non-core businesses, including its comparison service Lendo Group and skilled trades marketplaces, indicating potential restructuring challenges.
Q & A Highlights
Q: Can you provide details on how you plan to use the proceeds from the sale of non-core assets? Will there be a special dividend or reinvestment?
A: We will not disclose specifics on the use of proceeds at this time. We will outline our financial framework and capital allocation strategy at the upcoming Capital Markets Day. Historically, our approach to such situations can serve as a reference.
Q: Could you elaborate on the competitive landscape in the real estate segment and the impact of package downgrades?
A: In Norway, we maintain a strong position with record traffic in our real estate asset. The package downgrades are expected to be temporary. Our new package structure aims to deliver solid value to agents, allowing them to choose between different options.
Q: How has the macroeconomic environment evolved compared to earlier in 2024?
A: The macro environment remains challenging, with no significant improvement or deterioration since earlier this year. We continue to face pressures in advertising revenue, job volumes, and mobility in Norway.
Q: Can you discuss the valuation increase of Adevinta and any cost programs or potential sales within the company?
A: The valuation increase is driven by improved financial performance, particularly in the mobility segment. We will not provide further details on cost programs or potential sales within Adevinta.
Q: What is the strategic rationale behind acquiring Amedia's distribution business, given your focus on core businesses?
A: The acquisition supports our transactional product in Norway. While we do not see ourselves as long-term owners of a delivery business, consolidating and streamlining this business creates shareholder value for a future transaction.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
