Annual Report 2010

2010
Operations
Society
Corporate Governance
The Share
Annual Report
Financial Statements

Our year

Key figures

LETTER FROM THE CEO, read here.

IMPORTANT EVENTS 2010

Profits improved strongly. Group achieved its best ever operating profit before impairment loss and other revenues and expenses .
In good collaboration with the Group's employees the profitability programme that was implemented in 2008 has been completed.
The Scandinavian advertising markets improved in 2010.
The online classified ads services did well in many countries. Schibsted is focusing on creating further growth.
The transition to digital media means a considerable decline in the circulation of the Group’s single-copy sales newspapers.
Full control over one of Europe’s largest online classified ads operations, Leboncoin.fr.
Schibsted has entered into a merger agreement with Media Norge.

ANNUAL REPORT, read here.

SCHIBSTED MEDIA GROUP. REVENUE AND EBITA MARGIN.

0/0

Add to My pages
Download
Print

REVENUE INCOME CATEGORIES

0/0

Add to My pages
Download
Print

2010 in short

We asked some of our photographers for their 2010 pictures.

Key figures

Schibsted delivered a record operating profit in 2010. This good result was due to improved advertising markets, hard work on measures to improve profitability and good growth.


(NOK million)	2010	2009
Operating revenues	13,768	12,745
Operating profit (EBITA)	1,611	832
Operating margin (EBITA)	11.7 %	6.5 %

KEY FIGURES

For more key figures, see here.
For Schibsted share key figures, see here.

(NOK mill.)	2010	2009
Operating revenues	13,768	12,745
Operating expenses	(11,605)	(11,184)
Income from associated companies	36	(67)
Operating profit (EBITDA)	2,199	1,494
Depreciation and amortisation	(588)	(662)
Operating profit (EBITA)	1,611	832
Impairment loss	(110)	(161)
Other revenues and expenses	1,909	(236)
Operating profit (EBIT)	3,410	435
Profit before taxes	3,399	279
Operating margin:
EBITDA (%)	16.0	11.7
EBITA (%)	11.7	6.5
Profit ratio (%)	20.3	3.1
EPS diluted (%)	42.4	34.7
Net interest bearing debt/EBITDA	0.8	1.7
EPS (NOK)	27.0	4.7
EPS diluted (NOK)	27.0	4.7
Cash flow per share (NOK)	19.7	19.3

Online Classifieds

Online Classifieds developed well in all markets in 2010. This business area experienced underlying growth in its operating revenues (adjusted for exchange-rate fluctuations, the closure of print publications and acquisitions and sales) of 23 per cent.

ONLINE CLASSIFIEDS

Schibsted has strong, profitable positions in the online classifieds markets in Norway, Sweden, France and Spain. In addition, this business area includes a portfolio of websites in an Investment Phase in a number of different markets.

Online Classifieds excluding investment phase operations achieved an EBITA margin of 34 per cent (32%), while investments in roll-outs in new markets had a negative effect on the overall margin.

FINN.NO

Finn.no is the clearly leading classifieds website in Norway. The company is the market leader for car, real estate, recruitment and generalist ads.

2010 was a good year for Finn.no in all markets. The company experienced growth of 24 per cent in its top line and achieved a record result. Total revenues amounted to NOK 948 million (NOK 764 million. Finn.no had an operating margin (EBITA) in 2010 of 42 per cent (36%).).

FINN.NO 2010

SCM

All the Group’s online classified ads operations outside Norway are gathered under one management in Schibsted Classified Media (SCM).

SCM’s underlying revenues grew by 21 per cent compared to 2009. Total revenues amounted to EUR 213.7 million (EUR 186.6 million).SCM had an operating margin (EBITDA) in 2010 of 27 per cent (28%). The result is after investments made in the launch of Blocket in new markets. Total investments came to EUR 28.1 million (EUR 11.1 million).

SCM 2010

HITTA.SE

Hitta.se is purely an online directory service, and is the largest online directory in Sweden measured in traffic volume. The company has seen its sales grow steadily and is increasing its shares of the online directory segment. Its revenues grew by 12 per cent.

Total revenues amounted to SEK 342 million (SEK 306 million). Hitta.se had an operating margin (EBITA) in 2010 of 28 per cent (17%).

HITTA.SE 2010

MEDIA HOUSES SCANDINAVIA

In 2010 Media Houses Scandinavia showed positive trends in online and print advertising sales but an underlying decline in circulation revenues.

MEDIA HOUSES INTERNATIONAL

Better results for 20 Minutes both in France and Spain. Best year ever in France.

MEDIA HOUSES

MEDIA HOUSES SCANDINAVIA

The business area Media Houses Scandinavia includes the media houses Media Norge, VG and Schibsted Sverige. The book publishing activities are also included.

MEDIA HOUSES INTERNATIONAL

Schibsted Media Group’s editoral operations outside Norway and Sweden are located in Spain, France, Estonia, Lithuania and Russia.

MEDIA HOUSES SCANDINAVIA

In 2010 Media Houses Scandinavia showed positive trends in online and print advertising sales but an underlying decline in circulation revenues. The underlying growth in operating revenues were 2 per cent. Total operating revenues amounted to NOK 9,771 million (NOK 8,677 million)

MEDIA HOUSES SCANDINAVIA 2010

MEDIA NORGE (MEDIEHUSENE)

These media houses had an operating margin (EBITA) of 8 per cent (3%). Total operating revenues amounted to NOK 4,472 million (NOK 3,189 million). The online advertising, weekend magazines and recruitment advertising showed particularly good growths in revenue compared to 2009

MEDIA NORGE 2010

VG

The changes that are taking place in the media market are clearly noticeable in the VG media house, where single-copy sales are declining at the same time as the use of digital media is on the rise.

The media house had an operating margin (EBITA) in 2010 of 17 per cent (16%). Operating revenues amounted to NOK 1,909 million (NOK 1,961 million).

VG 2010

SCHIBSTED SVERIGE

Schibsted Sverige improved its operation, and the media houses had a combined operating margin (EBITA) of 10 per cent (4%). Operating revenues amounted to SEK 3,900 million (SEK 3,700 million).

SCHIBSTED SVERIGE 2010

SCHIBSTED FORLAG

The publishing house had an operating margin (EBITA) in 2010 of 7 per cent (7%). Operating revenues amounted to NOK 240 million (NOK 295 million).

SCHIBSTED FORLAG 2010

MEDIA HOUSES INTERNATIONAL

Operating profit (EBITA) was NOK 23 million (NOK -34 million). It improved in 2010 due to the effects of the profitability program and revenue growth in France.

In 2010 Media Houses International had an underlying growth in operating revenues of 2 per cent. The reported growth was negative, however, at 6 per cent, affected by currency fluctuations. Operating revenues amounted to NOK 1,009 million (NOK 1,074 million).

MEDIA HOUSES INTERNATIONAL 2010