1st Quarter 1999
Kjell Aamot CEO & President
Trond Berger Stein Yndestad CFO & EVP IR Officer
http://www.schibsted.no/ir_eng/ Investor Relations: 23 10 66 96 E-mail: [email protected]
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Schibsted - Headlines
• General decline in advertising market • Startup expenses at the new printing plant in Nydalen • Successfull launch of the free newspaper Avis1 • Acquisition of the Norwegian publishing house Bladkompaniet • Increased holding in Harstad Tidende
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Profit & Loss Account (NOK mill.) 1st Q 98 1st Q 99 1998 1,505 1,822 Revenues 6,633 1,335 1,802 Operating expenses 6,315 171 20 Operating profit 318 (6) (2) Group financial items (59) 11 (17) Associated companies 8 5 (19) Net financial items (51) 176 1 Pre-tax profit 267 61 9 Taxes 97
115 (8) NET PROFIT 170
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Balance Sheet (NOK Mill.) 3/31/98 3/31/99 1/01/99 1,147 1,584 Total current assets 1,601 3,791 5,362 Total fixed assets 5,137 4,938 6,945 TOTAL ASSETS 6,738 1,322 2,040 Total current liabilities 1,890 Total long-term debt: 620 1,629 Interest-bearing 1,640 451 731 Non interest-bearing 657 71 119 Minority interests 121 2,474 2,426 Total equity 2,430 TOTAL LIABILITIES AND 4,938 6,945 SHAREHOLDERS´ EQUITY 6,738
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Cash Flow / Investments
(NOK Mill.) 1st Q 98 1st Q 99 1998 193 133 Cash flow* 689
235 140 EBITDA 647
312 377 Total investments* 1,484
2,355 2,002 Cash and unused credit facilities 2,274
140 1,084 Net interest bearing debt 959
* See enclosures for details
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Key Figures
1st Q 98 1st Q 99 1998 1997 1996 1995 1994 11.3 1.1 Operating margin % 4.8 12.0 12.6 13.8 15.3 15.6 7.7 EBITDA margin % 9.8 16.4 17.6 18.6 19.3 12.6 23.5 Interest bearing debt % 24.3 9.2 15.7 0.5 4.0 51.5 36.6 Eqiuty ratio% 37.9 49.8 48.1 59.6 56.1
1.66 -0.12 EPS (NOK) 2.46 7.05 5.79 4.99 4.56 2.78 1.92 CFPS (NOK) 9.95 10.00 9.50 8.01 7.47
Dividend (NOK) 1.75 1.75 1.50 1.30 1.15
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Adjusted Operating Result Operating result Operating before NRI & NRI GW result after NRI 1st Q 99 1st Q 98 1st Q 99 1st Q 98 1st Q 99 1st Q 98 1st Q 99 1st Q 98
Newspapers 99 176 66 23 6 4 27 149
TV/Film 9 1 0 -8 6 5 3 4
Multimedia -17 -26 0 0 10 3 -26 -29
Group functions 17 19 0 -28 0 0 17 47
Consolidated 108 169 66 -13 22 12 20 171
NRI: Non-recurring items. Negative figures represent revenues GW: Goodwill
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Share of Associated Companies
(NOK Mill.) 1st Q 98 1st Q 99 1998
6.6 (9.1) Newspapers 1.2
8.4 (4.9) TV/Film 13.3
(3.7) (2.8) Multimedia (7.3)
- - Group functions 1.0
11.3 (16.8) TOTAL 8.2
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Newspapers - Headlines
• Price increase fpr VG and Aftonbladet: VG: NOK 1 on weekdays from July 1st --> effect of approx. NOK 70 mill on a full year basis Aftonbladet: SEK 2 on four weekdays from April 5 th --> effect of approx. SEK 40 mill on a full year basis • Decline in circulation • Weak advertising market in Norway, Sweden and Estonia • Production difficulties at the new printing plant, NOK 66 mill in extraordinary expenses 1st quarter. • Cost reduction program in Aftenposten according to plan • Successful launch of the free newspaper Avis1
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Newspapers - Operating Result (NOK Mill.) 1st Q 98 1st Q 99 1998 1,262 1,524 Revenues 5,653 1,113 1,497 Operating expenses before exeptionals & GW 5,258
176 99 Operating profit before NRI & GW 631 27 72 Non-recurring items & goodwill 236 149 27 Operating profit after NRI & GW 395
7 -9 Share of associated companies 1
Operating margin 19.1 % 10.3 % Aftenposten AS 14.3 % 17.9 % 16.9 % Verdens Gang AS 15.8 % 1.5 % 1.3 % Aftonbladet Cons. 6.5 % (2.8)% (9.9)% Svenska Dagbladet (1.7)%
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Circulation Development 1st Q 99 Circulation Change Change Revenues Change in % (NOK Mill) in %
Aftenposten morning edition 290,659 -241 -0.1 % Aftenposten evening edition 187,786 -3,614 -1.9 % 161 5.7 % Aftenposten Sunday 243,805 1,505 0.6 %
Verdens Gang weekdays 343,772 -7,128 -2.0 % Verdens Gang Sunday 286,861 -3,739 -1.3 % 258 2.2 %
Aftonbladet weekdays 385,933 -13,567 -3.4 % Aftonbladet Sunday 484,767 -19,133 -3.8 % 302 * 2.7 %
Svenska Dagbladet 186,220 -9,580 -4.9 % 83 * (4.9)%
* SEK
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Advertising Development 1st Q 99
Volume Change Revenues Change (column meters) (NOK Mill)
Aftenposten 13,350 (12.0)% 346 (8.3)% VG 1,888 (0.1)% 83 (8.6)% Aftonbladet* 2,670 1.4 % 55 (7.2)% Svenska Dagbladet* 6,963 (14.1)% 110 (10.2)%
* SEK Mill
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 TV/Film - Headlines
• Strong improvement in Sandrew Metronome, operating margin 5.5% in 1st quarter • Metronome Film & Television approx. same result as 1st quarter 1998, operating margin 6.9% before goodwill • Kanal 2 in Estonia renewed licence until 2004. 1st quarter result impacted by weaker advertising market • TV 2 consolidated: Net profit NOK -19 mill compared to NOK 40 mill 1st quarter 1998 (1998 incl. gain on sale of Net 2 Interaktiv to Aftenposten of NOK 38.2 mill) • The net profit in the parent company, the channel TV 2, was NOK 14.5 mill (NOK 52.9 mill 1st quarter 1998 incl. the gain on the sale of Net 2 Interaktiv) • In April TV 2 had for the first time a larger share of viewers than the state owned NRK
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 TV/Film - Operating Result
(NOK Mill.) 1st Q 98 1st Q 99 1998
172 204 Revenues 716 1 9 Operating profit before NRI & GW 18 -3 -6 Non-recurring items & goodwill -5 4 3 Operating profit after NRI & GW 23
8 -5 Associated companies 13
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Multimedia - Headlines
• Bladkompaniet acquired for approx NOK 140 mill. » Provides Schibsted with access to stable and profitable segment of the publishing market » Provides Schibsted with access to Bladcentralen, a highly efficient distribution channel » Potential for organic domestic and international growth • Agreement with Telia regarding ”Nettmarked” • Increased traffic for Scandinavia Online • Non-core online activities sold • New organisational structure for Scandinavia Online
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Multimedia - Operating Result
1st Q 98 1st Q 99 1998
46 91 Revenues 242 75 118 Operating expenses before EOP & GW 421 -26 -17 Operating profit before NRI & GW -166 3 10 Non-recurring items & goodwill 13
-29 -26 Operating profit after NRI & GW -179
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 The Multimedia Business Area
Revenues Operating result 1st Q 98 1st Q 99 1st Q 98 1st Q 99
Online 25 35 -27 -20 Publishing 21 56 -2 -6 Sum Multimedia 46 91 -29 -26
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Possible future structure - SOL
50% 50%
Sol Holding
SOL (no) SOL (se) SOL (dk) SOL (fi) 100% 100% 100% 100%
Consequenses: Cost reductions related to technology Coordinated product development Coordinated marketing and brand building Larger ownership commitment
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Traffic - Scandinavia Online Million pageviews per month 140
120
100
80 Denmark Norway 60 Sweden* 40 Total * Exclusive Evreka Finland 20
0
Jul Aug Sep Oct Nov Dec Feb Mar Jan'99
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Future prospects
• Focus on operational activities is given high priority • Uncertain advertising markets are countered by cost reduction programs • Stable operations at the new printing plant in Nydalen is expected during the 2nd half of 1999 • Positioning of the online activities • Positive economic developments in Norway and Sweden might lead to an improved advertising market
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Enclosures
• Cash Flow Calculation CHARTS • Investments • Advertising volume - Aftenposten • Operating Result Aftenposten • Circulation • Operating Result Svenska Dagbladet Schibsted’s Largest Newspapers, rolling • Operating Result Verdens Gang • Circulation Evening Newspapers in Norway and Sweden, rolling • Operating Result Aftonbladet • TV 2 universe • Operating Result Estonian Media Group market share in % • Operating Result Schibsted Trykk • Most visited Internet sites - Norway • Ad. Volume - Regional Newspapers • Most visited Internet sites - Sweden • Metronome Film & Television AB • Traffic - SOL Norway • Sandrew Metronome AB • TV 2 Consolidated
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 NEWSPAPERS TV/FILM MULTIMEDIA GROUP FUNCTIONS
Aftenposten AS Broadcast Online Schibsted ASA Verdens Gang AS TV 2 AS (33,3%) - N Scandinavia Online AS (54.5 %) Schibsted Finans AS Aftonbladet Hierta AB Kanal 2 (49,5/86%) - EST Scandinavia Online AB (40 %) Schibsted Eiendom AS Svenska Dagbladet Holding AB Scandinavia Online AS DK Eesti Meedia (92,5%) Production Allt Om Stockholm Metronome Film & TV AB (65%) Alt Om København (49%) Printing Plants Meter Film & TV AB - S Hugin AS (30,8 %) Schibsted Trykk AS Meter Fakta AB - S Tidningstryckarna Aftonbladet SvD AB Mekano Film & TV AB - S Publishing Mekano Enterprise AB - S Chr. Schibsteds Forlag AS Regional newspapers Mekaniken AB - S Dine Penger AS Adresseavisen ASA (31,9%) Rubicon TV AS - N SMS Publishing AB Stavanger Aftenblad ASA (31,5%) Nordic Entertainment AS - N Dagens Medisin AS (50%) Fædrelandsvennen AS (25,0%) Metronome Productions AS - DK Imedia AS (50%) Bergens Tidende AS (24,3%) Metronome Spartacus AS (50%) - N AS Harstad Tidende (39,1%) Metronome Studios AS (50%) - DK Asker og Bærums Budstikke (10,2%) Rights/distribution Other Sandrew Metronome AB (50%) Scanpix Scandinavia (80,4%) Sandrew Metronome Int. AB - S TVMagasinet AS (50%) Sandrew Metronome (S/N/DK/Fi) Avisretur AS (51%) Sandrew Metronome Video Norge AS Sandrew Metronome Video DK AS Warner Metronome AS (50%) - DK
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Cash Flow Calculation
(NOK Mill) 1st Q 98 1st Q 99 1998 176 1 Pre-tax profit 267
65 119 +/- Depreciation 329 25 4 +/- Net changes in pensions 139 (11) 18 +/- Share of ass. companies 28 (61) (9) - Taxes payable (75)
193 133 Cash flow 689 2.78 1.92 Cash flow per share (NOK) 9.95
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Investments
(NOK Mill.) 1st Q 98 1st Q 99 1998 3 - Building and constructions 11 119 61 Printing Plant 633 47 48 Operating investments 327 143 268 Shares and other holdings 513 312 377 Total investments 1,484
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Operating Result NOK Mill. 1st Q 98 1st Q 99 1998 152.2 160.9 Circulation revenues 608.7 377.5 346.1 Advertising revenues 1,420.7 27.3 26.4 Other revenues 104.4 557.1 533.4 Total revenues 2,133.8 47.9 46.0 Raw materials 184.0 192.2 200.2 Personnel expenses 821.7 181.4 202.4 Other operating expenses 709.7 12.3 13.8 Depreciation 50.3 16.7 16.0 Royalty 64.0 450.6 478.4 Total operating expenses 1,829.6 106.5 55.0 Operating profit 304.2
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Operating Result
(SEK Mill.) 1st Q 98 1st Q 99 1998 87.3 83.0 Circulation revenues 331.6 122.1 109.6 Advertising revenues 481.4 4.8 4.8 Other revenues 22.7 14.3 13.6 Government subsidy 57.3 228.6 211.0 Total revenues 893.0 19.5 18.3 Raw materials 78.0 66.5 59.5 Personnel expenses 245.8 143.1 149.0 Other operating expenses 567.4 - Exceptional items (6.4) 5.9 5.1 Depreciation 23.3 235.0 231.9 Total operating expenses 908.2 (6.5) (20.9) Operating profit (15.2)
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Operating Result NOK Mill. 1st Q 98 1st Q 99 1998 252.5 258.1 Circulation revenues 1,042.0 91.0 83.1 Advertising revenues 345.6 1.3 2.0 Other revenues 8.2 344.8 343.2 Total revenues 1,395.8 26.5 26.8 Raw materials 108.4 72.6 80.2 Personnel expenses 289.4 166.3 161.0 Other operating expenses 703.6 7.3 7.0 Depreciation 32.0 10.3 10.3 Royalty 41.9 282.9 285.3 Total operating expenses 1,175.2
61.8 57.9 Operating profit 220.6
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Operating Result
(SEK Mill.) 1st Q 98 1st Q 99 1998 293.8 301.6 Circulation revenues 1,235.6 59.6 55.3 Advertising revenues 293.7 6.5 11.2 Other revenues 31.4
359.9 368.1 Total revenues 1,560.6 57.1 55.4 Raw materials 241.1 60.1 64.5 Personnel expenses 269.0 228.6 234.0 Other operating expenses 913.1 8.5 9.4 Depreciation 35.7
354.3 363.3 Total operating expenses 1,458.9 5.6 4.8 Operating profit 101.7
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Estonian Media Group (EEK Mill.) 1st Q 99 1998 34.9 Circulation revenues 136.3 23.8 Advertising revenues 93.4 16.7 Other revenues 74.4
75.4 Total revenues 304.1 11.2 Raw materials 44.4 32.7 Personnel expenses 105.4 39.2 Other operating expenses 210.2 8.0 Depreciation 21.2
91.1 Total operating expenses 381.2 (15.7) Operating profit (77.2)
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Schibsted Trykk - New Printing Plant
NOK Mill. 1st Q 98 1st Q 99 1998
135.9 137.8 Revenues 536.1 138.6 199.1 Operating expenses 611.6 - (2.6) (61.3) Operating result (75.4) *
*not including cost associated with the early retirement (81 NOK Mill).
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Ad. Volume - Regional Newspapers
Volume in 1st Q 98 1st Q 99 Change col. meters 1998 6,599 6,372 (3.4)% Adresseavisen 27,239 7,442 7,026 (5.6)% Bergens Tidende 30,720 3,541 3,655 3.2 % Fædrelandsvennen 14,777
1,346 1,448 7.6 % Harstad Tidende 5,993 6,702 6,432 (4.0)% Stavanger Aftenblad 27,719
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Metronome Film & Television AB
(SEK Mill.) 1st Q 98 1st Q 99 1998 104.8 83.6 Revenues 381.6 73.3 57.6 Raw materials 256.5 15.6 9.1 Personnel expenses 61.0 8.3 8.7 Other operating expenses 32.8 1.6 2.4 Depreciation 8.2 98.8 77.8 Total operating expenses 358.4 6.0 5.8 Operating profit 23.2
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Sandrew Metronome AB
(SEK Mill.) 1st Q 98 1st Q 99 1998 134.5 244.9 Revenues 598.9 69.8 127.5 Raw materials 296.9 19.4 30.4 Personnel expenses 85.3 30.3 49.9 Other operating expenses 159.9 17.6 23.6 Depreciation 75.3 137.2 231.4 Total operating expenses 617.4 (2.6) 13.5 Operating profit (18.5)
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 TV 2 Consolidated NOK Mill. 1st Q 98 1st Q 99 1998 351.3 331.9 Revenues 1,336.4 104.2 109.3 Programme expenses 333.4 68.4 80.0 Personnel expenses 279.0 93.8 114.8 Other operating expenses 446.2 13.3 15.5 Depreciation 52.4 13.8 25.3 Share of associated companies 71.2 293.5 344.9 Total operating expenses 1,182.2 57.8 (13.0) Operating profit 154.2 (3.0) (1.9) Net financial items (12.7) 6.1 - Exceptional items 19.7 20.9 6.3 Taxes 76.8 40.0 (21.2) Net profit 84.4 40.0 (19.3) Net profit after minorities 86.3
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Advertising volume - Aftenposten
12 month rolling
45
40
35
Classified 30
25
1.000 Column meters Brand, display and retail 20
15
10 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Circulation Schibsted’s Largest Newspapers, rolling
450 000
400 000
350 000
300 000
250 000
200 000
150 000
jan.93 jul.93 jan.94 jul.94 jan.95 jul.95 jan.96 jul.96 jan.97 jul.97 jan.98 jul.98 jan.99 mar.99
VG Weekdays Aftonbladet Aftenposten Weekdays SvD
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Circulation Evening Newspapers in Norway and Sweden, rolling
450,000
400,000
350,000
300,000
250,000
200,000
150,000
Jan-96Apr-96 Jul-96 Oct-96 Jan-97Apr-97 Jul-97 Oct-97 Jan-98Apr-98 Jul-98 Oct-98 Jan-99 mar.99
VG Dagbladet Aftonbladet Expressen
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 TV 2 universe market share in % 80
70
60
50
40 NRK 1
30 TV 2
TV 20 Norge TV 3 10 NRK 2 0 1993 1994 1995 1996 1997 1998 1999
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Most popular Internet sites - Norway (Numbers in 1000 daily users)
224 SOL 175 AltaVista.com 214
174 VG 126 116 Dagbladet 88 113 Nettavisen 92 111 Yahoo! 103 72 Aftenposten 51 39 Din Side 19 34 TV2 22 31 NRK 27
0 50 100 150 200 250
4th q. 98 1st q. 99
Source: Norsk Gallup Institutt AS
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Most popular Internet sites - Sweden (Numbers in 1000 monthly users)
MSN/Hotmail 1 857 Microsoft 1 853 Passagen 1 608 Tele2 1 557 Altavista 1 460 Telenordia 1 376 mar.99 Telia 1 339 feb.99 Aftonbladet 1 055 jan.99 AOL 981 Torget 942 Lycos Network 930 Geocities 928 Evreka 867
- 500 1 000 1 500 2 000
Source: Relevant Knowledge
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99 Traffic - SOL Norway 1997 1998 1999 12 000 000
10 000 000
8 000 000
6 000 000
4 000 000
2 000 000
0 1 14 27 40 1 14 27 40 1 14 Week
NEWSPAPERS TV/FILM MULTIMEDIA Presentation 1st Q 99