Sandrew Metronome AB • TV 2 Consolidated
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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.