Schibsted Annual Report 2019 Who We Are
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Index Who we are .................................................................................................................................. 3 Message from the CEO ................................................................................................................ 4 Board of Directors’ report ........................................................................................................... 5 Sustainability report ................................................................................................................. 12 Corporate governance .............................................................................................................. 36 Financial statements for the Group .......................................................................................... 44 Financial statements for parent company ............................................................................... 91 Share information ................................................................................................................... 104 Members of the Board (2019-2020) ........................................................................................ 107 SCHIBSTED ANNUAL REPORT 2019 WHO WE ARE Who we are Schibsted is an international family of digital consumer brands with more than 5,000 employees. We have world-class media houses in Scandinavia, leading marketplaces and digital services that empower consumers. Millions of people interact with Schibsted companies every day. What we do We rely on our core values Our corporate social responsibility is closely linked to our mission Four statements guide us on a daily basis: of “Empowering people in their daily lives”, our values and our We have integrity: Our company is based on a long tradition of core business. We believe that we, together with our users, can independent news, information and transparent marketplaces. contribute to a more sustainable society in what we do every day. Trustworthiness and quality are absolutely essential – people must • We empower people by providing transparent and secure be able to trust all our products and services. marketplaces. • We empower them by creating services that provide them with We are innovative: We embrace innovation, it’s at our core. We better deals. always put users’ needs first – we go the extra mile. Innovation can • We empower them by defending freedom of the press and be anything from a brilliant new concept to a minor, but no less editorial integrity. important, improvement in how we do things. Nordic Marketplaces We are a team: We believe in a friendly and open attitude. We also believe in the strength of people and competencies coming together Connecting millions of buyers and sellers every month, we provide to achieve something great. The companies in our group can reach leading online marketplaces in the Nordics. Our digital far better results together than alone. marketplaces Finn, Blocket and Tori help people buy and sell new and old things. We are here to win: We must always strive to be better than our News Media competitors at understanding our customers and markets – that’s As the largest media group in Scandinavia, our world-class media the key to our continued success. houses continue to shape the media landscape of today – and tomorrow. In Scandinavia, our media houses such as VG, Aftenposten, Bergens Tidende, Aftonbladet and Svenska Dagbladet keep people informed and updated on important issues in society. We believe that the secret to our users’ engagement lies in truly understanding their future needs. This means that we need to know what kind of tools and services people really want and need to make their life easier. We express these ambitions in our mission and our vision. This guides everything we do from our R&D, to new business ventures, recruitment policy and running our everyday business. Next Within Next we drive growth and create value for Schibsted’s customers and users. Our four areas Growth, Financial Services, Next Media and Distribution, will secure that innovation prevails as part of Schibsted’s DNA. Adevinta Adevinta is a global online classifieds specialist, operating digital marketplaces in 16 countries in Europe, Latin America and North Africa. The leading local brands include leboncoin in France, InfoJobs and Fotocasa in Spain, Subito in Italy and Jofogás in Hungary, among many others. Schibsted owns 59.3 percent of the shares in the public limited liability company Adevinta ASA. 3 SCHIBSTED ANNUAL REPORT 2019 MESSAGE FROM THE CEO Building on the value of data and sustainability If I were to summarize 2019 in two words, they would be ‘data’ and ‘sustainability’. That is good news for Schibsted, as both data and sustainability are core building blocks of our business model. The value of data Going for growth In 2019 it has become evident even outside the world of tech, that Going forward, Schibsted will build on the value of data and the data is the world’s fundamental driver of growth, product value of sustainability. While 2019 was a year for re-establishing development and value creation. The largest businesses in the Schibsted after the Adevinta demerger – focusing on the world are platform companies, and the most used products in the fundamentals and the organization – 2020 was meant to be a year world are their services based on personal data. for further exploration. The effects of the global Corona pandemic, For Schibsted, the value of data is all about delivering better however, will have a significant impact on our priorities for 2020. products to our users and customers. When our digital Long term, Schibsted will continue to go for growth based on our marketplaces know what you are looking for, they can connect you unique position in the Nordics and our cross-divisional synergies – with the right job, the right house, the right car or the right while also defending our proven financial performance and our commodity at the right price. When our media houses know what track record in incubating growth businesses. In order to do that, you like to and want to read, they can give you personalized and Schibsted will have to be a unifying foundation for our brands – more relevant news – and even use data to avoid echo chambers. making sure that what we do matters – both for our financial When our other consumer brands know more about you and your performance and for society. preferences, they can provide you with digital services that save both you and society time, money and resources. Our future success will be determined by our ability to collect, catalogue and The Corona pandemic capitalize on data. During February and March 2020, it became clear that the Corona pandemic will have a severe effect on society at large, in the Nordics and throughout the rest of the world. The value of sustainability Consequently, Schibsted is refocusing our priorities and resources 2019 has also highlighted the value of sustainability. Sustainability to manage the significant negative financial and operational can no longer be written off as a mere lifestyle choice among effects of the dramatic measures imposed upon society to reduce consumers, or a legal commitment among governments. the spread and health effects of the coronavirus. Environmental and social sustainability are increasingly integral parts of a business’ financial sustainability. Sustainability earns Through its strong media positions in Norway and Sweden, you the right to play. Schibsted plays a vital role in times of crisis. Delivering on that role is our highest priority. For Schibsted, sustainability is at the very core of our business model. Whether it is fostering democracy through quality Schibsted has solid financials and highly competent employees journalism, letting people make better choices by increasing and is well positioned to navigate steadily through the turbulent market transparency or making vast contributions to the circular times ahead, also being prepared to find the extraordinary value economy through our marketplaces – all our brands are committed creating opportunities that often arise when in difficult times. to sustainability, and to our mission of empowering people in their daily lives. Kristin Skogen Lund CEO of Schibsted 4 SCHIBSTED ANNUAL REPORT 2019 BOARD OF DIRECTORS’ REPORT Board of Directors’ report Schibsted's Board. Back row from left: Torbjörn Ek, Eugénie van Wiechen, Ingunn Saltbones, Marianne Budnik, Birger Steen and Finn E. Våga. Front row from left: Philippe Vimard, Anna Mossberg, Ole Jacob Sunde (Chair) and Christian Ringnes. For Schibsted, 2019 was dominated by managing the spin-off of Adevinta and the repositioning of Schibsted. For more than a decade, Schibsted has been characterized by the and become one of the global leaders within marketplaces. successful rollout of our international marketplace operations Schibsted is now more than ever "re-thinking things" and focusing which started with the acquisition of Blocket in 2003. Our on our strengths to create new, value-enhancing growth. international marketplace operations outside the Nordics were Our Nordic Marketplaces operations Finn, Blocket and Tori remain spun off and established as an independent, listed company, a key focus area in this respect and Schibsted will pursue Adevinta, in 2019. After the first day of trading on 10 April, Adevinta opportunities to grow these businesses both organically – for was valued at around NOK 60 billion, making it the third largest example by expanding