Crosslink Is Key
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Schibsted Capital Markets Day Stockholm 28 March 2007 1 Agenda Schibsted CMD 2007 Speaker Title • Kjell Aamot • Market trends and strategy update • Birger Magnus • Norway • Gunnar Strömblad • Sweden • Sverre Munck • International • Terje Seljeseth • Growth opportunities online classifieds • Anna Vegerfors • New concepts online newspapers • Trond Berger • Finance • Kjell Aamot • Outlook 2 AGENDA Market trends and strategy update Norway Sweden International Growth opportunities online classifieds New concepts online newspapers Finance Outlook 3 Schibsted 1839 – 1992 Schibsted Forlagene Publishing house 1839 Aftenposten Morning newspaper 1860 Verdens Gang Evening newspaper 1966 4 Schibsted is in a growth phase Online Int growth; IPO; New vision; push greenfields desired First Launch and growth international move of 20 min acquisitions 1992 1996 2000 2006 5 Schibsted will be the most attractive media group in Europe through people who dare, who challenge and who create! Growth Market Organisation Group Finance development A leading group A leading group Europe's most in Europe A group A leading innovative in Europe with an open, media group in understanding In developing media group, changes in including in Europe founded on talent, loaders, culture with regard to media usage and employees and strong brands. applying this hallmarked by long-term creative efficient financial knowledge in organisations Columns developing cooperation returns and embracing and strong risk traditional and continuous new media. local management. improvement. entrepreneur ship. Schibsted will become A group that fosters A broad media A knowledge-based A listed company group which democracy and group whose core diversity through giving competitive conveys important, resources are financial useful and integrity and editorial strong brand and independence. returns based on a entertaining content. highly qualified sound balance employees. sheet. Schibsted is 6 Continued growth in new areas through development of core activities New countries Offline Online positions platforms Media houses • Newspapers Strong Brands • Internet • Classifieds/search • TV Production Content Know-how • Online New business • Rich media • Publishing Marketing Capacity newspapers opportunities • Mobile • Film Rights Strong Cash Flow Execution Skills • Communities • Etc. 1995 2006 7 Growth prioritized through media houses in key markets Priority 1. Home markets: High market share in several channels Norway New products and channels Sweden (search, mobile platforms) Estonia 2. New home markets: High market share in few channels Spain Growing products France (free sheets, online newspapers, classifieds) Lithuania 3. Leverage on leading Low market share edge competence and Portfolio administration – potential market development: divestments or further development of Italy assets Austria Russia Singapore LatAm 8 The building of strong media houses is key Sweden example 9 Increased share of media consumption during the day 80% 70% Mobile 60% Web-TV Sports 50% VOD 40% Travel 30% 20% 10% 0% Före< 8.00 8.00-12.00 12.00-17.00 17.00-19.00 19.00-22.00 Efter> 22.00 PaidMorgontidning daily TabloidKvällstidningTV TV InternetOnline GratistidningFree daily 10 Crosslink is key E24.se Jobb24.se 11 Utilizing size take 1; proven concepts boosting new initiatives 2 500 000 2 000 000 1 500 000 1 000 000 Unique BrowsersUnique 500 000 0 1 5 9 131721252933374145495357616569 Week 2005 - 2007 #1 directory service in Sweden 12 Source: Kiaindex Utilizing size take 2; proven concepts boosting new initiatives Traffic: 840,000 weekly users Direct hits (+ search engines) Traffic: 2,200,000 weekly users 26 % 12 % 62 % Goal: 350,000 weekly users Result: 566,000 weekly users 13 Source: TNS Gallup E24 the largest business news site in Norway in an instant Unique weekly visitors 600 000 500 000 400 000 300 000 200 000 100 000 0 Week 1 Week 4 14 Source: TNS Gallup Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 E24.no Week 25 Week 28 Week 31 Na24.no Week 34 Week 37 Week 40 DN.no Week 43 Week 46 Week 49 Hegnar.no Week 52 Week 3 Week 6 Week 9 Some trends we are watching • People want to contribute their own content Social media • Many-to-many communication • Verticalization of the web Long tail • Niche media • Broadcast TV declining Web-TV • Web-TV increasing 15 Users want to contribute in all channels Blogs on serious topics Home made videos On-site journalism Video ads 16 Social media drives impressions Million unique visitors Million page impressions 1. VG 2.3 1. VG 168 2. MSN 2.0 2. FINN 130 3. Startsiden 1.8 3. Dagbladet 69 4. Dagbladet 1.8 4. MSN 52 5. FINN 1.2 5. Startsiden 38 6. Gule Sider 1.2 6. TV2 Nettavisen 20 7. TV2 Nettavisen 1.1 7. Gule Sider 19 8. Kvasir 0.9 8. SOL 16 9. Aftenposten 0.9 9. Aftenposten 12 10. SOL 0.7 10. Kvasir 11 • Nettby has lifted VG to no.1 position • Nettby had ~0.4 million unique visitors in week 11 and, 113 million page impressions • Finn as a social media: 80% of visitors to FINN’s real estate did not plan to buy or sell Some trends we are watching • People want to contribute their own content Social media • Many-to-many communication • Verticalization of the web Long tail • Niche media • Broadcast TV declining Web-TV • Web-TV increasing 18 Activity on the web is growing in the tail • Large front-pages • Vertical leaders • The tail 19 The tail – Norwegian interest in Samurais? Groups on Nettby VG Blog FINN Classifieds Sesam search Effective advertising? 21 Development in online advertising Traditional Pay per click Pay per banner ads (PPC) transaction • Advertising will be a variable cost for advertisers Advertisers Time limited pay per page advertising • Schibsted will be view able to capitalize on increased number of visits 22 Some trends we are watching • People want to contribute their own content Social media • Many-to-many communication • Verticalization of the web Long tail • Niche media • Broadcast TV declining Web-TV • Web-TV increasing 23 Norwegians are spending less time watching TV Time spent decreased in 2006 and this Important group for advertisers sees trend continues into 2007 largest decline Percentage decrease in time spent per Percentage decrease in time spent per day viewing TV day viewing TV (age: 30-39 y) YoY 05-06 Jan./Feb. 06-07 Jan./Feb. 06-07 -5.5% - 10.2% - 19% 24 Source: TNS Gallup Web-TV sees large growth in traffic Aftonbladet.se VG Nett 800 000 700 000 600 000 550 000 600 000 500 000 450 000 500 000 400 000 400 000 350 000 300 000 300 000 250 000 200 000 200 000 150 000 100 000 100 000 l c g t g p ct v jul u ju o o a sep oc nov dec jan feb mar au se n de jan feb Unique visitors per month Unique visitors per week • Unique visitors to Aftonbladet.se web-TV has increased with 87% the last year • Aftonbladet.se reaches 44% of all Swedish web-TV viewers and show 4 million videos every week • VG Nett shows above 1.5 million videos every week Source: Aftonbladet.se, VG Nett, Mediavision Web-TV is viewed in the afternoon News (49 %) Most common material Skits/humour (14 %) News (45 %) Most demanded material Sports (16 %) Percentage that think they will watch more web-TV in 6 months 28 % of web-TV viewers Percentage that watch less traditional TV because of web-TV 15 % of web-TV viewers Aftonbladet.se Web-TV, December 2006 Traditional TV 40 35 30 25 20 Percent 15 10 ue web browsers, 5 Uniq average per hour 0 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 h 1 h2 h3 h4 h5 h 6 h7 h8 h9 h10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 h h h h h h h h h h h h h h h h h h h h h h h h h h h h h Time of day Time of day Source: SVTi, Aftonbladet, MMS Good start of the year for online and print Growth in advertising revenue through Norwegian media agency in % January and February 2007 Internet 24.9 Daily press 6 • Continued strong growth online • Good start of the TV -1.9 year for print ads Total 6.6 27 Source: Mediebyråenes Internesseorganisasjon as of 28 February 2007 ‘Survival of the fittest’ ”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” Charles Darwin 28 AGENDA Market trends and strategy update Implementation of the new vision Norway Sweden International Growth opportunities online classifieds New concepts online newspapers Finance Outlook 1 Schibsted will be the most attractive media group in Europe through people who dare, who challenge and who create! Growth Market Organisation Group Finance development A leading group A leading group Europe's most in Europe A group A leading innovative in Europe with an open, media group in understanding In developing media group, changes in including in Europe founded on talent, loaders, culture with regard to media usage and employees and strong brands. applying this hallmarked by long-term creative efficient financial knowledge in organisations Columns developing cooperation returns and embracing and strong risk traditional and continuous new media. local management. improvement. entrepreneur ship. Schibsted will become A group that fosters A broad media A knowledge-based A listed company group which democracy and group whose core diversity through giving competitive conveys important, resources are financial useful and integrity and editorial strong brand and independence. returns based on a entertaining content.