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Growth opportunities – from paper to electronic media Trond Berger CFO

Growth opportunities – from paper to electronic media Trond Berger CFO. DnB Media Summit 2005. Strong Position in Old and New Economy. Strong Brands Content Know-how Marketing Capacity Strong Cash Flow Execution Skills. Online Platforms. Off-line Positions. New Business

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Growth opportunities – from paper to electronic media Trond Berger CFO

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  1. Growth opportunities – from paper to electronic media Trond Berger CFO DnB Media Summit 2005

  2. Strong Position in Old and New Economy Strong Brands Content Know-how Marketing Capacity Strong Cash Flow Execution Skills Online Platforms Off-line Positions New Business Opportunities Newspapers TV-production Publishing Film Rights Internet (www) Mobile Internet Broadband Build on core activities for continuous development 2

  3. Strategy • Previous announced strategy to be continued – financials and market position enables increased focus on growth • Growth through both acquisitions and organic growth • The Group’s strong position and competitive advantages as a basis • Acquisitions complementing and strengthening already existing positions • New media and free newspaper engagements • Financial targets unchanged 3

  4. Product scope Strategic repositioning Elektronic media 2004 Newspapers 1995 Norway Scandinavia Europe Geographic focus area 4

  5. Four fundamental trends which influence the media industry Loss of younger readers and migration from paper to online Classifieds from paper to the net The mobile phone as a new media channel Search and directories will be important categories online Schibsted’s strategic response: 5

  6. Classifieds migrate to the net – regional newspaper business model is changing Revenues from classified advertising, NOK million CAGR: -13% CAGR: 45% 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 6

  7. Migration of classified advertising – Real estate Number of ads, 12-month rolling average 7

  8. Migration of classified advertising – Recruitment Number of ads, 12-month rolling average 8

  9. Financials 2000 – Q1 2005 NOK million 43% 40% 33% 24% -10% -42% * * As of 31 March 2005 9

  10. Only online version Both Only paper version Readership on- and offline Daily readership, thousands 1,754 1,696 1,655 1,571 1,522 1,481 1,392 1,403 1,391 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 2004 Source: Gallup – 96/97 represents Forbruker & Media 02/97 10

  11. .se Operating profit (loss) – Online newspapers 11

  12. Operations overview Online newspaper and development of new content services Online classified portal for second hand car dealers Online classified portal for consumers Online number information service, direct marketing and number information 12

  13. Strong growth and new initiatives • Operating profit for Aftonbladet Nya Medier of SEK 7 million (SEK 2 million) • Agreements to export ”Viktklubben” to several European markets • Focus on development of new services – e.g. IPTV • Continued strong growth for Blocket • New record with 1.2 million unique visitors in March • Number of ads increased by 43% y-on-y in Q1 • Hitta.se had 1.1 million unique monthly visitors in January • Aftonbladet will take Metro’s new service Metromarknad to court 13

  14. .se Internet traffic on media sites Unique visits, January 2005 58,269,624 53,975,864 2,855,269 4,111,222 4,986,758 5,545,962 5,571,035 12,046,111 18,859,507 Source: Red Measure, January 2004 14

  15. Operating profit (loss) – Online activities Includes FINN, Byt Bil, Blocket and Retriever in addition to the group’s online newspapers. The results are included in the newspaper business area. 15

  16. Online activities’ share of Schibsted’s operating profit (EBITA) Percent 2002 2003 2004 2005 16

  17. A 20 Minutes edition goes through three phases Distribution audience Revenues Phase 1 Optimize circulation Phase 2 Readership growth Phase 3 Revenue growth Time 17

  18. Circulation development 2000 2001 2002 2003 2004 Luzern Lille Lyon Marseille Toulouse Bordeaux Valence Alicante Madrid Barcelone Bern Basle Paris Seville Zaragoza Zurich 18

  19. Development of revenues and expenses in Switzerland (Figures in EUR 1000) 10 000 9 000 Revenues Expenses 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2000 2001 2002 2003 Q1 2004 Source: 20 minutes/Schibsted 19

  20. Attractive margins at start of fifth year Development of revenues and expenses in Switzerland (Figures in EUR 1000) 2000 2001 2002 2003 Q1 2004 Source: 20 minutes/Schibsted 20

  21. Latest development • New launches in both markets – strategic cooperation with Grupo Zeta in Spain • New launches contributes to an operating loss in Q1 • Continued strong revenue growth in both markets • Spain: 36% y-on-y in Q1 • France: 69% y-on-y in Q1 • New readership survey shows that 20 Min has 2.023 million daily readers in Spain • Gain on sale of 20 Min in Switzerland of NOK 200 million • Grupo Zeta, Spain’s third largest media group, has paid EUR 15 million for 20% ownership in Spain 21

  22. Strong position in all markets Circulation Thousands Daily readership Thousands Ranking 1 Switzerland1) 2 Spain 2 France Total 1) Not owned by Schibsted 22

  23. France – #2 overall, but #1 in target group Readership, May 2005, thousands Readersship in target group – 15 to 34 year olds Overall readersship 23

  24. Revenue Development NOK million 24

  25. Merger of the to companies decided in March – ongoing integration process • Schibsted largest shareholder with 44.5% of the shares • Leading provider of mobile services in the Scandinavian markets • Revenues of more than SEK 400 million • More than 900 000 members in Norway and Sweden • The companies complete each other both product wise and geographically • Accounting gain of NOK 89 million for Schibsted • The deal was effective from 22 March 25

  26. Q1 highlights • Successful integration – continued growth • Proforma consolidated revenues of SEK 102 million for “the new Aspiro” – operating profit of SEK 8 million • Continued strong sales in Q1 • 2 million ringtones • 1.1 million pictures and movies • 600 000 java games • Introduction of 3G and new advanced phones lead to increased demand for mobile content 26

  27. Online search – strategic rationale • Users are moving from print to online • Revenues are starting to move online • Google and Yahoo have strong market positions and are moving into new areas of business • Directories • News • Mobile content • Banner ads • International competitors have established Nordic sales force • Economies of scale for Schibsted – possible to capitalize on traffic 27

  28. Online advertising forecasts – search is expected to be important Online advertising in the US, USD billion Source: Jupiterresearch 28

  29. Costs in Q1 relating to new growth initiatives Percent 100% = NOK 20 million New online projects in Aftenposten and FINN Search in Sweden and Norway New projects based on 20 Min and Blocket Total costs in Q1 relating to new growth initiatives 29

  30. Financial targets – over a business cycle 30

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