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Schibsted ASA (SBBTF) Q2 2024 Earnings Call Highlights: Navigating Growth Amidst Market Challenges

In This Article:

  • Group Revenue: Increased by 3% year-on-year to NOK2,525 million on a constant currency basis.

  • Group EBITDA: Ended at NOK546 million, up 1% year-on-year.

  • Nordic Marketplaces Revenue Growth: 7% on a constant currency basis.

  • Classifieds Revenue Growth: Up 13% driven by higher revenue per ad and transactional revenues.

  • Advertising Revenue Decline: Decreased by 14%.

  • Mobility Revenue Growth: 7% on a constant currency basis, with Classifieds revenues up 15%.

  • Transactional Revenues in Mobility: NOK90 million, a 16% increase year-on-year.

  • Jobs Revenue Decline: Overall decline of 2% on a constant currency basis.

  • Real Estate Revenue Growth: 16% driven by higher ARPA and expansion of transactional rental model.

  • Recommerce Revenue Growth: Increased by 17% on a constant currency basis.

  • Net Profit: Ended at approximately NOK6.7 billion in Q2.

  • Special Cash Dividend: NOK18 billion paid out as part of the special cash dividend.

  • Cash Flow from Operating Activities: NOK180 million, down from NOK354 million last year.

  • CapEx: NOK174 million, down 13% from last year.

  • Net Cash Position: Approximately NOK6 billion following transactions.

Release Date: July 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Schibsted ASA (SBBTF) achieved a 3% year-on-year increase in group revenues for Schibsted Marketplaces, reaching NOK2,525 million.

  • The Nordic Marketplaces segment delivered a 7% revenue growth, driven by a 13% increase in Classifieds revenues.

  • The Mobility vertical reported a 15% growth in Classifieds revenues, primarily driven by ARPA increases.

  • The Real Estate business demonstrated resilience with a 16% revenue growth, driven by higher ARPA in Norway and expansion in Sweden.

  • Recommerce revenues increased by 17%, driven by the transactional business model, particularly in Norway and Finland.

Negative Points

  • Advertising revenues declined by 14% year-on-year, impacted by volatile markets and macroeconomic factors.

  • The Jobs vertical experienced a 2% overall revenue decline due to market challenges and increased competition in Sweden and Finland.

  • Total costs increased by 5% compared to Q2 last year, driven by investments in new business models and technology platform transitions.

  • The Growth & Investment segment saw a 13% revenue decline, affected by macroeconomic factors and reduced demand.

  • Schibsted ASA (SBBTF) plans to reduce its workforce by about 250 positions as part of organizational changes to improve profitability.

Q & A Highlights

Q: Can you expand on the behavior of agents in Norway's real estate market and any regrets about the overhaul of packages in January 2022? A: Agents with ownership in Hjem.no are downgrading packages to reallocate marketing funds. We believe in the strength of our position and expect these downgrades to be short-term. Regarding HONK, we shut it down due to unfavorable trends and profitability challenges in the market. (Christian Printzell Halvorsen, CEO)