Business area analysis

ONLINE CLASSIFIEDS

Schibsted has strong, profitable positions in the Online Classifieds markets in Norway, Sweden, France and Spain. This business area also includes a portfolio of classified ad websites in an investment phase in a number of different markets.

 Main features in 2011:

• In 2011 there was a strong development in Online Classifieds.
• This business area had an underlying growth of 21 per cent in its operating revenues (after adjusting for exchange rate fluctuations and acquisitions and disposals of enterprises).
• Excluding investment phase operations, Online Classifieds had an EBITDA margin of 46 per cent (45 per cent), while investments in roll-outs in new markets had a negative effect on the margin.

Finn.no

Finn.no is clearly the number one website for online classified ads in Norway. The company is the market leader in the field of car, real estate, recruitment and “marketplace” ads.

Main features in 2011:

Finn.no is clearly the number one website for online classified ads in Norway. This company is the market leader in the field of car, real estate, recruitment and “marketplace” ads.

• 2011 was a good year for all of Finn.no’s markets and the company achieved strong top-line growth of 23 per cent and made a record profit in 2011.
• Real estate ads grew underlying by four per cent in 2011, while car ads and recruitment ads increased by 21 and 36 per cent respectively. Market place increased by 24 per cent and travel by 27 per cent. This growth was due to a combination of price and volume.
• Operating costs increased by 15 per cent from 2010 to 2011. The increase in costs was due to a higher level of activity in 2011 and higher expenses because of the top-line growth.
• Finn.no continues to be the largest website in Norway, measured by the number of page views.
• The number of ads on Finn.no shows a growth of 16 per cent in 2011 compared to 2010 and that is the highest level ever. 

Hitta.se

Hitta.se is purely an online directory service, and is the largest online directory in Sweden measured in terms of traffic volume.

Main features in 2011

• Hitta.se has experienced a flat trend in revenue during 2011.
• Hitta.se has clearly maintained its position as the market leader within online catalogues in Sweden for 2011, measured in terms of traffic volume.

Schibsted Classified Media

All the Group’s online classifieds operations outside of Norway are gathered under one management in Schibsted Classified Media SCM). Schibsted is one of the world’s leading corporate groups for online classifieds and has achived traffic records in several markets for 2011. SCM established number one positions in Sweden, Spain and France with good growth and high profitability. It has also established new operations in a number of countries. In 2011 SCM acquired Done Deal and Tocmai, which hold the number one positions in Ireland and Romania respectively. There has also been a strong focus on verticals with the launch of Schibsted's own job and property verticals in Blocket.se.

New investments in Schibsted Classified Media are reported as operations in the investment phase until they have reported an operating profit (EBITDA) for at least four successive quarters. In 2012 Subito and Willhaben will be transferred to the established operations group. SCM strengthened its growth in new markets in 2011. The Blocket concept has been launched in several new countries, including Brazil.

Main features in 2011:

• SCM increased underlying revenues by 23 per cent compared to 2010.
• SCM is investing in further expansion and, as a result, experienced significant growth in investments in new operations (investment phase) in 2011. This amounts to a total of NOK -412 million in lower EBITDA (NOK -225 million)

ESTABLISHED PHASE

Sweden:

• Blocket’s/Bytbil’s operating revenues grew by 15 per cent in 2011, calculated in local currency.
• This growth was driven by volume, the development of new sources of revenue and positive developments in brand advertising.
• Operating profit increased by an underlying 12 per cent between 2010 to 2011 in local currency.
• Blocket saw a marked increase in traffic volumes in 2011, with a strong contribution from mobile.
• Blocket Jobb was launched in August and Blocket Eiendom was launched in September, and both have developed positively. 

International:

• Operating revenues rose underlying by 28 per cent, and both Segundamano.es (Anuntis) and Leboncoin.fr increased their revenues sharply in 2011.
• There were strong increases in both traffic and revenues for Leboncoin and improved margins.
• Unemployment remains high in Spain, but InfoJobs.net still managed to achieve revenues in 2011 on par with 2010, and consolidate its position as the market leader. 

INVESTMENT PHASE

• SCM has a clearly stated goal for building the foundations of future growth by establishing itself in new markets. This is done by establishing operations that are primarily based on the successful Swedish Blocket.se concept. Experiences from successful establishments in core markets form the basis of investment in online classifieds in new markets.  
• Schibsted Classified Media’s investment phase operations include activities in a total of 27 countries. The online concept was launched in 13 of these countries without a local organisation.
• The amounts invested increased in 2011 both through the establishment in new markets and as a result of increased marketing in established markets.