Introduction & Market Context
Schibsted ASA (OB:SCHB) presented its first quarter 2025 results on May 7, showing improved operational performance across most segments despite mixed revenue growth. The Norwegian media and marketplace company is preparing for a significant transformation with its upcoming rebrand to "Vend" on May 12, 2025, marking a new chapter in the company’s strategic evolution.
The presentation comes as Schibsted’s B shares closed at NOK 300 on May 6, down 2.53% ahead of the earnings release, suggesting some market caution despite the generally positive operational results.
Quarterly Performance Highlights
Schibsted reported Q1 2025 revenues of NOK 2,015 million, representing a 4% year-over-year increase, while EBITDA grew impressively by 18% to NOK 394 million. The EBITDA margin expanded by 2 percentage points to reach 20%, reflecting the company’s successful cost control measures and operational improvements across segments.
As shown in the following chart of quarterly segment performance, most business units contributed positively to the overall EBITDA growth:
The Real Estate segment emerged as a standout performer with revenue growth of 20% year-over-year, driven by ARPA (Average Revenue Per Ad) growth and exceptional volume increases in Norway. The segment achieved an impressive 42% EBITDA margin, with EBITDA nearly doubling to NOK 126 million (+97% YoY).
The following chart illustrates the strong performance in the Real Estate segment:
The Mobility segment demonstrated resilience with stable revenues (-1% YoY) despite a 30% decline in advertising revenues. Classifieds revenues grew by 6%, driven by ARPA growth, while the segment maintained a strong 49% EBITDA margin. EBITDA improved by 3% year-over-year to NOK 275 million.
The Jobs segment showed solid performance in Norway with 5% revenue growth, though overall segment revenues were affected by market exits in Sweden and Finland. Despite this, the segment achieved an impressive 59% EBITDA margin, with EBITDA increasing by 17% to NOK 185 million.
The Recommerce segment continued to face challenges with revenues declining by 6% year-over-year, primarily due to weak advertising revenue and deconsolidation of non-core revenue streams. However, transactional revenues showed strong growth of 30% year-over-year, and the segment reduced its EBITDA loss by 12% to NOK -72 million.
Detailed Financial Analysis
Despite strong operational performance, Schibsted’s bottom line was significantly impacted by financial expenses, which increased dramatically from NOK 121 million in Q1 2024 to NOK 2,502 million in Q1 2025. This was primarily due to a NOK 2,441 million loss from fair value adjustment of Aurelia. Consequently, the total loss widened from NOK 772 million to NOK 2,255 million, with basic adjusted EPS deteriorating from NOK -3.50 to NOK -9.94.
The company’s cost reduction initiatives have shown tangible results, with operating expenses excluding delivery costs down 9% year-over-year. Personnel costs decreased by 21%, marketing costs by 23%, and other costs by 16%, demonstrating management’s commitment to operational efficiency.
Cash flow from operating activities improved significantly, increasing from NOK 10 million in Q1 2024 to NOK 257 million in Q1 2025. The company maintains a solid net cash position, with its financial gearing ratio (NIBD/EBITDA) below zero in recent quarters.
Strategic Initiatives
Schibsted outlined several strategic initiatives during the presentation, including the upcoming rebrand to "Vend" on May 12, 2025, which represents a significant milestone in the company’s transformation journey. The company is also continuing its simplification strategy with the expected divestment of its Delivery business and the sale of Prisjakt.
In a move to return value to shareholders, Schibsted announced a new NOK 2 billion share buyback program. This aligns with the company’s capital allocation framework, which prioritizes progressive annual dividends and selective acquisitions while maintaining a conservative balance sheet.
The company also presented its medium-term targets for key segments, with both Mobility and Real Estate aiming for 12-17% revenue growth. Mobility targets an EBITDA margin of 55-60%, while Real Estate aims for 45-50%, indicating management’s confidence in continued margin expansion.
Forward-Looking Statements
Looking ahead, Schibsted expects to accelerate its EBITDA improvement in the medium term, driven by revenue acceleration, COGS increases primarily linked to Recommerce transactional growth, and increasing net cost reduction from completing its platform transition.
The company’s focus on its core marketplace businesses, particularly in Mobility and Real Estate, suggests a strategic shift away from underperforming segments. The upcoming rebrand to "Vend" signals a new identity aligned with this marketplace-focused strategy.
While operational improvements are evident across most segments, investors will likely monitor the significant financial expenses and fair value adjustments that impacted the bottom line this quarter. The market response to the upcoming rebrand and the execution of the announced divestments will be crucial factors in the company’s near-term performance.
Full presentation:
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