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Along with Schibsted’s Wednesday morning release of its quarterly report, the Norwegian giant is also announcing a massive savings program. It is the Schibsted media section, which includes Aftonbladet and Svenska Dagbladet, that is affected.
In total, the media division will save NOK 500 million.
Exactly how Aftonbladet and Svenska Dagbladet will be affected is not mentioned in the report, but an accompanying presentation specifically highlights Aftonbladet. The presentation says:
“Rigorous review of Aftonbladet’s cost structure after significant loss of revenue”.
Aftonbladet has been particularly affected by the advertising career that has come to the Swedish media market as a result of the crown crisis, but also because the gaming companies have reduced their advertising considerably.
“We are doing this to ensure the long-term financial health of the media side and increase its relevance in society,” says Schibsted CEO Kristin Skogen Lund, in connection with his presentation of the company’s quarterly report.
Aftonbladet and Svenska Dagbladet are part of Schibsted News Media. That part reports a significantly worse result for the first quarter of this year: pre-depreciation operating profit (EBITDA) of NOK 39 million, which can be compared to NOK 120 million in the same period last year.
Sales for the business area decreased by 5 percent to SEK 1,757 million, while advertising revenue decreased by 18 percent to SEK 529 million. Digital advertising revenue was SEK 348 million, a decrease of 15 percent.
Subscription revenue increased 1 percent to NOK 632 million, where digital subscription revenue represented NOK 242 million, an increase of 19 percent.
For the entire Group, Schibsted reports both reduced sales and lower earnings in the first quarter.
“Given the huge impact that the Covid-19 pandemic has on daily life, global economic activity and our business, the first quarter is satisfactory for our group,” says CEO Kristin Skogen Lund in a press release.
Sales fell 2.0 percent to SEK 3,026 million (3,089). Digital revenue increased 1 percent to NOK 1,826 million (1,813).
Ebitda profit was SEK 285 million (418), with an Ebitda margin of 9.4 percent (13.5).
The text is updated.
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