Schibsted ASA (SCH) - Cost reductions in Norway and Sweden
(Thomson Reuters ONE) -
Schibsted Media Group implements measures that will reduce the cost base in the
business area Media Houses Scandinavia by around NOK 190-210 million. Parts of
the effect are a consequence of reduced headcount by 160-200. The measures will
be implemented in the period 2012-2014 - with a majority of the effect in 2012.
The measures will affect the operations in Media Norge and VG in Norway, as well
as the Schibsted operations in Sweden, mainly Aftonbladet.
In Media Norge and VG, gratuity pension will be offered for employees reaching
62 years in the period 2012-2014. This is a continuation of previous programmes,
which gives employees an opportunity to retire at the age of 62 years. Identical
offers are given to employees of VG and Aftonbladet.
- This is a good and attractive scheme for those of our employees in this
category that chooses to retire. We have to work continuously to adapt to the
significant structural changes in the media industry. Today, we produce good
results in our Norwegian newspapers, which makes it possible to offer an
attractive and voluntary retirement scheme, Didrik Munch, CEO of Media Norge
says.
The scheme is expected to reduce the cost base of the Norwegian operations in
Schibsted by NOK 70-90 million. The headcount number will be reduced by
100-120. The measures will be implemented gradually in the period 2012-2014.
In Sweden, the administration is given a mandate to implement measures that will
reduce the cost base by around SEK 150 million with full effect in 2013. Around
half of the effect is a result of reduced number of headcount, and between 90
and 110 employees will be affected. The largest savings will be in Aftonbladet
where the effect will be around SEK 100 million. In Aftonbladet between 65 and
85 employees will be affected.
- Today, Aftonbladet is the leader in all channels. We are making this change to
ensure that we'll be leading also in the future. By conducting such measures
now, we obtain the possibility to be in an attacking mode and develop our offer
to both readers and advertisers, Anna Settman, CEO of Aftonbladet says.
The measures in Norway and Sweden will imply restructuring charges of around NOK
200 million, probably in Q4 2011.
Schibsted has not experienced any significant change in trend in the advertising
markets in the period after the Q2 2011 results were published in August. In
Norway (excluding online classifieds) the markets are around flat for media
houses (print and online combined) compared with the same period in 2010. In
Sweden, the market is flat or slightly negative. Online classifieds is still
growing well in Norway and Sweden.
VG has decided to raise the cover price on Fridays from NOK 17 to 20 kroner with
effect as of 7 October 2011. The price change will have a positive twelve months
EBITDA effect of NOK 20-25 million.
Contact person:
Trond Berger, CFO, mobile +47 916 86 695
Oslo, 30 September 2011
SCHIBSTED ASA
Jo Christian Steigedal
VP Investor Relations
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Schibsted via Thomson Reuters ONE
[HUG#1551017]
Unternehmensinformation / Kurzprofil:
Datum: 30.09.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 70878
Anzahl Zeichen: 4162
contact information:
Town:
Oslo
Kategorie:
Business News
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