This is the most profitable part, the northern markets, which has now been hit by austerity. This would leave room for investment in new growth.
– We announced a Cost synergy programmeCost synergy programmeSynergies are often used to gain savings from mergers In the Nordic markets, with the aim of saving NOK 500 million, but it is not about cutting costs.
This is what Øyvind Vormeland Salt’s communications director in Shipstead told E24.
– Here we are talking about shifting our existing cost base internally in the Nordic markets to ensure that there is room for strategic initiatives and growth in this business area, – he explains.
The Schibsted group includes, among others, Aftenposten, VG, E24, Stavanger Aftenblad, Aftonbladet and Svenska Dagbladet in Sweden.
In addition, a number of digital marketplaces are included such as Finn.no in Norway and Blocket.se in Sweden.
The latter are part of the Nordic markets, the segment from which Schibsted makes the most profits and which the new program targets.
Unclear about savings details
There has been no stock exchange notification regarding this program, as happened when Schibsted launched the cost program for News Media (media business).
The amount was also 500 million, but then it was a matter of cutting costs.
– This does not change our financial ambitions or our goals known to the market, says the communications director, explaining why this was not announced to the stock exchange.
He points out that this is part of the strategy Investor day In March, although the program was not mentioned at the time.
The administration will not reveal the details of how the 500 million will be provided at the present time.
Schibsted reports third-quarter results on October 25. When there is little time until the presentation, management is in what is called a “quiet period,” where they do not talk about the company’s finances.
Stock market collapse and investor pressure
Despite the fact that Shipstead’s stake is up nearly 24 percent so far this year, its value has nearly halved in the past two years.
However, the company is not the only one among the so-called developing companies that is witnessing a sharp decline in the stock market in light of the sharp rise in interest rates.
Christine Skogen, CEO of Schibsted, previously said that the stock market decline led to pressure from investors and stricter investment priorities.
In the fall, the company surprised by buying 10 percent of crisis-hit Viaplay. The investment amounted to approximately 400 million Swedish krona.
In September, it became known that Permira and Blackstone made a non-binding offer to the international classifieds company Adevinta. It is currently unknown how these negotiations will proceed.
Adevinta was spun off from Schibsted in 2019, and includes digital marketplaces in large parts of the world. Schibsted still owns just under a third of the company, with a view to selling himself.
The ambition was to provide an update on Adevinta’s selling solution no later than the quarterly reports in October, Schibsted said in the previous quarterly report.
E24 is a wholly owned subsidiary of the Schibsted Group. Some E24 journalists own shares in Schibsted through the group’s share savings scheme.
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