As its “Capital Markets Day 2010” starts today, Schibsted, the Norwegian-based publishing group, announced it is buying the remaining 50-percent share in the third-largest online classifieds site in Europe, Leboncoin.fr in France. Schibsted also confirmed that it is pushing development of models for online user payment and is testing them with the iPad.
Schibsted announced this morning that the company has acquired full control over the third largest online classifieds site in Europe, Leboncoin.fr, through the purchase of the remaining 50% of the company. Leboncoin.fr is an online classifieds portal based on the concept of the Swedish success Blocket.se. Schibsted launched Leboncoin.fr, with SPIR as a Joint venture partner, in April 2006.
“To increase our ownership in Leboncoin.fr is of vital strategic value for Schibsted. The company has a strong growth profile combined with operating margins exceeding 50% only four years after it was launched. Leboncoin.fr is among the largest online sites in France, and one of the strongest online classifieds sites in Europe. By taking full control of the company, we strengthen the opportunity not only to develop the site, but also to use the tremendous market position to develop new online business in the exciting French market” Rolv Erik Ryssdal, CEO of Schibsted states. The agreement values Leboncoin.fr at EUR 400 million on a 100% basis. This implies
- Beyond 2010
Istanbul (27-28 October)
Olivier Aizac, founder and CEO of Leboncoin.fr will be a speaker at the 18th World Digital Conference
an EBITDA multiple based on expected earnings in 2010 of approximately 18. In first half 2010 the operating revenues were EUR 16 million, which implies a growth of 122%. The EBITDA margin in first half 2010 was 59% compared to 42% in first half 2009. In 2009 Leboncoin.fr had revenues of EUR 18 million and EBITDA margin of 47%. The revenue growth rate for Leboncoin.fr for the full year 2010 is expected to be approximately 100%.
This confirms the Group's growth ambitions within Online classifieds. At the same time the strong position in the French market creates opportunities to develop new online business. The operating revenues in Leboncoin.fr are in 2010 expected to grow with around 100%. The revenue in first half 2010 was EUR 16 million and the operating margin (EBITDA) was 59%. The growth of Schibsted's Online classifieds operations will in the future come through further development and innovation in existing operations, launches of proven concepts in new markets and targeted acquisitions in key markets.
The Media houses in Schibsted will continue their efforts to improve efficiency through higher degree of cooperation across units, says the group.
Developing of models for user payment for online content is a high priority task for the Media houses in Schibsted. Several of the newspapers will launch paid for online products for the iPad in 2010 and 2011.
Schibsted has through the Swedish company Schibsted Tillväxtmedier achieved good results from developing new online business based on the established strong traffic positions in Sweden. A similar organization will be established in Norway with the ambition to strengthen innovation and growth pace here as well.
Schibsted today released financial targets for the coming 3-5 years. The most important targets are as follows:
• EBITA margin: 10-12% and Growth in operating revenues: 5%