Polaris Media CEO aims digital revenue to outgrow paper decline
29/10/2015 11:57
* Sees tough market in western Norway
* Sees growth in digital revenues
* Good start to fourth quarter
OSLO, Oct 29 (Reuters) - Norwegian publishing firm Polaris
Media POLME.OL reported improved core earnings in the third
quarter with higher digital revenues compensating for continued
difficult market conditions in its traditional newspaper
business.
Polaris said classified ads for jobs and house sales saw a
slump in parts of western Norway, a region hit by the oil
industry downturn, whereas other regions and segments, like
groceries, shopping malls and cars, were performing better.
The firm publishes papers in western, central and northern
Norway.
"The media market is demanding and we don't have the
economic conditions with us, but we see that it's possible to
make things happen in a difficult environment," Chief Executive
Officer Per Axel Koch told Reuters.
In the third quarter, the firm posted a six percent decline
in revenues from its paper based publishing business, or 7.6
million Norwegian crowns, while revenues from its digital
business increased by 13 percent, equal to 6.4 million.
"The downturn in paper is compensated by digital growth. We
believe in continued growth for digital advertisement revenues
and our ambition is that digital revenues more than compensate
for falling paper revenues," Koch said.
"We're on the right track," the CEO added.
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) rose to 47 million Norwegian crowns
($5.48 million) in the thirds quarter, from 38 million in the
third quarter of 2014.
The company's total revenues amounted to 385 million
Norwegian crowns in the third quarter, down 2.6 percent from 396
million crowns in the same quarter last year.
The firm's Chief Financial Officer said it had a good start
to the fourth quarter.
"We are well into October. After a strong period, we often
see a downturn, but we don't see any tendencies of that now.
Entering November, things look normal and rather normal-plus,"
CFO Per Olav Monseth said.
Top Norwegian publisher Schibsted SBSTA.OL is due to
report results for the third quarter on Friday and is also
expected to post an improvements in core
earnings. ID:nL8N12Q3CV
Polaris Media's shares traded 1.7 percent higher in Oslo at
1155 GMT, beating a fall of 1.4 percent in the Norwegian
benchmark index.
($1 = 8.5724 Norwegian crowns)
(Reporting by Henrik Stolen, editing by Terje Solsvik)
((henrik.stolen@thomsonreuters.com; +47 952 79 474; Reuters
Messaging: henrik.stolen.thomsonreuters.com@reuters.net))
Keywords: POLARIS MEDIA RESULTS/