Brief: Schibsted takes Q4 impairment on Norwegian newspaper business

Vend Marketplaces ASA

03/02/2016 07:36

Feb 3 (Reuters) - Schibsted  SBSTA.OL : 
    * Says the regular impairment testing at year end 2015 has 
resulted in an impairment loss related to intangible values of 
NOK 465 million, which will be recorded in the Q4 2015 financial 
statement 
    * This is primarily driven by impairment loss related 
to the Group's subscription based newspapers in Norway 
    * The impairment testing has resulted in no impairment loss 
for Schibsted's Online classifieds operations 
    * On a full year 2015 basis, the impairment loss will be 
more than offset by a gain of NOK 858 million on remeasurement 
of 
previously held ownership in new subsidiaries, primarily Shpock 
(Finderly), which was recorded in Q3 2015 and a gain of a gain 
on sale of NOK 450 million related to Schibsted's agreement with 
Naspers, Telenor and Singapore Press Holdings, recorded in Q1 
2015 
    * The full year 2015 financial statement will be published 
19 February 2016 
    * The valuation of the Group's intangible assets is based on 
the value of expected future cash flows 
    * The background for the impairment is the negative 
development over the last few years for print newspapers, and 
that the negative trend for Schibsted's Norwegian subscription 
based newspapers has continued in 2015 
    * Digital revenues increased, but it is not sufficient to 
offset the decline in revenues from print products 
    * After the impairment, the total carrying amount of 
Schibsted's subscription based newspapers in Norway is around 
NOK 1 billion, of which around NOK 200 million is related to 
goodwill 
    * In the Q4 2015 results, Schibsted expects to book Other 
income and expenses of approximately NOK -80 million 
 
 
Further company coverage:  SBSTA.OL  
 
 (Reporting By Oslo Newsroom) 
 ((balazs.koranyi@thomsonreuters.com;))