Schibsted releases financial numbers of OLX Brazil

16 May 2017

Schibsted surprised the market this week by issuing a statement concerning its latest deals. The company also informed who will be on the board in the 50/50 joint venture (JV) with Naspers in Brazil.

What stood out like a sore thumb: The board is made up of males only; Norwegian equality norms seem to have stopped short of the home country’s border. (The Schibsted board is made up of four men and three women.)

The board steers OLX Brazil from a JV called Silver Brazil JVCO.

Ariel Lebowits, one of three Naspers representatives on the JV board in Brazil (photo from his LinkedIn page with thanks)

Three board members of the JV come from Naspers (Martin Scheepbouwer, OLX Group CEO, Ariel Lebowits, head of M&A at the OLX Group, and Alec Oxenford, LetGo president, and OLX co-founder and chairman).

Schibsted’s three representatives on the board are Gianpaolo Santorsola, EVP of emerging markets, Olivier Aizac, SVP in Latin America, and (new member) Ragnar Korsaeth, SVP of Telenor Online Classified.

Andries Oudshoorn, CEO of Silver Brazil and operating entity Bomnegocio Atividades, is not a member of the board.

In Scandinavia, OLX Brazil is said to have a good chance of becoming the next Avito-like success story. As chairman of Avito, Scheepbouwer certainly knows how to create success. He might have learnt a few tricks when he worked as SVP Schibsted in southern Europe back in early 2000.

Schibsted included information about the finances of both OLX Brazil and Yapok in its notice to the stock exchange .

————————-+—————+————————+——+
| NOK million |            Brazil               | Chile |
+————————-+——-+——-+——+——+——+——+
|                                    | 2016 | 2015 | 2016 | 2015 | 2014 |
+————————-+——-+——-+——+——+——+——+
| Operating revenue | 216     | 97       | 35        | 17       | 7 |
+————————-+——-+——-+——+——+——+——-+
| Operating profit (loss) | (208) | (474) | (19)| (42) | (33) |
+————————-+——-+——-+——+——+——+——+
| Net profit (loss)        | (230) | (486) | (13)    | (48) | (33) |
+————————-+——-+——-+——+——+——+——+
| Non-current assets  | 1,868   | 1,558  | 3       | 2       | 6 |
+————————-+——-+——-+——+——+——+——+
| Current assets             | 131     | 132     | 16       | 17      | 8    |
+————————-+——-+——-+——+——+——+——+
| Equity                           | 1,776 | 1,346  | (90)    | (82) | (32) |

Given the development of revenue from FY2015 to FY2016 (above), there is hope that OLX Brazil and Yapo will turn their net losses of NOK 208 million and NOK 19 million in FY2016 respectively into surplusses in FY2017. Black ink, after all these years. What a long journey it has been!

Schibsted also informed it will show a gain of approximately NOK 1.3 billion (relating to the sale of 701 Search), and a gain from the remeasurement of previously held assets in Brazil and Chile.

The share in Schibsted climbed 8 to 9 percent after the swap with Telenor was announced last week. After the above announcement, the share price dropped one percent in morning trade.

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Lars Herlin

Lars Herlin is an AIM Group senior analyst for Europe, and our expert on Schibsted. He had a long career in journalism at Expressen, Svenska Dagbladet and VeckansAffärer, and served as managing editor and later managing director of Gotlands Allehanda.