This article first appeared on GuruFocus. • Group EBITDA: NOK563 million, improved by 36% with a margin expansion to 36% from 27%. • Net Loss: Minus NOK5.5 billion, impacted by a NOK5.8 billion financial expense related to Adevinta stake revaluation. • Cash Flow from Operating Activities: NOK485 million, up from NOK254 million in Q1 last […]
This article first appeared on GuruFocus.
• Group EBITDA: NOK563 million, improved by 36% with a margin expansion to 36% from 27%.
• Net Loss: Minus NOK5.5 billion, impacted by a NOK5.8 billion financial expense related to Adevinta stake revaluation.
• Cash Flow from Operating Activities: NOK485 million, up from NOK254 million in Q1 last year.
• Net Cash Position: NOK3.4 billion at the end of Q1.
• New Share Buyback Program: NOK4 billion, with the first NOK2 billion tranche launching soon.
• Is SBBTF fairly valued? Test your thesis with our free DCF calculator. For the complete transcript of the earnings call, please refer to the full earnings call transcript.
• Group revenues increased by 2% to NOK1,543 million, with a 36% improvement in EBITDA to NOK563 million.
• The company completed the sales of Mittanbud and Lendo, and received proceeds from Adevinta Spain.
• Denmark’s professional ARPA growth was offset by volume declines, affecting overall performance.
• Mobility revenue growth is expected to be below the medium-term target of 12% to 17% for 2026.
• Lower engagement on the new platform compared to the old one remains a key focus area for improvement.
• The company experienced a net loss of NOK5.5 billion, partly due to a NOK5.8 billion financial expense related to Adevinta stake revaluation. Q: How would you summarize the macro environment in Norway, and what are the implications for new approved listings by vertical in April? Also, regarding Blocket, what gives you confidence that planned price increases won’t lead to elevated volume headwinds? A: The macro environment in Norway is fairly stable, though there are challenges in the jobs sector. We don’t have specific comments on new approved listings for April. Regarding Blocket, we are confident in the professional segment’s stability and willingness to pay, which supports the planned price increases. For the private segment, we’ve postponed further price optimization to focus on resolving current issues.
Q: Could you provide an overview of traffic trends for key units like Norway property, Norway autos, Swedish autos, and Norway jobs? Also, how is AI impacting traffic, and does the generalist business provide an additional moat? A: Traffic is generally stable across key positions, except for Blocket, where user visits have decreased. Traffic from AI and LLMs remains low, and recommerce is a strength against AI impacts due to its high visit frequency. The generalist business does provide a moat, as it supports diverse traffic sources. Q: Can you explain the switch to a subscription model in Finland and the rationale behind it? Also, what is the expected outcome of the new AI unit? A: The switch in Finland to a subscription model, charging per office, aims to capture all market volume and is robust in volatile markets. It also allowed us to raise prices. The new AI unit is tasked with developing an AI-native marketplace experience, aiming to produce tangible outcomes that enhance user interaction. Q: What are the key issues in the Swedish mobility private segment, and what steps are being taken to address them? A: We’ve made progress in Sweden, improving trends in listings and traffic. Key focus areas include driving more traffic to apps, enhancing app functionality, and improving the search experience. These efforts aim to boost engagement and user satisfaction. Q: Regarding the 2026 guidance downgrade in mobility, can you clarify the contributions from Sweden and Denmark? Also, how are dealers in Sweden distributed across new package tiers compared to Norway? A: The guidance downgrade is due to challenges in Sweden and Denmark, with Norway performing as expected. In Sweden, about 60% of dealers are on the base package, which is higher than in Norway, with few on the medium package and the rest on the largest package. This distribution may change with the implementation of price changes. For the complete transcript of the earnings call, please refer to the full earnings call transcript.…Read more by GuruFocus News