Investing.com -- Schibsted (OL:SCHA) shares fell more than 7% on Friday following the release of its fourth-quarter 2024 earnings, which revealed a challenging period marked by missed expectations and ongoing structural shifts.
Analysts at Jefferies described the quarter as "difficult," with weaker-than-anticipated financial results driven by declining advertising revenues, competitive pressures in the real estate sector, and continued investment in strategic areas.
The company’s adjusted EBITDA fell nearly 14% short of consensus estimates, with particularly sharp declines in the Real Estate segment, which posted an 18.6% miss.
While revenue largely met expectations, the Schibsted Media separation negatively impacted advertising revenues, especially in Mobility and ReCommerce, which lagged by 4.3% and 3.9%, respectively.
Furthermore, selective investments in real estate transaction services and increased spending in Finland strained profitability.
Despite the weak results, Schibsted reported a better-than-expected reduction in headquarters costs, which provided some relief.
However, the company opted not to provide one-year forward guidance, citing transitional challenges and macroeconomic pressures.
While medium-term targets were reaffirmed, uncertainty surrounding near-term earnings momentum weighed on investor sentiment.
With management focusing on cost control and strategic repositioning, analysts expect continued volatility in the stock.