Welcome and a really good morning to all of you. This is first time we're going to do this presentation in English, and that feels a bit awkward since I'm in a room here in Oslo and there is mostly Norwegian speakers in this room. However, there is more people who are following us on the web that than are in this room. For them, it's much easier to use English. From now on, we're going to start to use English as the language in these presentations.
The agenda looks like the following, and Trond will do the financials, and then I'll do the other part of the presentation. However, I'd like to remind you that there are also other members of the group management present here. For the Q&A session, they will also be able to come to provide answers.
As a brief introduction or before we start, I'd like to draw the attention to the Schibsted Media Group Future Report that we have recently published and has received a lot of attention internally, but also some external, it's available now for downloading at our site. This is a document where we set out some information, how we see the digital transformation, how it's affecting our important businesses, classifieds, publishing and growth, and how we're seeing the emergence and the buildup of ecosystems as important. That is recommended reading for those who want to follow the development in the media sector.
Let me turn to the headlines for Schibsted. In the Q3, we see continued classified growth. We are in the classifieds business. We've been there for many years. We're going to be there for many years. It's a business that we believe firmly in. What we're seeing this quarter is that there's a continued positive development in France, in Leboncoin, that's developing well. In Spain, there's been a lot of focus from our side on improving the traffic. That's really what we've been doing the last five to six quarters. That's developing well. We're also seeing some now better macroeconomic outlook in Spain, which is positive. In Norway, FINN is doing well, but I've said that previously, that FINN is such a big company that it is affected by the economic situation, and it's especially the weaker employment figures that are also now influencing FINN.
In the emerging market, we are strengthening our market positions and thereby building value in our investment portfolio. The headlines for the media houses. The headlines are that they are strengthening their online positions. Circulation revenues are going up. I think that's a very positive thing because that's the circulation is, of course, the engine for the publishing houses. The online offerings are being well-received. However, the print market is very tough, and that leads us to doing several actions that I'll get back to, and that is, of course, the industry-wide phenomenon. There are many interesting things and developments going on, and VGTV will soon launch their new TV channel, and we're seeing good growth in that area.
Here, it's illustrated how Schibsted is transforming into a digital company. You see the development from the last couple of years has gone pretty fast when it comes to the revenue splits. Now we're at 55% of total revenues. Of course, that's an effect of both the print stagnating, but also a rapid online growth. That development is set to continue in the years to come. You can look also at the EBITDA split, it's going in the same direction.
All right, let me start with the classifieds, the online classifieds. Here is a new presentation slide that we made for you because this illustrates how is the monetization in the different markets. This graph shows you how much is the revenue in euros per internet capita in the respective markets on our sites.
Here you can see that FINN is in a class of its own. That is, of course, because FINN is then the clear leader in all segments, in all the big classified segments that they're in. Of course, also, influenced by that there's a high GDP in Norway. Then you see Sweden, Blocket, also at a high level. Blocket doesn't have the same strong positions as FINN in real estate and jobs. They're moving into those verticals, but they're still at a high level. I think then for the other markets, this kind of illustrates that there is good growth potential if we succeed in building traffic and building those positions. That's to give you some perspectives on how big the monetization, how far the monetization have come in different markets.
Moving on to the big sites. Let me start with France and Leboncoin. There is a good growth there are many key revenue drivers. Display ads is going up a lot now. Premium features, where people pay more to have a better exposure for their ads, is also showing a good and positive development. The professional listing fees are going up for cars and real estate. We made a conscious choice about taking more of the ad sales in-house.
The Google partner revenues are down in this quarter, that is because we're doing more of it ourselves. In fact, in August, Leboncoin was the third biggest house selling internet ads in France, of course, behind Google and Facebook. I guess VG actually has that position in Norway, but Leboncoin has now taken the position as the third one in France. Also positive to see that there's a good and healthy traffic growth.
Many people are interested in the real estate market in France, and this saw that the bundle agreement that we've had with Spir now for four years, that expires by the end of this year. That means that after the end of this year is only our own company, Leboncoin, who can sell real estate ads on Leboncoin.
In the period leading up to that, it's actually possible to purchase for real estate agents, both the Leboncoin standalone offers and the Spir bundled with their products. That will only last for a few more months. What we expect is that there will be a gradual ramp-up in 2015 and 2016 of those revenues. The French real estate market, I think, is a very exciting opportunity for us. It's huge, of course, you have a very strong market leader there in SeLoger, and I expect them to continue to do well. I think there's going to be interesting parts of that market that Leboncoin can enter into on a firmer basis when they have a standalone offer and is controlling that themselves.
Moving on to FINN. FINN is having a development which is slower on the top line this quarter. I think that's kind of expected. I said that before, that FINN is more exposed to the whole economy and the situation in Norway, and especially the jobs market, which has been weaker in this quarter. We've also pointed out numerous times that FINN's transition to a freemium model affects the revenues, right? That is a conscious choice because we want to build traffic. That's what's important for us. The growth, if you would exclude the miscellaneous, is actually at a higher level.
How is that going with the miscellaneous? That's going very well because if you look at the, after we started to not charge for the miscellaneous category for privates, you can see that the growth in ads has actually been very good. Also important is the number of active sellers have increased by 100%. You that is what you'd like to have in the classified sites. You'd like to have a lot of active buyers and sellers with high frequency.
Moving on to Blocket in Sweden. Blocket is in this quarter affected somewhat by somewhat lower car volumes than previously. I think the effect of that is actually there are two reasons for that, because the new car market has been pretty good. More, more, the professional car market has then taken a somewhat bigger market share in that quarter. Also we're seeing actually that Blocket is proving to be a very, very efficient sales channel. People last year, when the market was a bit slower, people could buy a couple of ads, numerous ads. This time they haven't done that. It's been enough with one insert.
I think the interesting also for Blocket is that the real estate and job verticals are now starting to move. You see that we got a big share of total housing market share on the real estate. Of course, the kind of positive sign here is that many of those brokers, they publish exclusively on Blocket for the first three days. We're seeing also good increases in job listings. Otherwise, I'd like to say for Blocket is doing a lot of product development, so they did, they're constantly coming with new apps. iPhone app, new recently, and this quarter will be a new iPad app, a new Android app. A lot of development taking place there.
Moving over to Spain. Spain is an exciting market for us, and the headline is the revenue declined there of 2%. I'd like to remind all of you that this is as planned, because what we've done in the last year and a bit more than that is really to continue to build traffic. The margin decrease has been planned as we've reduced monetization and increased marketing efforts.
I think that is a good and positive development we're seeing in Spain. Most of our sites there have a traffic growth now of around 20% on a yearly basis. Interesting is that InfoJobs is having good development and especially the new sales is now between 18%-20% for the last couple of months. That's a positive sign. Of course, that doesn't translate into revenues until next year, but it's a positive sign.
We've talked about Milanuncios a couple of times before. What I can tell you is that we're working with the Competition Authority in Spain to try to find solutions that that satisfy what they're looking for. I think it's a constructive dialogue. We've said that we've expect to close that transaction now in this quarter. Right. We always talking about the big markets like Spain and France and Norway and Sweden. I'd like to give you a couple of examples of other launches that we've done that we normally don't spend so much time on. One was launched in 2010. That story, the next one is Yapo, launched one year later.
I think in Finland, actually, we're getting now to a situation where we have interesting position. If you look at the of the total pay rates is very high, and also the reach in the population is actually this site now is approaching very rapidly the Blocket reach. It's the same back to the same old method for us. It's really that we're taking it slowly when it comes to monetization, and we're building traffic because we believe that is the important thing. Now we're going to start to monetize somewhat more. I think that, although it's still coming from low levels, I think this site will be will have very interesting development the next few years. Next year, you'll probably see them also, moving stronger into the verticals than what they have done so far.
Similarly, I think that another site that we seldom rarely talk about, which is getting a very interesting position. It's, it's in Yapo. It's in Chile. That was launched as late as 2011. You can see it's a high number in the ads, per day, and a large database now. We've just recently experimented with monetization. Interesting to watch that also in the next couple of years. Traffic is continued to develop well. You see the graph there is the other big player there is actually MercadoLibre, which of course, has a somewhat different model, more similar to eBay, whereas you can see the other traditional classified listing services are quite far behind us.
Right. The investment in new ventures and that portfolio, I think it's important because we're spending a lot of money in those markets. We're doing that because we're seeing that the positions we're building are valuable and good and that the traffic is increasing. Here, the metrics prove the new ads is increasing. We believe that those investments are well-spent money since they result in the traffic and number of ads growth that we're seeing here. We believe this, we're creating interesting position for ourselves here going forward. As you can see also in Brazil, well, there is, there's also other people spending money, but you can see that we have a huge market, and we have a very positive development there. That's for the classifieds.
Turning to the media houses, there are many things going on. It's very turbulent. It's fun and challenging. It's fun and at the same time challenging to work in the media house. I think that's fair to say, Didrik? Because there's so many things happening. Both in Norway and Sweden, we're, you know, we're the media houses, the transition there is very important for us.
We're seeing more synergies now as between the classifieds and the media houses as the media houses become more, more digital when it comes to creating ecosystems, when it comes to creating good offerings for advertisers. We have to do several things at the same time. There's the cost reduction going on. It's also a lot of investments in new digital products and platforms. We're investing quite heavily in ad technology, and you've seen that we've stepped up our efforts in that field, and that will continue next year. A lot of things happening in mobile and the web TV.
At the same time, I mean, with the market development, especially in print, of course, there's going to be pressure on the margins. I think that's fair to say. If you look at the VG and Aftenbladet, they are actually have the clear leading positions in Norway and Sweden. I think if you look at their development both in revenues but also margins over time, they're having a healthy situation. Here you should also bear in mind that they're investing quite a lot in new technology now, especially on the web TV part. Here is VG and Aftenbladet's. The VG will then launch also a linear channel next week. The important part for VG is really the web TV part. That's the biggest part.
It's the same thing for Aftenbladet. Aftenbladet, it's the web TV part which is the most important. There's growth in revenues here, but there's also investments that we need to do. For those of you who follow the different segment of the ad markets, it's the same trend in, in Norway and Sweden and other markets. Of course, mobile is growing heavily, but also the web TV part is growing rapidly. It's important for us to continue to build that position, and it is, of course, a very integral part if you wanna be the news leader. Looking at the subscription newspapers, there's a lot of positive work going on there.
I'll get to the circulation revenues in a minute. Of course, the print is going down as rapid pace in the whole market, and that is affecting us. That is why we've done some cost reductions where we had to make decisions to close the print in Kristiansand, which will be closed by the end of this year. The printing will then transfer to another of our printing plants. Then we're curious to see what will the online advertisements revenues growth look like. The positive things here is really that the engine, which is the circulation, that is has a good development.
The circulation volumes have now come back to growth and the circulation revenues over time have gone up. That is very important for us. There's big efforts in mobile and in web TV going on across this portfolio. A challenging situation, but we believe that with investments we're doing, we have a really good position to come out of this with a very good position for our media houses.
In Growth Sweden, it's growth and cost control. Well, I can tell you that the cost control is really in Hitta, which is a very big part of this, is a significant part of that portfolio as you can see. They're having challenges on the top line. However, the profit of Hitta has gone up because of tight cost control. Then we're seeing in the other companies, in personal finance, have very positive developments. There's good growth. There's also a company called Let's deal, which is kind of a coupon service, which in many ways similar to Groupon. We're seeing that they're really gaining market share and starting to show some significant numbers now. I think there are also exciting things going on in the growth portfolio in Norway. Trond, that was about the business, and I'll leave it to you.
Okay. Thank you, Rolv Erik. Just to go through the finance in Q3. We are satisfied with the underlying development in Q3. If you look at the EBITDA from last year to this year, NOK 504 million. I mean, we still are in the transition in Norway, so of course that's down. Sweden, we have good development in the growth portfolio and Aftenbladet doing great. Of course, we are continued to invest in the classifieds, and the 11 you see here on the established underlying a good growth.
We have invested NOK 20 million-NOK 30 million extra in traffic position, I would say, in Spain and Italy, which also hampered that figure and also some currency effects, good underlying in some of the sites. That's explained the main deviations.
If you look at the income statement for Schibsted in Q3, we have a slight decline on operating revenues, that's first of all due to that we have sold out SD Media that was in the portfolio in 2013. We have a good cost control. That's gives an EBITDA of NOK 504 million, which is up from last year. If you look at the share of a loss in the JVs, that's of course, first of all, investments in emerging markets, through the other partnership, with Telenor and Singapore Press Holdings that we are satisfied with and have a good cooperation with our partners. If you then look at other income and expenses, we have, again, on sale of the property in Stavanger Aftenblad, which is taken into the P&L in Q3.
Looking then at the net financial items, we have stable net interest. That has of course gone down as we have reduced net interest during debt. We have high tax rate due to not accounting for tax losses in investment in emerging markets, first of all. We have a stable, strong financial position and a well position for future growth and investments, and net interest-bearing debt of NOK 1.7 billion. We have in EBITDA net interest-bearing debt to EBITDA, which is a key figure, of 0.8. We have guided the market that financial targets is around one to two. We have a good maturity profile on the on our debt profile.
Looking also at the key figures, you see that we have a good underlying cash flow, although we have somewhat higher CapEx this quarter, first of all due to relocation of Aftenposten and VG in one media house that actually has so far worked well. They're sitting together now in just next to the head office here. That has normal CapEx is around NOK 400 million- NOK 500 million on a yearly basis going forward. As I said, the tax rate is somewhat higher than normal. Underlying tax rate is 29% to 30%. We are prudent in the way we do accounting. I mean, not accounting for the losses, as I said, in emerging markets.
Also going forward, I mean, we are of course happy to see that the tax rate in Sweden is going down, and also we have quite a bit of earnings in country like Sweden. That will also be positive in the future. We focus on cost in the media houses continuously taking out cost, doing efficiency work. It will be gradually implemented in 2014. We will continue into the next years, of course, with additional savings. We have announced that we will close down the printing plant in Kristiansand, one of the regional newspapers in Norway and transfer that to another plant.
We expect yearly charges in 2014 of around NOK 150 million, first of all, due to some of the saving programs that we are doing in Norway, but also some in Sweden. That concludes the finance section. The IR team, there is one new person here for those that are familiar with the faces here, and it's Anders Rønning. He will, we would like to strengthen our team, and he will then be a part of the team going forward, assisting, first of all, Jo Christian with the regular IR work. He's also sitting here to be then into the story and work together with Jo Christian going forward. That's good.
I give the word back to you, Rolv Erik , to go through the summary.
Thank you. Well, I think I'll do that rather briefly. When it comes to the classifieds business, we've said that we believe in future growth for our classifieds businesses. If we, if you look on the medium to long term, we said we believe there's room for 15%-20% top-line growth. I think, in the medium term, the real estate in France and macro recovery in Spain will be some of the key drivers. We believe that we're contributing now with higher value creation in the emerging markets. When it comes to the media houses, there's many interesting things going on. I'm optimistic as to what when I see what they're doing in the digital transformation. I think we have to live with that there is going to be a continued margin contraction in the transition period going forward.
Those are some of the key takeaways. I think I'd like to also point out that there's an investor seminar taking place just a few weeks from now in Barcelona. I think it's a few hours where we're going to spend time on on most of the time on some of our classifieds businesses. I'd like to welcome you all to that, and please sign up for that. You can sign up on our homepage. That was the presentation for from Trond and me, and then I'd like to open up for questions.
As I said, both Terje, head of SEM, and Didrik is here, and so also be able to answer your questions. Was I so complete in my presentation?
Preben Rasch-Olsen from Carnegie. Just a quick one on Italy. Why do you spend more money on Subito this quarter? Is there something happening in the market that we don't see?
No, I just mentioned that we have been rather modest in some of the marketing in Italy. We have seen good growth in Italy, strengthen our position versus the competitors and first of all, eBay. We are very satisfied with the development. We do see Italy as a big market, a big opportunity, and we think it's right to also do some more investment actually to really speed up the progress in Italy.
It's more of an opportunity-driven thing that we want to accelerate the growth further.
It's Per Gunnar Nordahl from Arctic. Investments on the EBITDA level fell quite a bit from Q2 to Q3. Could you talk a bit about the development there? Why is that happening?
Well, I mean, the investments, that depends on the marketing plans. The big swing here is of course some of the main markets in emerging markets. We don't comment upon each individual market. It fluctuates. I think we are doing what we think is right from marketing perspective. We do see good development in Brazil, which is of course our main investment market. I think you also should be prepared going forward that we are prepared to continue to invest what is in a way needed in order really to continue to strengthen our position.
Markus Heiberg, SEB. Could you tell us a little bit about the different offering you have versus Logic-Immo and Spir in France the next few months? I mean, if a client choose to go with you instead of using the bundle the next few months for a 12-month contract, what does he achieve by choosing to go solely on Leboncoin and not using the bundle?
I think in the, in, you have different players. You have SeLoger, which is the market leader, and then you have the Puissance 3, as it's called, that's the Spir offer. Then you can buy Leboncoin to get the vieille économie , but also then Topa nnonces. Then you get that package. If you buy solely our package, then you get the exposure to, of course, the most important site. There are also some additional features and updates you can buy that is not available on the, on the Puissance 3 . Any comment more on that, Terje?
We have a couple of questions from the viewers on the webcast. First, can you please give some more color on Brazil? Has anything changed in the competitive dynamic with Naspers? The second one is what are the factors contributing to circulation increase that you mentioned?
Well, on the first one on Brazil, I can say that, we're developing, well. We're doing well both on the web and also mobile, traffic. We're seeing that we strengthen our position in the Rio region and also some other parts of the country. That's the most important part for us. We're also noticing that they are continuing to invest and are doing things. But, we're comfortable with the developments that we're seeing in our position. When it comes to the circulation, could you repeat that question?
The question was, what are the factors contributing to the increase that you showed.
Increase in circulation. Didrik, you wanna. You given the microphone.
Thank you. When it comes to the increase in circulation, especially in Aftenposten, where we have succeeded in the way we mix the products between print and digital. Digital in the weekdays and print in the weekends. Also the way we set the prices has been quite successful. Especially in Aftenposten, we have had quite some success.
One more question here. The new venture investments declined somewhat quarter-over-quarter. Should we assume falling levels from now on?
Well, I commented upon that. I mean, we, due to competitive reason, don't disclose what we are, planning for going forward. I just repeat that we are prepared to invest what is needed to continue to strengthen our position.
Right. Any more questions either from remote or here in this room? Okay. Otherwise, I'd like to thank you all for coming. Of course, we'll be available for questions here also afterwards. Have a nice day.