Schibsted ASA

OSE:SCHA

Earnings Call Transcript 2020-Q2

[Kristin Skogen Lund, Chief Executive Officer]

Hello, everyone, and welcome to those of you following our presentation today. As usual, we'll run through the operational and financial results, and we will then have a Q&A after that.And this time, I'll do the highlights. I'll also present the results for media and next. And then our EVP for Nordic Marketplaces, Christian Printzell Halvorsen, he'll run you through the Nordic Marketplaces. And in the end, our CFO, Ragnar, he'll do the financials.So if we then look at the highlights, I think it's fair to start by saying that luckily, it seems like life is normalizing. But it is only 4 months ago, it felt like we were staring into the abyss. So I have to say I am very relieved and also proud that we can now state that our measures taken in March has worked well. We have safeguarded our employees. We have kept all our services running. And we, thereby, are able to present good results today. And I would like to take this opportunity to thank our employees for their heroic effort through a difficult time. And I would also like to thank our customers for having stayed with us also through their difficult times.So I am happy to announce that we, despite the COVID pandemic, today deliver solid financial results. The EBITDA for Schibsted, excluding Adevinta, is significantly better than Q1 and better than many feared.Furthermore, as we announced yesterday evening, I'm excited that we have reached an agreement with Sanoma, where Schibsted acquires 100% of Oikotie, which is a Finnish multi-vertical marketplace business. And then finally, even in these special times, we continue to focus on our purpose and that what we do matters. And today, I'll show you some numbers that serves as a proof of that.Okay. [ Well okay I guess get off ] Sorry. I thought someone was clicking. Okay. So if we then look at a short update on how our operations performed in the second quarter. The Nordic Marketplaces was affected by lower volumes due to COVID-19, which led to a revenue decline, but volumes have improved throughout the quarter, and traffic has accelerated beyond pre-COVID-19 levels. Cost measures, which we announced last time, led to solid EBITDA margin. Finn reported a margin of 52%, which is up year-on-year, and Blocket has a flat margin quarter-on-quarter at 42%.In our News Media business, revenues from digital subscription showed strong growth. While advertising revenues declined significantly driven by COVID but improving throughout the quarter. EBITDA is down year-on-year but improved significantly compared to Q1, driven by cost savings. And the announced cost program to adapt the cost base to the market development is on track, and implementation has started.Looking at Lendo, the main part of our financial services, it has seen an underlying revenue decline this quarter. But also here, we could witness that the trends have improved in June. And finally, our e-commerce-enabling businesses, Distribution and Prisjakt within Schibsted Growth, have seen a tailwind from the changed consumer behavior during COVID, and they record strong revenue growth in the second quarter. And EBITDA has also improved here quarter-on-quarter, and that's due to both the high revenues and high -- and good cost control.If we then look here at the overview of our financial performance, it is evident that we were hit by COVID-19 and the consequences of the restrictions imposed mid-March. Since Adevinta announced their numbers yesterday, I will now focus on Schibsted excluding Adevinta. And here, we see that we experienced a revenue decline underlying of 11%, and that corresponds to a 4% decline if you look in Norwegian currency. The EBITDA, however, of NOK 498 million is a solid increase from the NOK 285 million we posted in Q1, and the EBITDA margin at 16% is almost at par with Q2 last year.Now let me explain why I'm excited about our acquisition in Finland. We've been the owner of Tori in Finland for over a decade. And through the acquisition of Oikotie, we expand to -- we want to expand our presence in the Finnish online marketplace segment, and we really want to drive growth and innovation going forward. Through this acquisition, we believe we have a unique chance to widen that scope in Finland. And these 2 marketplaces are really complementary to each other. Tori is a horizontal marketplace, leading position in generalist and also leading in traffic; while Oikotie is a multi-vertical marketplace, leading positions in job and a strong market share in real estate. So hence, our ambition is to combine this and use the traffic position from Tori to strengthen the vertical positions of Oikotie. And of course, we will fuel this by product development, and hopefully, our know-how and long experience within marketplaces will come in useful in this process. And in addition, I also believe this will strengthen our position for further growth both organically, for example, within motors, but also structurally. And if you look at the basics of the deal, we acquired 100% ownership of Oikotie, and the closing was -- as well as the signing yesterday, July 16. These 2 brands will operate side-by-side, while we will form one combined organization. It will be headed by Jussi Lystimäki. He started with Schibsted back in 2009 and originally built the Tori business in Finland before he now has been for a few years in Barcelona as VP for Adevinta's venture business. So we believe our Finnish business is in very good hands.The deal valued Oikotie at EUR 185 million. That is a multiple of 19.6 if you look at pro forma financials for 2019, and we will finance this through our cash balance. And Christian will expand a little bit further into the possibilities we see in Finland. Then last but not least, I want to look at something which is key to our strategy, namely purpose and making sure that what we do create value to all stakeholders.[Presentation]

[Kristin Skogen Lund, Chief Executive Officer]

Yes, I am impressed and proud that our marketplaces play such an important role in enabling reuse and circular consumption. If we buy and sell used things instead of new one, we are potentially saving material needed and also emission generated by producing these new items. And this is the idea behind the Second Hand Effect. It's a project that shows the environmental benefits from second-hand trade. And for 2019, the total amount of CO2 equivalent potentially saved through Schibsted and Adevinta marketplaces amounts to 25.3 million tonnes of CO2, and that's actually equivalent to almost half of Norway's entire emissions. So this really has an impact. And the Second Hand Effect is our way of putting the spotlight on the benefits of circular consumption and, thus, enabling our consumers to really contribute to a more sustainable future.I'll now hand over to you, Christian, and I look forward to hearing you walk us through the Nordic Marketplaces.

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Thank you, Kristin, and good morning, everyone. I'm really happy to be here to give you a deep dive of our online marketplaces. And if we begin with the big picture, it is that COVID-19 has resulted in a revenue decline in Q2 compared to last year, of course. A weaker job market, reductions in the travel segment as well as reduced advertising spend account for most of the decline. But there are also some positive signs. For example, the motor segment in both Norway and Sweden contributed with positive growth in the quarter. And also real estate in Norway has been kept relatively stable year-on-year. Also, as Kristin mentioned in her introduction, we have seen a market recovery, increased listings throughout the quarter, so the revenue decline was actually less towards the end of Q2. The other growth that you can -- the other revenue that you can see in this chart is driven by our acquisition of Nettbil that we acquired in December last year. It's now been included in 2020 but is not present in the previous years here. And finally, on this page, I want to point your attention to our EBITDA margin, which we have been able to keep relatively stable year-on-year because we have implemented temporary cost reductions to compensate for the lower top line that we see. Now moving to Finn. Here, we see significant revenue decline as a result of COVID-19. But also here, we have seen a market recovery throughout the quarter as the Norwegian society has opened up more and more. Again, jobs, travel have been the verticals hardest hit in addition to lower advertising spend. Jobs is actually the biggest vertical in Norway, and this segment was hit not only by COVID-19, but also a weaker macroeconomic environment, driven by lower oil prices. So in total, jobs was down 32% year-on-year. Travel, which is a significantly smaller part of the total revenues, was down as much as 75% compared to Q2 last year. And that was, of course, driven by significant travel restrictions implemented in Norway and Europe and the rest of the world as we know. If we look at real estate, that ended relatively flat year-on-year, helped by a good rental market as well as the launch of some new products. And finally, we have the motors segment, where we actually saw a slight increase, helped by increased use of our Blink product as well as quite significant increases in the boat and caravan categories. And these are actually directly linked to COVID-19, and the increase stems from people now spending their summer vacation in Norway instead of traveling abroad. So just to sum up a little bit the effects in Norway. We saw a revenue decline of NOK 71 million compared to last year. Of this, jobs accounted for NOK 50 million; travel was NOK 25 million; and finally, advertising, NOK 6 million. When we saw the negative impact on revenues, we took cost measures, implemented some temporary cost reductions to maintain a high EBITDA margin. And we did things like reducing marketing spend, implementing a hiring freeze, reducing use of external consultants and also reducing commissions and bonuses to employees. And in total, this has paid off. And as you can see here, we have increased the EBITDA margin by 2 percentage points compared to last year. And that is even though the EBITDA on an absolute level is, of course, down year-on-year. Now that we have seen a market recovery, we intend to increase our growth investments in Norway. We think that, that is a good idea to really capture the full potential of the market here. So we have planned some additional hires in the second half of the year, and we will, therefore, see some reduction in the margin in the next half year. But even so, we maintain the target that we announced in Q1 to end up in the range of 40% to 45% of EBITDA margin. And if the market recovery continues on this positive trend, we expect that to end in the higher end of that range. Now let's look a little bit on the KPIs for Finn, and here, on the left-hand side, you will see volume of new listings compared to last year. And I want to remind you here that March was then half a month of, let's say, normal levels and then half a month with significant decline as a result of COVID-19. And then April was the first full month of COVID-19 effects. Yes. As you can see, jobs was clearly hit hardest. I can also add here that it was the private sector that was mostly affected, while the public sector was -- get relatively high level.In real estate, we actually didn't see the biggest drop in April, and that is a result of many home-for-sale processes having been initiated before the lockdown. So the biggest drop came in May before a very strong rebound in June, which ended also very strongly before the summer holiday. In the motor vertical, there was a quite steep decline after the lockdown, but that has also rebounded in May and June, particularly in the private segment. And in the private -- in the professional segment with the dealer volume, that has actually been kept relatively stable throughout the quarter with only 1% decline roughly. And then on the right-hand side here, you have our traffic development. And you can actually see that our traffic growth has accelerated as a result of COVID-19. And we even had all-time high in traffic in the first week of June, which we, of course, are very pleased to see. Now let's move to Blocket, and Blocket was actually less affected by COVID-19 than Finn, and this is because they are less reliant on jobs and we also don't have a travel category in Sweden. But even so, I would say that the impact on Blocket was less than we first anticipated, and it ended on a 6% decline in the quarter in local currency. And also here, we have seen an improvement throughout the quarter. There's still a solid growth in the motors professional segment. And this is actually despite a campaign that we launched in April where we reduced the fees to dealers to support them and help them through the difficult COVID-19 times. And the growth we now see in motors, that is primarily driven by increased usage of our bump product. And we also have, in the private segment, been helped by increases in boats and caravans, similar to Norway. Another pattern that is similar to Norway is that the jobs and advertising are, of course, strongly hit by COVID-19. Looking at the cost side of Blocket. We also, here, implemented temporary cost reductions from late March and onwards. And as a result, we have been able to keep a stable margin quarter-on-quarter. While if we look at the margin year-on-year, there is a decline, and that is driven by the increased investments that we're making in product and technology.And I just want to mention a few of the interesting things that we are working on in Blocket at the moment. We have several transactional initiatives like Blocket Payment, Blocket Package and also [ Bile ], which is the Swedish version of Nettbil. And all of these initiatives, they intend to make it easier and make it safer to transact your car or your other products on Blocket. And even though they are at an early stage right now, we have quite high hopes and expectations that they will contribute to significant growth in the future. Looking at the KPIs for Blocket, beginning with motor. Here, we saw a significant drop from March and into April. But then, as you can see, activity has picked up from that point and is in positive territory in June. Jobs, on the other hand, has seen a quite significant decline throughout the quarter but with some signs of recovery in June. But I want to remind everyone here that motors is by far the biggest revenue driver in Blocket, and jobs account for a smaller share, around 10% of the revenues in Blocket. Looking at the traffic. There is a similar acceleration of traffic growth in Sweden as we see in Norway. And in May, we recorded the second-highest traffic of any month in Blocket's history with 109 million visits. And this continued with an impressive growth of 24% year-on-year growth in June, which I'm really, really satisfied with, I have to say. Now let's say a little bit more about Finland, a little bit more about the country and our strategic rationale here. And maybe it's a good idea to start out by saying that Norway and Finland, they are actually quite similar when it comes to population size. They have around 5 million people, both these 2 countries. In this chart, you can see the really strong household brands that we have in all the 3 countries, really strong positions that are basically used by everyone living in these 3 countries on a regular basis, on a monthly basis. And of course, Finn is the exceptional case here, but I think it does show the potential that we have both in Sweden and in Finland as well. And I really want to point your attention towards the really strong traffic that we have as a result of our horizontal model. And this is also true in Finland where Tori is our traffic machine, and really, it's more than 45% of all Finns. They visit Tori one or more times every single month.And now we have then acquired Oikotie, and as you can see here, Oikotie has somewhat lower traffic per capita, but they have higher monetization per capita. And we're going to kind of combine these 2 attributes. So Oikotie then consists of 2 verticals. First, we have Oikotie Työpaikat, which is the clear leader in jobs, both in terms of volume of ads, paid ads, in terms of preference and also in revenue. And it is -- has a particularly strong position in the white-collar segment. Then the second vertical is Oikotie Asunnot, which is a strong #2 in real estate, just slightly behind Alma Media's Etuovi. And I want to mention here that it has a particularly strong position in the Helsinki region, which we think is a really strong benefit when you think of urbanization trends and so forth.So what we intend to do here is to really use the marketplace playbook that we have used many times before, both in Schibsted and in Adevinta, to really use the traffic and the reach of Tori to strengthen the verticals in Oikotie and use Oikotie really as a monetization vehicle. Now if you look at the revenue of Tori and Oikotie combined, you will actually see that it has a really nice mix of classifieds revenue from both motors, from real estate and from jobs. But some of you may also notice that if you look at the share of classifieds revenue compared to advertising, it's actually somewhat lower than what we are used to in Finn and Blocket. And we see this as an opportunity to increase product development, innovation, create better products for the Finnish consumers and for the Finnish companies to really deepen our position in these verticals.Finally, there is also a quite significant other revenue segment in Oikotie, and that consists of a few different things, including some real estate data sales. There's also an agency management system and also an electricity comparison site, among other things.So to wrap up, where does this acquisition then take us? Well, again, Finn is really the role model here, being #1 in all the verticals, being able to monetize richly from that. And now with the acquisition of Oikotie, we have really got this #1 position in jobs and a strong #2 position in real estate. And we are quite confident that we will be able to strengthen these positions with the traffic from Tori and the experience that we have from other markets in product development in these markets. So all in all, it's really exciting times in the marketplaces.And with that, I will wrap up my part and give it back to you, Kristin.

[Kristin Skogen Lund, Chief Executive Officer]

Thank you, Christian. He will also stay on for Q&A later. And if you have any questions, please remember to send them in through the webcast player.Okay. Moving then to News Media. I want to start by saying that we continue to see 3 main trends that are very promising for the long-term development of our media business. The first one is traffic. We see increased demand for our products, and all our brands have now stabilized on traffic levels that are higher than they were pre-corona. And VG's corona special, which they have been running in this time, is actually the most read article ever in VG's history with 170 million page views in a market of 5 million people.Secondly, we see the willingness to pay for our journalism is high, and we continue to see good growth in digital subscription numbers. And finally, we see high engagement. We see increased usage of our digital products. That means our consumers, they visit us more often, they read more articles and they spend more time with us. And this is a fundamental attribute going forward to strengthen our subscription strategy.Looking then at the financials. News Media is delivering a strong quarter given the market situation. And let me now remind you that the revenue growth numbers that you see in percent on these slides, they are adjusted for currency and the divestment of the regional and local newspapers at year-end. And then -- so they represent a like-for-like development, and then the absolute amounts in Norwegian kroners are unadjusted.So revenues are down but yet strong, given the market situation. And combined with tight cost control, the result is a strong EBITDA margin for this quarter. And the lower cost levels are due to both volume effects, some effects of lower employee tax in Norway and Sweden in May and June and in addition to, I would say, very tight cost control in all functions and brands. In the first quarter, we introduced a target of NOK 500 million in cost reductions for News Media with full effect next year, 2021. Our ambition is to have digitally sustainable media houses, meaning that these media houses must be profitable based on digital revenues only. We want to continue to deliver high-quality journalism going forward in the long run, and to do so, it is absolutely paramount that we secure the long-term profitability based on digital products.We are on track with the cost program. An execution is already underway. As stated in Q1, at least NOK 100 million will be effective in 2020, and we already see some effects of the program in the second quarter results.Looking then at subscription. Our total subscription revenues grew by 7% in the second quarter. And as in the first quarter, digital subscription revenues are continuing to grow well. It's both strong sales figures and growth in ARPU that is contributing to the 20% increase in digital subscriptions revenue. And growing these digital subscriptions is of high strategic important to us, as it represents recurring revenues that contributes to a more stable top line development going forward over time.It's also worth mentioning that our investment in business financial journalism through E24 is off to a good start, and we see very strong growth numbers in the digital subscriptions for E24+. If we then move to advertising. Even though advertising revenues are taking a severe hit in the second quarter both in Norway and Sweden, the development is better than what was expected at the beginning of the COVID breakout. We see also some improvements in advertising revenues at the end of the quarter, but the market is still challenging both in Norway and Sweden. And in both these markets, we continue to perform well in the segment of large national advertisers, while we see small, medium customers struggling. And print is struggling in all segments. And the activity level in our advertising business area is very high these days. We've taken big steps forward when it comes to product development. We have launched several new products in this period. And I would say that our decision back in March not to go to do any temporary layoffs was quite a difficult one at the time, but the heroic effort that our salespeople have shown in this period has really proven that decision to be the right one, and it certainly paid off. And we also see that due to all this effort, recently, we are now making good progress, capturing fast-moving consumer goods customers in Sweden, thus, diversifying the customer base there. And we're seeing signs of advertising money moving from linear TV to Schibsted products here in Norway.I'll turn to Next. And as usual, we start with financial services, where Lendo is the most important business so I'll start there. In Lendo, we do see a negative impact of COVID-19 in all of our established markets. And we see that, that effect comes primarily from banks being more restrictive in their lending practices, and this was especially true in the first half of the quarter. At the same time, Lendo has significant cost flexibility. So in addition to reducing our investments in Austria and Poland that we announced in the first quarter, we have adjusted marketing spend, so the effect on the EBITDA is moderate.Looking ahead, we believe there is great potential for growth in Lendo. We are still pursuing growth internationally. And we see a continued strong development in Denmark, where revenues ended up 18% relative to the first quarter.And let me also finally mention that Lendo has recently been granted a PSD2 license, and that enables us to really expand the product offering of Lendo, which I think also is promising going forward.And then finally, the growth -- Schibsted Growth portfolio, where we see that several of our operations continue to experience increased activity levels and demand during the second quarter, especially Prisjakt, distribution and the marketplaces we have for services called MittAnbud. And Schibsted Distribution's new business grew considerably in the second quarter on the back of both increasing e-commerce volumes in general for Helthjem and also strong growth in Morgenlevering.Schibsted Distribution is also an enabler of the circular economy, and we see rapid growth in their C2C product. It's up 75% from the first quarter and had almost 100,000 parcels in June alone. And Prisjakt also showed strong top line growth and margin growth in the second quarter due to high-growth in both traffic and clicks, echoing the same trend that we see in Schibsted Distribution.And finally, we can really see that a lot of people stayed home in this period and spent their time organizing home refurbishment, and that has certainly affected MittAnbud positively both in terms of top line and margin.Then on the other side, we see that top line and margins were negatively affected by the advertising-driven services, such as Klart.nu and -- Klart.se, sorry, and TV.nu.So with that, let me hand over to Ragnar. He'll do the financials, and then we will all be back for the Q&A.

[Ragnar Kårhus, Chief Financial Officer]

Good morning, everyone. Let me give you some more information on the financial statements for the second quarter. And I will start with a summary of the EBITDA development.EBITDA is influenced by COVID-19 effects, as Kristin and Christian has described. EBITDA for the group, excluding Adevinta in the second quarter, came in at NOK 498 million, a reduction of NOK 59 million compared to the second quarter last year. The EBITDA margin at 60% is though only 1 percentage point below last year and significantly improved from the first quarter this year. Cost-saving initiatives to protect short-term profitability have clearly been successful within all business segments. EBITDA in the Nordic Marketplaces is down NOK 34 million net due to lower classified volumes, particularly within jobs and travel as well as lower advertising revenues. And temporary cost reductions contribute to a strong EBITDA margin of 45% this quarter. In News Media, declining advertising and cash flow sales revenues accelerated by COVID-19 effects is driving the EBITDA decline of net NOK 50 million. Increasing subscription revenues and cost savings contribute to a solid EBITDA margin of 8% in the quarter.Kristin has thoroughly gone through the -- through development within financial services and growth. And I will just here mention that other/HQ had a negative EBITDA of NOK 54 million in the quarter, which is NOK 12 million less than last year, primarily due to temporary savings in the quarter.Our operating cash flow was 5% above last year. This is primarily explained by changes in payment terms resulting from support measures implemented by governments due to COVID-19, and I think that's include postponement of tax payments. Our CapEx is up NOK 68 million due to increased investments across all segments and especially within product and tech.Then looking at some of the items below the EBITDA line in our income statement. Other income and expenses includes a gain on sale of property of NOK 51 million but also various restructuring costs, particularly within News Media, amounting to approximately NOK 45 million in the quarter. Net interest-bearing expenses increases with NOK 19 million compared to last year due to slightly higher net interest-bearing debt. It is, therefore, primarily the tax income of 265 -- NOK 264 million that contributes to the improved net profit. I will come back to this in the next slide. But this brings us to a net profit of NOK 503 million this quarter compared to NOK 180 million in Q2 last year.Our tax income this quarter of NOK 264 million is positively affected by NOK 320 million from recognition of deferred tax assets. This recognition is a result of increased probability for utilization of tax benefits following a reorganization of centralized development activities subsequent to the spin-off of Adevinta. The underlying tax rate is 22% and 23% year-to-date. Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rate, primarily as an effect of losses for which no deferred tax assets is recognized.Looking at the balance sheet. We have a very strong financial position and a diversified debt maturity profile. The acquisition of Oikotie in Finland is financed primarily by our current cash holdings, but as a consequence, the financial gearing will increase to around 2.5 in the third quarter. The increased leverage is well within our financial covenants and within the financial target range that we have.There are no changes to our financial policies and medium- and longer-term targets. There is still uncertainty on the impact of COVID-19 for the full year 2020, both regarding restrictions related to the pandemic, the economic consequences for our customers and users and the risk for a second wave of infections For the activity in Norway, the development in the oil price will also affect the market economy.Q2 results include cost-savings initiatives to protect short-term profitability. For some of these initiatives, the cost effects will revert partly or wholly over time. Examples are marketing spend, use of consultants, bonuses and temporary reductions in employers' tax. Within Nordic Marketplaces, we expect the Norwegian full year 2020 EBITDA margin in the higher end of the 40% to 45% range. And depending on the revenue development, the Swedish operation might face some further margin contraction compared to the first half of 2020. In the midterm, the EBITDA margin for News Media is in the range of 6 -- the target is in the range of 6% to 8%. To achieve this, as mentioned earlier, our cost program of NOK 500 million was announced in May, and the net effect will be reduced by inflation and potential wage increases. We expect that more than NOK 100 million of these cost reductions will occur in the second half of this year. The cost-reduction program may lead to reduced restructuring costs and costs during the second half of 2020, and we'll come back to this as they occur.Thanks, Kristin. Back to you.

[Kristin Skogen Lund, Chief Executive Officer]

Thank you. So I just want to wrap it up saying that, yes, COVID-19 affected our revenues negatively, but at the same time, our products have really shown and strengthened their relevance. I believe our organization has handled and weathered this storm in a good way, and we are prepared for the future. Our long-term strategy and targets, they stand firm, including being prepared to act upon any interesting strategic opportunities that might occur also going forward.So with that, I'll be happy to ask Ragnar and Christian to join me for our Q&A session. Hope you got some questions, Jann-Boje.

[Jann-Boje Meinecke]

Yes. We have a couple of questions from the webcast here. A lot of interest around marketplaces, of course. So why don't we start first with the acquisition in Finland. Question is like, the margins are rather low compared to Finland Blocket. If you can comment a little bit, are there synergy cases when it comes to cost? Or why the margin not higher, if you can elaborate a bit on this, Christian or Kristin?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

And so I want to say that I don't think this is primarily a cost synergy game. It's primarily ambition to have better scale, a better market presence in Finland. And I think it is possible to increase the margins by kind of developing better products and increase revenues in the market. That would be the -- primarily the way forward.

[Jann-Boje Meinecke]

And then just a follow-up question on Finland. I think you haven't filed -- the question, we haven't filed for competition clearance in that case. Can you comment on that? Is there a risk going forward? And is it also possible going forward to do more acquisitions in Finland? If you can comment on that.

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Yes. So we don't consider that to be a risk. There is a rule that -- because Tori is below NOK 20 million in revenue in Finland, we can do this without filing for -- to the regulation authorities. There is also opportunity to do further acquisitions in Finland.

[Jann-Boje Meinecke]

Maybe one question which is the -- we can take here as well. So after the acquisition in Finland yesterday, what is the next step? Is Denmark the next move which we aim for?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

I don't think we will comment on that. But of course, we are always on the look for good acquisition targets within our scope.

[Jann-Boje Meinecke]

Then maybe more question on the overall financials here. So numbers were very strong is the feedback here. Is there any indication or can indicate like how many support have we got from the government in Q2? Are there any grants or support which inflate the numbers?

[Ragnar Kårhus, Chief Financial Officer]

We have some benefits from -- particularly for reduced employer tax. And I think that contributes around NOK 30 million for Schibsted in the second quarter.

[Jann-Boje Meinecke]

Then also numbers were very good for Prisjakt. Revenue was up by double digit, also in underlying currency, and margin was strong. Can you elaborate a bit more like why numbers are so strong in the second quarter for Prisjakt?

[Kristin Skogen Lund, Chief Executive Officer]

Well, I think it's an effect of what we have seen, that there has been a strong trend in consumer behavior towards more online shopping, and that's certainly also boosted Prisjakt. But I also believe it is an effect of Prisjakt having been through a time with a change of platform and really reinventing itself somewhat platform-wise and that we are seeing also good effects of that coming into place now. So it's a combination.

[Jann-Boje Meinecke]

Very good. Then maybe also a follow-up again on Finland. Of course, there are many questions on that today. So you said you're the leader here in jobs. Can you elaborate more on the #2 and 3 in the market? What are the players? And what is their position?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Yes. So there is -- I think we should also mention then Duunitori, which is an aggregator, and so it's a different model. They have been growing also quite rapidly in recent years, but they have their strength in a somewhat different segment, more in the blue-collar segment, which is then different from Oikotie. And then, of course, Alma Media also has some assets in jobs, but they are behind Oikotie.

[Jann-Boje Meinecke]

And then maybe the same question on real estate. If you can comment on that a bit more, like what is the position? You mentioned it a little bit in the presentation, but if you can just elaborate a bit more.

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Yes. So as I said, Oikotie is a strong #2 in real estate. It's just slightly behind Etuovi, which is owned by Alma Media. And Etuovi is particularly strong outside of Helsinki region where we have a stronger position in Helsinki. And one of the interesting things about that is that actually 70% of the, say, revenue from real estate is actually in Helsinki, so we think that's a good strength. And I didn't mention that before, but Alma Media also has [indiscernible] which is a rental site. And now with the combined positions of Oikotie and Tori, I think we are ahead of them in rentals.

[Jann-Boje Meinecke]

And then moving to Sweden. Development here in the motor vertical for Blocket was very strong, where it was 11% underlying for the vertical. But volumes were slower. Can you comment why was revenue growth so good? Is it due to the new ad model or the pricing? Or what was the reason here?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Yes. So we still see effects of the change to paper ad that we implemented last summer in Blocket. And as I also mentioned, there has been an increase in the use of the bump product in Sweden. So those are contributing factors to that.

[Jann-Boje Meinecke]

And a question on that. You implemented new model from a slot-based to per ad model for Blocket. What is the model in Finland for Oikotie? Is it a similar model with Schibsted has?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

So Oikotie in the real estate area, they have a slot-based model with 3 tiers where the agent can kind of choose the kind of branding level that they have. So we'll see. We will look into the model also in Finland and see if can optimize that.

[Jann-Boje Meinecke]

Then on Finn, margin was very strong with 52%. I think you guided a little bit the range for the full year. Can you comment a little bit on the temporary savings? What was the driver here? And will this continue, or the magnitude?

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

So I did actually mention it. I think the cost reductions here, they are of a temporary nature. We have reduced marketing quite significantly. We have implemented hiring freeze. We have taken out some of the external consultants that we had working. We have also stopped customer events. It hasn't been possible due to COVID-19, and there's also been some reductions in bonuses and commissions. So some of these will come back, of course, especially as we enter into next year.

[Jann-Boje Meinecke]

And maybe a last question here. Government grants, you mentioned roughly NOK 30 million in the second quarter. Is there more to come in the next quarter? Ragnar, can you comment on that?

[Ragnar Kårhus, Chief Financial Officer]

So I don't think we have full visibility on that. We see some in the early beginning of this quarter, but also those sort of grants will be -- will sort of be -- sort of reverted throughout the remaining part of the year. Though it might be that we can utilize some within sort of some initiatives that is particularly focused on the media business in Norway. But we will come back to that in the next quarter.

[Jann-Boje Meinecke]

And I think just one last question from my side before we then finish for today and connect later on the conference call at 2:00. Trends in July, really trends improved in the second quarter. We saw numbers for June in News Media and marketplaces. Can you comment a bit what we've seen so far coming into July?

[Kristin Skogen Lund, Chief Executive Officer]

Well, July is a special month, as you know, due to holidays, and we are still in volatile and unpredictable times. But I think it's fair to say that it's -- yes, it's looking the way it has been in a way, sort of. So we'll have to see. It's a bit early. We're 2 weeks into the third quarter so.

[Christian Printzell Halvorsen, Executive Vice President of Nordic Marketplaces]

Yes. Just commenting also on marketplace. It is a little bit hard to interpret and predict the summer months because they are a little bit special and particularly this year. But we don't have any signs that the trend will change in any material way, and there are actually some positive signs as well. For example, now that the travel restrictions have been lifted, we see a significant uplift in the travel category, as one example. So we're positive.

[Jann-Boje Meinecke]

Well, very good. I think then we can round up here and see you later on the conference call.