At a time when other newspaper companies lament a loss of readers and advertisers, Schibsted is thriving. No profit warnings here: Earnings rose 28 percent in the fourth quarter. Online operations will generate about 20 percent of the company's revenue this year, according to analysts at Kaupthing, a bank based in Reykjavik, even as many other big newspaper publishers struggle to reach the 10 percent mark.
Perhaps more important, at least for investors, online businesses will provide nearly 60 percent of the company's operating earnings by next year, the Kaupthing analysts predict. Schibsted has become so emblematic of online success that Bharat Anand, a professor at Harvard Business School, is writing one of the institution's well-known case studies on the company. There's clearly something quite special here," Anand said. "There's no question they managed this transition earlier than a lot of newspaper companies, and they're in a better position as a result."