Nov. 7 (Bloomberg) -- Schibsted ASA, Norway's biggest media company, plans ``significant'' job cuts as the global credit crisis hurts classified-ad sales.

Schibsted will deepen its efficiency program, reducing costs by 300 million kroner ($44 million) next year and raising revenue by 40 million kroner, the Oslo-based company said today. In Spain, where Schibsted publishes the most read newspaper 20 Minutes, print classified ad operations will be closed and it may sell its Nordic production unit Metronome Film & Television.

The economic slowdown is eroding advertising sales globally. News Corp., the media company controlled by Rupert Murdoch, said this week it will cut jobs after revising its profit forecast from a 4 percent to 6 percent gain to a ``low to mid teens'' drop. Sanoma Oyj, the largest publicly traded media company in the Nordic region, cut its earnings forecast last month.

``It's a vicious cycle really, you should expect a continued contraction in print newspapers,'' said Per Haagensen, an analyst at Fondsfinans AS in Oslo. ``Most online businesses came in higher than I expected. They are doing a fantastic job in online part.''

Schibsted shares rose 4.8 percent to 87 kroner in Oslo, paring their loss for the year to 63 percent.

Third-Quarter Results

Third-quarter net income declined to 11 million kroner, or 0.16 krone a share, from 18 million kroner, or 0.26 kroner, a year earlier, Schibsted said. Revenue was little changed at 3.18 billion kroner. Profit had been estimated at 126 million kroner on sales of 3.26 billion kroner, according to a Bloomberg survey of analysts.

``The financial crisis means that the visibility in the advertising markets is low,'' Schibsted said in the statement. The total effect on earnings before interest, tax and amortization of the plan will be 500 million kroner, it said.

Schibsted will book 120 million kroner in charges from the cost saving measures, mainly in this quarter. The company plans to provide more information about restructuring when it reports fourth-quarter earnings next year.

Revenue from Schibsted's online operations gained 22 percent in the quarter and accounted for 80 percent of operating profit. The revenue decline at some of its print titles steepened in September, the company said.

Schibsted booked 18 million kroner in restructuring costs in the third quarter at its VG and Spanish classified ad units. In the third quarter last year, it had a 137 million-krone charge from reviving its search unit and the Swedish Aftonbladet tabloid. Earnings before interest, tax and amortization, excluding one-time items, fell 9.5 percent to 362 million kroner, matching analysts' estimates.

Third-quarter profit was also hurt by higher financial costs, Schibsted said. In October, the company signed a 500 million-euro ($642 million) refinancing loan for its Trader Classified Media. The loan has an interest rate about 1 percent higher than would have been possible before the financial crisis, Schibsted said.

To contact the reporter on this story: Juho Erkheikki in Helsinki at jerkheikki@bloomberg.net.

Last Updated: November 7, 2008 11:42 EST