UPDATE 1-Schibsted core Q1 beats forecast, online grows

(Adds details, share price)

OSLO, May 9 (Reuters) - Norway's biggest media group Schibsted ASA (SBST.OL) reported a bigger-than-expected 9 percent rise in core profits for the first quarter on Friday and said a shift from print to online newspapers continues.

Earnings before interest, tax and amortisation (EBITA) rose to 283 million Norwegian crowns ($55.1 million) in January through March from 260 million a year earlier.

The result beat an average expectation of a rise to 268 million crowns in a Reuters poll of 10 analysts, whose estimates ranged from 188 million to 356 million crowns.

"The migration from print to online newspapers continues," Schibsted said in a statement. "Total reach in terms of readers is expected to be maintained," it added.

Shares in Schibsted had risen 3 percent to 172 crowns by 0740 GMT, valuing the group at about $2.3 billion. The Oslo bourse's benchmark index .OSEBX was down 0.6 percent.

Revenue grew to 3.45 billion crowns from 3.36 billion, also beating an average forecast of 3.41 billion.

Schibsted said costs linked to initiatives to boost growth would be considerably reduced in 2008 to around 350-400 million crowns, including some additional online projects.

It said the advertising markets in Scandinavia remained good, with few signs of slowdown, except for certain printed classified ads markets.

In Spain, where the group publishes its "20 Minutes" freesheet, the macroeconomic situation is weak, the group said. "Schibsted will notice this in the classified ads sector and in relation to 20 Minutes, especially in the print edition."

Online classified operations, including classified ads website Finn.no and Schibsted Classified Media, which includes most of its classified ads websites outside Norway, are expected to deliver good growth in revenue and profit, it said.

Swedish online classified ads unit Hitta.se is expected to continue growing strongly in 2008, Schibsted said.

Price increases are maintaining Norwegian tabloid VG's and Swedish paper Aftonbladet's circulation revenues, it said.

In Norway's daily Aftenposten, Schibsted said it expected greater uncertainty regarding the classified ads market and probably a continued decline for recruitment advertisements.

Schibsted sold its VG building in central Oslo in the first quarter, realising a gain of 842 million crowns. It estimated the Easter holidays in the first quarter reduced operating revenues by about 70 million crowns. (Reporting by Aasa Christine Stoltz, editing by Will Waterman)