Quarterly Report • Nov 18, 2019
Quarterly Report
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Third Quarter 2019
Interim consolidated financial statements for the nine months and the quarter ended 30 September 2019
| Business performance Group 4 | |
|---|---|
| Business performance segments 6 | |
| Outlook 9 | |
| Explanatory background information 9 | |
| Consolidated statement of profit or loss (IFRS, unaudited) 12 | |
| Consolidated statement of financial position (IFRS, unaudited) 13 | |
| Consolidated statement of cash flows (IFRS, unaudited) 14 | |
| Segment reporting (IFRS, unaudited) 15 | |
| Reconciliation of ordinary operating EBITDA 16 |
All information contained in this document has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.
The information contained in this release is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forwardlooking, which reflect the Company's or, as appropriate, senior management's current expectations and projections about future events. By their nature, forwardlooking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this document (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.
Scout24 also uses alternative performance measures, not defined by IFRS, to describe the Scout24 Group's results of operations. These should not be viewed in isolation, but treated as supplementary information. The special items used to calculate some alternative performance measures arise from the integration of acquired businesses, restructuring measures, impairments, gains or losses resulting from divestitures and sales of shareholdings, and other material expenses and income that generally do not arise in conjunction with Scout24's ordinary business activities. Alternative performance measures used by Scout24 are defined in the "Glossary" section of Scout24's half-year financial report 2019 which is available at › www.scout24.com/financial-reports.
Due to rounding, numbers presented throughout this statement may not add up precisely to the totals indicated, and percentages may not precisely reflect the absolute figures for the same reason. Information on quarterly financials has not been subject to audit and is thus preliminary.
"We are making good progress in implementing our strategic roadmap. We have started reviewing the strategic options for AutoScout24 and will give an update at the Capital Markets Day on 26 November. In addition, we are consistently moving forward on our path to streamline the organizational structure while focusing on our two core verticals ImmobilienScout24 and AutoScout24. In September, we kicked-off the first tranche of our share buyback program and have already returned EUR 80.5 million to our shareholders. We are on track with the implementation of all previously communicated measures."
"At Group level, we remain highly satisfied with our revenue and earnings performance, both in the third quarter and the first nine months of 2019. AutoScout24 continues to be in excellent shape and can therefore offset the slightly lower than expected results of the other two verticals. Our core business is developing very well and we are successfully navigating through cyclical advertising softness whilst continuing our investments in FINANZCHECK."
| External revenue EUR million |
|||
|---|---|---|---|
| Q3 2019 | 9M 2019 | ||
| 155.6 | 456.3 | ||
| 15.6% | 18.3% |
| Ordinary operating EBITDA EUR million |
|||
|---|---|---|---|
| Q3 2019 | 9M 2019 | ||
| 82.5 | 236.4 | ||
| 9.8% | 10.5% |
| Ordinary operating EBITDA margin Percent |
|||
|---|---|---|---|
| Q3 2019 | 9M 2019 | ||
| 53.0 | 51.8 | ||
| -2.8 pp | -3.6 pp |
| Cash Contribution EUR million |
|||
|---|---|---|---|
| Q3 2019 | 9M 2019 | ||
| 75.8 | 218.9 | ||
| 7.4% | 14.4% |
Scout24 continued to develop very successfully in the third quarter of 2019. External Group revenue increased by 15.6% to EUR 155.6 million (Q3 2018: EUR 134.6 million). Adjusted for consolidation effects the growth rate was 11.0% (adjusted revenue for Q3 2018: EUR 140.2 million). Both numbers are fully in line with the full-year forecast (growth between 15.0% and 17.0% or adjusted revenue growth in the low- to mid-teens percent range).
The Group's ordinary operating EBITDA increased by 9.8% to EUR 82.5 million in the third quarter of 2019 (Q3 2018: EUR 75.1 million; adjusted: EUR 73.3 million). This is equivalent to an adjusted growth rate of 12.6%, which is disproportionately higher than the comparable revenue growth. The ordinary operating EBITDA margin was at 53.0% and hence exceeded the comparable (adjusted) previous year's figure (Q3 2018 adjusted: 52.3%; Q3 2018: 55.8%). This figure is also in the full-year target range (between 52.0% and 54.0%).
Group EBITDA amounted to EUR 71.7 million in the reporting period, an increase of 10.5% compared to the third quarter of 2018 (EUR 64.9 million). This EBITDA includes non-operating costs of EUR 10.7 million (Q3 2018: EUR 10.2 million), which mainly comprise share-based compensation and M&A-related costs.
Earnings after tax for the Group, fully attributable to the shareholders of the parent company, amounted to EUR 34.0 million for the third quarter of 2019 (Q3 2018: EUR 36.2 million). Accordingly, earnings per share were at EUR 0.32 (Q3 2018: EUR 0.34 per share).
Year-on-year, the cash contribution1 rose by 7.4% to EUR 75.8 million in the third quarter of 2019 (Q3 2018: EUR 70.6 million). Adjusted for consolidation effects, the cash contribution amounted to EUR 71.1 million for the third quarter of 2018. The cash conversion rate2, based on ordinary operating EBITDA, decreased from 93.9% in the third quarter of 2018 to 91.9%, which was partially caused by the consolidation of FINANZCHECK.de as of 1st September 2018, as well as slightly increased capital expenditures in the ordinary course of business.
Cash and cash equivalents amounted to EUR 103.1 million as of 30 September 2019 (31 December 2018: EUR 59.2 million). Net financial debt3 stood at EUR 751.7 million, compared with EUR 750.6 million as of 31 December 2018 (30 September 2018: EUR 795.8 million). In the third quarter 2019, a total of EUR 68.9 million has been distributed to the Scout24 shareholders as dividend for the prior business year. In addition, EUR 51.6 million were spent on the first tranche of the share buyback program until 30 September 2019. The leverage ratio (ratio of net debt to ordinary operating EBITDA for the last twelve months) was at 2.39:1 (31 December 2018: 2.58:1; 30 September 2018: 2.83:1).
On the basis of these figures for the third quarter and the first nine months ended 30 September 2019, the Group is still well on track to meet its forecast for the 2019 financial year. Revenue growth for the first nine months at 18.3% even exceeds the guidance (growth between 15.0% and 17.0%). The adjusted revenue growth at 12.7% is fully in line with the target range (revenue growth in the low- to mid-teens percent range). The ordinary operating EBITDA margin at 51.8%, is also on track to reach the target corridor for the full year 2019 (between 52.0% and 54.0%). Non-operating costs total EUR 43.0 million after nine months and should therefore remain within the targeted range for the full year (up to EUR 50.0 million).
1 Cash contribution is defined as ordinary operating EBITDA less capital expenditure (adjusted).
2 The cash conversion rate is defined as ordinary operating EBITDA less capital expenditure (adjusted) divided by ordinary operating EBITDA.
3 Net financial debt is defined as total current and non-current financial liabilities (including lease liabilities) less cash.
The following table summarizes the key financials for the third quarter and the first nine months of 2019 and their development year on year:
| (EUR millions) | Q3 20191 | Q3 20182 | % Change |
9M 20191 | 9M 20182 | % Change |
|---|---|---|---|---|---|---|
| External revenue | 155.6 | 134.6 | 15.6% | 456.3 | 385.8 | 18.3% |
| IS24 | 68.5 | 63.5 | 7.9% | 200.8 | 185.8 | 8.1% |
| AS24 | 47.4 | 42.7 | 11.0% | 138.9 | 121.9 | 13.9% |
| CS | 39.8 | 28.5 | 39.8% | 116.7 | 78.0 | 49.6% |
| Ordinary operating EBITDA3 |
82.5 | 75.1 | 9.8% | 236.4 | 213.9 | 10.5% |
| IS24 | 48.1 | 42.4 | 13.5% | 138.3 | 125.9 | 9.8% |
| AS24 | 29.1 | 24.6 | 18.3% | 80.4 | 63.7 | 26.2% |
| CS | 9.5 | 11.1 | -14.5% | 26.0 | 31.0 | -16.0% |
| Ordinary operating EBITDA margin, %3 |
53.0% | 55.8% | -2.8pp | 51.8% | 55.4% | -3.6pp |
| IS24 | 70.2% | 66.7% | 3.5pp | 68.9% | 67.8% | 1.1pp |
| AS24 | 61.4% | 57.6% | 3.8pp | 57.9% | 52.2% | 5.6pp |
| CS | 23.8% | 38.9% | -15.1pp | 22.3% | 39.7% | -17.4pp |
| EBITDA4 | 71.7 | 64.9 | 10.5% | 193.4 | 196.0 | -1.3% |
| Capital expenditure (adjusted)5 |
6.7 | 4.6 | 45.7% | 17.5 | 22.6 | -22.6% |
| Cash contribution6 | 75.8 | 70.6 | 7.4% | 218.9 | 191.3 | 14.4% |
| Cash conversion7 | 91.9% | 93.9% | -2.0pp | 92.6% | 89.4% | 3.2pp |
1) Advertising revenue with OEM partner agencies and the corresponding ordinary operating EBITDA is no longer reported in the AutoScout24 segment as of 1 January 2019 but rather in the Scout24 Consumer Services segment due to the close structural relationship with Third-Party Display Revenue; the figures of the previous year have been restated accordingly.
2) As of 1 September, the result of FINANZCHECK.de is included in the financial figures of Scout24 AG. FINANZCHECK.de is attributed to the Scout24 Consumer Services segment. The revenue contribution for the period amounts to EUR 3.3 million, the contribution to ordinary operating EBITDA is a negative EUR 0.3 million
3) Ordinary operating EBITDA refers to EBITDA adjusted for non-operating effects, which mainly include restructuring expenses, expenses in connection with the Company's capital structure and company acquisitions (realised and unrealised), costs for strategic projects as well as effects on profit or loss from share-based payment programmes. The ordinary operating EBITDA margin of a segment is defined as ordinary operating EBITDA as a percentage of external segment revenue.
4) EBITDA is defined as profit before net finance expenses, income taxes, depreciation and amortisation, impairment losses and gains or losses on the sale of subsidiaries.
5) Capital expenditure (adjusted) does not include capital expenditure made due to the application of IFRS 16.
6) Cash contribution is defined as ordinary operating EBITDA less capital expenditure (adjusted).
7) The cash conversion rate is defined as ordinary operating EBITDA less capital expenditure divided by ordinary operating EBITDA.
| (EUR millions) | Q3 2019 | Q3 20181 | % Change |
9M 2019 | 9M 20181 | % Change |
|---|---|---|---|---|---|---|
| Total external revenue | 68.5 | 63.5 | 7.9% | 200.8 | 185.8 | 8.1% |
| - thereof value-added products | 22.0 | 19.1 | 15.2% | 63.9 | 54.4 | 17.5% |
| -thereof value-added products in % | 32.1% | 30.1% | 2.0pp | 31.8% | 29.3% | 2.5pp |
| Ordinary operating EBITDA | 48.1 | 42.4 | 13.5% | 138.3 | 125.9 | 9.8% |
| Ordinary operating EBITDA margin, % | 70.2% | 66.7% | 3.5pp | 68.9% | 67.8% | 1.1pp |
1) Includes a contribution for Q3 2018 of around EUR 0.5 million (9M 2018: EUR 1.6 million) from classmarkets, which has been deconsolidated in the meantime, and ordinary operating EBITDA of around EUR 0.2 million (9M 2018: EUR 0.5 million).
External revenue in the IS24 segment grew by 7.9% to EUR 68.5 million in the third quarter of 2019 compared to the previous year (Q3 2018: EUR 63.5 million). Adjusted for consolidation effects,4 revenue grew by 8.7%. The strongest growth driver was the business with residential real estate partners, which grew steadily over the three quarters of 2019. At the same time, revenue growth from business real estate partners, in particular project developers, decelerated. These are firstly confronted with increasing regulation - keyword "Mietpreisbremse" (rental price limitation) - and secondly with a generally more tense market environment due to a slowdown in economic development. Growth in the "Private Listers and Other" revenue line was in the low single-digit range. Here, the development of the subsidiary Flowfact, which is switching from a license model to a SaaS price model, had a dampening effect. In the field of private listings there was increased competition from both general classifieds platforms and real estate classifieds portals. At the same time, the Austrian marketplace ImmobilienScout24.at performed well.
The revenue share from value-added products (VIA-products and others) increased by 2.0 percentage points to 32.1%. In particular, the increasing market penetration of the "Realtor Lead Engine" (referring potential new customers to agents) contributed to this growth.
As a result of the positive operational leverage effect, ordinary operating EBITDA increased by 13.5% year-on-year to EUR 48.1 million. The ordinary operating EBITDA margin reached 70.2% (Q3 2018: 66.7%; adjusted5: 67.0%) in the third quarter of 2019.
Despite the intensified competition in the private listings business, IS24 maintained its competitive lead in terms of listings share, traffic and engagement, also in the third quarter 2019.
Due to the lower growth momentum, Management assumes that IS24 will only reach the lower end of the communicated revenue target for the 2019 financial year. In the 2018 annual report and the 2019 half-year report, an adjusted revenue growth of between 9.0% and 11.0% (8.0% to 10.0% reported) was guided for. Regarding the ordinary operating EBITDA margin of IS24, Management continues to expect that it will be close to 70.0%.
4 Adjusted for consolidation effects: without taking into account classmarkets' contribution to revenue for the third quarter of 2018.
5 Adjusted for consolidation effects: without taking into account classmarkets' contribution to ordinary operating EBITDA for the third quarter of 2018.
| (EUR millions) | Q3 20191 | Q3 20182 | % Change |
9M 20191 | 9M 20182 | % Change |
|---|---|---|---|---|---|---|
| Total external revenue | 47.4 | 42.7 | 11.0% | 138.9 | 121.9 | 13.9% |
| - thereof value-added products | 8.0 | 7.1 | 12.7% | 23.2 | 21.0 | 10.5% |
| - thereof value-added products in % | 17.4% | 17.7% | -0.3pp | 17.3% | 18.6% | -1.4pp |
| Ordinary operating EBITDA | 29.1 | 24.6 | 18.3% | 80.4 | 63.7 | 26.2% |
| Ordinary operating EBITDA margin, % | 61.4% | 57.6% | 3.8pp | 57.9% | 52.2% | 5.6pp |
1) Advertising revenue with OEM partner agencies and the corresponding ordinary operating EBITDA is no longer reported in the AutoScout24 segment as of 1 January 2019 but rather in the Scout24 Consumer Services segment due to the close structural relationship with Third-Party Display Revenue; the figures of the previous year have been restated accordingly.
2) Includes a contribution for Q3 2018 of around EUR 1.3 million (9M 2018: EUR 4.3 million) from AS24, which has been deconsolidated in the meantime, and ordinary operating EBITDA of around EUR 0.6 million (9M 2018: EUR 2.2 million).
In the third quarter of 2019, external revenue in the AS24 segment increased by 11.0% to EUR 47.4 million compared to the previous year (Q3 2018: EUR 42.7 million). Adjusted for consolidation effects, revenue grew by 14.6%.6 This continuously positive development is mainly attributable to increased revenues from dealer customers, both in Germany and in the European core countries (Belgium, Luxembourg, Netherlands, Italy and Austria). Both revenue lines are benefitting from improved monetisation of the customer base and strongly increasing revenues (absolute figures) with value-added products (MIA-products and others). The number of dealer partners in Germany declined in the course of the three quarters of 2019 - with slowing momentum - and was thus also lower year-on-year. This is due to the optimization of the customer base with an increased sales focus in the medium-sized to large customer segments. Management expects this optimisation process to be completed by the end of 2019. The number of dealer partners in the European core countries remained largely stable year-on-year. Other revenues decreased primarily due to the effect of the deconsolidation of AS24 Spain.
Ordinary operating EBITDA again increased significantly compared to the third quarter of 2018, by 18.3% to EUR 29.1 million (Q3 2018: EUR 24.6 million). Adjusted for consolidation effects, ordinary operating EBITDA even increased by 21.2% (Q3 2018 adjusted: EUR 24.0 million).
The ordinary operating EBITDA margin increased year-on-year by 3.8 percentage points due to the strong operating leverage, reaching 61.4% in the third quarter of 2019 (Q3 2018: 57.6%) and thus exceeding 60% for the first time ever. Adjusted for consolidation effects, the ordinary operating EBITDA margin was 3.3 percentage points higher than in Q3 2018 (58.1%).
Measured by the number of listings, AS24 continues to be the market leader in all its European core countries and holds a good second market position in Germany.
With an increase of 18.1% (13.9% reported) in the first nine months of 2019, the adjusted revenue development of the AS24 segment continued to exceed expectations for the full year (12.0% to 14.0% growth adjusted or 9.0% to 11.0% reported). The same applies to the nine-month ordinary operating EBITDA margin of 57.9% (annual forecast: up to 54.0%). Management therefore assumes that AS24 will at least reach the upper end of the annual forecast.
6 Adjusted for consolidation effects: without taking into account AutoScout24 Spain's contribution to revenue for the third quarter of 2018.
| (EUR millions) | Q3 20191 | Q3 20182 | % Change |
9M 20191 | 9M 20182 | % Change |
|---|---|---|---|---|---|---|
| Total external revenue | 39.8 | 28.5 | 39.8% | 116.7 | 78.0 | 49.6% |
| Ordinary operating EBITDA | 9.5 | 11.1 | -14.5% | 26.0 | 31.0 | -16.0% |
| Ordinary operating EBITDA margin, % | 23.8% | 38.9% | -15.1pp | 22.3% | 39.7% | -17.4pp |
1) Advertising revenue with OEM partner agencies and the corresponding ordinary operating EBITDA is no longer reported in the AutoScout24 segment as of 1 January 2019 but rather in the Scout24 Consumer Services segment due to the close structural relationship with Third-Party Display Revenue; the figures of the previous year have been restated accordingly.
2) As of 1 September, the result of FINANZCHECK.de is included in the financial figures of Scout24 AG. FINANZCHECK.de is attributed to the Scout24 Consumer Services segment. The revenue contribution for the period amounts to EUR 3.3 million, the contribution to ordinary operating EBITDA is a negative EUR 0.3 million
The CS segment generated external revenue of EUR 39.8 million in the third quarter of 2019, up 39.8% on the third quarter of 2018 (Q3 2018: EUR 28.5 million). This increase is mainly attributable to the acquisition of FINANZCHECK.de in the third quarter 2018, whose financials have been consolidated into the Group as of 1 September 2018. Adjusted revenue growth, i.e. as if FINANZCHECK.de had been part of the Scout24 Group since 1 January 2018, amounted to 10.9% in the third quarter of 2019. In addition to increasing revenues from finance partners, the strong rise in service revenues, boosted by the continued success of premium membership, also contributed to this growth. Compared to the prior-year quarter, third-party display revenues declined slightly by 2.5% in the third quarter of 2019 due to slowing market and economic conditions.
As expected and due to the negative contribution from FINANZCHECK.de, the segment's ordinary operating EBITDA of EUR 9.5 million was below the prior year level (Q3 2018: EUR 11.1 million). The ordinary operating EBITDA margin was at 23.8% in the third quarter of 2019 (Q3 2018: 37.6%; adjusted: 27.8%). The decrease of the adjusted margin is primarily attributable to higher marketing expenses and the declining, high-margin display advertising business.
The revenue development of the CS segment was slightly below expectations in the third quarter of 2019, especially in the finance partners and display advertising business lines. This was only partially offset by the pleasing revenue growth in the services business line. In the first nine months of 2019, adjusted revenue growth was 13.3% year-on-year. Management therefore assumes that, at the most, CS will only reach the lower end of the revenue target for the 2019 financial year which was communicated in the 2018 Annual Report and the 2019 Half-Year Financial Report (adjusted revenue growth of between 15.0% and 17.0% and reported revenue growth in the high 30.0% to low 40.0% range). Due to the above-mentioned effects such as decline in display advertising, slower growth in revenues with finance partners, increased marketing expenses, Management now forecasts an ordinary operating EBITDA margin in the lower to midtwenties percentage range for 2019. In the 2018 Annual Report and the 2019 Half-Year Financial Report, Management was guiding for a margin of up to 30%.
Scout24 successfully concluded the first nine months 2019 with a revenue growth of 18.3% (adjusted: 12.7%) and an ordinary operating EBITDA-margin of 51.8%. The Group is thus well on its way to achieve the forecasted revenue growth of 15.0% to 17.0% (adjusted: in the low- to mid-teens percent range) that was communicated in the 2018 Annual Report and the 2019 Half-Year Financial Report. The better than expected development in the AS24 segment could therefore overcompensate the slightly lower than expected developments in the IS24 and CS segments. As for the ordinary operating EBITDA margin target, Management expects that Scout24 will reach at least the lower end of the projected range of 52.0% to 54.0%.
For a detailed forecast, we refer to the more comprehensive comments in this document and the Half-Year Financial Report 2019, which is available on our company website at › www.scout24.com/financial-reports. Scout24 will give an initial outlook for the financial year 2020 at its Capital Markets Day (26 November 2019 in Munich). This outlook will be further specified with the publication of the results for the 2019 financial year in March 2020.
On 30 August 2019, the Annual General Meeting of Scout24 AG ("Scout24", "the Company" or together with its subsidiaries "the Group") took place in Munich. The attending shareholders represented more than 79% of Scout24 AG's share capital. Key resolutions included the 14% dividend increase from EUR 0.56 to EUR 0.64 per share and the election of three new members to the Supervisory Board. In addition, the Annual General Meeting exonerated the Management Board and Supervisory Board of Scout24 AG for the 2018 financial year by clear majority.
CEO Tobias Hartmann outlined the successful development of Scout24 and also discussed the strategic roadmap that was announced on 19 July 2019. He then presented several product innovations that clearly underscored the leading position held by Scout24 in its markets.
Specifically, the following resolutions were passed at the Annual General Meeting chaired by Dr Hans-Holger Albrecht, Chairman of the Supervisory Board of Scout24 AG:
A total of three members of the Supervisory Board of Scout24 AG had relinquished their board mandates before the end of their term of office. Specifically: Michael Zahn stepped down on 1 July 2019. Mr. David Roche and Dr Liliana Solomon stepped down with effect as of the end of the Annual General Meeting on 30 August 2019.
The Annual General Meeting elected Frank H. Lutz and André Schwämmlein as new members of the Supervisory Board of Scout24 AG, as proposed by the Supervisory Board. In addition, the Annual General Meeting accepted the countermotion of the shareholder Pelham Capital Ltd, London, to elect to the Supervisory Board of Scout24 AG Mr. Christoph Brand, Deputy CEO and Head of Classifieds and Marketplaces, Tamedia AG, Zurich. The term of office in each case ends at the end of the Annual General Meeting that decides on the exoneration for the 2019 financial year.
The detailed voting results and presentation by the Management Board on item 1 of the agenda are available on the Scout24 AG website under › www.scout24.de/general-meeting.
On 19 July 2019, Scout24 AG announced the implementation of an up to EUR 300 million share buyback program. Based on the share price at that time, this corresponded to about 5.6% of the share capital. The share buyback will be carried out over a maximum period of 12 months from 2 September 2019 to 1 September 2020 and can take place in multiple tranches.
The first tranche of the share buyback, which started on 2 September 2019, with a volume of EUR 150 million, will end at the earliest on 11 November 2019 and at the latest on 31 January 2020.
The following table shows the development of the share buyback program until 1 November 2019.
| Period | Aggregated volume in shares |
Total volume (EUR) |
|---|---|---|
| 2/9 – 6/9/2019 | 250,207 | 13,086,675 |
| 9/9 - 13/9/2019 | 302,200 | 15,209,917 |
| 16/9 - 20/9/2019 | 304,500 | 15,209,289 |
| 23/9 - 27/9/2019 | 181,395 | 9,236,176 |
| 30/9 - 4/10/2019 | 88,250 | 4,624,897 |
| 7/10 - 11/10/2019 | 108,900 | 5,790,420 |
| 14/10 - 18/10/2019 | 108,700 | 5,790,972 |
| 21/10 - 25/10/2019 | 107.800 | 5.789.352 |
| 28/10 - 1/11/2019 | 105.700 | 5.791.513 |
| Total | 1.557.652 | 80.529.211 |
1) Without ancillary purchasing costs, rounded to four decimal places according to commercial practice
Additional information regarding the share buyback program is available on the Scout24 website at › www.scout24.com/en/Investor-Relations/share-buyback.aspx.
As the Group's chief operating decision-maker, the Management Board decided to make minor adjustments to the Group's internal management system as well as the reporting structure and system for the year 2019. Advertising revenue with OEM partner agencies (2018: EUR 15 million) and the corresponding ordinary operating EBITDA (2018: EUR 9 million) is no longer reported in the AutoScout24 segment as of 1 January 2019 but rather in the Scout24 Consumer Services segment due to the close structural relationship with third-party display revenue. Revenue from the project business with OEMs, however, remains in the AutoScout24 segment, but is reported as part of revenue with dealers in Germany and European core countries. The previous year's figures were restated accordingly in line with the changed reporting structure.
In the third quarter of 2018, Scout24 acquired FFG FINANZCHECK Finanzportale GmbH ("FINANZCHECK.de"), one of the leading consumer finance platforms in Germany. The earnings of FINANZCHECK.de are included in the financial figures of Scout24 AG as of 1 September. FINANZCHECK.de is allocable to the Scout24 Consumer Services segment. Its contribution to revenue in the 2018 financial year amounted to EUR 12.3 million, while its contribution to ordinary operating EBITDA was a negative EUR 2.0 million. If FINANZCHECK.de had already been consolidated as of 1 January 2018, it would have contributed EUR 29.1 million to revenue and a negative ordinary operating EBITDA of EUR 2.7 million in the first nine months of 2018.
In December 2018, the Company sold its shares in classmarkets GmbH, Berlin ("classmarkets") and contributed 100% of the shares in AutoScout24 España S.A., Madrid, Spain ("AS24 Spain") to Alpinia Investments 2018, S.L.U., Madrid, Spain. The contribution to revenue by classmarkets and AS24 Spain in the first nine months of 2018 amounted to EUR 6.7 million, while their contribution to ordinary operating EBITDA was EUR 3.7 million.
The Scout24 Group's financials for the 2018 financial year, which have been adjusted for consolidation effects (indicated as "adjusted"), include FINANZCHECK.de's contribution to Group revenue and ordinary operating EBITDA as if FINANZCHECK.de had been consolidated as of 1 January 2018. The contributions by classmarkets and AS24 Spain to Group revenue and ordinary operating EBITDA are not taken into account, i.e. the figures adjusted for consolidation effects are presented as if the entities had already been deconsolidated as of 1 January 2018.
In the first nine months of 2019, Scout24 HCH Beteiligungs AG with registered offices in Bonn was incorporated as a wholly owned subsidiary of Scout24 AG.
| (EUR '000) | Q3 2019 | Q3 2018 | 9M 2019 | 9M 2018 |
|---|---|---|---|---|
| Revenue | 155,647 | 134,624 | 456,331 | 385,816 |
| Own work capitalised | 6,048 | 4,114 | 15,141 | 13,739 |
| Other operating income | 426 | 305 | 2,709 | 2,403 |
| Total operating performance | 162,121 | 139,043 | 474,181 | 401,958 |
| Personnel expenses | (43,130) | (37,387) | (133,603) | (97,303) |
| Advertising expenses | (18,788) | (14,667) | (62,865) | (42,890) |
| IT expenses | (7,296) | (5,164) | (19,420) | (14,990) |
| Other operating expenses | (21,165) | (16,903) | (64,901) | (50,823) |
| Earnings before interest, tax, depreciation and amortisation – EBITDA |
71,742 | 64,922 | 193,392 | 195,952 |
| Amortisation, depreciation and impairment losses | (17,353) | (16,532) | (53,169) | (47,941) |
| Earnings before interest and tax – EBIT | 54,389 | 48,390 | 140,223 | 148,011 |
| Profit/loss from investments accounted for using the equity method |
(330) | 70 | (453) | 111 |
| Finance income | 11 | 6,650 | 177 | 7,700 |
| Finance expenses | (3,933) | (3,158) | (13,073) | (11,345) |
| Financial result | (4,252) | 3,562 | (13,349) | (3,534) |
| Earnings before tax | 50,137 | 51,952 | 126,874 | 144,477 |
| Income taxes | (16,109) | (15,720) | (40,765) | (41,841) |
| Earnings after tax | 34,028 | 36,232 | 86,109 | 102,636 |
| Of which attributable to: | ||||
| Shareholders of the parent company | 34,028 | 36,232 | 86,109 | 102,636 |
| Earnings per share |
| (EUR) | Q3 2019 | Q3 2018 | 9M 2019 | 9M 2018 |
|---|---|---|---|---|
| Basic earnings per share | ||||
| Earnings per share after tax | 0.32 | 0.34 | 0.80 | 0.95 |
| Diluted earnings per share1 | ||||
| Earnings per share after tax | 0.32 | 0.34 | 0.80 | 0.95 |
1 The dilution is based solely on potential shares deriving from share-based payments.
| Assets (EUR '000) |
30 Sep. 2019 | 31 Dec. 2018 (adjusted) |
|---|---|---|
| Current assets | 180,325 | 137,079 |
| Cash and cash equivalents | 103,099 | 59,202 |
| Trade receivables | 62,575 | 59,378 |
| Financial assets | 1,506 | 7,493 |
| Income tax assets | 922 | 721 |
| Other assets | 12,223 | 10,284 |
| Non-current assets | 2,291,306 | 2,327,233 |
| Goodwill | 1,071,074 | 1,071,356 |
| Trademarks | 991,382 | 992,061 |
| Other intangible assets | 148,962 | 176,441 |
| Right-of-use assets from leases | 25,936 | 29,710 |
| Property, plant and equipment | 11,870 | 13,679 |
| Investments accounted for using the equity method | 37,504 | 39,207 |
| Financial assets | 1,801 | 2,580 |
| Deferred tax assets | 1,778 | 1,206 |
| Other assets | 999 | 992 |
| Total assets | 2,471,631 | 2,464,311 |
| Equity and liabilities (EUR '000) |
30 Sep. 2019 | 31 Dec. 2018 (adjusted) |
|---|---|---|
| Current liabilities | 118,353 | 138,393 |
| Trade payables | 28,547 | 38,103 |
| Financial liabilities | 22,148 | 23,404 |
| Lease liabilities | 6,334 | 6,620 |
| Other provisions | 9,185 | 8,973 |
| Income tax liabilities | 14,762 | 28,452 |
| Contract liabilities | 11,010 | 9,650 |
| Other liabilities | 26,367 | 23,190 |
| Non-current liabilities | 1,215,253 | 1,153,407 |
| Financial liabilities | 805,919 | 756,020 |
| Lease liabilities | 20,443 | 23,799 |
| Pensions and similar obligations | 585 | 546 |
| Other provisions | 37,979 | 13,214 |
| Income tax liabilities | 138 | 61 |
| Deferred tax liabilities | 347,844 | 357,121 |
| Other liabilities | 2,345 | 2,646 |
| Equity | 1,138,025 | 1,172,511 |
| Subscribed share capital | 107,600 | 107,600 |
| Capital reserve | 171,119 | 423,689 |
| Retained earnings | 910,173 | 640,296 |
| Measurement of pension obligations | (121) | (121) |
| Other reserves | 880 | 1,047 |
| Treasury shares (1,016,002 shares, previous year 0 shares) | (51,626) | - |
| Equity attributable to shareholders of parent company | 1,138,025 | 1,172,511 |
| Total equity and liabilities | 2,471,631 | 2,464,311 |
| (EUR '000) | 9M 2019 | 9M 2018 |
|---|---|---|
| Earnings after tax | 86,109 | 102,636 |
| Amortisation, depreciation and impairment losses | 53,169 | 47,941 |
| Income tax expense | 40,765 | 41,840 |
| Finance income | (177) | (7,700) |
| Finance expense | 13,073 | 11,344 |
| Profit/loss from investments accounted for using the equity method | 453 | (111) |
| Gain/loss on disposal of intangible assets and property, plant and equipment | (22) | (1,665) |
| Other non-cash transactions | 310 | (2,111) |
| Change in trade receivables and other assets not attributable to investing or financing activities |
(4,204) | (8,747) |
| Change in trade payables and other liabilities not attributable to investing or financing activities |
(5,354) | (3,124) |
| Change in provisions | 24,950 | 5,403 |
| Income taxes paid | (64,500) | (36,596) |
| Cash flow from operating activities | 144,572 | 149,110 |
| Investments in intangible assets, including internally generated intangible assets and | (15,724) | (15,561) |
| intangible assets under development | ||
| Investments in property, plant and equipment | (1,761) | (8,407) |
| Proceeds from disposal of intangible assets and property, plant and equipment | 202 | 1,860 |
| Proceeds from disposal of financial assets | - | 112 |
| Acquisition of investments accounted for using the equity method | (350) | (350) |
| Acquisition of subsidiaries, less cash and cash equivalents acquired | - | (266,346) |
| Dividends from investments accounted for using the equity method | 1,250 | - |
| Interest received | 4 | (26) |
| Payments made for subsidiaries acquired in the previous year | (560) | - |
| Proceeds from subsidiaries sold in the previous year | 5,300 | - |
| Cash flow from investing activities | (11,639) | (288,718) |
| Repayment of short-term financial liabilities | (6,428) | (33,070) |
| Raising of medium- and long-term financial liabilities | 100,000 | 465,000 |
| Repayment of medium- and long-term financial liabilities | (53,000) | (220,029) |
| Interest paid | (9,142) | (7,165) |
| Dividends paid | (68,864) | (60,256) |
| Payments for purchases of treasury shares | (51,614) | - |
| Cash flow from financing activities | (89,048) | 144,480 |
| Net foreign exchange differences | 12 | 10 |
| Change in cash and cash equivalents | 43,897 | 4,882 |
| Cash and cash equivalents at beginning of period | 59,202 | 56,659 |
| Cash and cash equivalents at end of period | 103,099 | 61,541 |
| (EUR '000) | External revenue |
Ordinary operating EBITDA |
|
|---|---|---|---|
| ImmobilienScout24 | Q3 2019 | 68,497 | 48,096 |
| Q3 2018 | 63,495 | 42,366 | |
| AutoScout24 | Q3 2019 | 47,401 | 29,120 |
| Q3 2018 | 42,704 | 24,612 | |
| Scout24 Consumer Services | Q3 2019 | 39,792 | 9,461 |
| Q3 2018 | 28,454 | 11,062 | |
| Total, reportable segments | Q3 2019 | 155,690 | 86,678 |
| Q3 2018 | 134,653 | 78,041 | |
| Central group functions/consolidation | Q3 2019 | (43) | (4,193) |
| Q3 2018 | (29) | (2,913) | |
| Total, consolidated | Q3 2019 | 155,647 | 82,485 |
| Q3 2018 | 134,624 | 75,128 |
| (EUR '000) | External revenue |
Ordinary operating EBITDA |
|
|---|---|---|---|
| ImmobilienScout24 | 9M 2019 | 200,827 | 138,281 |
| 9M 2018 | 185,804 | 125,917 | |
| AutoScout24 | 9M 2019 | 138,864 | 80,350 |
| 9M 2018 | 121,873 | 63,674 | |
| Scout24 Consumer Services | 9M 2019 | 116,666 | 26,028 |
| 9M 2018 | 78,003 | 30,976 | |
| Total, reportable segments | 9M 2019 | 456,357 | 244,660 |
| 9M 2018 | 385,680 | 220,567 | |
| Central group functions/consolidation | 9M 2019 | (25) | (8,293) |
| 9M 2018 | 136 | (6,656) | |
| 9M 2019 | 456,331 | 236,367 | |
| Total, consolidated | 9M 2018 | 385,816 | 213,911 |
1 Advertising revenue with OEM partner agencies and the corresponding ordinary operating EBITDA is no longer reported in the AutoScout24 segment as of 1 January 2019 but rather in the Scout24 Consumer Services segment due to the close structural relationship with Third-Party Display Revenue; the figures of the previous year have been restated accordingly.
The following table shows the reconciliation of the Group's ordinary operating EBITDA and EBITDA to earnings before tax:
| (EUR '000) | Q3 2019 | Q3 2018 | 9M 2019 | 9M 2018 |
|---|---|---|---|---|
| Ordinary operating EBITDA | 82,485 | 75,128 | 236,367 | 213,911 |
| Non-operating costs | (10,743) | (10,206) | (42,975) | (17,959) |
| of which personnel expenses | (7,563) | (6,806) | (30,478) | (11,752) |
| of which attributable to M&A transactions | (1,611) | (2,155) | (10,389) | (5,373) |
| of which other non-operating income/costs | (1,568) | (1,245) | (2,106) | (833) |
| EBITDA | 71,742 | 64,922 | 193,392 | 195,952 |
| Amortisation, depreciation and impairment losses | (17,353) | (16,532) | (53,169) | (47,941) |
| Profit/loss from investments accounted for using the equity method |
(330) | 70 | (453) | 111 |
| Other financial result | (3,922) | 3,492 | (12,896) | (3,645) |
| Earnings before tax | 50,137 | 51,952 | 126,874 | 144,477 |
Ordinary operating EBITDA refers to EBITDA adjusted for non-operating effects, which mainly include restructuring expenses, expenses in connection with the Company's capital structure and company acquisitions (realised and unrealised), costs for strategic projects as well as effects on profit or loss from share-based payment programmes.
On Tuesday, 26 November 2019, the second Scout24 Capital Markets Day will take place in Munich.
Scout24 expects to report preliminary results for the full financial year 2019 on Wednesday,19 February 2020.
Investor Relations Ursula Querette Phone +49 89 444 56-3278 E-mail [email protected]
Scout24 AG Bothestrasse 11-15 81675 Munich Germany
Phone +49 89 44456-0 E-mail [email protected] www.scout24.com
Photo: EyeEm, Thorsten Henning
Date of publication: 7 November 2019
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