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Adevinta — Earnings Release 2019
Jul 15, 2019
3520_rns_2019-07-15_84a95a24-b9ae-469a-bc10-60fb61f63107.html
Earnings Release
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Adevinta ASA (ADEA/ADEB) - Adevinta Q2 2019 Results
Adevinta ASA (ADEA/ADEB) - Adevinta Q2 2019 Results
* Operating revenues rise 13% to EUR185 million
* Core vertical marketplaces revenues climb 16%
* EBITDA up 20% to EUR50 million
* EBITDA margins up from 25% to 27%
* Cash flow up 13% to EUR20million
Oslo, Norway, 15 July 2019 - Adevinta announces its second quarter and half
year 2019 results.
Core verticals enjoyed a strong quarter, rising 16%, with overall revenues up
13%. Display advertising revenues remain lower than anticipated due to
challenging economic conditions in key markets and by comparison with Q2 2018,
when advertising was more buoyant. Initiatives taken to reverse the drop in
growth have resulted in an 8% increase in Q2 2019 versus Q1 2019. Product
development increased, with new features and apps rolled out across all
markets.
Rolv Erik Ryssdal, CEO, commented:
"We have enjoyed a good quarter characterized by strong performances in core
verticals across all our markets. We are progressing on a steady course to
deliver on our strategy of strengthening our positions in the verticals.
"Softness in display advertising - resulting from a combination of global
advertising industry factors and tougher economic conditions - has continued to
negatively affect overall revenue growth. Initiatives taken in Q1 2019 have had
some positive impact.
"Adevinta has been established as a standalone company and has been well
received by all stakeholders. We are continuously improving our focus on
operations, while evaluating market growth and consolidation opportunities.
"Product and technology is a priority across the portfolio, and we will continue
investing to improve our competitive strengths. We are well positioned for
expansion and to play a leading role in the digital marketplaces industry going
forward."
Q2 2019 Highlights
Revenues up 13% to EUR185 million
Revenue from verticals grew 16% across all markets
* France up 16%
* Spain up 16%
* OLX Brazil up 33% (local currency basis)
* Continued softness in display advertising
EBITDA improved to EUR50 million, up 20%
* Negatively affected by one-off ESOP charge of EUR5 million for Brazil
* EBITDA margin on a proportionate basis rose 2%-points to 27
Global Markets with another profitable quarter
* Margin expanded by 33%-points
* Investment phase losses continue to decline in Q2 to EUR(1.7) million (EUR(10.9)
million in Q2 2018)
Completed two acquisitions to strengthen France
* Locasun: a holiday rental and B2C travel specialist with an extensive rental
portfolio
* PayCar: P2P payments provider for second-hand vehicles with advanced payment
technology
+----+-----------------------------------------------------------------------+
| | Second First half- |
| | quarter (EUR million) year Full year|
| | |
|yoy% 2018 2019 Adevinta 2019 2018 2018|
+----+-----+------+----------------------------+-----+--------------+--------+
| 13%|163.8| 184.6|Operating revenues incl JVs |359.0| 314.8| 644|
+----+-----+------+----------------------------+-----+--------------+--------+
| 20%| 41.6| 49.9|EBITDA incl JVs | 99.6| 72.1| 156.2|
+----+-----+------+----------------------------+-----+--------------+--------+
| | 25%| 27%|EBITDA margin incl JVs | 28%| 23%| 24%|
+----+-----+------+----------------------------+-----+--------------+--------+
| 13%| 17.6| 19.8|Operating cash flow incl JVs| 70.8| 42.8| 73.9|
+----+-----+------+----------------------------+-----+--------------+--------+
Adevinta invites you to an analyst and press conference at Akersgata 55, Oslo,
14 May 2019 at 09:00 CET. The presentation will be held in English and
transmitted live as a video webcast on Adevinta Webcast
(https://www.adevinta.com/ir). CEO Rolv Erik Ryssdal and CFO Uvashni Raman will
present at the analyst and press conference.
A recording of the presentation will be available on our website shortly after
the live webcast has ended. The live webcast of the presentation will also be
streamed on www.youtube.com
(https://www.youtube.com/channel/UC2bWkiSZ0oBxIwKDoPppe1w/featured).
A conference call with Q&A linked to the Q2 2019 numbers will take place on 15
July 2019 at 14:00 CET. The session will be held in English.
NOTE: To avoid waiting time when connecting to the call, please use the below
link 5-10 minutes prior to start time, where you will be asked to type in your
phone number and registration details. The Event Conferencing system will
automatically call you back on the phone number you provide and place you into
the event. Please note that the link will become active 15 minutes prior to the
event: Link to join call: https://bit.ly/2J8bI9B
For manual dial-in, use the following number (note that this connection might
take more time):
Norway: +47 2350 0187
Sweden: +46 (0) 8 5033 6546
UK: +44 (0)330 336 9401
US: +1 646-828-8195
US: +1 323-701-0223
Passcode: 457014
Contact
Cassandra Lord, Director of Communications, Adevinta
[email protected] (mailto:[email protected])
Jo Christian Steigedal, Investor Relations
[email protected] (mailto:[email protected])