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Adevinta — Earnings Release 2020
Oct 27, 2020
3520_iss_2020-10-27_af4c2b43-c911-4727-b2f3-c32737ce53ab.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta reports further recovery in Q3
Adevinta ASA (ADE) - Adevinta reports further recovery in Q3
* Agreement to acquire eBay Classifieds Group
* Improving trends confirmed
* EBITDA margin exceptionally high, driven by cost saving initiatives, delayed
expenses and positive one-offs
* Significant strategic developments in the current portfolio
* Strengthened financial position
Oslo, 27 October 2020 - Adevinta ASA (ADE) ("Adevinta" or "the Company")
completed its third quarter of 2020, ended 30 September, reporting a 1.6% year-
on-year increase in revenues1, driven by positive organic growth in France and
Brazil.
The recovery experienced in the second quarter continued into the third quarter,
thus resulting in positive growth during each month of the quarter. Classifieds
revenues were up 4.6% in the quarter, while display advertising revenues
decreased 4.3%. L'Argus Groupe, acquired in October 2019, added 4.2 points to
total revenue growth, but changes in exchange rate had a negative 2.6-point
impact.
Gross operating profit (EBITDA) including JVs increased by 6% yoy. The negative
impact of Covid-19 on Adevinta's main markets was mitigated by strong cost
reduction initiatives implemented throughout the group and favourable phasing,
since some expected marketing expenses and hiring only started to ramp up at the
end of the quarter.
In the quarter, the company announced that it had entered into a definitive
agreement to acquire 100% of eBay Classifieds Group, the global classifieds arm
of eBay Inc. Further, Adevinta received final approval by Brazil's antitrust
agency for OLX Brazil's acquisition of Group ZAP in October, and announced the
divestment of investment phase operations in Morocco, Tunisia, and Colombia.
Rolv Erik Ryssdal, CEO, commented: "I am truly excited that we reached in July
an agreement to acquire eBay Classifieds Group. This transaction will create the
world's leading online classifieds company with the most diversified and
complementary portfolio of marketplaces across the globe. Following the
acquisition we will benefit from number 1 market positions across 17 countries,
covering 1 billion people and we will be uniquely positioned to accelerate the
growth and development of our markets. It will allow us to create more value in
the years to come through the combination of best-in-class assets and expertise
and through the generation of substantial and sustainable synergies.
As expected, Q3 performance confirmed the trend that we had seen throughout Q2,
with improving momentum in operational KPIs, translating into revenues. We
posted positive growth in the quarter. We continued to implement strong cost
saving initiatives throughout the quarter and benefited from the phase-out of
expenses, driving exceptional year-on-year growth in EBITDA margin despite the
dilutive impact of acquisitions. We expect Q4 profitability to reflect the catch
up and acceleration of investment in marketing and product and technology, while
remaining confident in our longer-term EBITDA margin improvement potential.
We see strong growth opportunities in the industry arising from accelerated
digital consumer trends and increasing need for efficient online solutions. Our
leading positions have been confirmed through the crisis. Strong client
relationships and enhanced product offering will continue to support business
development although the macro environment remains uncertain".
Q3 2020 Highlights
Agreement to acquire eBay Classifieds Group
* Unprecedented-scale pure player in online classifieds with leading market
positions
* Combination of best-in-class assets and expertise
* High synergy extraction potential with estimated EUR134-165m impact on EBITDA
in year
Improving trends confirmed
* Further recovery in operational KPIs
* Total revenues1 up 1.6%
* Positive organic growth in France (+8%) and Brazil (+4%)
* Online classifieds revenues1 increased 5%
* Display advertising revenue1 decreased 4%
EBITDA1 margin exceptionally high, driven by cost saving initiatives, delayed
expenses and positive one-offs
* Margin1 up 120bps yoy
* Improving margins in Brazil and Global Markets
* Lower HQ and other costs
Significant strategic developments in the current portfolio
* Final CADE approval received for Grupo Zap acquisition
* Further optimisation of Global Markets portfolio
Strengthened financial position
* Refinancing of Adevinta's debt completed ahead of acquisitions
* Attractive financing conditions obtained
* Strong rating profile
Key financial numbers
+----+-------------+-----------+-----------------------------------------------+
| |Third quarter|(EUR million)| YTD |
+----+-------------+-----------+----------------------------+-----+-----+------+
|yoy%| 2019 | 2020 | |2020 |2019 | yoy% |
+----+-------------+-----------+----------------------------+-----+-----+------+
| 2%| 180.3| 183.3|Operating revenues incl. JVs|527.0|539.3| -2%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| 6%| 54.1| 57.1|EBITDA incl. JVs |142.2|153.7| -7%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| | 30%| 31%|EBITDA margin incl. JVs | 27%| 28%| |
+----+-------------+-----------+----------------------------+-----+-----+------+
| | | | | | | |
+----+-------------+-----------+----------------------------+-----+-----+------+
| | | |Operating revenues - | | | |
| | | |segments | | | |
+----+-------------+-----------+----------------------------+-----+-----+------+
| 17%| 85.7| 100.1|France |283.6|255.9| 11%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| -7%| 45.3| 41.9|Spain |121.3|135.1| -10%|
+----+-------------+-----------+----------------------------+-----+-----+------+
|-27%| 22.0| 16.0|Brazil | 48.8| 62.8| -22%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| -9%| 40.9| 37.1|Global Markets |106.4|122.1| -13%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| | | |EBITDA - segments | | | |
+----+-------------+-----------+----------------------------+-----+-----+------+
| 4%| 48.3| 50.2|France |138.0|141.6| -3%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| -7%| 16.0| 14.8|Spain | 39.4| 44.2| -11%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| 11%| 3.4| 3.8|Brazil | 10.8| 1.2|>100 %|
+----+-------------+-----------+----------------------------+-----+-----+------+
| -1%| 6.5| 6.4|Global Markets | 9.9| 14.5| -32%|
+----+-------------+-----------+----------------------------+-----+-----+------+
| | | |Cash flow | | | |
+----+-------------+-----------+----------------------------+-----+-----+------+
| | | |Net cash flow from operating| | | |
| -8%| 36.8| 33.8|activities | 89.8|107.7| -17%|
+----+-------------+-----------+----------------------------+-----+-----+------+
Invitation to the presentation of the Q3 2020 results
You are cordially invited to participate in the presentation of Adevinta ASA's
Q3 2020 report on Tuesday 27 October 2020.
Quarterly Earnings Release
When: 27 October 2020 at 07:00 CET
Report for the third quarter 2020, presentation materials, and spreadsheet with
key figures and analytical information will be made available on the investor
relations pages at https://www.adevinta.com/ir/.
(https://www.adevinta.com/ir/.)
Presentation of the Quarterly Results
When: 27 October 2020 at 08:30 CET
The company will conduct the presentation as a live audio webcast and conference
call, including a Q&A session. CEO Rolv Erik Ryssdal and CFO Uvashni Raman will
present. The whole management team of Adevinta will participate in the Q&A
session.
The webcast will be available on www.adevinta.com/ir and on this link:
https://bit.ly/3eaVBV4. Participants are also invited to ask questions using the
dial-in numbers below.
Dial-in details:
Norway: +47 21 56 33 18
UK: +44 20 3003 2666
USA: +1 212 999 6659
Password: adevinta
A recording of the presentation will be available on our website shortly after
the live webcast has ended.
Proportionate basis incl JVs For definition of EBITDA please see section
Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January
2019
-End-
Media contacts
Mélodie Laroche
Corporate Communications
T: +33 (0) 6 84 30 52 76
IR contact
Marie de Scobiac
Head of Investor Relations
(mailto:[email protected])Edelman Smithfield
About Adevinta
Adevinta is a global online classifieds specialist, operating digital
marketplaces in 15 countries. The company provides technology-based services to
connect buyers with sellers and to facilitate transactions, from job offers to
real estate, cars, consumer goods and more. Adevinta's portfolio spans 35
digital products and websites, attracting 1.5 billion average monthly visits.
Leading brands include top-ranked leboncoin in France, InfoJobs and Milanuncios
in Spain, and 50% of fast-growing OLX Brazil. Adevinta spun off from Schibsted
ASA and publicly listed in Oslo, Norway in 2019. Adevinta is majority owned by
Schibsted ASA and employs 4,700 people committed to supporting users and
customers daily. Find out more at Adevinta.com.