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Adevinta — Earnings Release 2020
Jul 16, 2020
3520_rns_2020-07-16_142bf6e9-4a9a-4145-b1b4-3196d2d48a67.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta reports resilient performance in Q2
Adevinta ASA (ADE) - Adevinta reports resilient performance in Q2
* Operational KPIs improving in all segments throughout Q2
* Total revenues(1) down 16% but performance improving month by month
* Strong EBITDA(1) performance
* Strong financial position securing ability to invest organically and
externally
* Leverage ratio at 0.6x at end of June
* Continued investment in product & technology
Oslo, 16 July 2020 - Adevinta ASA (ADE) ("Adevinta" or the Company"), completed
its second quarter of 2020, ended 30 June, reporting a resilient performance
across its business, particularly in France. The company saw a revenue decline
of 16% in the quarter, compared to Q2 2019 (or -20% excluding l'Argus) due to
the significant impact of Covid-19 in all markets.
After a decline in April, revenue trends improved month by month in all segments
and France returned to positive year-on-year organic growth in June. Classifieds
revenues were down 15% yoy, while display advertising revenues were down 32%.
The acquisition of l'Argus added 3.9 points to total revenue growth, and
exchange rate movements had a negative 1.5-point impact.
Gross operating profit (EBITDA) has been resilient in the quarter, decreasing by
15% yoy. Decisive action taken by management to pursue cost cutting initiatives
across the group has partially offset the impact of Covid-19. In addition, there
was continued investment in product & technology (at central and business
levels) to drive future growth and operational efficiency. Net cash flow from
operating activities was EUR56.0m for the first half of 2020, compared to EUR70.8m
for the same period in 2019. At the end of June 2020, the Group benefited from a
strong financial position with a leverage ratio of 0.6 times net interest-
bearing debt over EBITDA.
As the acceleration in consumer behaviour trends makes online marketplaces
increasingly relevant, Adevinta intends to continue creating value by focusing
on and expanding in markets where it enjoys leading positions, as well as by
exploring external growth opportunities with strong financial discipline.
Rolv Erik Ryssdal, CEO, commented:
"In recent months, Covid-19 has upended the daily lives of citizens and
economies across the world. As anticipated, our Q2 performance was impacted
negatively. Nonetheless, we have seen strong improvements throughout the quarter
in all segments. We are now back to pre-covid levels and above last year's level
in terms of traffic and leads in most markets. We have even reached record high
traffic in some countries like France and Austria. Our financial performance has
recovered faster than expected, especially in France where we posted positive
organic growth in June.
"We successfully implemented cost saving initiatives, which has allowed us to
mitigate to some extent the impact, while we continued to invest in product and
technology to support future growth.
"Consumer behaviour is changing at an accelerated pace. The demand for more
convenience and transparency, as well as the shift toward more sustainable
consumption, has amplified the role of trusted online marketplaces. As a leading
player in our market and a highly trusted business partner, we have helped our
clients to restart their activities. This puts us in an even better position for
the years to come.
"Looking ahead, we expect our recovery to continue, with positive growth in
France and further improvements in other countries in the second half of the
year. While the macro environment may be uncertain in the near term, we are
excited about the long-term opportunities in our markets and remain confident
about our long-term sustainable growth profile."
Q2 2020 Highlights
Stronger-than-expected recovery, especially in France
* Operational KPIs improving in all segments
throughout Q2
* Total revenues down 16% but performance improving month by month
* Online classifieds revenues decreased 12%
* Display advertising revenues decreased 32%
* France back to positive organic growth in June
Strong EBITDA(2) performance despite significant drop in revenues and sustained
investment in P&T
* Margin flat yoy
* Expected dilutive impact of acquisitions and of corporate functions set up
* Sustained investment in P&T
* Successful cost saving initiatives
Product & technology achievements
* Deployment of end-to-end transactional solution in various markets
* Increasing use of machine learning
Strong financial position securing ability to invest organically and externally
* Leverage ratio of 0.6x at end of June
* Cash & cash equivalent at EUR308m
* Undrawn EUR400m RCF
Acceleration of favorable consumer behaviour
* Sustainable ways of consuming
* Digitisation
* Convenient digital experience
* Trust and transparency
* Efficient professional tools
Further progress in the preparation for the acquisition of Grupo Za
Key financial numbers
-------------+---------------------------------------+----------------+
Second |(EUR million) | |
quarter | | YTD |
| +-----+------+---------------------------------------+-----+-----+----+
|yoy%|2019 | 2020 | |2020 |2019 |yoy%|
+----+-----+------+ +-----+-----+----+
|-16%|184.6| 155.8|Operating revenues incl. JVs |343.8|359.0| -4%|
+----+-----+------+---------------------------------------+-----+-----+----+
|-15%| 49.9| 42.5|EBITDA incl. JVs | 85.0| 99.6|-15%|
+----+-----+------+---------------------------------------+-----+-----+----+
| | 27%| 27%|EBITDA margin incl. JVs | 25%| 28%| |
+----+-----+------+---------------------------------------+-----+-----+----+
| | | | | | | |
+----+-----+------+---------------------------------------+-----+-----+----+
| | | |EBITDA - segments | | | |
+----+-----+------+---------------------------------------+-----+-----+----+
| | | |Cash flow | | | |
+----+-----+------+---------------------------------------+-----+-----+----+
|-33%| 19.8| 13.3|Net cash flow from operating activities| 56.0| 70.8|-21%|
+----+-----+------+---------------------------------------+-----+-----+----+
Invitation to the presentation of the Q2 2020 results
You are cordially invited to participate in the presentation of Adevinta ASA's
Q2 2020 report on Thursday, 16 July 2020.
Quarterly Earnings Release
When: 16 July 2020 at 07:00 CEST
Report for the first half and second 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/.
Presentation of the Quarterly Results
When: 16 July 2020 at 08:30 CESTThe 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
(https://www.globenewswire.com/Tracker?data=3_BNC1a4C7wb3vtO-zO-
60UoE2LcnbYd3RmQqQ9COvc2sRraGLS-
h8YndU8zkoOZPCP0vs6XMhTFoGbiaEqAOnUkxnBLNT35lxp9yuz7vgc=) and on this link:
https://bit.ly/3eaVBV4
(https://www.globenewswire.com/Tracker?data=gErMScTY32Lv8Q2NJzplZWlsakrDpGLZPKDb
9Cu-XDfNYKEiDFa-0pMMhv_ebdTKtXF-FV9ssMsmuqvEmTD9uoMZRVdEDqmnQSofMf6-ruk=).
Participants are also invited to ask questions using the dial-in numbers below.
Dial-in details:
Norway: +47 2100 2610
UK: +44 (0)330 336 9126
USA: +1 720-543-0206
Confirmation code: 8319729
A recording of the presentation will be available on our website shortly after
the live webcast has ended.
-End-
Media contacts
Mélodie Laroche
Corporate Communications
T: +33 (0) 6 84 30 52 76
Marie de Scobiac
Head of Investor Relations
[email protected] (mailto:[email protected])
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 (https://www.adevinta.com/).
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(1) Proportionate basis incl JVs. For definition of EBITDA please see section
Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January
(2) Proportionate basis incl JVs. For definition of EBITDA please see section
Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January
2019.