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Adevinta — Earnings Release 2020
May 5, 2020
3520_rns_2020-05-05_41dfc108-71c5-4a7f-88d4-c052952ca670.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta announces its first quarter 2020 results
Adevinta ASA (ADE) - Adevinta announces its first quarter 2020 results
Adevinta announces its first quarter 2020 results
* Total revenues(1 )up 8% to EUR188 million
* Online classifieds revenue grew 13%
* Display advertising revenues decreased 5%
* EBITDA(1) margin down 5.9pts yoy
* Traffic impacted in the first weeks of lockdown but already shows good
recovery
* Strong liquidity position to continue to invest for the LT
Oslo, 5 May 2020 - Adevinta ASA (ADE) completed the first quarter with a revenue
increase of 8% compared to Q1 2019 (or 2% excluding l'Argus) strongly impacted
by Covid-19 in March in all markets. The revenue growth rate was nevertheless
driven by the solid performance in classifieds in France and Spain at the
beginning of the year, as well as contributions from acquisitions, specifically
L'Argus. Brazil revenues were up 8% year-on-year in local currency but
negatively affected by foreign exchange variation. Classifieds revenue grew 13%
(or 7% excluding l'Argus), while advertising revenue decreased by 5% (positive
trend in January and February accumulated compared to the prior year was offset
by strong drop in March).
Gross operating profit (EBITDA) decreased by 14% yoy due to investments in
product & technology (at central and business levels), set up of central
functions and corporate post IPO (in line with previously communicated
expectations), and impact of Covid-19 in our main markets.
Rolv Erik Ryssdal, CEO, commented:
"Heading into 2020, no one could have anticipated the global disruption we are
facing now due to Covid-19 pandemic. Our top priorities have been to ensure that
our sites are fully operational, work proactively with our customers, and of
course to ensure the health and safety of our employees.
"We started the year with strong positive momentum. The classifieds revenues in
our big European countries performed well as a result of our strong brands and
the products we continuously develop for our professional customers. We saw a
more positive development in display advertisement, particularly in France where
we switched adserver during February. We were pleased to announce the
acquisition of ZAP-VivaReal in Brazil, in line with our strategy of
strengthening our position in our most important markets. We believe the
combination of OLX and ZAP-VivaReal will be in a position to provide excellent
products and services to buyers and sellers of real estate in Brazil.
"The Covid-19 pandemic changed the business environment dramatically in all our
markets in March. Traffic went down as much as 40-50% in some countries. As a
result, our revenues showed limited growth in the first quarter, and EBITDA
margin was down 590 basis points year on year.
"Looking ahead, we have limited visibility on how quickly the economic
conditions in our markets will recover, but we are optimistic about our own
opportunities. In April, we are seeing a significant improvement in key
performance indicators across the board. We are closely following new consumer
trends and user behaviours which will emerge, and already planning how we can
adapt and benefit from these. We continue to invest in developing products and
technology at full speed to further improve our offerings for our users and
customers. I am confident that we can continue to expand our strong market
positions and also seize new opportunities as they arise."
______________________
1 - Proportionate basis incl JVs For definition of EBITDA please see section
Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January
2019
Q1 2020 Highlights
Total Revenues(1) up 8% to EUR188 million (+10% at constant currency)
? Solid start to the year
? March performance significantly affected by COVID-19 situation
Online classifieds revenue grew 13%
? France up 24% (or 11% excl. l'Argus)
? Spain up 8%
Display advertising revenues decreased 5%
? Positive trend in Spain and France in Jan & Feb
? Italy significantly impacted
EBITDA(1) margin down 5.9pts yoy
? Revenue drop in March in main operations due to COVID-19
? Dilutive impact of acquisitions in France
? Sustained investment in product development (at central and business level)
Product & technology achievements
? Improvement of user experience and engagement with rollout additional smart
features
? Deployment of more efficient professional tools
? Strong focus on P2P transactions
Strong liquidity position to continue to invest for the LT
? EUR489m available liquidity at the end of March
? Further EUR225m term loan facilities raised in April to support Grupo ZAP
acquisition
Key financial numbers
+------+---------------+-----------------------------------------+-----------+
| | First quarter | | Full Year |
+------+-------+-------+-----------------------------------------+-----------+
| yoy% | 2019 | 2020 | (EUR million) | 2019 |
+------+-------+-------+-----------------------------------------+-----------+
| 8% | 174.4 | 188.0 | Operating revenues incl. JVs | 739.5 |
+------+-------+-------+-----------------------------------------+-----------+
| -14% | 49.7 | 42.6 | EBITDA incl. JVs | 206.1 |
+------+-------+-------+-----------------------------------------+-----------+
| | 29% | 23% | EBITDA margin incl. JVs | 28% |
+------+-------+-------+-----------------------------------------+-----------+
| | | | Cash flow | |
+------+-------+-------+-----------------------------------------+-----------+
| -16% | 51.0 | 42.8 | Net cash flow from operating activities | 134.1 |
+------+-------+-------+-----------------------------------------+-----------+
You are cordially invited to participate in the presentation of Adevinta ASA's
Q1 2020 presentation today at 08:30 A.M. CEST. Due to the ongoing Covid-19
pandemic, Adevinta is taking a range of measures to prevent the spread of the
virus and safeguard the health and security of our employees, customers and
other stakeholders. Hence, the company is conducting 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=A06YCAr8QEdjQlNSODiFMoTn1HLkEkjNxMSM
1fn8Ig625gSAbWMBBACbtG34NJqCBUvs85iSODLnv-u1wbe46IJa-Gw9AMRKRGZvzXFF26E=) and on
this link: https://bit.ly/2ySh9Xm
(https://www.globenewswire.com/Tracker?data=Cu0eoJaJYoSjHO7e_bZkXAllqhsB8QhVB3jt
rLBj0pM-63b3QW_Z1bwXe1cEyXKUVkJY3gzwV-8PYiqM9aE0r4ztJZVo-7m22lB6ER0L_Lo=).
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: +1 720-543-0197
Confirmation code: 7675077
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 company with generalist, real estate,
cars, jobs and other internet marketplaces in 16 countries, connecting buyers
seeking goods or services with a large base of sellers. Its portfolio spans 36
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 was spun off from
Schibsted ASA and publicly listed as an independent company in Oslo, Norway in
2019. The Adevinta is majority owned by Schibsted ASA.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act