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Adevinta — Earnings Release 2021
Nov 25, 2021
3520_rns_2021-11-25_29e39bb7-a551-49a9-adc8-8b96f160c5d1.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta reports solid Q3 21 performance; reveals focus on core markets for future growth
Adevinta ASA (ADE) - Adevinta reports solid Q3 21 performance; reveals focus on core markets for future growth
* Q321 total consolidated revenue up 6% yoy, excluding disposals, at EUR386m
* Q321 EBITDA of EUR127m and EBITDA margin of 33%
* Strong performance year-to-date with consolidated revenues up 12% and EBITDA
up 19%
* Portfolio strategy review:
* Investment focus on 5 Core Markets: Germany, France, Spain, Benelux and
Italy
* Divestment of Australia and South Africa
* Supportive of growth in JVs (OLX Brasil, Austria, Ireland)
* Other markets under strategic review
* Outlook:
* Core Markets' mid-to-long term targets: approx.15% average annual
revenue growth and 40-45% EBITDA margin
* Synergy target confirmed: EUR130m considering planned divestitures
Oslo, 25 November 2021 - Adevinta ASA (ADE) ("Adevinta" or "the Company")
reported revenues on a combined basis up 6% (excluding disposals) in the third
quarter compared to the same period last year, demonstrating the resilience of
our marketplaces. Despite the temporary supply pressure in our motors vertical,
all our Motors properties maintained their leading positions, and we
successfully implemented price increases associated with product improvement and
high added-value for car dealers. Online classifieds revenues improved by 6%
year-on-year (of which 1% is attributable to transactional services). Display
advertising revenues decreased by 3% year-on-year.
Gross operating profit (EBITDA) decreased by 7% compared to the third quarter of
2020. Revenue growth was offset by an anticipated increase in marketing
investment, notably in Spain and Italy, and in personnel costs due to the ramp-
up in product and technology resources to fuel product development and new
business models.
Rolv Erik Ryssdal, CEO Adevinta, comments:
"Following the completion of the eBay Classifieds Group acquisition, we have
refreshed our strategy and reviewed our portfolio of brands to focus and propel
Adevinta for the long term. Going forward, we will concentrate our investment
capacity on five Core Markets: Germany, France, Spain, Benelux and Italy, where
we remain very excited about the significant growth opportunities and our unique
positions to capture those.
"We expect our Core Markets to generate an average revenue growth per annum of
approximately 15% in the mid-to-long term, driving EBITDA margins between 40%
and 45%.
"In line with Adevinta's active portfolio management strategy, we have decided
to divest Australia and South Africa commencing in early 2022.
"Our revenues continued to grow in the third quarter, with Core Markets up 6%
year-on-year. The slower pace compared to the first half of the year reflects
the combination of the post-pandemic recovery seen in Q3 2020 and lower activity
levels this summer following the lifting of restrictions in most markets, as
well as the current global slowdown we observe in the motors market.
"We expect revenue growth to accelerate in Q4, excluding mobile.de.
"As we maintain our leading positions, we will continue to mitigate the effect
of the temporary supply shortage in the Motors vertical, with successful price
increases associated with new and improved products, and we expect to benefit
from recovery when the situation normalises.
"However, in 2022 this will impact our financial performance. We will also
continue to invest in marketing and product and technology in key geographies
after several quarters of cost saving initiatives in the Covid context, to drive
long-term growth. We look forward to outlining the opportunities and our plans
to capture those at our Capital Markets Day on 30 November."
Highlights of Q3 2021
CMD preview
* Portfolio strategy review:
* Investment focus on 5 Core Markets: Germany, France, Spain, Benelux and
Italy
* Divestment of Australia and South Africa
* Supportive of growth in JVs (Brazil, Austria, Ireland)
* Other markets under strategic review
* Synergy target confirmed: EUR130m considering planned divestitures
* Core Markets mid-to-long term targets:
* Approximately 15% average annual revenue growth
* 40-45% EBITDA margin
Strong performance year-to-date with consolidated revenues up 12% and EBITDA up
19%
Q3 revenue growth strength in Core Markets
* Total consolidated revenue excluding disposals up 6% yoy at EUR386m
* Strength in Core Markets classifieds (+8% yoy) despite supply pressure in
Motors
* Display advertising revenues down 3% yoy
* Expected revenue growth acceleration in Q4, excluding mobile.de
* OLX Brasil revenue up 116% yoy in local currency (+31% organic)
Accelerated investment in marketing and P&T to deliver mid-to-long-term growth
targets
* Top-line growth offset by investment, resulting in 33% EBITDA margin
* Anticipated increase in marketing investment (back to pre-covid levels) and
product development to drive growth acceleration in line with CMD targets
* Capacity build-up to prepare for TSA exits and ahead of synergy realisation
Core Markets revenue growth expected to be low double digit in 2022 due to
temporary supply shortage in Motors
Transaction between eBay and Permira complete
Key figures
| Combined1 | | Combined1 | IFRS |
| | | | |
| | | | Year to |
| Third quarter | | Year to date | date |
| | | | | | | | | |
|yoy% |2020 |2021 | EUR million |2021 |2020 |yoy%|2021 |2020 |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 4%| 371| 386|Operating revenues |1,176|1,046| 12%| 761| 491|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -7%| 136| 127|EBITDA | 395| 331| 19%| 232| 133|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| |36.7%|32.8%|EBITDA margin |33.6%|31.7%| |30.5%|27.1%|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | | | | | | | |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |Operating revenues per segment| | | | | |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 6%| 100| 106|France | 335| 284| 18%| 335| 284|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -3%| 73| 71|Mobile.de | 214| 206| 4%| 71| -|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 11%| 143| 158|European Markets | 476| 413| 15%| 298| 183|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -4%| 49| 47|International Markets | 146| 125| 16%| 51| 6|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
|-100%| 5| -|Disposals | 3| 15|-79%| 3| 15|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -36%| 1| 1|Other and Headquarters | 6| 6| 6%| 6| 6|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
|>100%| (1)| 2|Eliminations | (3)| (2)|-45%| (3)| (2)|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |EBITDA per segment | | | | | |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 3%| 50| 52|France | 161| 138| 17%| 161| 138|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -9%| 46| 41|Mobile.de | 126| 121| 5%| 41| -|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -4%| 67| 65|European Markets | 196| 172| 13%| 100| 52|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -22%| 14| 11|International Markets | 41| 26| 57%| 10| (1)|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 100%| (3)| (0)|Disposals | (5)| (9)| 40%| (5)| (9)|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -9%| (39)| (43)|Other and Headquarters |(123)|(117)| -5%| (75)| (47)|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | | | | | | | |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |Non-consolidated JVs | | | | | |
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 79%| 12| 22|Proportionate share of revenue| 60| 36| 64%| 60| 36|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 59%| 3| 5|Proportionate share of EBITDA | 8| 9|-11%| 8| 9|
+-----+-----+-----+------------------------------+-----+-----+----+-----+-----+
1 Combined: these figures reflect the results of Adevinta group as if the eBay
Classifieds Group (acquired on 25 June 2021) has been part of the group during
the full periods presented. These numbers are presented to facilitate
comparability and are unaudited.
Operating revenues by category
+--------------+ +------------------+----------+
| Combined1 | | Combined1 | IFRS |
| | | | |
| | | | Year to |
|Third quarter | | Year to date | date |
| | | | | | | | | |
|yoy%|2020|2021| EUR million |2021 |2020 | yoy% |2021|2020 |
+----+----+----+----------------------------+-----+-----+------+----+-----+
| -3%| 90| 88|Advertising revenues | 281| 257| 9%| 148| 82|
+----+----+----+----------------------------+-----+-----+------+----+-----+
| 6%| 276| 293|Classifieds revenues | 881| 775| 14%| 604| 401|
+----+----+----+----------------------------+-----+-----+------+----+-----+
| 36%| 7| 9| * - of which transactional| 33| 16|>100 %| 30| 14|
+----+----+----+----------------------------+-----+-----+------+----+-----+
| 21%| 5| 6|Other operating revenues | 15| 14| 1%| 9| 7|
+----+----+----+----------------------------+-----+-----+------+----+-----+
| 4%| 371| 386|Operating revenues |1,176|1,046| 12%| 761| 491|
+----+----+----+----------------------------+-----+-----+------+----+-----+
1 Combined: these figures reflect the results of Adevinta group as if the eBay
Classifieds Group (acquired on 25 June 2021) has been part of the group during
the full periods presented. These numbers are presented to facilitate
comparability and are unaudited.
Presentation of the Q3 2021 results
Time: 25 November 2021 at 14:00 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://edge.media-server.com/mmc/p/f92jn33b. Participants are also invited to
ask questions using the dial-in numbers below.
Dial-in details:
Norway: +47 23 96 0 264
UK: +44 (0) 207 192 8000
USA: +1 631 510 74 95
Confirmation code: 6538988
A recording of the presentation will be available on our website shortly after
the live webcast has ended.
Invitation to Adevinta Capital Markets Day 2021
Date: Tuesday, 30 November 2021
Time: 14:00 GMT
Participants are invited to join the webcast live by registering here
(https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID
\=10D4D535-B4E4-4507-9955-
D885DEDCD9F4&GroupID=Onyx&Referrer=https%3A%2F%2Fwww.google.com%2F).
For the Q&A, participants will have the possibility to send written questions
during the event, directly through the webcast platform. It will not be possible
to ask questions by phone.
The press release for the Capital Markets Day will be published on 30 November
2021 at 6:00 a.m. GMT on the Investor Relations pages at
https://www.adevinta.com/ir
(https://www.globenewswire.com/Tracker?data=ZSnNHR2qlQ1H2pTWTLRTsGuJ7j-
e2UzHI80w5zK9DtrSfxJV5bwP4f0dk5gGCV6SHbECylo6gCxZ3QwyWlQen-
8LICm69PYLUBZFpRN2JDI=).
-End-
Media contacts
Mélodie Laroche
Corporate Communications
T: +33 (0) 6 84 30 52 76
[email protected] (mailto:[email protected])
Edelman Smithfield
John Kiely / Latika Shah / Olivia Adebo
John Kiely/ Latika Shah/ Olivia Adebo
T: +44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7787 284 441
[email protected] (mailto:[email protected])
IR contact
Marie de Scorbiac
Head of Investor Relations
[email protected] (mailto:[email protected])
Anne-Sophie Jugean
Investor Relations Manager
(mailto:[email protected])About Adevinta
Adevinta is a leading online classifieds specialist, operating digital
marketplaces around the world. The company provides technology-based services to
connect buyers with sellers and to facilitate transactions, from real estate to
motors, and consumer goods.
Adevinta's portfolio spans more than 40 digital brands, covering one billion
people and attracting approximately three billion average monthly visits.
Leading brands include top-ranked leboncoin in France, Germany's leading
classifieds sites mobile.de and eBay Kleinanzeigen, Marktplaats in the
Netherlands, fotocasa and InfoJobs in Spain, and 50% of fast-growing OLX Brasil.
Adevinta employs around 7,500 people committed to supporting users and customers
daily. Find out more at Adevinta.com (https://www.adevinta.com/).
***
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act