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Adevinta — Earnings Release 2021
May 5, 2021
3520_rns_2021-05-05_3c8a6129-2e22-460b-958c-1f2703d7b6a0.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta reports a solid start to the year, with strong financial performance in Q1
Adevinta ASA (ADE) - Adevinta reports a solid start to the year, with strong financial performance in Q1
* Total revenues(1) up 6% at EUR200m
* EBITDA(1) up 33% yoy to EUR57m
* Successful delivery of product roadmap
* Further progress ahead of the eBay Classifieds Group acquisition
Oslo, 5 May 2021 - Adevinta ASA (ADE) ("Adevinta" or "the Company") reported a
solid start to 2021 with revenues(1) up 6% compared to the same period last
year, or up 7% excluding impacts of disposal, acquisitions and forex,
demonstrating further performance improvement despite the challenging
environment.
Online classifieds revenues improved 8% (of which 5% is attributable to
transactional services) compared to Q1 2020, when the Group saw strong
performance until the Covid crisis started.
Display advertising revenues increased 2% year-on-year. Disposals in Global
Markets and the Grupo Zap acquisition had a 1-point positive impact on revenue
growth, whilst changes in exchange rate contributed negatively with 1.7 points.
Gross operating profit (EBITDA) including JVs increased 33% compared to Q1
2020. Revenue growth in the verticals, a lower level of one-off costs and
favorable phasing of marketing expenses offset the ramp-up in personnel costs
and transactional services.
Rolv Erik Ryssdal, CEO, commented: "As we continue to navigate through the
uncertainty of the Covid pandemic, our focus has remained on keeping our people
safe and on supporting our communities, users and customers.
"We had a solid start to 2021, with 7% organic revenue growth despite having to
deal with the next wave of the virus and associated lockdown measures in our key
markets.
"Revenue from our online classifieds accelerated in the quarter, with an
increased contribution from transactional services, primarily in France. Our
EBITDA margin, up 5.8 points year-on-year, reflected the performance of the
classifieds business and also benefited from lower administrative costs and
favorable phasing of expenses, with marketing campaigns being delayed until
later in the year.
"We saw further enhancement of our product offering and user experience as well
as strong acceleration in the deployment of transactional solutions across our
portfolio.
"We also made further progress on the regulatory front ahead of our expected
acquisition of eBay Classifieds Group, and we continue to target closing the
transaction during the second quarter.
"We remain excited about the long term growth potential of our business, and we
are approaching the short term uncertainty with even more confidence after a
full year of successful managing through the crisis."
Q1 2021 Highlights
Solid revenue performance despite challenging environment
* Total revenues(1) up 6% at EUR200m
* Organic growth(2) of 7% yoy
* Online classifieds revenues(1) up 8% yoy (of which 5% from transactional
services)
* Display advertising revenues(1) up 2% yoy
EBITDA(1) up 33% yoy to EUR57m
* Top line growth
* Lower administrative costs and one-off items
* Favorable phasing of marketing expenses
* Partially offset by increase in transactional costs due to the ramp-up of
the service
Successful delivery of product roadmap
* Additional features and reinforced safety in transactional solutions
* Further improvement to image recognition models available for all integrated
marketplaces
* Deployment of bundled products in multi-platform markets
Further progress ahead of the eBay Classifieds Group acquisition
* Good progress on operational integration planning
* Upfront buyer for Shpock identified - public consultation launched on April
27
* Closing expected in Q2 subject to regulatory approvals
Report on second-hand effect(3)
* 19.1 million tonnes of CO2 emissions potentially saved by our users
* Equivalent to yearly emissions of 2.1 million Europeans
Key financial numbers
Alternative performance measures (APM) used in this press release are described
and presented in the Definitions and Reconciliations section at the end of the
Q1 2021 interim report.
+------+---------------+-----------------------------------------+
| | First quarter | (EUR million) |
+------+-------+-------+-----------------------------------------+
| yoy% | 2020 | 2021 | |
+------+-------+-------+-----------------------------------------+
| 6% | 188 | 200 | Operating revenues incl. JVs |
+------+-------+-------+-----------------------------------------+
| 33% | 43 | 57 | EBITDA incl. JVs |
+------+-------+-------+-----------------------------------------+
| | 22.6% | 28.4% | EBITDA margin incl. JVs |
+------+-------+-------+-----------------------------------------+
| | | | |
+------+-------+-------+-----------------------------------------+
| | | | Operating revenues - segments |
+------+-------+-------+-----------------------------------------+
| 15% | 98 | 112 | France |
+------+-------+-------+-----------------------------------------+
| -6% | 46 | 44 | Spain |
+------+-------+-------+-----------------------------------------+
| 38% | 19 | 27 | Brazil |
+------+-------+-------+-----------------------------------------+
| -4% | 37 | 36 | Global Markets |
+------+-------+-------+-----------------------------------------+
| | | | EBITDA - segments |
+------+-------+-------+-----------------------------------------+
| 18% | 47 | 55 | France |
+------+-------+-------+-----------------------------------------+
| -6% | 14 | 13 | Spain |
+------+-------+-------+-----------------------------------------+
| 86% | 2 | 5 | Brazil |
+------+-------+-------+-----------------------------------------+
| 69% | 2 | 3 | Global Markets |
+------+-------+-------+-----------------------------------------+
| | | | Cash flow |
+------+-------+-------+-----------------------------------------+
| -10% | 42.8 | 38.7 | Net cash flow from operating activities |
+------+-------+-------+-----------------------------------------+
Invitation to the presentation of the Q1 2021 results
You are cordially invited to participate in the presentation of Adevinta ASA's
Q1 2021 results on Wednesday 5 May 2021.
Presentation of the Quarterly Results
Time: 5 May 2021 at 08:30 CEST
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
(http://www.adevinta.com/ir) and on this link: https://edge.media-
server.com/mmc/p/io3jwiq5. 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: 4375475
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
[email protected] (mailto:[email protected])
Edelman Smithfield
IR contact
Marie de Scobiac
Head of Investor Relations
[email protected] (mailto:[email protected])
Anne-Sophie Jugean
Investor Relations Manager
+33 6 74 19 22 81
[email protected] (mailto:[email protected])
About Adevinta
Adevinta is a global online classifieds specialist, operating digital
marketplaces in 11 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 includes more
than 30 digital products and websites, attracting 1.3 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 (http://www.adevinta.com).
***
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
--------------------------------------------------------------------------------
(1)Proportionate basis incl JVs - for definition of EBITDA please see section
Definitions and reconciliations in the Q1 2021 interim report
(2)Growth at constant foreign exchange rate and excluding M&A and disposals
(3)Based on 7 marketplaces in our portfolio