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Adevinta — Earnings Release 2020
Feb 11, 2021
3520_iss_2021-02-11_160f8b0f-3577-4298-8c81-9ce6b6326c1a.html
Earnings Release
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Adevinta reports solid performance despite a challenging environment in Q4
Adevinta reports solid performance despite a challenging environment in Q4
* Flat yoy total revenues(1) at EUR200m, with online classifieds revenues(1) up
4% yoy, benefiting from growing contribution from transactional revenues
* EBITDA margin(1) slightly decreasing yoy at 25.6% due to acceleration of
investments through Q4, in line with expectations
* Accelerated deployment of transactional solutions
* Further progress towards completion of the eBay Classifieds Group
acquisition
* Closing of Grupo Zap acquisition, start of integration phase
Oslo, 11 February 2021 - Adevinta ASA (ADE) ("Adevinta" or "the Company")
reported flat revenues(1) in Q4 2020 compared to Q4 2019, corresponding to a
1.4% increase excluding impacts of disposal, acquisitions and forex. This
demonstrates further sequential improvement in the performance despite the
challenging environment and increased Covid-19 restrictions in our key markets.
Online classifieds revenues increased 4% in Q4 2020 while display advertising
revenues decreased 6% year-on-year. Changes in the scope of consolidation
(disposals in Global Market and Grupo Zap acquisition) had a 1 point impact on
revenue growth and changes in exchange rate had a negative 2.4 point impact.
Gross operating profit (EBITDA) including JVs decreased 2% compared to Q4 2019.
As expected, the negative impact of Covid-19 in our main markets and the
accelerated investment in marketing and talent and the ramp-up of transactional
services led to a slight year-on-year contraction in EBITDA margin.
Rolv Erik Ryssdal, CEO, commented: "We ended the troubled year of 2020 with a
solid Q4 performance. Despite increased restrictions to curb Covid-19 in our key
markets, we maintained strong revenue levels, demonstrating the resilience of
our industry and the robustness of our best-in-class products and services.
"We continued to develop our teams and to invest in our products to provide more
efficient solutions for our customers and sustain our long-term growth. We
ramped up marketing investment to take advantage of the recovery and
opportunities we saw. This led to a sequential drop in EBITDA margin, though
remaining at a level comparable to the same period last year.
"We also progressed towards the acquisition of eBay Classifieds Group and
continue to prepare for a Q1 2021 closing, subject to further regulatory
approvals.
"Another key milestone for us was the closing of the Grupo Zap acquisition in
Brazil. We have started to integrate the business with OLX Brasil, with
synergies expected as early as 2021. In addition, the optimisation of our Global
Markets portfolio will allow for stronger focus and reduced complexity going
forward.
"We remain confident in our long term growth prospects as the adoption of online
classifieds tools and solutions continues to accelerate. We strive to deliver
the best digital experiences to our users and customers as we expand on the
online classifieds value chain."
Q4 2020 Highlights
Solid revenue performance despite increasingly challenging environment in Q4
* Flat yoy total revenues(1) at EUR200m
* Online classifieds revenues(1) up 4% yoy with growing contribution from
transactional revenues
* Display advertising revenues(1) down 6% yoy with mixed performance across
countries
Acceleration of investment through Q4, in line with expectations
* Ramp-up of marketing investment in line with market recovery
* EBITDA margin(1) slightly decreasing yoy at 25.6%
Strong focus on customer-centric innovation
* Accelerated deployment of transactional solutions
* Increasing machine learning applications to improve ad insertion process and
personalisation
Further progress towards completion of the eBay Classifieds Group acquisition
* Good progress on Integration planning and regulatory approval process
* Targeting closing in Q1, subject to regulatory approvals
Increased focus and reduced complexity following asset disposals in Global
Markets
Closing of Grupo Zap acquisition, start of integration phase
* Organisational and brand structure implemented
* Synergies expected as from 2021
Key financial numbers
Alternative performance measures (APM) used in this report are described and
presented in the Definitions and Reconciliations section at the end of the
report.
-------------+---------------------------------------+------------------+
Fourth |(EUR million) | |
quarter | | YTD |
| +-----+------+---------------------------------------+-----+-----+------+
|yoy% |2019 | 2020 | |2020 |2019 | yoy% |
+-----+-----+------+ +-----+-----+------+
| 0%|200.2| 200.2|Operating revenues incl. JVs |727.2|739.5| -2%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| -2%| 52.4| 51.3|EBITDA incl. JVs |193.5|206.1| -6%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| | 26%| 26%|EBITDA margin incl. JVs | 27%| 28%| |
+-----+-----+------+---------------------------------------+-----+-----+------+
| | | | | | | |
+-----+-----+------+---------------------------------------+-----+-----+------+
| | | |Operating revenues - segments | | | |
+-----+-----+------+---------------------------------------+-----+-----+------+
| 8%|101.5| 109.6|France |393.2|357.4| 10%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| -7%| 46.9| 43.4|Spain |164.7|182.0| -9%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| 6%| 23.2| 24.5|Brazil | 73.3| 86.0| -15%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| -6%| 42.0| 39.3|Global Markets |145.8|164.1| -11%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| | | |EBITDA - segments | | | |
+-----+-----+------+---------------------------------------+-----+-----+------+
| 6%| 49.7| 52.9|France |190.9|191.3| 0%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| -19%| 16.4| 13.3|Spain | 52.6| 60.5| -13%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| -56%| 4.8| 2.1|Brazil | 12.9| 6.0|>100 %|
+-----+-----+------+---------------------------------------+-----+-----+------+
|-210%| 1.2| (1.3)|Global Markets | 8.6| 15.7| -45%|
+-----+-----+------+---------------------------------------+-----+-----+------+
| | | |Cash flow | | | |
+-----+-----+------+---------------------------------------+-----+-----+------+
| -44%| 26.5| 14.9|Net cash flow from operating activities|104.7|134.1| -22%|
+-----+-----+------+---------------------------------------+-----+-----+------+
Invitation to the presentation of the Q4 2020 results
You are cordially invited to participate in the presentation of Adevinta ASA's
Q4 2020 report on Thursday 11 February 2021.
Quarterly Earnings Release
Time: 11 February 2021 at 07:00 CET
Report for the fourth quarter 2021, presentation materials, and spreadsheet with
key figures and analytical information are available on the investor relations
pages at https://www.adevinta.com/ir
Presentation of the Quarterly Results
Time: 11 February 2021 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
(http://www.adevinta.com/ir) and on this link: Q4 2020 Results Live Webcast
(https://channel.royalcast.com/adevinta-en/#!/adevinta-en/20210211_1).
Participants are also invited to ask questions using the dial-in numbers below.
Dial-in details:
Norway: +47 21 56 33 18
UK: +44 33 0551 0200
USA: +1 212 999 6659
France: +33 1 7037 7166
Password: adevinta q4
A recording of the presentation will be available on our website shortly after
the live webcast has ended.
-End-
Media contacts
Mélodie Laroche
Head of Corporate Communications
T: +33 (0) 6 84 30 52 76
IR contact
Marie de Scorbiac
Head of Investor Relations
[email protected] (mailto:[email protected])
Edelman Smithfield
About Adevinta
Adevinta is a global online classifieds specialist, operating digital
marketplaces in 12 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 (https://www.adevinta.com/).
--------------------------------------------------------------------------------
(1)Proportionate basis incl JVs
For definition of EBITDA please see section Definitions and reconciliations.
Adevinta implemented IFRS 16 from 1 January 2019.