Adevinta — Earnings Release 2022

Aug 30, 2022

Adevinta ASA (ADE) - Adevinta reports strong Q2 2022 financial performance; confirms targets for Core Markets, FY 2022 and Synergies

Adevinta ASA (ADE) - Adevinta reports strong Q2 2022 financial performance; confirms targets for Core Markets, FY 2022 and Synergies

* New CEO, Antoine Jouteau, appointed 15 August 2022

* Core markets revenues up 10% year-on-year and Group EBITDA margin up 260

basis points vs. Q1 2022

* Portfolio optimisation progressing at pace, with exit process underway for

Mexico along with the sale of Australia and South Africa announced

* Continued delivery on strategy for growth businesses; FY 2022, mid to long

term and synergy targets confirmed

Oslo, 30 August 2022 - Adevinta ASA (ADE) ("Adevinta" or "the Company") reported

strong revenue growth of 8%(1) in the second quarter compared to the same period

last year. This can be attributed to strong recovery in Mobile.de and continued

solid performance in other core markets, with Adevinta's core markets posting a

combined 10% year-on-year revenue growth.

* Online classifieds revenues improved by 11% year-on-year, supported by

double-digit revenue growth in Jobs and Motors which benefited from

successful price increases, higher dealer penetration and competitive

product offerings. Real Estate saw high single digit growth during the

quarter.

* Transactional revenues grew by 28%, with strong traction in France, Germany

and Italy.

* Advertising revenues were down by 5% year-on-year as a result of an overall

weaker advertising market, especially in automotive display advertising.

Group consolidated EBITDA was EUR146 million in the second quarter of 2022

(representing a 34.9% EBITDA margin) and improved by 8% compared to the second

quarter of 2021. This was the result of the positive topline evolution, lower

marketing investment - due to significant marketing campaigns in the second

quarter of 2021 - and strict cost management.

It was partly offset by (i) an anticipated and controlled increase in personnel

costs related to the ramp-up in product and technology resources to fuel product

development and new business models as well as the build-up of global

capabilities ahead of eBay Transaction Services Agreement (TSA) exits and (ii)

higher external services costs related to the deliberate use of variable

workforce capacity to support the roll-out of new solutions and the ramp-up of

transactional services, whilst the business reviews and implements its new

operating models and processes, a key initiative to drive efficiencies and

appropriate resource allocation to key value drivers.

Direct costs from transactional services also increased in the quarter, in line

with the adoption of the service and revenue growth.

Antoine Jouteau, CEO Adevinta, comments:

"As we report on the quarterly performance of Adevinta I reflect on the results

for the first time as the Group CEO. I am very pleased with what our teams have

achieved despite the current tough macro environment and excited about the next

steps for the Group.

Revenue growth accelerated to 8% in the second quarter as a result of strong

recovery in Mobile.de and continued solid performance in other core markets.

Classifieds revenue grew 11% year-on-year, demonstrating the counter-cyclical

nature of online classifieds and the strength of our market positions and value

proposition. We continued to deliver in transactional services, our other

strategic pillar, with revenues growing 28% year-on-year, lapping a very strong

quarter last year. Declining advertising revenues reflected the current weaker

macro-economic environment, especially in non-core markets, and lower

advertising spend from OEM.

EBITDA margin rose to 34.9%, benefiting from top line growth, strict cost

management and lower-than expected share-based compensation costs. In the

current market environment we remain more than ever focused on optimising our

cost base whilst prudently investing in attracting and retaining talented teams

in key areas to deliver on our "Growing at Scale" plan and to further innovate

for the benefit of our clients and users.

Cash generation accelerated during the quarter, allowing us to further pay down

debt, in accordance with our financial policy and associated leverage targets.

We also crossed a significant milestone in the integration of eCG with the exit

of most TSAs and our portfolio optimisation is progressing at pace with the

announced agreements for the sale of Australia and South Africa.

In the few weeks following the announcement of my appointment as CEO I spent

time visiting teams in our key markets. I'm not only very excited about the many

opportunities that we have ahead of us, but am highly confident that we can

achieve great things and deliver on our strategy and associated financial

targets. As we navigate the current environment we will continue to deliver

growth while balancing and being disciplined on the longer term investment."

Highlights of Q2, 2022

Strong Q2 2022 results performance in a soft macro environment

Total revenue growth(1): +8% year-on-year

* Total consolidated revenues of EUR417m

Double digit growth in Classifieds (+11%), with strong performance in Jobs

(+24%) and Motors (+10%) and resilient Real Estate (+8%)

* Acceleration of number of transactions, especially in France and eBay

Kleinanzeigen (respectively up +20% and +139% in payouts)

* Advertising revenue down 5% year-on-year due to lower OEM spend and weaker

market environment

* Core markets revenue growth: +10% year-on-year (transactional services

revenues up 28%)

EBITDA margin of 34.9%, up 260 bps vs Q1 2022, benefiting from strict cost

management and lower-than-expected SBC expense

* Underlying EBITDA (consolidated EBITDA before share-based compensation

impact) of EUR153m

* Total consolidated EBITDA of EUR146m

Acceleration of cash generation

Deleveraging priority: debt repayment cash optimisation measures

Strategy: further execution of our Growing at scale plan

Businesses integration on track

Portfolio optimisation progressing at pace

* Exit process underway for Mexico

* Announced sale of Australia and South Africa

Continued delivery on strategy for growth businesses

* Increased monetisation of Motors and Real Estate verticals

* Continued rapid scaling and product launches of transactional services

Outlook: all targets confirmed

Core Markets mid to long term targets confirmed

* c. 15% average annual revenue growth

* 40-45% EBITDA margin

FY 2022 target confirmed

* Low double-digit revenue growth in core markets

* Underlying EBITDA in the range of EUR575m to EUR600m

Synergy targets confirmed

* Expected EUR130m run rate EBITDA impact from synergies by 2024

* More than 100% of targeted FY2022 run-rate synergies already executed at the

end of H1

Key figures

IFRS

Combined   Combined Year-to-

Second quarter Year-to-date date

------+-----+------ ------+-----+-----+-----+-----

yoy% |2021 |2022 EUR million 2022 |2021 |yoy% |2022 |2021

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

8%| 388| 417|Operating revenues | 804| 756| 6%| 804| 375

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

8%| 134| 146|EBITDA | 271| 264| 3%| 271| 106

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|34.6%|34.9%|EBITDA margin |33.7%|34.9%|  |33.7%|28.2%

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

8%| 141| 153|Underlying EBITDA | 289| 277| 4%| 289| 109

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|36.3%|36.6%|Underlying EBITDA margin |36.0%|36.7%|  |36.0%|29.2%

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |Operating revenues per segment|  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

8%| 117| 126|France | 246| 228| 8%| 246| 228

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

11%| 72| 80|Mobile.de | 149| 142| 4%| 149|

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

9%| 164| 178|European Markets | 347| 317| 9%| 347| 139

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-11%| 34| 30|International Markets | 58| 65| -10%| 58| 4

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-100%| 1|  |Disposals |  | 3|-100%|  | 3

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

18%| 3| 3|Other and Headquarters | 7| 5| 27%| 7| 5

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

48%| -3| -1|Eliminations | -2| -5| 52%| -2| -5

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |EBITDA per segment |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

21%| 54| 65|France | 120| 109| 10%| 120| 109

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-2%| 43| 43|Mobile.de | 79| 85| -7%| 79|

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

7%| 69| 73|European Markets | 140| 131| 7%| 140| 36

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-18%| 15| 12|International Markets | 23| 25| -8%| 23| -1

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-100%| -3|  |Disposals |  | -5|-100%|  | -5

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-11%| -43| -47|Other and Headquarters | -92| -81| -14%| -92| -32

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |  |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

|  |  |Non-consolidated JVs |  |  |  |  |

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

| | |Proportionate share of | | | | |

34%| 20| 27|revenues | 50| 38| 32%| 50| 38

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

-591%| 0| -2|Proportionate share of EBITDA | 1| 4| -84%| 1| 4

------+-----+-----+------------------------------+-----+-----+-----+-----+-----

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.

Operating revenues by category

Combined   Combined IFRS

| |

| Year-to- |

Second quarter Year-to-date | date |

------+----+----- -----+----+-----+----+-----+

yoy%*|2021|2022 EUR million 2022|2021|yoy%2|2022|2021

+-----+----+----+---------------------------+----+----+-----+----+-----+

| 11%| 282| 313|Online classifieds revenues| 601| 552| 9%| 601| 291|

+-----+----+----+---------------------------+----+----+-----+----+-----+

| 28%| 12| 16|Transactional revenues | 31| 24| 34%| 31| 21|

+-----+----+----+---------------------------+----+----+-----+----+-----+

| -5%| 92| 86|Advertising revenues | 167| 179| -6%| 167| 60|

+-----+----+----+---------------------------+----+----+-----+----+-----+

| 111%| 1| 2|Other revenues | 5| 2| 99%| 5| 2|

+-----+----+----+---------------------------+----+----+-----+----+-----+

| 8%| 388| 417|Operating revenues | 804| 756| 7%| 804| 375|

+-----+----+----+---------------------------+----+----+-----+----+-----+

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.

*Excluding disposals (Chile and Shpock), InfoJobs Brazil and Kufar.

(1) Combined continuing operations, excluding disposals (Chile), InfoJobs Brazil

and Kufar

Presentation of the Q2 2022 Results

Report for the second quarter of 2022, presentation materials, and spreadsheet

with key figures and analytical information are available on the investor

relations pages at https://www.adevinta.com/ir

(https://www.adevinta.com/investors/financial-results-publications).

Presentation of the Quarterly Results

Time: 30 August 2022 at 08:30 CEST

The company will conduct the presentation as a live audio webcast and conference

call, including a Q&A session. CEO Antoine Jouteau 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 https://www.adevinta.com/ir

(https://www.adevinta.com/investors/financial-results-publications) and on this

link: https://edge.media-server.com/mmc/p/geeo94ph. Participants are also

invited to ask questions using the dial-in numbers below.

Dial-in details:

Norway: +47 21 03 58 72

UK: +44 (0) 121 281 8004

USA: +1 718 705 87 96

Confirmation password: Adevinta2022Q2

A recording of the presentation will be available on our website shortly after

the live webcast has ended.

-End-

Media contacts

press@adevinta.com

(mailto:press@adevinta.com)

Edelman Smithfield

John Kiely/ Latika Shah/ Olivia Adebo

T: +44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7787 284 441

adevinta@edelman.com (mailto:adevinta@edelman.com)

IR contact

Marie de Scorbiac

Head of Investor Relations

T: +33 (0) 6 84 30 52 76

ir@adevinta.com (mailto:ir@adevinta.com)

Anne-Sophie Jugean

Investor Relations Manager

ir@adevinta.com

(mailto:ir@adevinta.com)About Adevinta

Adevinta is a leading online classifieds specialist, operating digital

marketplaces in 14 countries. 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, Subito in Italy, and 50% of fast-

growing OLX Brasil. Adevinta employs around 8,100 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