AI assistant
Adevinta — Earnings Release 2021
Feb 24, 2022
3520_rns_2022-02-24_23ee6968-cec1-4354-98af-28b3832ca8cc.html
Earnings Release
Open in viewerOpens in your device viewer
Adevinta ASA (ADE) - Adevinta reports solid financial performance in Q4 21 despite Motors headwinds
Adevinta ASA (ADE) - Adevinta reports solid financial performance in Q4 21 despite Motors headwinds
* Q4 2021 total consolidated revenues up 6%(1) yoy, despite Motors headwinds
* Q4 2021 underlying EBITDA(2) of EUR139m
* FY 2021 total consolidated revenues and EBITDA up 10% yoy
* Further progress in executing "Growing at Scale" strategy, confirming
synergy and mid-to-long term targets
* Announcement on CEO succession planning: Rolv Erik Ryssdal to retire as CEO
and leave the business by February 2023
Oslo, 24 February 2022 - Adevinta ASA (ADE) ("Adevinta" or "the Company")
reported revenues from continuing operations up 6%(1) in the fourth quarter
compared to the same period last year, demonstrating the resilience of our
marketplaces despite further supply pressure in the motors vertical:
* Online classifieds revenues improved by 7% year-on-year, supported by
double-digit revenue growth in Real Estate, Jobs and Consumer Goods. This
was partially offset by Motors revenue performance, which was flat year-on-
year. The volume impact was partly mitigated by successful price increases,
higher client penetration and product development with high added-value for
car dealers.
* Transactional revenues grew by 41%, with strong traction in France and
Italy.
* Advertising revenues remained flat year-on-year with mixed performance
across markets. Most markets were challenged by soft automotive display
advertising. eBay Kleinanzeigen posted strong revenue growth (up 20% year-
on-year), benefiting from increased performance in display.
Core Markets posted revenue growth of 7% in the quarter, despite the soft motors
market:
* Online classifieds revenue improved by 7%;
* Transactional revenues grew by 42%;
* Advertising revenues were up 3%.
Gross operating profit (EBITDA) from continuing operations decreased by 9%
compared to the fourth quarter of 2020, to EUR124 million. Revenue growth was
offset by an anticipated increase in marketing investment (up 31% year-on-year,
and back to pre-Covid levels in some markets), notably in Mobile.de, Spain,
Benelux and Italy, and in personnel costs due to higher charges related to share
based compensation (up c.EUR6m year-on-year) and to the ramp-up in product and
technology resources to fuel product innovation and new business models as
outlined in the segment information. Costs from transactional services also
increased as a result of higher transaction volumes, combined with promotional
campaigns to drive increased adoption.
Underlying EBITDA(2) from continuing operations was EUR139 million in the fourth
quarter, representing a 35% EBITDA margin.
Rolv Erik Ryssdal, CEO Adevinta, comments:
"We ended 2021 with a solid financial performance. During the fourth quarter our
marketplaces continued to deliver with accelerated growth in our core markets,
despite our exposure to the motors industry which is facing temporary headwinds.
We continued investment in building capacity and new competencies as we
strengthen our product offerings especially with new models, and in marketing to
increase visibility and drive further adoption of our products.
"Following our merger with eCG last summer, we have been working at pace to
bring the two companies together. In November we unveiled our five year "Growing
at Scale" strategy, with ambitious and credible targets to create value for the
Group and its stakeholders. We have now started to execute on our strategic
goals.
"We are progressing on our transformation into a more efficient integrated
organisation. The money and time we will save from working at scale will be
invested into our products and teams, adding value for our customers and
ensuring we sustain our strong market positions in an ever-changing competitive
landscape.
"The current headwind in the motor market is temporary, therefore heading into
2022, we will continue building on the recovery momentum and progressively
benefit from the motor market upside, as well as from further growth in other
verticals and new business models. We remain confident that we are best
positioned to capture the exciting long-term growth opportunities ahead."
Highlights of Q4 2021
Q4 2021 results performance
* Revenue growth: 6%(1) despite Motor headwinds
* Total consolidated revenues of EUR394m
(EUR411m including discontinued operations(3))
* Strong growth in Consumer Goods (+16%), Real Estate (+12%) and Jobs
(+28%)
* Strong acceleration of number of Consumer Goods transactions, especially
in France (+61%)
* Motors flat year-on-year with supply shortage impact offset by ARPD
growth
* Advertising revenue flat year-on-year with strong performance from eBay
Kleinanzeigen
* JVs(3) revenue up 32%, driven by OLX Brasil
* Underlying EBITDA(2) of EUR139m
* Total consolidated EBITDA of EUR124m (EUR127m including discontinued
operations(3))
* Increased marketing effort vs low 2020 levels
* Ramp-up of transactional and promotional campaigns
FY 2021 results performance
* Total consolidated revenues and EBITDA up 10% yoy
* Excluding motors, consolidated revenues up 12% yoy
* Underlying EBITDA(2) of EUR555m, representing a 37% EBITDA margin
Progress in strategic plan execution
* Portfolio optimization ongoing
* Reorganization initiated to drive Group-wide efficiencies
* Synergy target confirmed at EUR130m run rate EBITDA impact in year 3 and
c.EUR35m in FY 2022
Outlook
* Core Markets mid-to-long targets confirmed
* c. 15% average annual revenue growth
* 40-45% EBITDA margin
* FY 2022 expectations in a temporarily challenging market environment
* Low double-digit revenue growth in core markets
* Underlying EBITDA(2) in the range of EUR575m to EUR600m excluding
discontinued operations(3 )(EUR585-610m including discontinued
operations(3))
Key figures
+------------------+------------------------------+----------------+-----------+
| Combined(1) | | Combined(1) | IFRS |
| | | | |
| Fourth quarter | | Year | Year |
| | | | | | | | | |
| yoy% |2020 |2021 | EUR million |2021 |2020 |yoy%|2021 |2020 |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 5%| 375| 394|Operating revenues | 1521| 1382| 10%| 1139| 673|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -9%| 137| 124|EBITDA | 514| 467| 10%| 356| 182|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| |36.5%|31.6%|EBITDA margin |33.8%|33.8%| |31.3%|27.1%|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | | | | | | | |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |Operating revenues per segment| | | | | |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 8%| 110| 119|France | 453| 393| 15%| 453| 393|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -6%| 74| 69|Mobile.de | 283| 280| 1%| 141| -|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 12%| 154| 173|European Markets | 648| 567| 14%| 470| 250|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -5%| 33| 31|International Markets | 128| 120| 7%| 67| 8|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -100%| 4| |Disposals | 3| 19|-83%| 3| 19|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -10%| 3| 3|Other and Headquarters | 9| 9| 0%| 9| 9|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 59%| (3)| (1)|Eliminations | (4)| (5)| 15%| (4)| (5)|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |EBITDA per segment | | | | | |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 0%| 53| 53|France | 214| 191| 12%| 214| 191|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -21%| 47| 37|Mobile.de | 164| 168| -2%| 79| -|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 1%| 70| 71|European Markets | 266| 242| 10%| 171| 69|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -12%| 13| 11|International Markets | 47| 38| 23%| 21| (2)|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
|>100 %| (6)| |Disposals | (5)| (15)| 63%| (5)| (15)|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| -19%| (40)| (47)|Other and Headquarters |(171)|(157)| -8%|(122)| (61)|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | | | | | | | |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| | | |Non-consolidated JVs(2) | | | | | |
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 32%| 17| 23|Proportionate share of revenue| 83| 54| 54%| 83| 54|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
| 16%| 2| 2|Proportionate share of EBITDA | 10| 11| -6%| 10| 11|
+------+-----+-----+------------------------------+-----+-----+----+-----+-----+
(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.
(2) Grupo Zap results are included in the figures presented as from its
acquisition date (30 October 2020).
Operating revenues by category
+-----------------+---------------------------+-----------------+---------+
| Combined(1) | | Combined(1) | IFRS |
| | | | |
| Fourth quarter | | Year | Year |
| | | | | | | | | |
|yoy%(2)|2020|2021| EUR million |2021|2020|yoy%(2)|2021|2020|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 0%| 101| 99|Advertising revenues | 360| 340| 8%| 241| 118|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 7%| 260| 275|Online classifieds revenues|1094| 999| 11%| 839| 524|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 41%| 10| 14|Transactional revenues | 46| 25| 86%| 44| 22|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 38%| 5| 6|Other operating revenues | 21| 19| 11%| 15| 10|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 6%| 375| 394|Operating revenues |1521|1382| 11%|1139| 673|
+-------+----+----+---------------------------+----+----+-------+----+----+
(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.
(2) Excluding disposals (Morocco, Dominican Republic, Colombia, Chile, UK)
Announcement on CEO succession planning: Rolv Erik Ryssdal to retire as CEO and
leave the business by February 2023
Rolv Erik Ryssdal informed and agreed with the Board that he will retire as CEO
and leave the business by February 2023 when the Group will release its 2022
annual results. With him turning 60 this year, he believes that now is the right
time to start to plan his departure from the company.
Rolv Erik has been with the business since 1991, successfully leading the
spinoff of Adevinta from Schibsted and the acquisition of eBay Classifieds
Group. He will continue to execute on Adevinta's strategy as presented at the
Capital Markets Day and lead the integration of the eBay Classifieds business
through the separation from eBay.
The Board has commenced the process of identifying and appointing a new CEO and
intends to run an extensive search that will include both internal and external
candidates.
Presentation of the Q4 2021 results
Quarterly Earnings Release
Time: 24 February 2022 at 07:00 CET
Report for the fourth quarter 2021, presentation materials, and spreadsheet with
key figures and analytical information will be made 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: 24 February 2022 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 https://www.adevinta.com/ir
(https://www.adevinta.com/investors/financial-results-publications) and on this
link: https://edge.media-server.com/mmc/p/239an96d. 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: 4019977
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
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
T: +33 (0) 6 84 30 52 76
[email protected] (mailto:[email protected])
Anne-Sophie Jugean
Investor Relations Manager
[email protected] (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
--------------------------------------------------------------------------------
(1) Continuing operations, excluding disposals
(2) Consolidated EBITDA before share-based compensation impact (EUR(15)m in Q4
2021 vs. EUR(9)m in Q4 2020; EUR(41)m in FY2021 vs. EUR(35) in FY2020). This metric
will serve as key financial indicator from Q1 2022 onwards
(3) OLX Brasil and Willhaben