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Adevinta — Earnings Release 2022
Feb 23, 2023
3520_rns_2023-02-23_215aa9b9-3c5f-4f52-8448-3c6233cd6ced.html
Earnings Release
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Adevinta ASA (ADE) - Adevinta reports full year 2022 results with strong Q4 2022 performance in soft macroeconomic environment
Adevinta ASA (ADE) - Adevinta reports full year 2022 results with strong Q4 2022 performance in soft macroeconomic environment
* All full year 2022 targets achieved despite market headwinds
* Full year 2022 Core markets revenue growth of 10% and Group underlying
EBITDA(1) of EUR579m
* Successful execution of strategy in 2022, with portfolio optimisation review
completed, business integration on track and strong focus on operational
excellence
* Further strong core markets revenue growth in Q4 2022: +13% year-on-year
* Q4 2022 EBITDA margin of 33.6%, up 2pp year-on-year, despite French DST
impact and business mix evolution
* EUR1.7bn impairment loss, essentially goodwill adjustment due to macro-driven
changes in WACC assumptions
* 2023 outlook: low double digit Core Markets revenue growth; reported EBITDA
in the range of EUR620m to EUR650m
* Long-Term ambition for Core markets: 2023-2026 annual revenue growth between
11% and 15%; 2026 EBITDA margin between 40% and 45%
* Announcement of CFO transition: Uvashni Raman to leave the business during
the course of 2023
Oslo, 23 February 2023 - Adevinta ASA (ADE) ("Adevinta" or "the Company")
reported a strong 2022 financial performance despite market headwinds and
delivered on all its financial targets. Revenue growth was 10% for Core markets,
and total revenues were up 8% year-on-year (yoy) at 1,644 million euros. Group
underlying EBITDA(1) reached 579 million euros, in line with the full year
guidance, despite the negative impact of the French Digital Service Tax. The
cash flow generation generation(2) of the period was really strong, at 437
millions euros.
For the fourth quarter of 2022 Adevinta reported Core Markets revenues of 393
million euros, representing a strong 13% growth, accelerating quarter after
quarter despite the continued supply softness in the Mobility segment and the
weaker market environment:
* Online classifieds revenues improved by 15%, supported by double-digit
revenue growth in Mobility which benefited from successful price increases
implemented during the year, the recovery of dealer listings at Mobile.de,
driven by lower demand, and high value added product development both for
users and car dealers. Real Estate performance remained steady, with high
single digit growth in the period. Jobs continued to perform strongly,
despite lapping tougher comps in Spain;
* Transactional revenues grew by 60% year-on-year, with strong revenue growth
in all Core markets;
* Advertising revenues were down 5% year-on-year, as a result of an overall
weaker advertising market, especially in automotive display advertising.
Gross operating profit (reported EBITDA) amounted to 145 million euros, up 16%
year-on-year, representing a 33.6% margin.
This was the result of (i) the positive topline evolution, (ii) lower marketing
investment, driven by different phasing, spend discipline and prioritisation,
(iii) cost management in the current market context, and (iv) a lower impact
from share-based compensation.
This was partly offset by (i) the continued scaled build-up of global
capabilities with the implementation of new operating models for support
functions and Product and Technology teams, and to accelerate new business model
development and value creation, (ii) higher direct costs from transactional
services, in line with the adoption of the service and revenue growth, and (iii)
the (3) million euro provision booked related to the French DST.
Excluding the impact from the French digital services tax legislation (DST),
EBITDA improved by 18%, to 147 million euros compared to the fourth quarter of
2021, representing a 34.2% margin.
Antoine Jouteau, CEO Adevinta: "2022 was a pivotal year for Adevinta as we
achieved all our financial goals for 2022, despite a challenging environment.
After completing the acquisition of eCG in 2021, we focused on executing a
successful integration of the business and advancing our Growing at Scale
strategy. We announced a new leadership team and structure with responsibilities
aligned to deliver on our strategy, and completed our integration roadmap with
the implementation of new operating models for our global functions. We
successfully developed and launched new features and products for the benefit of
our users and clients, while maintaining our commitment to financial
discipline."
Highlights of Q4 2022
All FY 2022 targets achieved despite market headwinds
Core markets revenue growth of 10% and total revenues up 8% yoy at EUR1,644m
Underlying EBITDA(1) of EUR579m, including the EUR(12)m impact of the French DST,
reported EBITDA of EUR548m at 33.3% margin
More than EUR35m of run-rate synergies delivered
Strong cash flow generation(2) of EUR437m and continuous debt reduction throughout
the year
Successful execution of our Growing at Scale strategy
2022 portfolio optimisation review completed, with launch of sale process for
Hungary
Business integration on track, with main milestones implemented in 2022: major
systems rollouts, exit of TSAs, new operating models in support functions?
Strong focus on operational excellence, with:
* Increased monetisation of Mobility and Real Estate verticals, along with
product improvements and increased added-value for customers
* Continued rapid scaling and product launches, eg in transactional services
* Strong financial discipline
Strong Q4 2022 results performance in a soft macro environment
Further strong core markets revenue growth : +13% year-on-year, driven by
outstanding performance at Mobile.de
* Steady double digit growth in Classifieds (+15%), with strong performance in
Mobility (+19%) and Real Estate (+9%) while Jobs remained dynamic (+5%),
* Consumer Goods transaction revenues growth up +60% yoy, with strong revenue
growth in all Core markets
* Advertising revenues down 5% yoy
* Total revenue up 9% yoy, at EUR431m
Reported EBITDA margin of 33.6%, up 2pp yoy, despite French DST impact and
business mix evolution - Total consolidated EBITDA of EUR145m
EUR1.7bn impairment loss to the book value of eCG assets and Hungary, reflecting:
* Global increases in WACC driven by increase in interest and risk free rates
* High share-price driven book value at closing of eCG transaction (+48% vs
signing price)
* More conservative expected growth trajectory in Canada and Hungary
* Offset by better mid-long term business outlook for German assets
Outlook
2023 outlook
* Low double digit Core Markets revenue growth
* Reported EBITDA in the range of EUR620m to EUR650m, reflecting year-on-year
improvement in EBITDA margin despite mix evolution
* Leverage reduced to below 3x net debt/EBITDA by year end
Long-Term ambition for Core markets
* 2023-2026 annual revenue growth between 11% and 15%
* 2026 EBITDA margin: 40-45%
Financial performance
+----------------+-------------------------------+-----------------+-----------+
| | | Combined(1) | IFRS |
+----------------+-------------------------------+-----------------+-----------+
| Fourth quarter | | Year | Year |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
|yoy%|2021 |2022 | EUR million |2022 |2021 |yoy% |2022 |2021 |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 9%| 394| 431|Operating revenues |1,644|1,521| 8%|1,644|1,139|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 16%| 124| 145|EBITDA | 548| 514| 7%| 548| 356|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| |31.6%|33.6%|EBITDA margin |33.3%|33.8%| |33.3%|31.3%|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 7%| 139| 149|Underlying EBITDA | 579| 555| 4%| 579| 387|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| |35.3%|34.6%|Underlying EBITDA margin |35.2%|36.5%| |35.2%|34.0%|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | | | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | |Operating revenues per segment | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 9%| 119| 129|France | 494| 453| 9%| 494| 453|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 24%| 69| 86|Mobile.de | 317| 283| 12%| 317| 141|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 8%| 173| 186|European Markets | 708| 648| 9%| 708| 470|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
|-18%| 31| 26|International Markets | 114| 128| -11%| 114| 67|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 0%| 0| |Disposals | | 3|-100%| | 3|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 83%| 3| 6|Other and Headquarters | 15| 9| 70%| 15| 9|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
|-24%| -1| -1|Eliminations | -5| -4| -22%| -5| -4|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | | | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | |EBITDA per segment | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 3%| 53| 54|France | 227| 214| 6%| 227| 214|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 34%| 37| 50|Mobile.de | 175| 164| 7%| 175| 79|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 8%| 71| 77|European Markets | 289| 266| 8%| 289| 171|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 4%| 11| 12|International Markets | 49| 47| 5%| 49| 21|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 0%| 0| |Disposals | | -5|-100%| | -5|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 0%| -47| -47|Other and Headquarters | -192| -171| -13%| -192| -122|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | | | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| | | |Non-consolidated JVs | | | | | |
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 24%| 23| 28|Proportionate share of revenues| 107| 83| 29%| 107| 83|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
| 98%| 2| 4|Proportionate share of EBITDA | 10| 10| -2%| 10| 10|
+----+-----+-----+-------------------------------+-----+-----+-----+-----+-----+
(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.
Operating revenues by category
+-----------------+---------------------------+-----------------+---------+
| | | Combined(1) | IFRS |
+-----------------+---------------------------+-----------------+---------+
| Fourth quarter | | Year | Year |
+-------+----+----+---------------------------+----+----+-------+----+----+
|yoy%(2)|2021|2022|EUR million |2022|2021|yoy%(2)|2022|2021|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 14%| 279| 314|Online classifieds revenues|1226|1109| 11%|1226| 849|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 58%| 14| 21|Transactional revenues | 69| 46| 50%| 69| 44|
+-------+----+----+---------------------------+----+----+-------+----+----+
| -8%| 99| 91|Advertising revenues | 337| 359| -5%| 337| 240|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 132%| 2| 5|Other revenues | 12| 6| 87%| 12| 6|
+-------+----+----+---------------------------+----+----+-------+----+----+
| 11%| 394| 431|Operating revenues |1644|1521| 9%|1644|1139|
+-------+----+----+---------------------------+----+----+-------+----+----+
(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.
(2) Excluding disposals (Chile and Shpock), InfoJobs Brazil, Kufar and Mexico.
Announcement of CFO transition: Uvashni Raman to leave the business during the
course of 2023
Uvashni Raman, Adevinta's CFO since April 2019, has decided to step down in
autumn 2023 and a global search for a replacement has been initiated.
Says Uvashni Raman, CFO Adevinta: "I feel privileged to have been part of the
journey to create Adevinta as an independent organisation, its IPO in 2019 and
impressive growth since. We have built a strong finance organisation and am
proud of our many achievements, including the acquisition and integration of
eBay Classifieds Group."
"Uvashni has been a key member of our executive team and a valuable contributor
to the continued growth of Adevinta," added Antoine Jouteau, CEO Adevinta. "On
behalf of everyone at Adevinta I would like to thank Uvashni for her
contribution and wish her every success in the future".
Presentation of the Quarterly Results
Time: 23 February 2023 at 08:30 CET
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/msgdxro9. Participants are also
invited to ask questions using the dial-in numbers below.
Dial-in details:
UK: +44 (0) 121 281 8004
USA: +1 718 705 87 96
Norway/Sweden: +46 850 51 00 30
France: +33 1 70 91 87 04
Confirmation password: Adevinta2022Q4
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 in 11 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 25 digital brands, covering one billion
people and attracting approximately 2.5 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, including 3,000 (approx) working in
product and technology teams, 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) Consolidated EBITDA before share-based compensation impact
(2) Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease
payments