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Adevinta — Regulatory Filings 2021
Nov 30, 2021
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Regulatory Filings
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Adevinta ASA (ADE) - Adevinta launches "Growing at Scale", its new strategic plan designed to accelerate its profitable growth
Adevinta ASA (ADE) - Adevinta launches "Growing at Scale", its new strategic plan designed to accelerate its profitable growth
London, 30 November 2021 - Adevinta ASA (ADE) ("Adevinta" or "the Company"), the
largest online classifieds player in the western world, will today hold a
Capital Markets Day for investors and analysts at 14:00 GMT.
The event is being held in London and will also be streamed live via webcast,
which can be found at: www.adevinta.com/investors/financial-events
(http://www.adevinta.com/investors/financial-events).
Chief Executive Officer, Rolv Erik Ryssdal, and Uvashni Raman, Chief Financial
Officer, along with other members of the Adevinta management team, will unveil
the Company's new strategy, "Growing at Scale" and will provide guidance on its
outlook and mid-long term targets.
The Growing at Scale strategy is underpinned by the following key priorities:
* Focusing the portfolio, by investing in and growing our five Core markets of
Germany, France, Spain, Benelux and Italy
* Concentrating on high-quality verticals: Motors and Real Estate, that
present a significant opportunity to increase monetization
* Becoming fully transactional in consumer goods, expanding into a growing and
profitable online commerce market; and
* Leveraging technology and transforming advertising to preserve revenue and
adapt to the evolving market.
Adevinta CEO Rolv Erik Ryssdal said:
"Our new strategy builds on our unparalleled scale, leadership positions and
technology to accelerate sustainable growth. We have created a clear set of
priorities that will allow Adevinta to benefit from emerging opportunities and
trends in consumer behaviour.
"We will prioritise investment for growth in our five Core markets of Germany,
France, Spain, Benelux and Italy, and expand on our leading sector positions in
Motors and Real Estate. We will also invest in product and development to stay
agile and evolve our business model to reflect changing demands, such as
becoming fully transactional in consumer goods. This will only be possible if we
continue to provide opportunities for our talented employees, whose dedication
and hard work is central to our past and future achievements.
"In line with our vision for sustainable growth, we have a clear purpose to make
a positive change in the world by engaging in actions that will help shape a
healthy planet and society, whilst delivering value for our stakeholders."
Focusing the portfolio, by investing in and growing our five Core markets of
Germany, France, Spain, Benelux and Italy.
As outlined in our recent Q3 update, Adevinta will focus investment on five core
European markets that present the most opportunity for growth. Building on
leading positions in Germany, France, Spain, Benelux and Italy will allow the
Company to grow at scale. This approach will reduce complexity and create unique
benefits to scale product and commercial solutions through cross-border
opportunities.
The Company will continue to be supportive of our JVs in Ireland, Austria and
OLX-Brasil which remain an important part of the portfolio. We have confirmed
the divestment of Australia and South Africa and other markets will be placed
under strategic review.
Concentrating on high-quality verticals, such as Motors and Real Estate, that
present a significant opportunity to increase monetization.
Adevinta has maintained its leading position despite the temporary supply
pressure within the Motors vertical. We have mitigated the impact of this with
successful price increases through new and improved products leaving the Company
well-placed to benefit from the recovery when the market normalises. Adevinta
plans to double its Motors revenues by 2026, building on its leading position in
the market. By focusing on improvements to the core business, and strengthening
transactional and digital capabilities, it will create a more seamless end-to-
end experience for both consumers and dealers.
In Real Estate, the focus will be on growing revenues and improving monetization
across core markets. The Company will focus on further verticalization and
expansion along the value chain, as well as exploring adjacent markets that can
provide value-added services.
Becoming fully transactional in consumer goods, expanding into a growing online
commerce market.
Adevinta will shift to a fully transactional model in its consumer goods
segment, driven by a rapidly expanding ecommerce market and an evolution in
consumer behaviour. This will unlock a new revenue stream and the Company
expects to achieve more than EUR400m in gross revenues from this new model by
2026 with good profit margins.
This will require short-term investment in product, technology and will be
supported by the launch of new value propositions aimed at reducing friction and
accelerating service adoption to create a more convenient, safe and engaging
user experience.
Leveraging technology and transforming advertising to preserve revenue and adapt
to the evolving market.
We are adapting to an increasingly dynamic advertising market by evolving our
advertising model. We will invest in 1st party products for small and medium
businesses (SMBs) and large advertisers and proprietary capabilities to reduce
reliance on 3rd party advertising.
The Company will develop a new comprehensive offering for SMBs, with a new
ecommerce platform providing simple functionality for businesses and customers.
Financial ambition
Underpinning Adevinta's new strategic priorities are a set of financial targets
for the medium to long term:
* Expected average annual revenue growth in Core Markets of approximately
15%, driven by growth in Motors and Real Estate verticals and strong ramp up
of transactional services in consumer goods, while we expect to preserve
advertising revenues.
* Targeted EBITDA margins of c.40-45%, driven by further operating leverage in
each revenue stream.
* Medium-term Net Debt / EBITDA target of 2x - 3x
* Expected EUR130m run rate EBITDA impact from synergies by year 2024, in line
with original target
Primary use of cash will be investing for growth and deleveraging the balance
sheet, with cash in excess to capture value accretive inorganic growth
opportunities or return cash to shareholders.
Sustainability
Adevinta will strengthen its sustainability impact centered around three key
areas of focus
* Lead the transition towards circular and responsible consumption
* Be a purpose-driven and inclusive marketplace for everyone - our communities
and our employees
* Embed ESG governance, data and fraud protection throughout the organization
In 2022, Adevinta plans to continue the expansion of its sustainability program
by further integrating ESG into the organization including the creation of a new
global ESG governance framework and the introduction of ESG-linked compensation
for management.
Join Adevinta Capital Markets Day 2021 live
Date: Tuesday, 30 November 2021
Time: 14:00 GMT
Click here to register: here
(https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID
\=10D4D535-B4E4-4507-9955-
D885DEDCD9F4&GroupID=Onyx&Referrer=https%3A%2F%2Fwww.google.com%2F).
For the Q&A, participants will have the possibility to send written questions
during the event, directly through the webcast platform. It will not be possible
to ask questions by phone.
Adevintra Capital Markets Day's presentation will be available at 13:00 GMT on
30 November 2021, on the Investor Relations pages
at www.adevinta.com/investors/adevinta-capital-markets-day-2021
(https://www.adevinta.com/investors/adevinta-capital-markets-day-2021).
-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
IR contact
Marie de Scorbiac
Head of Investor Relations
[email protected] (mailto:[email protected])
Anne-Sophie Jugean
Investor Relations Manager
+33 6 74 19 22 81
(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, Kijiji in Canada, fotocasa and InfoJobs in Spain, and 50% of fast-
growing OLX Brasil. Adevinta spun off from Schibsted ASA and publicly listed in
Oslo, Norway in 2019. 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