Adevinta ASA (ADE) - Adevinta reports strong Q3 financial performance in soft macro environment

• +14% year-on-year revenue growth in Core Markets, driven by continued outstanding performance at mobile.de
• Total consolidated revenues at €454m, up +12%¹ yoy
• Total consolidated EBITDA of €171m, up 29% yoy and reported EBITDA margin of 37.6%
• 2023 outlook and long-term ambition for Core Markets confirmed
• Concurrent announcement of a voluntary tender offer to acquire all issued and outstanding shares in Adevinta

Oslo, 21 November 2023 - Adevinta ASA (ADE) (“Adevinta'' or “the Company”) has accelerated the release of its Q3 2023 results, originally scheduled for 23 November, due to the concurrent announcement of a voluntary tender offer to acquire all issued and outstanding ordinary Class A shares in Adevinta by Aurelia Bidco Norway AS. For more information about the offer, please refer to the announcement made by Aurelia Bidco.

Adevinta reports its Q3 2023 results, which continue to show a strong performance, with 14% yoy revenue growth for its Core Markets. This was driven by outstanding performance of mobile.de, bolstered by continued solid results in other segments.

• Online classifieds revenues improved by 17%, supported by continued strong double-digit revenue growth in Mobility, mostly driven by mobile.de. Real Estate posted a double-digit growth during the period, driven by France and Kleinanzeigen. Jobs’ performance was flat year-on-year;
• Transactional revenues grew by 51% year-on-year, with strong revenue growth in all markets;
• Advertising revenues were down 6% year-on-year, as a result of an overall weaker advertising market.

Gross operating profit (reported EBITDA) amounted to 171 million euro, up 29% year-on-year, representing a 37.6% margin, up by more than 5 percentage points year-on-year. This was the result of (i) strong revenue growth in the period, (ii) lower marketing spend (down by more than 20% year-on-year) driven by different phasing, spend discipline and prioritisation across all markets, and (iii) a favourable spread of expenses in the period, with some catch-up expected in Q4 2023. Last year, performance was also impacted by the (6) million euro catch-up provision related to the French DST. This was partly offset by (i) higher personnel costs, driven by the continued scaled build-up of global capabilities, with the implementation of new operating models for support functions and Product and Technology teams, continued investment in product development and in sales and customer support operations to support future growth, and (ii) higher direct costs from transactional services, in line with the adoption of the service and revenue growth.

Antoine Jouteau, CEO Adevinta, comments: 

“We witnessed another positive set of results in the third quarter, with continued growth across our core business, despite a challenging market environment. This quarter has seen us continue to deliver against our business and strategic roadmap, which we have driven forward with ongoing business integration measures and operational verticalisation. This focused work by the talented teams across Adevinta has seen our revenues, EBITDA and margins improving substantially year on year. This puts us on an excellent footing to close out the year.”

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¹ Excluding Mexico and Hungary

Highlights of Q3 2023

Strong Q3 2023 results performance in a soft macro environment

Strong growth in Core Markets: +14% year-on-year, driven by continued outstanding performance at mobile.de

• 17% growth in Classifieds, with 24% growth in Mobility and 11% growth in Real Estate
• Consumer Goods transactional revenues up +51% yoy, with strong performance in all Core Markets
• Advertising revenues down 6% yoy

Total consolidated revenues at €454m,  up +12%¹ yoy

Total consolidated EBITDA of €171m, up 29% yoy 

Reported EBITDA margin of 37.6%, up 5pp yoy, benefitting from operating leverage, continued cost discipline and favourable phasing of expenses

Strong cash flow generation and further deleveraging

• Adjusted NCF from operating activities: €144m²
• Debt repayment of €94m in the quarter, prioritising floating debt
• Leverage Ratio³ of 2.7x

Further successful execution of our Growing at Scale strategy

Business integration on track, with further roll out of new operating models for support functions and synergy targets confirmed

Verticalisation⁴ of Adevinta’s operations ongoing:

• Organisational design approved by employee representatives
• Good progress on platform convergence with achievement of first key milestone

Continued focus on operational excellence

• Increased monetisation in key verticals
• Strong ramp-up of transactional services, driven by France, Kleinanzeigen and Italy
• Financial discipline

Outlook

2023 outlook confirmed

• Double digit Core Markets revenue growth 
• Reported EBITDA expected to be at the top end of the previously announced €620m to €650m range
• Further deleveraging expected, towards 2x net debt/EBITDA in the medium term

Long-term ambition for Core Markets confirmed

• 2023-2026 annual revenue growth between 11% and 15%
• 2026 EBITDA margin: 40-45%

Concurrent announcement of a voluntary tender offer to acquire all issued and outstanding shares in Adevinta⁵

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¹ Excluding Mexico and Hungary
² Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease payments
³ Senior Secured Net Leverage Ratio as of Q3 2023 based on the definition of the Facilities Agreement
⁴ Alignment of the organisational structure with the Group strategy, based on three key pillars: Mobility, Re-commerce and Real Estate & Emerging Verticals
⁵ For more information about the offer, please refer to the announcement made by Aurelia Bidco

Financial performance

Third quarter				Year-to-date
yoy    %	2022	2023	€ million	2023	2022	yoy    %
11%	408	454	Operating revenues	1,355	1,213	12%
29%	132	171	EBITDA	493	403	22%
	32.4%	37.6%	EBITDA margin	36.4%	33.2%
			Operating revenues per segment
12%	119	133	France	402	365	10%
26%	82	104	mobile.de	298	231	29%
9%	176	192	European Markets	577	522	10%
-25%	30	23	International Markets	69	88	-22%
-14%	3	2	Other and Headquarters	9	9	-4%
82%	-1	0	Eliminations	-1	-4	71%
			EBITDA per segment
13%	53	59	France	180	173	4%
41%	46	65	mobile.de	177	125	42%
15%	72	83	European Markets	240	212	13%
-23%	14	11	International Markets	34	37	-9%
11%	-53	-47	Other and Headquarters	-139	-145	4%
			JVs: OLX Brazil and Willhaben
6%	28	30	Proportionate share of revenues	86	78	9%
43%	6	8	Proportionate share of EBITDA	30	6	380%

Operating revenues by category

Third quarter				Year-to-date
yoy%1	2022	2023	€ million	2023	2022	yoy%1
15%	311	355	Online classifieds revenues	1,045	912	15%
51%	16	24	Transactional revenues	73	47	55%
-8%	79	73	Advertising revenues	228	246	-7%
23%	2	3	Other revenues	9	7	35%
12%	408	454	Operating revenues	1,355	1,213	13%

¹ Excluding Mexico and Hungary, and also excluding InfoJobs Brazil and Belarus for the year-to-date comparison

Presentation of the Q3 2023 Results

Quarterly Earnings Release
Time: 21 November 2023 at 17:30 CET

Report for the third quarter of 2023, 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.

Presentation of the Quarterly Results 
Time:  22 November 2023 at 08:30 CET

Due to the early release of Adevinta's Q3 2023 results, the company will hold its quarterly results presentation one day earlier than originally planned. The presentation will be held on 22 November 2023 at 8:30 CET as a live audio webcast and conference call. CEO Antoine Jouteau and CFO Elisabeth Peyraube will present. The presentation will not be followed by a Q&A session.

The webcast will be available on https://www.adevinta.com/ir and on this link: https://edge.media-server.com/mmc/p/97aoubu7. 

Dial-in details:
UK: +44 (0) 121 281 8004
USA: +1 718 705 87 96
France: +33 1 70 91 87 04
Other countries: +39 02 802 09 11

A recording of the presentation will be available on our website shortly after the live webcast has ended.

-end-

Contact information:

IR contacts
Marie de Scorbiac
VP Investor Relations & Corporate Affairs
+33 6 14 65 77 40

Anne-Sophie Jugean
Investor Relations Manager
+33 6 74 19 22 81
ir@adevinta.com

Media contacts
Vaishali Lakhanpal
Corporate Communications
vaishali.lakhanpal@adevinta.com
press@adevinta.com

John Kiely / Latika Shah, Edelman Smithfield
+44 7785 275 665 / +447950 671 948
adevinta@edelman.com

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About Adevinta 

Adevinta is a leading online classifieds group and champion for sustainable commerce with a focus on Europe. 

Our portfolio of 25+ digital marketplaces spans consumer goods, mobility, real estate, holiday rentals and jobs. Every month, our industry-leading technology enables more than 120 million people and over a million businesses across Europe to connect and trade. Loved local brands include leboncoin in France; mobile.de and Kleinanzeigen in Germany; Fotocasa and InfoJobs in Spain, Subito in Italy; Marktplaats in the Netherlands and the Canadian marketplace Kijiji. 

Our international team of diverse individuals are united in their purpose to make a positive impact on the environment, the economy and society every single day. 

To find out more, visit Adevinta.com. 

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This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• Adevinta Q3 2023 Quarterly report
• Adevinta Q3 2023 Results Presentation
• Q3 2023 Financials and analytical information

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