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

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  • 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 €146 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 growth1: +8% year-on-year

  • Total consolidated revenues of €417m
    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 €153m
  • Total consolidated EBITDA of €146m

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 €575m to €600m

Synergy targets confirmed

  • Expected €130m 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

Combined
Second quarter
Combined
Year-to-date
IFRS
Year-to-date
yoy%20212022€ million20222021yoy%20222021
8%388417Operating revenues8047566%804375
8%134146EBITDA2712643%271106
34.6%34.9%EBITDA margin33.7%34.9%33.7%28.2%
8%141153Underlying EBITDA2892774%289109
36.3%36.6%Underlying EBITDA margin36.0%36.7%36.0%29.2%
Operating revenues per segment
8%117126France2462288%246228
11%7280Mobile.de1491424%149
9%164178European Markets3473179%347139
-11%3430International Markets5865-10%584
-100%1Disposals3-100%3
18%33Other and Headquarters7527%75
48%-3-1Eliminations-2-552%-2-5
EBITDA per segment
21%5465France12010910%120109
-2%4343Mobile.de7985-7%79
7%6973European Markets1401317%14036
-18%1512International Markets2325-8%23-1
-100%-3Disposals-5-100%-5
-11%-43-47Other and Headquarters-92-81-14%-92-32
Non-consolidated JVs
34%2027Proportionate share of revenues503832%5038
-591%0-2Proportionate share of EBITDA14-84%14


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
Second quarterYear-to-dateYear-to-date
yoy%*20212022€ million20222021yoy%220222021
11%282313Online classifieds revenues6015529%601291
28%1216Transactional revenues312434%3121
-5%9286Advertising revenues167179-6%16760
111%12Other revenues5299%52
8%388417Operating revenues8047567%804375

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.

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 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

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

IR contact
Marie de Scorbiac
Head of Investor Relations
T: +33 (0) 6 84 30 52 76
ir@adevinta.com

Anne-Sophie Jugean
Investor Relations Manager
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.

***

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

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