Adevinta ASA (ADE) - Adevinta reports strong third quarter performance; announces new appointments to its leadership team and assignment of vertical responsibilities
Adevinta ASA
9 min read
Adevinta ASA
Acceleration of core markets revenue growth: +12% year-on-year
EBITDA margin of 34.5%, excluding French DST1, benefiting from strict cost management
New leadership team, with new key appointments; assignment of vertical responsibilities to align with the ‘Growing at Scale’ strategy: Re-Commerce, Mobility, Real Estate & Emerging Verticals
Oslo, 24 November 2022 - Adevinta ASA (ADE) (“Adevinta” or “the Company”) reported strong revenue growth of 12% for core markets in the third quarter compared to the same period last year, as a result of strong recovery in Mobile.de and continued solid performance in other markets.
Online classifieds revenues improved by 13% year-on-year, supported by double-digit revenue growth in Jobs and Motors benefiting from successful price increases, higher dealer penetration and high added-value product development for car dealers. Real Estate saw high single-digit growth in the period;
Transactional revenues grew by 79%, with strong revenue growth in all Core markets;
Advertising revenues were flat year-on-year. This was a result of the overall weaker advertising business, especially in automotive display advertising, partly offset by eBay Kleinanzeigen's strong performance in the quarter.
Excluding the impact from the French digital services tax legislation (DST), Group EBITDA was €141 million (representing a 34.5% EBITDA margin) and improved by 12% compared to Q3’21.
This was the result of (i) the positive topline evolution, (ii) lower marketing investment, driven by different phasing and spend allocation discipline, and (iii) cost management in the current market context. This was partly offset by (i) the continued build-up of global capabilities ahead of the implementation of new operating models for enabling functions and Product and Technology teams, and to accelerate new business model development and value creation, and (ii) higher direct costs from transactional services, in line with the adoption of the service and revenue growth.
Group consolidated EBITDA amounted to 132 million euros, up 5% year-on-year, negatively impacted by the €(9) million euros provision booked related to the French DST.
New appointments in the leadership team and assignment of vertical responsibilities to align with the ‘Growing at Scale’ strategy
In line with the ‘Growing at Scale’ strategy, Adevinta will start to verticalise its operations based on its three key pillars:
Re-Commerce;
Mobility;
Real Estate & Emerging Verticals (including Jobs and Holiday Rentals).
As part of this, Adevinta’s executive leadership team (AdEx) announces new appointments, effective 1 January 2023:
Paul Heimann continues his duties as the CEO of eBay Kleinanzeigen, while becoming the leader of the new Re-Commerce vertical.
Román Campa, CEO of Adevinta Spain, will combine his existing responsibilities while taking on a new role as Head of Real Estate & Emerging Verticals.
Ajay Bhatia, CEO of Mobile.de and already a member of the AdEx, will take on a new role of Head of the new Mobility vertical.
Alexandre Collinet, former deputy GM of leboncoin and most recently responsible for the integration of eBay Classifieds Group into Adevinta, will also join Adevinta’s executive team, in the newly created role of Chief Operations Officer (COO).
Uvashni Raman (CFO) and Nicki Dexter (People, Communications & Workplace) will continue in their roles.
GianpauloSantorsola (European Markets), Zac Candelario (International Markets) and Alex Alexander (Product & Technology) will leave Adevinta by the end of 2022 .
Julien Jouhault, currently CTO for leboncoin, will join the AdEX as interim CPTO while the search for a permanent CPTO is conducted.
Antoine Jouteau, CEO Adevinta: “Our third quarter results demonstrate progress against our key strategic and financial objectives. I am proud of our team and our contribution to society in the face of a challenging macroeconomic environment.
"We are adapting our organisation to make it even more efficient, with laser-sharp focus on bringing more value to our users and clients.
"Aligning our operating structures with our strategy increases efficiency and speed, as well as our ability to cater to evolving customer needs with tailored and innovative products and services. It also allows us to capture further opportunities within these vertical areas, and enhances our competitiveness and resilience.
"My new executive team and I share the same vision and ambition for Adevinta. It is my pleasure to welcome Alexandre Collinet, Julien Jouhault, Paul Heimann and Román Campa. Each brings with them a combination of entrepreneurial spirit, industry knowledge and a proven track record of commercial success. I thank Alex Alexander, GianpaoloSantorsola and Zac Candelario for their contributions to Adevinta and wish them well in their next endeavours.
"I remain very confident and excited about the many opportunities that we have ahead of us. As we navigate the current uncertain environment, we will continue to balance growth and profitability with disciplined investment in the mid to longer term.”
Highlights of Q3, 2022
Strong Q3 2022 results performance in a soft macro environment
Acceleration of core markets revenue growth: +12% year-on-year
Steady double-digit growth in Classifieds (+13%), with continued strong performance in Jobs (+15%), Motors (+13%) and Real Estate (+10%)
Acceleration in Consumer Goods transaction volumes especially in France (+49%) and eBay Kleinanzeigen (+140%)
Total consolidated revenue growth2: +11% year-on-year
Total consolidated revenues of €408m
EBITDA margin of 34.5%, excluding French DST, benefiting from strict cost management
EBITDA excluding French DST of €141m, up 12% year-on-year
French DST1 YTD adjustment of €(9)m
Total consolidated EBITDA of €132m (representing a 32.4% margin)
Acceleration of cash generation and deleveraging
Adjusted NCF from operating activities: €145m3
Debt repayment: €90m in the quarter, prioritising floating debt
Continued cash optimisation measures
Further steps to deliver our Growing at scale strategy
New leadership team, with new key appointments; assignment of vertical responsibilities to align with the ‘Growing at Scale’ strategy:
Re-Commerce, led by Paul Heimann
Mobility, led by Ajay Bhatia
Real Estate & Emerging Verticals, led by Román Campa
2022 portfolio optimisation programme close to completion with sales of Mexico, Australia and South Africa closed and Canada review completed
Continued execution on strategy for growth businesses with increased monetisation of Motors and Real Estate verticals and continued rapid scaling and product launches of transactional services
Outlook
FY 2022 target confirmed
Low double-digit revenue growth for core markets
Underlying EBITDA4 in the range of €575-600m range, including French DST impact
Group leverage down to 2-3x net debt/EBITDA by year-end
Long-term ambition remains
Synergy targets confirmed to achieve our financial ambition
Financial performance
Combined*
IFRS
Third quarter
Year-to-date
Year-to-date
yoy%
2021
2022
€ million
2022
2021
yoy%
2022
2021
10%
371
408
Operating revenues
1,213
1,127
8%
1,213
745
5%
126
132
EBITDA
403
390
3%
403
232
34.0%
32.4%
EBITDA margin
33.2%
34.6%
33.2%
31.1%
2%
139
141
Underlying EBITDA
430
416
3%
430
248
37.4%
34.5%
Underlying EBITDA margin
35.5%
36.9%
35.5%
33.3%
Operating revenues per segment
12%
106
119
France
365
335
9%
365
335
15%
71
82
Mobile.de
231
214
8%
231
71
11%
158
176
European Markets
522
476
10%
522
298
-6%
32
30
International Markets
88
97
-8%
88
36
0%
0
Disposals
3
-100%
3
343%
1
3
Other and Headquarters
9
6
63%
9
6
-161%
2
-1
Eliminations
-4
-3
-21%
-4
-3
EBITDA per segment
2%
52
53
France
173
161
8%
173
161
11%
41
46
Mobile.de
125
126
-1%
125
41
12%
65
72
European Markets
212
196
9%
212
100
34%
11
14
International Markets
37
36
5%
37
10
0%
0
Disposals
-5
-100%
-5
-24%
-43
-53
Other and Headquarters
-145
-123
-18%
-145
-75
Non-consolidated JVs
30%
22
28
Proportionate share of revenues
78
60
31%
78
60
15%
5
6
Proportionate share of EBITDA
6
8
-26%
6
8
* 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*
IFRS
Third quarter
Year-to-date
Year-to-date
yoy%2
2021
2022
€ million
2022
2021
yoy%
2022
2021
13%
278
311
Online classifieds revenues
912
830
11%
912
569
77%
9
16
Transactional revenues
47
33
46%
47
30
-2%
81
79
Advertising revenues
246
260
-4%
246
141
13%
2
2
Other revenues
7
4
61%
7
4
11%
371
408
Operating revenues
1,213
1,127
8%
1,213
745
* 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. Quarterly Earnings Release Time: 24 November 2022 at 07:00 CET
Report for the third quarter of 2022, 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: 24 November 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 Antoine Jouteau and CFO Uvashni Raman will present. The whole management team of Adevinta will participate in the Q&A session.
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 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, including 3,000 (approx) working in product and technology teams, 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
1 Prudent provision booked following unfavourable ruling received from the French Tax Authority 2 Continuing operations, excluding InfoJobs Brazil and Kufar 3 Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease payments 4 Consolidated EBITDA before share-based compensation impact
