• Q1 2022 earnings performance in line with Q4 trends, with Core Markets revenue up 7% YoY and Group EBITDA margin up 70bps vs. Q4 2021
  • Portfolio optimization is progressing at a steady pace, with an exit process underway for Australia, South Africa and Mexico and the sale of Infojobs Brazil and Belarus finalized
  • eBay Classifieds Group integration roadmap on track, synergy targets confirmed

Oslo, May 24, 2022 – Adevinta ASA (ADE) (“Adevinta” or “the Company”) recorded solid revenue growth of 6%1 in the first quarter compared to the same period last year. Our marketplaces once again showed resilience despite continued supply pressure in the automotive sector. Underlying EBITDA2 was €137 million in the first quarter of 2022, representing an underlying EBITDA margin of 35.3%.

Core Markets reported revenue growth of 7% in the quarter, despite continued sluggishness in the automotive market:

  • Online classifieds revenue grew 8% year-over-year, supported by double-digit growth in Employment and Consumer Goods revenue and high-single-digit growth in real estate. Automotive sales returned to growth, benefiting from successful price increases, greater dealer penetration and the development of high value-added products for automotive dealers;
  • Transactional revenue grew 42% year over year, with strong traction in France, Germany and Italy;
  • Advertising revenue was down 4% year-over-year due to an overall weaker advertising market, particularly in automotive display advertising.

Gross operating income from continuing operations (reported EBITDA) decreased by 3% compared to the first quarter of 2021, at 125 million euros. Revenue growth was offset by an anticipated increase in personnel costs due to higher charges related to (i) the ramp-up of product and technology resources to fuel product innovation and new business models , (ii) building global capabilities ahead of eBay’s Transitional Service Agreement (TSA) exits and (iii) higher equity-based compensation (up c. one year to the next).
Transactional services costs also increased during the quarter, in line with service adoption and revenue growth. Marketing investments decreased year-over-year due to different phasing of marketing campaigns compared to last year and expense control.

Rolv Erik Ryssdal, CEO of Adevinta, comments:

“Executing our ‘Growing at Scale’ strategy means our teams have continued to develop and deploy engaging and innovative solutions aimed at improving overall user experience and satisfaction.on.

“Our strong financial position and our cash generation profile allowed us to accelerate our share buyback.return program and invest in transformation to operate even more effectively in the longer term. We have made good progress with our integration roadmap, and we are preparing to release most TSAs with eBay in the second quarter. I’m proud to see how our people have come together to set us up for success.

“Finally, the optimization of our portfolio growing at the rate of sales of Infojobs in Brazil and Kufar in Belarus, and the announced exit from Mexico. We expect to reach agreement on Australia and South Africa sales by the end of the third quarter. I remain very positive on the mall the opportunities before us for 2022 and beyond. Despite the current difficult environment, I am convinced that we will achieve the financial objectives we have set ourselves for this year and our medium and long-term objectives.

Q1 2022 Highlights

Q1 2022 results performance: in line with expectations, in line with Q4 trends

Revenue increase1: 6% despite headwinds from Motors

  • Total consolidated revenue of €387 million
    Strong growth in Employment (+35%), Consumer Goods (+14%) and Real Estate (+9%)
  • Strong acceleration in the number of Consumer Goods transactions, particularly in France (+41%) and eBay Kleinanzeigen (+212%)
  • Engines return to growth (+2%) with supply shortage effect more than offset by ARPD growth and strong market shares
  • Ad revenue down 6% year-over-year due to lower OEM spend and weaker market environment
  • Core Markets revenue growth: +7% YoY (Classified Ads revenue up 8%, Transaction Services revenue up 42%)

EBITDA margin of 32.3%, up 70 basis points compared to Q4 2021

  • Underlying EBITDA2 €137 million
  • Total consolidated EBITDA of €125m

Solid cash generation profile

Focus on deleveraging offset by opportunistic acceleration of share buybacks

Strategy: continued execution of our large-scale growth plan
eCG onboarding roadmap on track

Portfolio optimization is progressing at a steady pace

  • Exit process underway for Australia, South Africa and Mexico
  • Sale of Infojobs Brazil and Belarus finalized

Continuous delivery on our strategic pillars

  • Increased monetization of our automotive and real estate verticals
  • Rapid and continuous scaling and product launches of our transactional services
  • Continued move to 1P advertising

Outlook: all objectives confirmed
Confirmation of the medium and long term objectives of Core Markets

  • vs. 15% average annual revenue growth
  • 40-45% EBITDA margin

2022 objective confirmed

  • Low double-digit revenue growth in major markets
  • Underlying EBITDA2 in a range of €575m to €600m excluding discontinued operations3
  • Sequential improvement expected quarter after quarter

Synergy objectives confirmed

  • Expected impact of 130 million euros on EBITDA from synergies by 2024, of which 35 million euros at the end of financial year 2022

Key figures

Combined IFRS
first quarter first quarter
yoy% 2021 2022 millions of euros 2022 2021
5% 368 387 operating income 387 182
-3% 130 125 EBITDA 125 53
35.2% 32.3% EBITDA margin 32.3% 29.1%
0% 136 137 Underlying EBITDA 137 55
37.0% 35.3% Underlying EBITDA margin 35.3% 30.2%
Revenue by segment
7% 112 120 France 120 112
-3% 70 68 Movable from 68
ten% 153 168 European markets 168 66
-8% 31 28 International markets 28 2
-100% 2 Disposals 2
40% 2 3 Other and head office 3 2
58% (2) (1) Eliminations (1) (2)
EBITDA by segment
0% 55 55 France 55 55
-12% 42 37 Movable from 37
7% 62 67 European markets 67 16
8% ten 11 International markets 11 (1)
-100% (2) Disposals (2)
-18% (38) (45) Other and head office (45) (16)
JV not consolidated
30% 18 23 Proportional share of revenue 23 18
-36% 4 2 Proportional share of EBITDA 2 4


Combined: these figures reflect the results of
Advinta group as if eBay Classifieds Group (acquired June 25, 2021) had been part of the group for the full periods shown. These figures are presented to facilitate comparability and are unaudited.D.

Operating revenue by category

Combined IFRS
first quarter first quarter
year%1 2021 2022 millions of euros 2022 2021
7% 269 288 Online classifieds revenue 288 142
41% 11 16 Transactional revenue 16 ten
-6% 87 81 Advertising revenue 81 29
91% 1 3 Other income 3 1
6% 368 387 operating income 387 182

Combined: These numbers reflect Adevinta Group results as if eBay Classifieds Group (acquired June 25, 2021) had been part of the group for the full periods shown. These figures are presented to facilitate comparability and are unaudited.

Presentation of the results for the 1st quarter of 2022

Publication of quarterly results
Weather: May 24, 2022 at 07:00 CEST

The report for the first quarter of 2022, presentation materials and a spreadsheet with key figures and analytical information will be available on the investor relations pages at https://www.adevinta.com/ir.

Presentation of quarterly results
Weather: 08:30 CET

The company will deliver the presentation as a live audio webcast and conference call, including a Q&A session. CEO Rolv Erik Ryssdal and CFO Uvashni Raman will present. The entire Adevinta management team 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/239an96d. Participants are also welcome to ask questions using the phone numbers below.

Connection details:
Norway: +47 21 56 30 15
UK: +44 (0) 207 192 8338
USA: +1 646 741 31 67
Confirmation code: 5578959

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

-To finish-

Media contacts
Melody The rock
Business communication
Tel: +33 (0)6 84 30 52 76
[email protected]

Edelman Smithfield
Latika Shah / Olivia Adebo
T: +44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7787 284 441
[email protected]

IR contact
Mary of scorbiac
Head of Investor Relations
Tel: +33 (0)6 84 30 52 76
[email protected]

Anne Sophie Judge
Investor Relations Manager
[email protected]

On Advinta

Adevinta is a leading online classifieds specialist, operating digital marketplaces in 14 countries. The company provides technology-enabled services to connect buyers to sellers and to facilitate transactions, from real estate to motors and consumer goods.

Adevinta’s portfolio spans over 40 digital brands, spanning one billion people and attracting around three billion average monthly visits. Major brands include leboncoin in France, major classifieds sites in Germany, mobile.de and eBay Kleinanzeigen, Marktplaats in the Netherlands, fotocasa and InfoJobs in Spain, Subito in Italy and 50% of OLX Brasil, which is experiencing rapid growth. Adevinta employs approximately 8,100 people committed to supporting users and customers on a daily basis. Learn more about adevinta.com.

***

This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.


1 Continuing operations, excluding disposals
2 Consolidated EBITDA before impact on stock-based compensation
3 Operations in Australia and South Africa will be divested

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