Adevinta ASA (ADE) - Adevinta reports solid financial performance in Q4 21 despite Motors headwinds

Barcelona, SPAIN


  • Q4 2021 total consolidated revenues up 6%1 yoy, despite Motors headwinds
  • Q4 2021 underlying EBITDA2 of €139m
  • FY 2021 total consolidated revenues and EBITDA up 10% yoy
  • Further progress in executing "Growing at Scale" strategy, confirming synergy and mid-to-long term targets
  • Announcement on CEO succession planning: Rolv Erik Ryssdal to retire as CEO and leave the business by February 2023

Oslo, 24 February 2022 - Adevinta ASA (ADE) (“Adevinta” or “the Company”) reported revenues from continuing operations up 6%1 in the fourth quarter compared to the same period last year, demonstrating the resilience of our marketplaces despite further supply pressure in the motors vertical:

  • Online classifieds revenues improved by 7% year-on-year, supported by double-digit revenue growth in Real Estate, Jobs and Consumer Goods. This was partially offset by Motors revenue performance, which was flat year-on-year. The volume impact was partly mitigated by successful price increases, higher client penetration and product development with high added-value for car dealers.
  • Transactional revenues grew by 41%, with strong traction in France and Italy.
  • Advertising revenues remained flat year-on-year with mixed performance across markets. Most markets were challenged by soft automotive display advertising. eBay Kleinanzeigen posted strong revenue growth (up 20% year-on-year), benefiting from increased performance in display.

Core Markets posted revenue growth of 7% in the quarter, despite the soft motors market:

  • Online classifieds revenue improved by 7%;
  • Transactional revenues grew by 42%;
  • Advertising revenues were up 3%.

Gross operating profit (EBITDA) from continuing operations decreased by 9% compared to the fourth quarter of 2020, to €124 million. Revenue growth was offset by an anticipated increase in marketing investment (up 31% year-on-year, and back to pre-Covid levels in some markets), notably in Mobile.de, Spain, Benelux and Italy, and in personnel costs due to higher charges related to share based compensation (up c.€6m year-on-year) and to the ramp-up in product and technology resources to fuel product innovation and new business models as outlined in the segment information. Costs from transactional services also increased as a result of higher transaction volumes, combined with promotional campaigns to drive increased adoption.

Underlying EBITDA2 from continuing operations was €139 million in the fourth quarter, representing a 35% EBITDA margin.

Rolv Erik Ryssdal, CEO Adevinta, comments:

“We ended 2021 with a solid financial performance. During the fourth quarter our marketplaces continued to deliver with accelerated growth in our core markets, despite our exposure to the motors industry which is facing temporary headwinds. We continued investment in building capacity and new competencies as we strengthen our product offerings especially with new models, and in marketing to increase visibility and drive further adoption of our products.

“Following our merger with eCG last summer, we have been working at pace to bring the two companies together. In November we unveiled our five year “Growing at Scale” strategy, with ambitious and credible targets to create value for the Group and its stakeholders. We have now started to execute on our strategic goals.

“We are progressing on our transformation into a more efficient integrated organisation. The money and time we will save from working at scale will be invested into our products and teams, adding value for our customers and ensuring we sustain our strong market positions in an ever-changing competitive landscape.

“The current headwind in the motor market is temporary, therefore heading into 2022, we will continue building on the recovery momentum and progressively benefit from the motor market upside, as well as from further growth in other verticals and new business models. We remain confident that we are best positioned to capture the exciting long-term growth opportunities ahead.”

Highlights of Q4 2021

Q4 2021 results performance

  • Revenue growth: 6%1 despite Motor headwinds
    • Total consolidated revenues of €394m
      (€411m including discontinued operations3)
    • Strong growth in Consumer Goods (+16%), Real Estate (+12%) and Jobs (+28%)
    • Strong acceleration of number of Consumer Goods transactions, especially in France (+61%)
    • Motors flat year-on-year with supply shortage impact offset by ARPD growth
    • Advertising revenue flat year-on-year with strong performance from eBay Kleinanzeigen

  • JVs3 revenue up 32%, driven by OLX Brasil
  • Underlying EBITDA2 of €139m
    • Total consolidated EBITDA of €124m (€127m including discontinued operations3)
    • Increased marketing effort vs low 2020 levels
    • Ramp-up of transactional and promotional campaigns

FY 2021 results performance

  • Total consolidated revenues and EBITDA up 10% yoy
  • Excluding motors, consolidated revenues up 12% yoy
  • Underlying EBITDA2 of €555m, representing a 37% EBITDA margin

Progress in strategic plan execution

  • Portfolio optimization ongoing
  • Reorganization initiated to drive Group-wide efficiencies
  • Synergy target confirmed at €130m run rate EBITDA impact in year 3 and c.€35m in FY 2022

Outlook

  • Core Markets mid-to-long targets confirmed
    • c. 15% average annual revenue growth
    • 40-45% EBITDA margin
  • FY 2022 expectations in a temporarily challenging market environment
    • Low double-digit revenue growth in core markets
    • Underlying EBITDA2 in the range of €575m to €600m excluding discontinued operations3 (€585-610m including discontinued operations3)

Key figures

Combined1 Combined1IFRS
Fourth quarter YearYear
yoy%20202021€ million20212020yoy%20212020
5%375394Operating revenues1521138210%1139673
-9%137124EBITDA51446710%356182
 36.5%31.6%EBITDA margin33.8%33.8% 31.3%27.1%
         
   Operating revenues per segment     
8%110119France45339315%453393
-6%7469Mobile.de2832801%141-
12%154173European Markets64856714%470250
-5%3331International Markets1281207%678
-100%4 Disposals319-83%319
-10%33Other and Headquarters990%99
59%(3)(1)Eliminations(4)(5)15%(4)(5)
   EBITDA per segment     
0%5353France21419112%214191
-21%4737Mobile.de164168-2%79-
1%7071European Markets26624210%17169
-12%1311International Markets473823%21(2)
>100 %(6) Disposals(5)(15)63%(5)(15)
-19%(40)(47)Other and Headquarters(171)(157)-8%(122)(61)
         
   Non-consolidated JVs2     
32%1723Proportionate share of revenue835454%8354
16%22Proportionate share of EBITDA1011-6%1011

1 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 and are unaudited.
2 Grupo Zap results are included in the figures presented as from its acquisition date (30 October 2020).


Operating revenues by category

Combined1 Combined1IFRS
Fourth quarter YearYear
yoy%220202021€ million20212020yoy%220212020
0%10199Advertising revenues3603408%241118
7%260275Online classifieds revenues109499911%839524
41%1014Transactional revenues462586%4422
38%56Other operating revenues211911%1510
6%375394Operating revenues1521138211%1139673

1 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 and are unaudited.
2 Excluding disposals (Morocco, Dominican Republic, Colombia, Chile, UK)

Announcement on CEO succession planning: Rolv Erik Ryssdal to retire as CEO and leave the business by February 2023

Rolv Erik Ryssdal informed and agreed with the Board that he will retire as CEO and leave the business by February 2023 when the Group will release its 2022 annual results. With him turning 60 this year, he believes that now is the right time to start to plan his departure from the company.

Rolv Erik has been with the business since 1991, successfully leading the spinoff of Adevinta from Schibsted and the acquisition of eBay Classifieds Group. He will continue to execute on Adevinta’s strategy as presented at the Capital Markets Day and lead the integration of the eBay Classifieds business through the separation from eBay.

The Board has commenced the process of identifying and appointing a new CEO and intends to run an extensive search that will include both internal and external candidates.

Presentation of the Q4 2021 results

Quarterly Earnings Release
Time: 24 February 2022 at 07:00 CET

Report for the fourth quarter 2021, 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 February 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 Rolv Erik Ryssdal 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/239an96d. Participants are also invited to ask questions using the dial-in numbers below.

Dial-in details:
Norway: +47 23 96 0 264
UK: +44 (0) 207 192 8000
USA: +1 631 510 74 95

Confirmation code: 4019977

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

-End-

Media contacts
Mélodie Laroche
Corporate Communications
T: +33 (0) 6 84 30 52 76
melodie.laroche@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 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, fotocasa and InfoJobs in Spain, and 50% of fast-growing OLX Brasil. Adevinta employs around 7,500 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


1 Continuing operations, excluding disposals
2 Consolidated EBITDA before share-based compensation impact (€(15)m in Q4 2021 vs. €(9)m in Q4 2020; €(41)m in FY2021 vs. €(35) in FY2020). This metric will serve as key financial indicator from Q1 2022 onwards
3 OLX Brasil and Willhaben

 

 

Attachments



Attachments

Q4 2021 Quarterly report Q4 2021 Results Presentation Q4 2021 Financials and Analytical Information