Adevinta ASA (ADE) - Adevinta reports strong third quarter performance; announces new appointments to its leadership team and assignment of vertical responsibilities

24 Nov 2022 07:00 CET

* Acceleration of core markets revenue growth: +12% year-on-year
* EBITDA margin of 34.5%, excluding French DST(1), 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 EUR141 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 EUR(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.
* Gianpaulo Santorsola (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, Gianpaolo Santorsola 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%)
* Resilient advertising revenues, flat year-on-year, despite lower OEM spend
and weaker market environment

Total consolidated revenue growth(2): +11% year-on-year

* Total consolidated revenues of EUR408m

EBITDA margin of 34.5%, excluding French DST, benefiting from strict cost
management

* EBITDA excluding French DST of EUR141m, up 12% year-on-year
* French DST(1) YTD adjustment of EUR(9)m
* Total consolidated EBITDA of EUR132m (representing a 32.4% margin)

Acceleration of cash generation and deleveraging

* Adjusted NCF from operating activities: EUR145m(3)
* Debt repayment: EUR90m 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 EBITDA(4) in the range of EUR575-600m range, including French DST
impact

2023 outlook

* Double-digit Core Markets revenue growth despite soft macro environment
* Year-on-year improvement in EBITDA margin
* 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 |
| |
| Year-to- |
Third quarter   Year-to-date | date |
------+-----+------ ------+-----+-----+-----+-----+
yoy% |2021 |2022 EUR 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 |  |  |  |  |
------+-----+-----+------------------------------+-----+-----+-----+-----+------
| | |Proportionate share of | | | | |
30%| 22| 28|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 |
| |
| Year-to- |
Third quarter   Year-to-date | date |
--------+----+----- ------+-----+----+-----+----+
yoy%(2)|2021|2022 EUR 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
(https://www.adevinta.com/investors/financial-results-publications).

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.

The webcast will be available on https://www.adevinta.com/ir
(https://www.adevinta.com/investors/financial-results-publications) and on this
link: https://edge.media-server.com/mmc/p/eknfdtrf. Participants are also
invited to ask questions using the dial-in numbers below.

Dial-in details:
UK: +44 121 281 8004
USA: +1 718 705 87 96
Norway/Sweden: +46 850 51 00 30
France: +33 1 70 91 87 04
Spain: +34 917699498
Confirmation password: Adevinta2022Q3

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 (mailto: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 (mailto:adevinta@edelman.com)

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

Anne-Sophie Jugean
Investor Relations Manager
ir@adevinta.com (mailto:ir@adevinta.com)

About Adevinta

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 (https://www.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

More information:
Access the news on Oslo Bors NewsWeb site

576552_Q3 2022 Quaterly report.pdf
576552_Q3 2022 Results Presentation.pdf
576552_Q3 2022 Financials and analytical information.pdf