- 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:
- 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.
- Gianpaolo 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 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 DST3 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: €145m4
- 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
FY 2022 target confirmed
- c. 10% revenue growth for core markets
- Underlying EBITDA5 in the range of €575-600m range, including French DST impact
- 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
1 Prudent provision booked following unfavourable ruling received from the French Tax Authority
2 Continuing operations, excluding InfoJobs Brazil and Kufar
3 Prudent provision booked following unfavourable ruling received from the French Tax Authority
4 Net cash flow from operating activities adjusted for CAPEX and IFRS 16 lease payments
5 Consolidated EBITDA before share-based compensation impact