Adevinta Announces Q1 2019 Results
● Operating revenues climb 15% to 174.4 million
● EBITDA up 63% to EUR 49.7 million,
● EBITDA margins up from 20% to 29%
● Cash flow up 103% to EUR 51 million
Oslo, Norway, 14 May 2019 – Adevinta delivers first quarter results. Product enhancements focused on trust and matchmaking were accelerated in the quarter, driving increased traffic and revenue growth in the core verticals. Display advertising softness continued through the quarter with key initiatives in place to reverse this trend.
Strategies in Global Markets saw investment phase losses reverse with this segment posting positive EBITDA for the first time.
Rolv Erik Ryssdal, CEO, commented:
“I am pleased to report a strong set of results for the first reporting period of Adevinta as a publicly-listed company.
“After one day of trading Adevinta was valued at NOK 60 billion, making it the third largest new listing on Oslo Stock Exchange historically. We saw strong investor demand for our shares and had a positive start to trading.
“Adevinta is positioned as one of the largest and fastest growing pure play online classifieds companies globally.
“We continued to deliver on our strategy, producing strong revenue growth and improved operating margins. Q1 revenues grew 15 percent to EUR 174.4 million, on a proportionate basis. The rise reflects strong growth in verticals, up 19 percent, underlining the network effects of the businesses as local marketplaces increased their leadership positions. The total revenue growth was impacted by a weak display advertising market.
“Proportionate EBITDA increased 63 percent to EUR 49.7 million, as margins saw big improvements, increasing to 29 percent. Our core businesses in France, Spain and Brazil all enjoyed successful growth periods.”
Highlights of Q1 2019
- Continued growth with enhanced market positions
- France – new apps and enhanced search increased traffic, professional products drove growth in core verticals
- Spain – good growth in all verticals, car bundles key contributor
- Brazil – new products launched saw good volume growth in paying customers
- Global Markets – product improvements generating good leads
- Revenue grew 15% (proportionate basis)
- Revenues from verticals grew 19%, including JVs
- Soft development for display advertising, initiatives in place to reverse trend
- Solid EBITDA margin up to 29%
- EBITDA margin enhancement in Spain and Brazil
- Investment phase losses reduced to negative EUR 3.5 million
- Net cash flow from operating activities doubled to EUR 51 million
|FIRST QUARTER||(EUR MILLION)||YEAR|
|15 %||151.0||174.4||OPERATING REVENUES INCL JVs||644.0|
|63 %||30.5||49.7||EBITDA INCL JVs||156.2|
|20 %||29 %||EBITDA MARGIN INCL JVs||24 %|
|103 %||51.0||25.1||OPERATING CASH FLOW INCL JVs||73.9|
Adevinta invites you to an analyst and press conference at Akersgata 55, Oslo, 14 May 2019 at 09:00 CET. The presentation will be held in English and transmitted live as a video webcast on https://www.adevinta.com/ir/. CEO Rolv Erik Ryssdal and CFO Uvashni Raman will present at the analyst and press conference.
A conference call with Q&A linked to the Q1 2019 numbers will take place on 14 May 2019 at 14:00 CET. The session will be held in English.
NOTE: To avoid waiting time when connecting to the call, please use the below link 5-10 minutes prior to start time, where you will be asked to type in your phone number and registration details. The Event Conferencing system will automatically call you back on the phone number you provide and place you into the event. Please note that the link will become active 15 minutes prior to the event: Link to join call: https://bit.ly/2YhgvKJ
For manual dial-in, use the following number (note that this connection might take more time): +47 2350 0187. Passcode: 627676. For additional phone numbers, please visit https://www.adevinta.com/ir/. A recording of the conference call will be made available at https://www.adevinta.com/ir/.
Cassandra Lord, Director of Communications, Adevinta
Jo Christian Steigedal, IR