Adevinta ASA (ADE) – Adevinta reports strong Q1 financial performance in soft macro-economic environment; significant progress in executing the Growing at Scale strategy

• Further acceleration in Core markets revenue growth : +15% year-on-year, driven by outstanding performance at mobile.de
• Total consolidated revenues at €435m, up +14%¹ yoy
• Total consolidated EBITDA of €145m and reported margin of 33.4%
• 2023 financial targets confirmed

Oslo, 23 May 2023 - Adevinta ASA (ADE) (“Adevinta” or “the Company”) reported an acceleration of revenue growth of 15%  for Core Markets in the first quarter compared to the same period last year.  This was as a result of outstanding performance in mobile.de, benefiting from both a positive price and volume effect, and continued strong performance in other segments.

• Online classifieds revenues improved by 18%, supported by strong double-digit revenue growth in Mobility which benefited from the successful price increase implemented in April last year, the recovery of dealer listings at mobile.de, mainly driven by the easing of comps and lower demand, and high value added product development both for users and car dealers. Real Estate posted double-digit growth over the quarter, driven by France. Jobs performance was steady, despite lapping tougher comps in Spain; 
• Transactional revenues grew by 62% year-on-year, with strong revenue growth in all Core markets;
• Advertising revenues in core markets were down 3% year-on-year, as a result of an overall weaker advertising market, especially in automotive display advertising, partially offset by Italy and the performance of Kleinanzeigen in the quarter.

Gross operating profit (reported EBITDA) amounted to 145 million euros, up 16% year-on-year, representing a 33.4% margin, up 1 percentage point year-on-year.

This was the result of (i) the positive topline evolution, (ii) lower marketing spend across all markets, driven by different phasing, spend discipline and prioritisation, and (iii) cost management in the current market context. This was partly offset by (i) personal costs driven by the continued scaled build-up of global capabilities, with the implementation of new operating models for support functions and Product and Technology teams, the annualisation of the previous years investment in product enhancements and in sales and customer support operations, particularly in legacy eCG markets, to support new business models, (ii) higher direct costs from transactional services, in line with the adoption of the service and revenue growth, and (iii) the (3) million euro expense related to the French DST.

Antoine Jouteau, CEO Adevinta, comments: 

“We saw a strong start to the year for Adevinta, during which we delivered solid financial performance and made significant progress in the execution of our business and strategic roadmap. Underpinning this performance was the exceptional growth in mobile.de and transaction revenues. We continue to build the foundations for an even more efficient and innovative organisation, while we improve our products and services. I remain encouraged by the continued energy and dedication shown by our teams and I am confident that we are well positioned to execute and deliver on the many opportunities that lie ahead.”

Highlights of Q1 2023 

Strong Q1 2023 results performance in a soft macro environment

Further acceleration in Core markets revenue growth : +15% year-on-year, driven by outstanding performance at mobile.de

• Double digit growth in Classifieds (+18%), with double digit growth in Mobility (+22%) and Real Estate (+13%). Jobs remained dynamic (+5%) despite tougher comps
• Consumer Goods transaction revenues growth up +62% yoy, with strong revenue growth in all Core markets, especially in France (+48%) and Kleinanzeigen (+95%)
• Advertising revenues down 3% yoy

Total consolidated revenues at €435m, up +14%² yoy

Reported EBITDA margin of 33.4%, up 1pp yoy, despite French DST impact and business mix evolution 

Total consolidated EBITDA of €145m 

Strong cash flow generation and continued deleveraging

• Adjusted NCF from operating activities: €84m³, up €39 yoy
• Debt repayment: €80m in the quarter, prioritising floating debt
  
  

Continued execution of our Growing at Scale strategy

Business integration on track, with further roll out of new operating models for support functions, and synergy targets confirmed

Verticalisation⁴ of Adevinta’s operations ongoing:

• Key Design Principles defined, to align with long-term strategy 
• Go live planned for 2024 (subject to works councils approvals)

Strong focus on operational excellence, with:

• Increased monetisation of Mobility and Real Estate verticals, along with product improvements and increased added-value for customers
• Continued rapid scaling and product launches, e.g. in transactional services
• Strong financial discipline

Outlook: all targets confirmed

2023 outlook

• Low double digit Core Markets revenue growth 
• Reported EBITDA in the range of €620m to €650m
• Leverage reduced to below 3x net debt/EBITDA by year end

Long-Term ambition for Core markets 

• 2023-2026 annual revenue growth between 11% and 15%
• 2026 EBITDA margin: 40-45%

Synergy targets confirmed