- Total revenues up 36% yoy at €213m
- Organic revenue growth of 36% vs Q2 2020 (+15% vs Q2 2019)
- EBITDA1 up 24% year-on-year to €52m
- Acquisition of
eBay Classifieds Group completed - Disposal of Shpock completed and sale process for remaining
UK assets ongoing - Management to present some key assets and market opportunities
Online classifieds revenues improved by 39% (of which 6% is attributable to transactional services) compared to Q2 2020, which was strongly impacted by the Covid-19 crisis. Display advertising revenues increased 35% year-on-year.
Disposals in Global Markets and the Grupo Zap acquisition had a 0.6 point positive impact on revenue growth, whilst changes in exchange rate contributed negatively with 0.4 points.
Gross operating profit (EBITDA) including JVs increased 24% compared to Q2 2020 (+5% compared to Q2 2019). Revenue growth and benefit from divestments were partially offset by the negative one-off of ESOP costs in
“Our strong sales performance in Q2, with 36% organic revenue growth, confirms the recovery momentum observed over the past quarters, as we also benefited from the gradual lifting of restrictions in all of our key markets. In the quarter, we have increased our EBITDA margin, excluding one-off in
“On 25 June, we completed the acquisition of
“We have already initiated our strategic review and, following the positive conversations we have had thus far, we are confident about the opportunities that we see in combining the strengths and expertise of both groups. We will unveil the strategy and the financial objectives for the New
Q2 2021 Highlights
Further recovery in revenues
- Total revenues up 36% yoy at €213m
- Organic growth of 36% yoy (+15% vs Q2 2019)
- Online classifieds revenues1 up 39% yoy (of which 6% from transactional services)
- Display advertising revenues1 up 35% yoy
EBITDA1 up 24% yoy to €52m
- Top line growth
- Benefit from divestments
- Partially offset by strong marketing investment which more than doubled vs Q2 2020
- Increase in personnel costs (one-off benefits in Q2 2020 related to Covid-19 temporary redundancy support and expected ramp-up in hirings)
- Increase in transactional costs due to the ramp-up of the service
- One-off impact of ESOP in
Brazil
Acquisition of
- Creation of a globally scaled, pure-play online classifieds leader with a diversified and complementary portfolio of assets and brands
- New Executive team to drive forward Adevinta’s long term strategy and ambitions
Disposal of Shpock completed and sale process for remaining
- Sale of Shpock completed on
2 June 2021 - Active engagement on the Gumtree
UK and Motors.co.uk sales process
Q2 2021 trading update
Commentary and financial numbers in the following section of this document refers to proportionate numbers including JVs.
Second quarter | (€ million) | YTD | ||||
yoy% | 2020 | 2021 | 2021 | 2020 | yoy% | |
33% | 145 | 193 | Operating revenues | 375 | 320 | 17% |
86% | 11 | 20 | Proportional revenues from JVs | 38 | 24 | 56% |
36% | 156 | 213 | Operating revenues incl. JVs | 413 | 344 | 20% |
37% | 39 | 53 | EBITDA | 106 | 79 | 34% |
26.6% | 27.4% | EBITDA margin | 28.2% | 24.6% | ||
-109% | 4 | (0) | Proportional EBITDA from JVs | 3 | 6 | -45% |
24% | 42 | 52 | EBITDA incl. JVs | 109 | 85 | 28% |
27.3% | 24.7% | EBITDA margin incl. JVs | 26.5% | 24.7% |
Operating revenues incl. JVs by category
Second quarter | YTD | |||
€ million | 2021 | 2020 | 2021 | 2020 |
Advertising revenues | 35 | 26 | 67 | 57 |
Classifieds revenues* | 177 | 127 | 344 | 282 |
Other operating revenues | 1 | 3 | 2 | 5 |
Operating revenues incl. JVs | 213 | 156 | 413 | 344 |
*Classifieds revenues include transactional revenues for €11 million in Q2 2021 and €4 million in Q2 2020.
Second quarter | (€ million) | YTD | ||||
yoy% | 2020 | 2021 | 2021 | 2020 | yoy% | |
36% | 86 | 117 | Operating revenues | 228 | 184 | 24% |
40% | 45 | 63 | Operating expenses | 119 | 96 | 25% |
31% | 41 | 54 | EBITDA | 109 | 88 | 24% |
47.5% | 46.0% | EBITDA margin | 47.7% | 47.8% |
Revenues in
EBITDA margin softened to 46.0% despite revenue growth mainly due to strong marketing investment done in the second quarter, which doubled compared to low levels in Q2 2020, as a result of extensive campaigns to celebrate the 15th anniversary of Leboncoin and to promote transactional services. The increasing share of transactional services (contributing to gross profits, albeit at lower relative margin) as well as the expected increase in personnel costs due to the ramp-up in hiring and the non recurring benefit from Covid-19 temporary redundancy support measures in 2020, also impacted negatively the margin performance.
Traffic continued to show good growth (+16% year-on-year) especially during the first half of the quarter while a slight deceleration was noticed in June mainly driven by external factors such as the end of third lockdown. New ads and leads experienced a similar trend.
In Q2 we continued to accelerate the P2P transactional solution with pricing strategy on shipping and a new scoring ranking test on listing. Our payment solution for cars continued to scale with an automated payment for used cars sellers. We reinforced security and trust introducing authentication (sms) and we continued to improve the user experience. We remained focused on our market verticalization strategy in Real Estate (new listing, land surface indication, local information on maps...), Motors (new listings for cars, criterias..) and Holiday Rentals (sms booking approval for hosts, improved calendar…).
Second quarter | (€ million) | YTD | ||||
yoy% | 2020 | 2021 | 2021 | 2020 | yoy% | |
45% | 33 | 48 | Operating revenues | 92 | 79 | 15% |
45% | 22 | 32 | Operating expenses | 63 | 55 | 15% |
46% | 11 | 16 | EBITDA | 29 | 25 | 17% |
32.8% | 33.0% | EBITDA margin | 31.3% | 30.9% |
Revenues in
Display advertising grew 45% year-on-year led by the increase in direct sales and was broadly in line with Q2 2019.
The EBITDA margin in Q2 was slightly above Q2 2020 at 33.0%, as the revenues increase was partly offset by the reactivation of marketing spending and the increase in personnel costs, no longer benefiting from the temporary redundancy in the context of covid-19, in order to support and boost our market positions. We expect investment to further increase in the second half as a result of the increasingly competitive environment
We saw traffic down by 3% year-on-year in Q2, negatively impacted by the new way of measuring following the implementation of the new cookie policies and by strong competition in our generalist brand. This was partially offset by traffic growth in our motor and real estate marketplaces. On the other hand, leads were up 15% and private content grew by 2% in Q2 with all sites showing positive growth.
In Q2, in Fotocasa we launched the express visit feature that enables users to have a 3D video call with the agencies, the Google one tap log-in and the Geo advisor, which will bring traffic growth. In Jobs we developed a multi publishing product between InfoJobs and Milanuncios, we launched the salary calculator and enabled the curriculum vitae multi format upload. In Motor, we launched the price drop notification, unified categories in app and web and started the migration of our professional clients to the new responsive site. We improved content sharing between Milanuncios and Coches.net and developed a car photo autocomplete using machine learning in Milanuncios. Besides, we continued improving our Payment & Delivery solution by the buy button in the price list and by opening transactional to big items.
Second quarter | (€ million) | YTD | ||||
yoy% | 2020 | 2021 | 2021 | 2020 | yoy% | |
>100% | 13 | 30 | Operating revenues | 57 | 33 | 73% |
>100% | 9 | 33 | Operating expenses | 56 | 26 | >100% |
-175% | 5 | (3) | EBITDA | 1 | 7 | -84% |
34.1% | -11.4% | EBITDA margin | 1.9% | 21.4% |
OLX Brazil revenues and EBITDA are included on a 100% basis for both periods.
We continued to observe depreciation of brazilian real against euro compared to Q2 2020 impacting revenue growth, but to a lesser extent than in previous quarters. Operational revenue in the
OLX.com.br in
Infojobs.com.br in
In Q2, cumulative EBITDA decreased by €8 million when compared to Q2 2020, negatively impacted by the €14 million increase of the management long-term incentive in OLX Brazil. On a comparable basis, excluding Grupo ZAP and this one-off impact, EBITDA margin would have seen an increase of 8 percentage points compared to Q2 2020, as a result of the classified revenues performance. We continued to invest in talent and reactivated the marketing spending.
We observed a soft performance in traffic and leads when compared to Q2 2020, impacted by the strong rise in both metrics after the full lockdown last year. On the other hand, we saw a significant boost in supply in all verticals, benefiting from new initiatives to increase paying listers.
In Q2 we gradually rolled-out the triple bundle ZAP / Vivareal / OLX for existing clients. In motor, we continued the digitalization of the car journey with the launch of the vehicle history feature and improved car financing and insurance services. We improved scalability, automation and fraud in our Payment & Delivery solution.
Global Markets
Second quarter | (€ million) | YTD | ||||
yoy% | 2020 | 2021 | Global Markets | 2021 | 2020 | yoy% |
19% | 32 | 38 | Operating revenues | 74 | 69 | 7% |
18% | 31 | 36 | Operating expenses | 68 | 66 | 4% |
40% | 2 | 2 | EBITDA | 5 | 3 | 57% |
4.8% | 5.6% | EBITDA margin | 7.4% | 5.1% |
Willhaben revenues and EBITDA are included on a 100% basis for both periods. Shpock operations included until divestment on
The Global Markets portfolio saw positive reported revenue growth of 19% compared to Q2 2020. Excluding disposals, revenue grew 34% with strong performance in the main markets throughout the quarter led by
Q2 2021 EBITDA was up +0.9pp year-on-year landing at €2 million benefiting from the divestment of assets. Total revenue of disposed assets amounted to €0.9 million in Q2 2021 (€4.3 million in Q2 2020) and EBITDA totalled €(3.2) million (€(3.6) million in Q2 2020).
Q2 2021 EBITDA margin excluding disposals would be 14.5% showing a decrease of 4 percentage points year-on-year driven by
In
Willhaben continued its solid development in all operational metrics and the strong performance in all revenue streams. Paylivery, the peer-to-peer payment and delivery service, continued to gain traction and scale with optimizations in the funnel to improve conversion rates. Encouraging development in the Jobs vertical confirmed the positive signs already observed at the end of Q1.
In
In
During Q2 we finalised the divestment of Shpock, which was sold to Russ Media on
Other and Headquarters
Other and Headquarters costs comprise Adevinta’s shareholder and central functions including central product and technology development.
The Other and Headquarters segment’s EBITDA decreased by
Alternative performance measures (APM) used in this press release wil be described and presented in the Definitions and Reconciliations section at the end of the Q2 2021 interim report, to be published on
Outlook
We see an acceleration of the trends that support the development of the digital economy and the emergence of new business models. Strong secular shifts in online behavior and changing consumption patterns are driving expectations for more convenient user digital journeys. Professionals are rethinking the way they operate and are in demand for more efficient and digital content advertising solutions. The new
We saw further recovery across the board in the second quarter and we expect positive momentum to continue through the rest of 2021 albeit that volumes remain soft and uncertain in some of our markets in the short term. Now that the eCG acquisition is completed, we have entered the execution phase. Our key priority will be to deliver on the synergy target that we announced in
Presentation of the Q2 2021 trading update
Time:
The company will conduct the presentation as a live audio webcast and conference call. This will also be the opportunity to comment further on the recently-closed
The webcast will be available on www.adevinta.com/ir and on this link: https://edge.media-server.com/mmc/p/enpou7ao. Participants are also invited to ask questions using the dial-in numbers below.
Dial-in details:
Confirmation code: 2540506
A recording of the presentation will be available on our website shortly after the live webcast has ended.
-End-
Media contacts
Corporate Communications
T: +33 (0) 6 84 30 52 76
melodie.laroche@adevinta.com
Adevinta@edelman.com
IR contact
Head of Investor Relations
ir@adevinta.com
Anne-Sophie Jugean
Investor Relations Manager
+33 6 74 19 22 81
ir@adevinta.com
About
***
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachments
- Q2 2021 Trading Update Press Release
- Q2 2021 Trading Update Presentation
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