- New CEO,
Antoine Jouteau , appointed15 August 2022 - Core markets revenues up 10% year-on-year and Group EBITDA margin up 260 basis points vs. Q1 2022
- Portfolio optimisation progressing at pace, with exit process underway for
Mexico along with the sale ofAustralia andSouth Africa announced - Continued delivery on strategy for growth businesses; FY 2022, mid to long term and synergy targets confirmed
- Online classifieds revenues improved by 11% year-on-year, supported by double-digit revenue growth in Jobs and Motors which benefited from successful price increases, higher dealer penetration and competitive product offerings. Real Estate saw high single digit growth during the quarter.
- Transactional revenues grew by 28%, with strong traction in
France ,Germany and Italy. - Advertising revenues were down by 5% year-on-year as a result of an overall weaker advertising market, especially in automotive display advertising.
Group consolidated EBITDA was €146 million in the second quarter of 2022 (representing a 34.9% EBITDA margin) and improved by 8% compared to the second quarter of 2021. This was the result of the positive topline evolution, lower marketing investment - due to significant marketing campaigns in the second quarter of 2021 - and strict cost management.
It was partly offset by (i) an anticipated and controlled increase in personnel costs related to the ramp-up in product and technology resources to fuel product development and new business models as well as the build-up of global capabilities ahead of eBay Transaction Services Agreement (TSA) exits and (ii) higher external services costs related to the deliberate use of variable workforce capacity to support the roll-out of new solutions and the ramp-up of transactional services, whilst the business reviews and implements its new operating models and processes, a key initiative to drive efficiencies and appropriate resource allocation to key value drivers.
Direct costs from transactional services also increased in the quarter, in line with the adoption of the service and revenue growth.
Antoine Jouteau, CEO
“As we report on the quarterly performance of Adevinta I reflect on the results for the first time as the Group CEO. I am very pleased with what our teams have achieved despite the current tough macro environment and excited about the next steps for the Group.
Revenue growth accelerated to 8% in the second quarter as a result of strong recovery in
EBITDA margin rose to 34.9%, benefiting from top line growth, strict cost management and lower-than expected share-based compensation costs. In the current market environment we remain more than ever focused on optimising our cost base whilst prudently investing in attracting and retaining talented teams in key areas to deliver on our “Growing at Scale” plan and to further innovate for the benefit of our clients and users.
Cash generation accelerated during the quarter, allowing us to further pay down debt, in accordance with our financial policy and associated leverage targets. We also crossed a significant milestone in the integration of eCG with the exit of most TSAs and our portfolio optimisation is progressing at pace with the announced agreements for the sale of
In the few weeks following the announcement of my appointment as CEO I spent time visiting teams in our key markets. I’m not only very excited about the many opportunities that we have ahead of us, but am highly confident that we can achieve great things and deliver on our strategy and associated financial targets. As we navigate the current environment we will continue to deliver growth while balancing and being disciplined on the longer term investment.”
Highlights of Q2, 2022
Strong Q2 2022 results performance in a soft macro environment
Total revenue growth1: +8% year-on-year
- Total consolidated revenues of €417m
Double digit growth in Classifieds (+11%), with strong performance in Jobs (+24%) and Motors (+10%) and resilient Real Estate (+8%) - Acceleration of number of transactions, especially in
France andeBay Kleinanzeigen (respectively up +20% and +139% in payouts) - Advertising revenue down 5% year-on-year due to lower OEM spend and weaker market environment
- Core markets revenue growth: +10% year-on-year (transactional services revenues up 28%)
EBITDA margin of 34.9%, up 260 bps vs Q1 2022, benefiting from strict cost management and lower-than-expected SBC expense
- Underlying EBITDA (consolidated EBITDA before share-based compensation impact) of €153m
- Total consolidated EBITDA of €146m
Acceleration of cash generation
Deleveraging priority: debt repayment cash optimisation measures
Strategy: further execution of our Growing at scale plan
Businesses integration on track
Portfolio optimisation progressing at pace
- Exit process underway for
Mexico - Announced sale of
Australia andSouth Africa
Continued delivery on strategy for growth businesses
- Increased monetisation of Motors and Real Estate verticals
- Continued rapid scaling and product launches of transactional services
Outlook: all targets confirmed
Core Markets mid to long term targets confirmed
- c. 15% average annual revenue growth
- 40-45% EBITDA margin
FY 2022 target confirmed
- Low double-digit revenue growth in core markets
- Underlying EBITDA in the range of €575m to €600m
Synergy targets confirmed
- Expected €130m run rate EBITDA impact from synergies by 2024
- More than 100% of targeted FY2022 run-rate synergies already executed at the end of H1
Key figures
Combined Second quarter | Combined Year-to-date | IFRS Year-to-date | ||||||
yoy% | 2021 | 2022 | € million | 2022 | 2021 | yoy% | 2022 | 2021 |
8% | 388 | 417 | Operating revenues | 804 | 756 | 6% | 804 | 375 |
8% | 134 | 146 | EBITDA | 271 | 264 | 3% | 271 | 106 |
34.6% | 34.9% | EBITDA margin | 33.7% | 34.9% | 33.7% | 28.2% | ||
8% | 141 | 153 | Underlying EBITDA | 289 | 277 | 4% | 289 | 109 |
36.3% | 36.6% | Underlying EBITDA margin | 36.0% | 36.7% | 36.0% | 29.2% | ||
Operating revenues per segment | ||||||||
8% | 117 | 126 | 246 | 228 | 8% | 246 | 228 | |
11% | 72 | 80 | 149 | 142 | 4% | 149 | ||
9% | 164 | 178 | European Markets | 347 | 317 | 9% | 347 | 139 |
-11% | 34 | 30 | International Markets | 58 | 65 | -10% | 58 | 4 |
-100% | 1 | Disposals | 3 | -100% | 3 | |||
18% | 3 | 3 | Other and Headquarters | 7 | 5 | 27% | 7 | 5 |
48% | -3 | -1 | Eliminations | -2 | -5 | 52% | -2 | -5 |
EBITDA per segment | ||||||||
21% | 54 | 65 | 120 | 109 | 10% | 120 | 109 | |
-2% | 43 | 43 | 79 | 85 | -7% | 79 | ||
7% | 69 | 73 | European Markets | 140 | 131 | 7% | 140 | 36 |
-18% | 15 | 12 | International Markets | 23 | 25 | -8% | 23 | -1 |
-100% | -3 | Disposals | -5 | -100% | -5 | |||
-11% | -43 | -47 | Other and Headquarters | -92 | -81 | -14% | -92 | -32 |
Non-consolidated JVs | ||||||||
34% | 20 | 27 | Proportionate share of revenues | 50 | 38 | 32% | 50 | 38 |
-591% | 0 | -2 | Proportionate share of EBITDA | 1 | 4 | -84% | 1 | 4 |
Combined: these figures reflect the results of
Operating revenues by category
Combined | Combined | IFRS | ||||||
Second quarter | Year-to-date | Year-to-date | ||||||
yoy%* | 2021 | 2022 | € million | 2022 | 2021 | yoy%2 | 2022 | 2021 |
11% | 282 | 313 | Online classifieds revenues | 601 | 552 | 9% | 601 | 291 |
28% | 12 | 16 | Transactional revenues | 31 | 24 | 34% | 31 | 21 |
-5% | 92 | 86 | Advertising revenues | 167 | 179 | -6% | 167 | 60 |
111% | 1 | 2 | Other revenues | 5 | 2 | 99% | 5 | 2 |
8% | 388 | 417 | Operating revenues | 804 | 756 | 7% | 804 | 375 |
Combined: these figures reflect the results of
*Excluding disposals (
1 Combined continuing operations, excluding disposals (
Presentation of the Q2 2022 Results
Report for the second quarter of 2022, presentation materials, and spreadsheet with key figures and analytical information are available on the investor relations pages at https://www.adevinta.com/ir.
Presentation of the Quarterly Results
Time:
The company will conduct the presentation as a live audio webcast and conference call, including a Q&A session. CEO
The webcast will be available on https://www.adevinta.com/ir and on this link: https://edge.media-server.com/mmc/p/geeo94ph. Participants are also invited to ask questions using the dial-in numbers below.
Dial-in details:
Confirmation password: Adevinta2022Q2
A recording of the presentation will be available on our website shortly after the live webcast has ended.
-End-
Media contacts
press@adevinta.com
T: +44 (0)7785 275665 / +44 (0)7950 671 948 / +44 (0)7787 284 441
adevinta@edelman.com
IR contact
Head of Investor Relations
T: +33 (0) 6 84 30 52 76
ir@adevinta.com
Anne-Sophie Jugean
Investor Relations Manager
ir@adevinta.com
About
Adevinta’s portfolio spans more than 40 digital brands, covering one billion people and attracting approximately three billion average monthly visits. Leading brands include top-ranked leboncoin in
***
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachments
- Q2 2022 Quarterly report
- Q2 2022 Results Presentation
- Q2 2022 Financials and analytical information
© OMX, source