Adevinta reports resilient performance in Q2

  • Press Releases

Oslo, 16 July 2020 – Adevinta ASA (ADE) (“Adevinta” or the Company”), completed its second quarter of 2020, ended 30 June, reporting a resilient performance across its business, particularly in France. The company saw a revenue decline of 16% in the quarter, compared to Q2 2019 (or -20% excluding l’Argus) due to the significant impact of Covid-19 in all markets.  

After a decline in April, revenue trends improved month by month in all segments and France returned to positive year-on-year organic growth in June. Classifieds revenues were down 15% yoy, while display advertising revenues were down 32%. The acquisition of l’Argus added 3.9 points to total revenue growth, and exchange rate movements had a negative 1.5-point impact. 

Gross operating profit (EBITDA) has been resilient in the quarter, decreasing by 15% yoy. Decisive action taken by management to pursue cost cutting initiatives across the group has partially offset the impact of Covid-19. In addition, there was continued investment in product & technology (at central and business levels) to drive future growth and operational efficiency. Net cash flow from operating activities was €56.0m for the first half of 2020, compared to €70.8m for the same period in 2019. At the end of June 2020, the Group benefited from a strong financial position with a leverage ratio of 0.6 times net interest-bearing debt over EBITDA.

As the acceleration in consumer behaviour trends makes online marketplaces increasingly relevant, Adevinta intends to continue creating value by focusing on and expanding in markets where it enjoys leading positions, as well as by exploring external growth opportunities with strong financial discipline. 

Rolv Erik Ryssdal, CEO, commented:

“In recent months, Covid-19 has upended the daily lives of citizens and economies across the world. As anticipated, our Q2 performance was impacted negatively. Nonetheless, we have seen strong improvements throughout the quarter in all segments. We are now back to pre-covid levels and above last year’s level in terms of traffic and leads in most markets. We have even reached record high traffic in some countries like France and Austria. Our financial performance has recovered faster than expected, especially in France where we posted positive organic growth in June. 

“We successfully implemented cost saving initiatives, which has allowed us to mitigate to some extent the impact, while we continued to invest in product and technology to support future growth. 

“Consumer behaviour is changing at an accelerated pace. The demand for more convenience and transparency, as well as the shift toward more sustainable consumption, has amplified the role of trusted online marketplaces. As a leading player in our market and a highly trusted business partner, we have helped our clients to restart their activities. This puts us in an even better position for the years to come. 

“Looking ahead, we expect our recovery to continue, with positive growth in France and further improvements in other countries in the second half of the year. While the macro environment may be uncertain in the near term, we are excited about the long-term opportunities in our markets and remain confident about our long-term sustainable growth profile.” 

  1. Proportionate basis incl JVs. For definition of EBITDA please see section Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January 2019.


Q2 2020 Highlights 

Stronger-than-expected recovery, especially in France

  • Operational KPIs improving in all segments
    throughout Q2
  • Total revenues down 16% but performance improving month by month
  • Online classifieds revenues decreased 12% 
  • Display advertising revenues decreased 32%
  • France back to positive organic growth in June

Strong EBITDA2 performance despite significant drop in revenues and sustained investment in P&T

  • Margin flat yoy
  • Expected dilutive impact of acquisitions and of corporate functions set up
  • Sustained investment in P&T
  • Successful cost saving initiatives

Product & technology achievements

  • Deployment of end-to-end transactional solution in various markets
  • Increasing use of machine learning 

Strong financial position securing ability to invest organically and externally

  • Leverage ratio of 0.6x at end of June
  • Cash & cash equivalent at €308m
  • Undrawn €400m RCF

Acceleration of favorable consumer behaviour

  • Sustainable ways of consuming
  • Digitisation
  • Convenient digital experience
  • Trust and transparency
  • Efficient professional tools

Further progress in the preparation for the acquisition of Grupo Zap

Key financial numbers 

  Second quarter (€ million) YTD
yoy% 2019 2020   2020 2019 yoy%
-16% 184.6 155.8 Operating revenues incl. JVs 343.8 359.0 -4%
-15% 49.9 42.5 EBITDA incl. JVs 85.0 99.6 -15%
  27% 27% EBITDA margin incl. JVs 25% 28%  
      EBITDA – segments      
      Cash flow      
-33% 19.8 13.3 Net cash flow from operating activities 56.0 70.8 -21%