Adevinta reports solid Q3 2021 performance; reveals focus on core markets for future growth

Despite the temporary supply pressure in our motors vertical, all our Motors properties maintained their leading positions, and we successfully implemented price increases associated with product improvement and high added-value for car dealers. Online classifieds revenues improved by 6% year-on-year (of which 1% is attributable to transactional services). Display advertising revenues decreased by 3% year-on-year.

Gross operating profit (EBITDA) decreased by 7% compared to the third quarter of 2020. Revenue growth was offset by an anticipated increase in marketing investment, notably in Spain and Italy, and in personnel costs due to the ramp-up in product and technology resources to fuel product development and new business models.

“Following the completion of the eBay Classifieds Group acquisition, we have refreshed our strategy and reviewed our portfolio of brands to focus and propel Adevinta for the long term. Going forward, we will concentrate our investment capacity on five Core Markets: Germany, France, Spain, Benelux and Italy, where we remain very excited about the significant growth opportunities and our unique positions to capture those.

“We expect our Core Markets to generate an average revenue growth per annum of approximately 15% in the mid-to-long term, driving EBITDA margins between 40% and 45%.

“Our revenues continued to grow in the third quarter, with Core Markets up 6% year-on-year. The slower pace compared to the first half of the year reflects the combination of the post-pandemic recovery seen in Q3 2020 and lower activity levels this summer following the lifting of restrictions in most markets, as well as the current global slowdown we observe in the motors market.

“We expect revenue growth to accelerate in Q4, excluding mobile.de.

“As we maintain our leading positions, we will continue to mitigate the effect of the temporary supply shortage in the Motors vertical, with successful price increases associated with new and improved products, and we expect to benefit from recovery when the situation normalises.

“However, in 2022 this will impact our financial performance. We will also continue to invest in marketing and product and technology in key geographies after several quarters of cost saving initiatives in the Covid context, to drive long-term growth. We look forward to outlining the opportunities and our plans to capture those at our Capital Markets Day on 30 November."

• Q321 total consolidated revenue up 6% yoy, excluding disposals, at €386m
• Q321 EBITDA of €127m and EBITDA margin of 33%
• Strong performance year-to-date with consolidated revenues up 12% and EBITDA up 19%


• Portfolio strategy review:
1. Investment focus on 5 Core Markets: Germany, France, Spain, Benelux and Italy
2. Divestment of Australia and South Africa
3. Supportive of growth in JVs (OLX Brasil, Austria, Ireland)
4. Other markets under strategic review
• Outlook:
1. Core Markets’ mid-to-long term targets: approx.15% average annual revenue growth and 40-45% EBITDA margin
2. Synergy target confirmed: €130m considering planned divestitures¹

¹Run-rate EBITDA impact in year 3. Synergy number of €130m should be read in the context of reduced perimeter following the decision to divest some geographies and put several others under strategic view in order to simplify and focus our investments, reducing the addressable cost base for synergies