Adevinta, the operator of many leading classifieds companies from around the world has released results for the first quarter of 2020. These are the headline numbers:
Total revenues up 8% to €188 million
Online classifieds revenue grew 13%
Display advertising revenues decreased 5%
EBITDA margin down 5.9pts yoy
Traffic impacted in the first weeks of lockdown but already shows good recovery
Strong liquidity position to continue to invest for the LT
The numbers are obviously affected by the impact of Covid-19, but there are some silver linings as the company cited good performance from its marketplaces in France (LeBonCoin and new acquisition L’Argus) and Spain (fotocasa, Habitaclia and milanuncios).
EBITDA was down 14% with the press release citing investment in product and technology as the main reason for this with CEO Rolv Erik Ryssdal commenting that
“We continue to invest in developing products and technology at full speed to further improve our offerings for our users and customers. I am confident that we can continue to expand our strong market positions and also seize new opportunities as they arise.”
Adevinta’s determination to keep investing in tech could be seen as a reflection of a trend seen in the first of our webinar series where we revealed that classifieds companies preferred to cut back on costs other than tech. The Franfurt-listed company has been placing an increased emphasis on attracting organic traffic and implementing innovative new techniques ever since employing eminent SEO expert Esteve Castells at the start of 2019.