Adevinta Q1 Results: Solid Growth Across All Segments as Company Confirms Guidance of Double-Digit Revenue Growth for FY23

Adevinta CEO Antoine Jouteau says the company has had a strong start to the year as the marketplace operator released a report on its Q1 financial results for FY2023. Highlights of the report include:

• Operating revenue reached €435 million (up 12% YoY).
• EBITDA stood at €145 million (up 16% YoY).
• Core market revenue growth accelerated to 15%.
• Real Estate revenue grew 13% - driven by France (Leboncoin, A Vendre A Louer).
• Total online classified revenues hit €331m (up 16% YoY).
• Guidance of low double-digit revenue growth for 2023.

CEO Antoine Jouteau commented:

"We saw a strong start to the year for the Group where we delivered solid financial performance and made significant progress in the execution of our business and strategic roadmap. Underpinning this performance was the exceptional growth in mobile.de and Transaction revenues. We continue to build the foundations for an even more efficient and innovative organisation, while we improve our products and services. I remain encouraged by the continued energy and dedication shown by our teams and I am confident that we are positioned well to execute and deliver on the many opportunities that lie ahead.

We are making good progress in the verticalisation of our operations, announced in November 2022, focused on realigning our
organisation with our strategy around Mobility, Re-Commerce and Real Estate & Emerging Verticals."

It's more good news for Adevinta after the Oslo-based multinational posted 8% YoY revenue increases in its 2022 Q4 results.

Adevinta's portfolio includes real estate verticals Fotocasa and Habitaclia in Spain, VivaReal and Zap (joint venture) in Brazil, Leboncoin and A Vendre A Louer in France and Daft (joint venture) in Ireland. The company also has footholds in marketplaces in Belgium, Italy, Germany, Austria, Canada and Hungary.

The company has embarked on what it calls a 'Growing At Scale' strategy that aims to 'verticalise' its operations, including the real estate marketplaces segment, by 2024.

Europe Markets Segment Summary:

• Operating revenue hit €187m (up 12% YoY).
• EBITDA improved 11% YoY.
• Spain revenues were up 11% YoY.
• Italy revenues were up 22% YoY.
• Ireland revenues were up 16% YoY.

In France, revenues were up 10% in Q1 with Adevinta reporting that "double-digit growth continued to benefit from the successful launch of enhanced subscription packages in September". Meanwhile, real estate professional content (online listings) increased by 7% YoY.

Leboncoin achieved a transaction volume increase of 40% YoY, a 48% increase in visits to its website (10% YoY), and ARPA of €630 (17% YoY). The company said of its French operations:

"We continued to deploy our market verticalisation strategy in Real Estate, eg: a new feature that allows professional clients to self activate messaging and have specific conversations related to each ad and the possibility for tenants to upload a single file with multiple attached documents.

We further developed the transactional user journey in our Real Estate vertical, with the launch of the borrowing capacity simulator on adview, and in our Mobility vertical, with the launch of the C2C financing offer in March with Cetelem.

International Markets Segment Summary:

• Includes Canada only (excluding Brazil and Mexico)
• Operating revenues slump to €23m (down 10% YoY)
• EBITDA steady at €11 (same as Q1 2022)

Meanwhile, joint venture OLX Brazil achieved revenues of €39 million (7% YoY increase), with EBITDA reaching €14 million (up 4x YoY).

Adevinta has publicly divested itself of a number of assets in a strategic move to focus on core markets, selling no fewer than 13 businesses since 2020—including the imminent sales of Hungarian marketplaces Jofogas (generalist), Haszaltauto, and Autonavigator (both automotive) this year.

Adevinta is currently searching for its next CFO after Uvashni Raman announced her intention to leave the company later this year. Meanwhile, Julien Jouhault was recently appointed Adevinta's new Chief Product & Technology Officer after a short stint as interim CPTO starting November 2022.