Adevinta Sees Double Digit Revenue Growth in Core Markets in Q2

The online marketplace operator Adevinta has released its results for Q2 of the 2023 financial year. Relevant highlights from the company's performance include:

• Double-digit revenue growth in core markets driven by 29% growth at autos portal Mobile.de.
• Total revenue of €465 million for Q2, an increase of 11.5% year-on-year.
• Revenue was up 11% year-on-year across Adevinta's core real estate assets.
• Company-wide EBITDA was up 3% year-on-year at €177 million.

Commenting on the company's performance, CEO, Antoine Joteau said:

"We delivered another strong set of results in the second quarter, achieving double digit revenue growth across our core business with excellent performance at mobile.de, which, together with successful cost discipline, has resulted in a marked improvement in our EBITDA and margins."

"We also continued to execute our business and strategic roadmap, making good progress in the verticalisation and optimisation of our organisation to drive even greater innovation and efficiency, while improving our products and services for end users."

Adevinta's portfolio includes real estate verticals in Spain (Fotocasa and Habitaclia), Brazil (VivaReal, and Zap joint venture), France (A Vendre A Louer) and Ireland (Daft.ie joint venture) as well as many leading horizontal classifieds platforms and car and job verticals mainly in Europe.

Adevinta's German cars portal Moile.de saw the greatest revenue growth in Q2 (29%), following up on its 32% revenue growth in Q1. The company's French assets delivered 8.6% growth while Adevinta's International Markets segment saw revenues decline 20.8% year-on-year as it looks to divest from non-core assets outside of Europe.

The company's real estate assets saw a combined revenue increase of 11% compared to the comparison period in 2022. A company presentation mentioned that the average revenue per agent (ARPA) at LeBonCoin increased by 19% while at Kleinanzeigen it went up by 20%. The presentation also cited "higher client penetration and successful price increases along with product improvements and increased added-value for customers".

Since its $9.2 billion deal to acquire eBay's classifieds assets in 2020, Adevinta has been on a long journey to integrate them and extract value. Joteau announced that its two flagship generalist classifieds platforms are being merged on an operational level with the plan to add other generalists over time.

Adevinta saw revenues from display advertising across its network drop 6% year-on-year reflecting the weakening market. There was positive traffic growth in all core markets despite a domain change at Kleinanzeigen.

The company noted that it is expecting double-digit revenue growth in its core European markets and EBITDA is expected to be at the top end of the previously announced €620m to €650m range through the rest of 2023.