Once Schibsted concludes the IPO for its international classifieds division Marketplaces International (MPI), LeBonCoin.fr — which constitutes the largest part of MPI — could be valued between €2.5 billion ($2.9 billion U.S.) and €3 billion ($3.5 billion U.S.). This is according to French Journal Du Net, based on analyst estimations.
The new MPI is made up of assets from around 20 countries, including France, Spain, Italy, Brazil, Morocco, and Tunisia. The entity’s gross operating profit currently stands at more than €110 million ($127 million), with a revenue of about €500 million.
LeBonCoin’s net profit rose to €73.3 million last year — which means the site accounts for most of MPI’s profits.
Last year, the site recorded revenue of €188.9 million — up 12.7 percent from 2016. Its operating results reached €115.2 million — up 8.57 percent. The site saw a considerable operating margin of 61.3 percent. After paying €39 million in taxes in taxes, LeBonCoin was left with a net profit of €73.3 million for 2017 — up 7.6 percent from 2016.
Almost all of this profit was distributed within the Schibsted group. Given this distribution rate and a 3 percent rate of return, the value of LeBonCoin would equal around €2.4 billion, the news article concluded. “Taking into account both net income and very high profitability, a multiple of 25 times the current result could be retained, which corresponds to €2.9 billion,” Journal Du Net stated.
In other words, MPI could weigh between €2.5 billion and €3 billion when listed next spring, Journal Du Net reported, expressing hope the listing will also take place in Paris.
Schibsted has announced it will initiate a process to reorganize the company into two growth-oriented companies. The international online classifieds operations will be spun off and established as an independent, listed company. The transaction will take place as an IPO and Schibsted will keep a majority ownership share at the time of the listing, which is set to take place during H1 2019 (we reported here).