Adevinta published its financial results for Q3 2023 two days earlier than planned — on Nov. 21 — after a private equity consortium led by Blackstone and Permira made a bid for the company. 

Operating revenue at the Norway-based company rose by 11.3% year on year (y-o-y) to €454 million ($495 million U.S.) in the quarter, while EBITDA soared by 29.5% y-o-y to €171 million ($186 million). As a result, the company’s EBITDA margin rose from 32.4% in Q3 2022 to 37.6% in Q3 2023. 

Revenue from the company’s Mobility marketplaces rose by 24% y-o-y in Q3 2023, while for its Classifieds sites and Real Estate marketplaces, revenue increased by 17% and 11% y-o-y, respectively. 

Online classifieds revenue grew by 14.1% y-o-y to €355 million in Q3 2023, while transactional revenue grew by 51.0% y-o-y to €24.0 million, “with strong revenue growth across all markets.” Advertising revenues fell by 7.6% y-o-y to €73.0 million, “as a result of an overall weaker advertising market.” 

Germany-based Mobile.de was a key driver of growth, with its operating revenue up 26.8% y-o-y to €104 million. Adevinta’s operations in France also performed well, with operating revenue up 11.8% y-o-y to €133 million. Operating revenue in European Markets  — excluding France and Mobile.de — rose by 9.1% y-o-y to €192 million. These three segments cumulatively accounted for 94.5% of the company’s revenue during the quarter. 

Adevinta attributed the significant increase in its EBITDA margin during the quarter to “… strong revenue growth in the period, lower marketing spend (down by more than 20% year-on-year) driven by different phasing, spend discipline and prioritisation across all markets, and a favourable spread of expenses in the period, with some catch-up expected in Q4 2023.” 

It added that “This was partly offset by higher personnel costs, driven by the continued scaled build-up of global capabilities — with the implementation of new operating models for support functions and Product and Technology teams, continued investment in product development and in sales and customer support operations to support future growth — and higher direct costs from transactional services, in line with the adoption of the service and revenue growth.” 

It further noted “Good progress on platform convergence,” “Increased monetisation in key verticals,” and “Strong ramp-up of transactional services, driven by France, [Germany-based] Kleinanzeigen and Italy.” 

During the first nine months of the year (Q1-Q3 2023), operating revenue at Adevinta increased by 11.7% y-o-y to €1.355 billion ($1.482 billion), while EBITDA rose by 22.3% to €493 million ($537 million). This pushed the company’s EBITDA margin up from 33.2% in Q1-Q3 2022 to 36.4% in Q1-Q3 2023. 

Operating revenue at Mobile.de rose by 29.0% y-o-y in Q1-Q3 2023, to €298 million. In France, Adevinta’s operating revenue increased by 10.1% y-o-y to €402 million, while the European Markets division saw operating revenue rise by 10.5% to €577 million. 

Adevinta CEO Antoine Jouteau commented: “We witnessed another positive set of results in the third quarter, with continued growth across our core business, despite a challenging market environment. This quarter has seen us continue to deliver against our business and strategic roadmap, which we have driven forward with ongoing business integration measures and operational verticalisation.” 

“This focused work by the talented teams across Adevinta has seen our revenues, EBITDA and margins improving substantially year on year. This puts us on an excellent footing to close out the year.” 

The company forecast that EBITDA for 2023 as a whole would come in “at the top end of the previously announced €620 million to €650 million range” amid “double digit Core Markets revenue growth.” 

Between 2023 and 2026, it sees annual revenue growth of between 11.0% and 15.0% and is aiming to achieve an EBITDA margin in the range of 40-45% by the end of this period. 

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