Writing in Norway-based marketplace operator Adevinta’s annual report, which was published on Friday Apr. 26, CEO Antoine Jouteau stated: “We continue to see various value accretive opportunities across all our businesses, especially in our core verticals mobility and real estate.”

“This is where a large monetization runway exists, with the potential to expand throughout the transactional value chain with new business models and a largely untapped second-hand commerce pool,” he added.

EBITDA comes in ahead of guidance

Revenue at Adevinta rose by 11.0% year on year (y-o-y) to €1.8 billion ($2.0 billion U.S.) in 2023, while EBITDA increased by 19.0% to €651 million ($699 million), giving it an EBITDA margin of 35.7%. EBITDA was “slightly higher than the full-year guidance,” the report noted. These results had already been released in February.

Mobility the star performer

The annual report noted: “Our mobility business recorded an exceptional performance, with revenues up 20% year-on-year, spearheaded by our largest brand, Mobile.de in Germany.”

“In real estate, we delivered a solid performance with revenues up 8% year-on-year despite interest rate rises and a drop in transactions.”

“In re-commerce, we continued to evolve our propositions into transactional user experiences and have recorded significant growth of more than 50% year-on-year in transactional revenue.”

The CEO also touched on changes to the business structure.

“Over the past year [2023], we have made significant progress on redesigning our operating model, verticalizing our organization in line with our Growing At Scale strategy and successfully completing our portfolio optimization,” Jouteau wrote.

“We have clarified our vision around our identity, redesigned the operating model and created a robust structure organized by verticals.”

He added, “Collaborating across borders and marketplaces, our main focus this year has been the creation of a multi-tenant platform by our well-versed team of technical professional experts. We are building shared capabilities across automation, cloud, data, IT enterprise services and cybersecurity, accelerating the delivery time of new solutions, enhancing user experience and creating customer value, while driving growth and revenue.”

Targeting an EBITDA margin of up to 45% by 2026

“Our long-term ambition for EU5 markets [Germany, France, Italy, Spain and Benelux — the Netherlands and Belgium] remains strong, with FY [full year] 2023-2026 annual revenue growth between 11% and 15% and an EBITDA margin between 40% and 45% from 2026,” stated the report.

“After reorganizing the company to be more efficient and effective, we start 2024 with the right foundation in place. Next year, we will focus on delivering our Growing at Scale strategy at speed and scale, while continuing to add value for our customers and users.”

No more than a passing reference to impending takeover

Regarding the imminent takeover of Adevinta by Aurelia Bidco Norway AS — a consortium led by investment companies Blackstone and Permira — Jouteau was tight-lipped, merely noting that the deal was expected to close by the end of the current quarter.

Spun off from Norway-based Schibsted in 2019, Adevinta owns and operates marketplaces, primarily across its six core Western European markets — Germany, France, Italy, Spain, Belgium and the Netherlands. It also has joint ventures in a number of other countries, including Ireland (DistilledSCH) and Brazil (OLX-Brazil).

EGM to be held next month

On Apr. 25, Adevinta announced that it would hold an online EGM on May 16. “The background for the extraordinary general meeting is the voluntary offer for all issued and outstanding ordinary class A shares in the company made by Aurelia Bidco Norway AS,” it noted.

Read the latest on the Adevinta takeover here

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