OSLO, Nov 25, Norway - Adevinta, the world's largest classified ads company, posted a smaller-than-expected rise in third-quarter revenue, hampered by weakness in the autos segment, which it said will continue into next year.
Following its recent $13 billion takeover, it was taken over at www.reuters. Adevinta-ebay business adevinta-ebay clear-final hurdle 13-bln-advertising tie-up of eBay's classified ads unit, Adevinta said it now plans to concentrate its business around fewer countries, mainly in Europe, and will invest more heavily in those markets to boost growth.
Adevinta's July-September revenue went up 6% year-on-year to 386 million euros $432.7 million lagging analysts' average forecast of 406 million euros, according to Refinitiv data.
A shortage of semiconductors has resulted in a limited supply of global car production this year, hampering sales and advertising. In the third quarter, Adevinta's German unit Mobile.de saw a decline of 3% compared to last year.
Adevinta's earnings prior to interest, tax, depreciation and amortization EBITDA declined 7% year-on-year to 127 million euros in the third quarter, lagging the 136 million euros predicted by analysts, according to Refinitiv.
The company stated on Thursday that it would not meet next year's goal of growing by 15% in the mid- to long term, but it said it would not be met next year.
Adevinta said in its earnings report that core markets' revenue growth will be low double-digit in the second half of 2022, assuming a gradual recovery in the motors market in the second half.
Adevinta plans to focus on five European markets - Germany, France, Italy, Spain and the Benelux nations - and divest operations in Australia and South Africa next year.
These markets are where we have strong positions and where we see opportunities for faster growth, Chief Executive Rolv Erik Ryssdal told Reuters.
Canada, Mexico, Hungary and Belarus are being put up for review. These are smaller operations, but we need more time to conclude, he said.
Adevinta will keep its joint ventures in Brazil, Austria and Ireland. It set a mid- to long term goal of an EBITDA margin of 40 45%, up from 33% in the third quarter.