Vend Marketplaces (VEND) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues grew 4% year-on-year to NOK 2,015 million, with EBITDA up 18% to NOK 394 million and a 20% EBITDA margin, driven by ARPA gains and cost reductions.

• Strategic simplification continued with exits from non-core businesses, including Delivery and Prisjakt, and a focus on core verticals.

• NOK 2 billion share buyback program initiated, with a NOK 500 million special dividend planned from Adevinta proceeds.

• Rebranding to "Vend" effective 12 May 2025, marking a new phase as a pure-play marketplaces company.

• Cost base decreased as anticipated, reflecting ongoing resource concentration on high-value areas.

Financial highlights

• Operating profit increased to NOK 183 million from NOK 73 million last year.

• Net loss of NOK 2.2 billion, mainly due to a NOK 2.4 billion fair value reduction in Adevinta/Aurelia stake.

• Net cash flow from operations at NOK 257 million, up from NOK 10 million last year.

• Net cash position of NOK 1.4 billion at quarter end; equity ratio at 80%.

• Cash balance at quarter-end was NOK 4,334 million; liquidity reserve including undrawn facility was NOK 7,758 million.

Outlook and guidance

• Medium-term targets: Mobility and Real Estate revenue growth of 12–17% with EBITDA margins of 55–60% and 45–50% respectively; Jobs revenue growth of 5–10% with EBITDA margin above 55%; Recommerce revenue growth above 20% with positive EBITDA margin by 2027.

• Expects continued solid ARPA growth, but muted total revenue growth due to weak advertising and portfolio simplification.

• Cost base expected to decline through 2025, but at a slower pace in the second half.

• Real estate volumes in Norway expected to normalize after exceptional Q1.

• EBITDA improvement expected to accelerate, driven by ARPA, cost initiatives, and platform transition.