Vend Marketplaces (VEND) Q2 2024 earnings summary

Executive summary

• Completed strategic transformation into a focused marketplaces company centered on Mobility, Real Estate, Jobs, and Recommerce, with strong Nordic brands and market positions.

• Finalized sale of media business and Adevinta stake, generating significant cash proceeds and enabling a NOK 18 billion special dividend payout.

• Acquired remaining stake in FINN from Polaris Media, streamlining structure and strengthening market position.

• Announced new CEO and executive leadership team, alongside organizational changes and cost-saving measures, including a reduction of about 250 positions.

• Group revenues rose 3% year-over-year to NOK 2,525 million; EBITDA increased 1% to NOK 546 million on a constant currency basis.

Financial highlights

• Q2 2024 revenues reached NOK 2,525 million (+3% YoY); EBITDA was NOK 546 million (+1% YoY); EBITDA margin: 22%.

• Nordic Marketplaces segment revenue grew 7% YoY (constant currency), driven by 13% growth in classifieds and 16% in transactional models; EBITDA up 8% to NOK 568 million (37% margin).

• Net cash position at end of Q2: NOK 5,910 million; liquidity reserve: NOK 12,351 million.

• Basic EPS for H1 2024: NOK 24.09; adjusted EPS from continuing operations: NOK 0.98.

• CapEx in Q2 was NOK 174 million, down 13% year-over-year.

Outlook and guidance

• Macroeconomic challenges continue to impact advertising, jobs, and investment segments; Q3 expected to be somewhat muted compared to Q2.

• Financial targets for Nordic Marketplaces paused due to macro headwinds and reorganisation delays; further strategic updates expected at Capital Markets Day in Q4 2024.

• Anticipates negative revenue impact in real estate in H2 2024 due to agents reallocating marketing funds to competitor Hjem.no.

• Plans to accelerate marketing investments in Finland to strengthen market position.

• Ongoing cost efficiency measures and organizational streamlining, with more details to come.