Vend Marketplaces (VEND) Q3 2024 earnings summary

Executive summary

• Advanced strategic transformation to a pure-play marketplaces company, following the sale of the media business and Adevinta transaction, generating NOK 24 billion in proceeds and returning capital to shareholders through dividends and buybacks.

• Reorganization and cost measures are on track, with completion expected by November, and a focus on core verticals and monetization in Real Estate and Mobility for 2025.

• Exiting non-core businesses, including Lendo, Prisjakt, skilled trades marketplaces, most Ventures, and Jobs marketplaces in Sweden and Finland, to concentrate on four core verticals.

• Delivery segment improved revenues and EBITDA, aided by the acquisition of Amedia's delivery business.

• Portfolio simplification and monetization initiatives are progressing, with further streamlining planned.

Financial highlights

• Q3 2024 group revenues reached NOK 2,607 million, up 9% year-over-year on a constant currency basis; group EBITDA rose 17% to NOK 670 million.

• Operating profit for the quarter was NOK 345 million, down from NOK 378 million last year, due to higher restructuring and separation costs.

• Net profit before taxes from continuing operations was NOK 5,141 million, including a NOK 5,025 million gain from fair value adjustment of Aurelia.

• Cash flow from operating activities increased to NOK 724 million, up NOK 210 million year-on-year.

• Group EBITDA margin improved to 26% in Q3 2024 from 24% in Q3 2023.

Outlook and guidance

• Reorganization and simplification efforts are on track, with further portfolio streamlining and business exits planned.

• New product packages for car dealers in Norway to launch in 2025, with expansion to Sweden and Denmark in 2026.

• Q4 revenue growth anticipated to be muted due to advertising headwinds, portfolio simplification, tech platform transition, and tough comparables.

• Full effect of cost savings from reorganization expected in Q1 next year.

• Capital Markets Day scheduled for 19 November 2024.