July 16, 2020 / 8:01 AM / a month ago

Online classifieds firm Adevinta takes second-quarter hit but demand rebounding

OSLO (Reuters) - Adevinta is seeing a faster than expected rebound despite taking a second-quarter hit from the COVID-19 pandemic, the online classifieds firm said on Thursday.

Second-quarter revenue at the Norwegian firm, which has brands such as France’s Leboncoin, Brazil’s OLX and dozens more across Europe, the Americas and North Africa, fell by 16% to 155.8 million euros ($178 million) including joint ventures.

Performance, however, picked up significantly in May and June.

“Especially after Easter I’d say, people started to come back to our sites,” CEO Rolv Erik Ryssdal told Reuters.

“What recovered first were the generalists, that is, buying and selling of small and big things, and after that we saw that the interest in real estate was coming back, followed by cars,” he said, adding that job sites are still lagging.

Second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) fell 26% to 38.7 million euros, excluding joint ventures, topping the 26.2 million euros expected by five analysts in a Refinitiv poll.

“While macro uncertainty remains in the near term, we expect the second half of the year to continue on this recovery trend,” the company said in a statement.

Spun off from media company Schibsted last year, Adevinta will continue to be active on the acquisitions front although the M&A market has slowed down a lot, Ryssdal said.

“We want to grow more in the markets that we are in, and pursue things in adjacent markets, and explore other opportunities,” he said.

($1 = 0.8777 euros)

($1 = 0.8771 euros)

Reporting by Victoria Klesty; editing by Muralikumar Anantharaman

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