Vend Marketplaces (VEND) Q2 2024 earnings summary

Executive summary

• Completed strategic transformation into a four-vertical marketplace company (Mobility, Real Estate, Jobs, Recommerce), with strong Nordic brands and market positions.

• Sold media business and Adevinta stake, generating over NOK 28 billion in cash proceeds and enabling a NOK 18 billion special dividend payout.

• Acquired remaining stake in FINN, streamlined structure, and initiated cost-saving measures including a 250-position workforce reduction.

• Delivered Q2 2024 results: group revenues up 3% year-over-year to NOK 2,525 million and EBITDA up 1% to NOK 546 million on a constant currency basis.

• Announced new CEO and executive leadership team.

Financial highlights

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

• Nordic Marketplaces revenue grew 7% YoY (constant currency), driven by 13% classifieds revenue growth and 16% increase in transactional revenues.

• Delivery segment revenue up 10%, driven by 46% volume growth in parcel delivery (notably from Temu partnership).

• Growth & Investments segment revenue declined 13% due to macroeconomic headwinds, with Lendo down 21% and Prisjakt down 9%.

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

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.

• Company will estimate and disclose the fair value of its 14% Adevinta stake quarterly.