Vend Marketplaces (VEND) Q3 2024 earnings summary

Executive summary

• Revenues reached NOK 2,607 million in Q3 2024, up 9% year-over-year, with EBITDA rising 17% to NOK 670 million, driven by Nordic Marketplaces and Delivery segment performance.

• Strategic transformation advanced with the sale of the media business and Adevinta transaction, generating NOK 24 billion for special dividends and share buybacks.

• Reorganisation and cost measures are on track, with exits from non-core businesses and focus shifting to four main verticals for future growth.

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

• Portfolio simplification and monetisation initiatives are progressing, with further business exits and divestments planned.

Financial highlights

• Group EBITDA increased to NOK 670 million, up 17% year-over-year, with margin gains across key verticals.

• Operating revenues grew 9% year-over-year to NOK 2,607 million.

• 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.

• Second tranche of NOK 2 billion special dividend paid; NOK 2 billion share buyback programme initiated.

Outlook and guidance

• Q4 revenue growth expected to be muted due to advertising headwinds, portfolio simplification, and tough comparables.

• Reorganisation and simplification efforts are on track, with further portfolio streamlining planned.

• Underlying ARPA growth to continue, but volumes in mobility and jobs remain challenging.

• Full cost savings from reorganization to be realized in Q1 next year.

• Ambitions remain high, with more details to be shared at the upcoming Capital Markets Day.