Vend Marketplaces (VEND) Q4 2019 earnings summary

Executive summary

• 2019 was shaped by the Adevinta spin-off and repositioning; Nordic Marketplaces continued growing, while News Media faced advertising pressure and expanded digital subscriptions.

• Revenue rose 6% to NOK 19,075m; EBITDA increased 20% to NOK 3,906m, including NOK 479m from IFRS 16, and operating profit reached NOK 2,093m.

• The COVID-19 pandemic is expected to negatively affect 2020 results, with travel and jobs marketplaces, advertising, real estate, cars and print volumes particularly exposed.

Financial highlights

• Revenue was NOK 19,075m vs NOK 18,059m; EBITDA was NOK 3,906m vs NOK 3,268m. Excluding IFRS 16, EBITDA was NOK 3,427m vs NOK 3,268m.

• Operating profit was NOK 2,093m vs NOK 1,794m; profit before tax NOK 1,948m vs NOK 1,681m; net income NOK 1,196m vs NOK 715m.

• Owners’ profit was NOK 949m vs NOK 648m; basic EPS NOK 4.00 vs NOK 2.72. Adjusted EPS was NOK 5.59 vs NOK 6.05.

• Operating cash flow increased to NOK 2,844m from NOK 1,781m; investing cash outflow was NOK 2,244m vs NOK 953m.

Outlook and guidance

• Longer term, Finn, Blocket and Tori are expected to develop well, supported by greater vertical monetization, value-added services and adjacent growth opportunities.

• Lendo is expected to continue growing; expansion investments in Denmark, Poland and Austria are expected to weigh somewhat on margins. Prisjakt is expected to deliver solid revenue growth and healthy margins.

• News Media plans to develop digital business models around strong editorial products and closely manage costs to protect long-term profitability.

• COVID-19 is expected to negatively affect 2020 results; management is monitoring developments and adjusting operations and costs.