Scout24 AG continues on its growth path with strong cash conversion cementing its solid financial position

  • 11.4% increase in Group revenues to EUR 110.5 million
  • Continued improvement in profitability with ordinary operating EBITDA margin up to 52.7%
  • Fast balance sheet deleveraging due to 23.9% increase in cash contribution
  • Fully on track to achieve 2016 targets

Berlin / Munich, 9 November 2016 – Scout24 AG ("Scout24" or “the Group”), the leading operator of digital marketplaces specializing in the real estate and automotive sectors in Germany and other selected European countries, announces its results for the third quarter of the financial year 2016.

According to the unaudited consolidated financial statements, Group revenues for the third quarter 2016 increased by 11.4% to EUR 110.5 million (Q3 2015: EUR 99.2 million). Group ordinary operating EBITDA was up 18.5% to EUR 58.2 million, representing a margin of 52.7%. Furthermore, cash contribution increased by a 23.9%, once again demonstrating the Group's strong cash generating capabilities.

"Scout24 achieved strong topline and profitability growth. We further cemented our strong financial position by making another EUR 60 million voluntary repayment towards the existing syndicated loan, yet maintaining financial flexibility", said Christian Gisy, Chief Financial Officer of Scout24 AG.

Overview of Financial Results

The table below provides a summary overview of the Group’s performance for the nine months and the third quarter ended September 30, 2016.

(EUR millions)

Q3 2016

Q3 2015

% change

9M 2016

9M 2015

% change

External revenues

110.5

99.2

11.4%

326.3

288.4

13.1%

            IS24

71.3

67.9

5.0%

211.5

197.0

7.4%

            AS24

37.8

30.0

26.0%

110.5

87.4

26.5%

Ordinary operating EBITDA1

58.2

49.1

18.5%

167.6

144.6

15.9%

            IS24

45.6

41.0

11.2%

133.5

119.2

12.0%

            AS24

17.7

11.2

58.0%

47.5

34.9

36.1%

Ordinary operating EBITDA-margin

52.7%

49.5%

3.2pp

51.4%

50.1%

1.3pp

            IS24

64.0%

60.4%

3.6pp

63.1%

60.5%

2.6pp

            AS24

46.8%

37.3%

9.5pp

43.0%

39.9%

3.1pp

EBITDA2

53.9

40.9

31.8%

153.6

125.7

22.2%

            IS24

40.9

38.8

5.4%

120.3

112.1

7.3%

            AS24

15.8

10.1

56.4%

41.9

31.7

32.2%

Capital expenditure

4.1

5.5

-25.5%

13.7

13.8

-0.7%

Cash contribution3

54.0

43.6

23.9%

153.9

130.8

17.7%

Cash conversion4

92.9%

88.8%

4.1pp

91.8%

90.5%

1.3pp

The quarterly statement including financial statements and additional details on segment level is available at www.scout24.com/financial-reports.

Business Development

Scout24 continued to perform strongly in the quarter, driven by the ongoing success of the visibility products at AutoScout24 ("AS24"), a consistent expansion of service activities for users through Scout24 Media and a strong focus on executing on its sales strategy.

Ordinary operating EBITDA in the third quarter 2016 was up by 18.5% compared with the third quarter 2015 to reach EUR 58.2 million. Ordinary operating EBITDA margin increased by 3.2pp to 52.7%.

Reported Group EBITDA for the third quarter 2016 was up EUR 13.0 million compared to the third quarter 2015, reaching EUR 53.9 million. This includes EUR 4.3 million of non-operating costs (Q3 2015: EUR 8.2 million), reflecting EUR 2.4 million of personnel expenses connected with reorganisation measures (Q3 2015: EUR 3.1 million), EUR 1.1 million for the Management Equity Program, EUR 0.6 million of obligations from purchase agreements and EUR 0.2 million of costs connected with corporate acquisitions. Consolidated net income attributable to parent company owners amounted to EUR 19.5 million in the reporting period (Q3 2015: EUR 8.4 million), which corresponds to EUR 0.18 of earnings per share (Q3 2015: EUR 0.08).

The cash contribution in the third quarter of 2016 was up by EUR 10.4 million (23.9%) compared with the same period last year. The Cash Conversion Rate, based on ordinary operating EBITDA, increased to 92.9%. Cash and cash equivalents amounted to EUR 53.4 million as of September 30, 2016 including the cash outflow for voluntary prepayments of the existing syndicated loan in a total amount of EUR 100.0 million in the course of 2016 and for the purchase price of European AutoTrader B.V. in an amount of EUR 27.7 million in Q1 2016 (December 31, 2015: EUR 70.6 million). Net financial debt (nominal value of interest bearing liabilities less cash and cash equivalents) amounted to EUR 627.9 million, compared with EUR 711.3 million as of December 31, 2015. The ratio of net debt to ordinary operating EBITDA over the last 12 months was reduced to 2.95:1 (December 31, 2015: 3.74:1).

Outlook

The business development of Scout24 Group in the third quarter 2016 was in line with the Management Board's expectations and Scout24 is therefore highly confident to reach the targets for the financial year 2016 communicated on August 11, 2016. For details, please refer to our Interim Report for the first half of 2016, which is available at the Investor Relations Section of www.scout24.com. Scout24 will provide an outlook for 2017 at its Full Year 2016 results in March 2017.

Next events and reportings

Scout24 expects to report preliminary results for the full financial year 2016 on Monday, Feb-ruary 13, 2017.

The Annual Report for the full financial year 2016 will be published on Wednesday, March 29, 2017 together with a conference call and webcast for financial analysts and investors.

About Scout24

Scout24 operates leading digital classifieds platforms in Germany and other selected European countries. The main operations under the umbrella brand Scout24 are the digital marketplaces ImmobilienScout24 and AutoScout24. ImmobilienScout24 is the leading digital real estate classifieds platform in Germany, based on consumer traffic and time spent as well as customer numbers and listings. AutoScout24 is a leading automotive digital classifieds platform in Europe, in terms of unique monthly visitors and listings. Scout24’s digital marketplaces are empowering people to realise their property and car-owning dreams simply, efficiently and stress-free. Further information is available at www.scout24.com.

Investor Relations

Britta Schmidt
Vice President Investor Relations & Treasury
Tel.: +49 89 44456 3278          
Email: ir@scout24.com

Media Relations

Marie Fabiunke
Head of Corporate Communications & PR
Tel.: +49 30 24301 1427
Email: marie.fabiunke@scout24.com

Disclaimer:

All information contained in this document has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.

The information contained in this release is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company’s or, as appropriate, senior management’s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this press release (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

1Ordinary operating EBITDA represents EBITDA adjusted for non-operating and special effects, ordinary operating EBITDA margin of a segment is defined as ordinary operating EBITDA as a percentage of external segment revenues.

2EBITDA is defined as profit before financial results, income taxes, depreciation and amortisation, impairment write-downs and the result of sales of subsidiaries.

3Cash contribution is defined as ordinary operating EBITDA less capital expenditure.

4Cash conversion is defined as ordinary operating EBITDA less capital expenditure divided by ordinary operating EBITDA.