Scout24 AG reports nine months results with robust top- and bottom-line growth

  • 8.3% increase in Group revenues to EUR 353.5 million
  • Ordinary operating EBITDA margin of 52.5%
  • Cash contribution increased by strong 10.4%
  • On track to achieve full year 2017 targets

Berlin / Munich, 8 November 2017 – Scout24 AG ("Scout24" or “the Group”), the leading operator of digital marketplaces specialising in the real estate and automotive sectors in Germany and other selected European countries, reports solid growth in revenues and profitability in the third quarter of the financial year 2017.

According to the unaudited consolidated financial statements, Group revenues for the third quarter increased by 8.7% to EUR 120.1 million (Q3 2016: EUR 110.5 million). Group ordinary operating EBITDA improved by 7.7% to EUR 62.7 million (Q3 2016: EUR 58.2 million). Furthermore, cash contribution increased by 4.2% to EUR 56.3 million, supporting financial flexibility and demonstrating the Group's strong cash generating capabilities.

"Scout24 group continued on the path of robust top-line and profitability growth in the third quarter of the financial year. Our acquisition in Austria has further strengthened AutoScout24’s position as a leading marketplace for automotive in Europe. Also, by making a prepayment towards our syndicated loan, we have increased our financial flexibility for the year-end period. Overall, Scout24 is on track to achieve its 2017 targets,” 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 third quarter ended 30 September 2017:

Key Financial Highlights

(EUR millions)

Q3 2017*

Q3 2016

%

change

9M 2017*

9M 2016

%

change

External revenues

120.1

110.5

8.7%

353.5

326.3

8.3%

IS24

75.5

71.3

5.9%

222.1

211.5

5.0%

AS24

43.2

37.8

14.3%

126.9

110.5

14.8%

Ordinary operating EBITDA1

62.7

58.2

7.7%

185.5

167.6

10.7%

IS24

47.4

45.6

3.9%

138.8

133.5

4.0%

AS24

22.5

17.7

27.1%

62.0

47.5

30.5%

Ordinary operating EBITDA-margin1

52.2%

52.7%

(0.5)pp

52.5%

51.4%

1.1pp

IS24

62.7%

64.0%

(1.3)pp

62.5%

63.1%

(0.6)pp

AS24

52.0%

46.8%

5.2pp

48.9

43.0%

5.9pp

EBITDA2

59.4

53.9

10.3%

171.5

153.6

11.7%

IS24

44.1

40.9

7.8%

128.8

120.3

7.1%

AS24

20.7

15.8

31.0%

55.5

41.9

32.5%

Capital expenditure

6.3

4.1

53.0%

15.7

13.7

14.6%

Cash contribution3

56.3

54.0

4.2%

169.8

153.9

10.4%

Cash conversion4

89.9%

92.9%

(3.0)pp

91.5%

91.8%

(0.3)pp

* All figures in the table above do not include results of Gebrauchtwagen.at

1 Ordinary 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.

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

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

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

Business Development Group

Scout24 continued the solid performance also in Q3 2017. The good performance was mainly driven by a strong increase in core dealer ARPU (average revenue per core dealer) in the AutoScout24 ("AS24") segment, an expected slight acceleration in ImmobilienScout24 (“IS24”) core agent revenues and an increase in revenues deriving from consumer monetisation initiatives.

According to the unaudited consolidated financial statements, Group revenues (excluding revenues from the latest acquisition Gebrauchtwagen.at) for the third quarter increased by 8.7% to EUR 120.1 million (Q3 2016: EUR 110.5 million).

Group ordinary operating EBITDA (excluding the contribution from Gebrauchtwagen.at) improved by 7.7% to EUR 62.7 million (Q3 2016: EUR 58.2 million). Reported Group EBITDA for the third quarter 2017 was up 10.3% to EUR 59.4 million compared to the third quarter 2016, reaching EUR 53.9 million. Consolidated reported net profit for the period was EUR 28.7 million (Q3 2016: EUR 19.5 million), resulting in basic earnings per share of EUR 0.27 (Q3 2016: EUR 0.18).

Cash contribution increased by 4.2% to EUR 56.3 million, supporting Group’s financial flexibility. The Cash Conversion Rate, based on ordinary operating EBITDA, reached 89.9% in the third quarter 2017, slightly below previous year’s comparable period (Q32016: 92.9%), on the back of higher Capital Expenditure. On a nine-month comparison, Cash Conversion Rate was on a stable high level of 91.5% (9M 2016: 91.8%).

Outlook

The performance of Scout24 Group in the nine month 2017 was overall again in line with the Management Board's expectations reaching a high-single digit revenue growth and an ordinary operating EBITDA-margin expansion of around one percentage point. Scout24 is highly confident to reach the targets for the financial year 2017 communicated on 9 August 2017. Driven by additional investment in product, Scout24 expects capital expenditure to amount to around EUR 22.0 million, slightly higher than previously communicated. We expect additional non-operating costs for post-merger integration activities of the recent acquisition Gebrauchtwagen.at.

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

About Scout24

With our leading digital marketplaces ImmobilienScout24 and AutoScout24 in Germany and across Europe we are inspiring people to make their best decisions on finding a home and a car. More than 1,000 employees are working on the success of our products and services, putting the consumers’ needs first in order to create a connected network for living and mobility. Scout24 is listed on the Frankfurt Stock Exchange (ISIN: DE000A12DM80, G24). For further information, please visit www.scout24.com, our Corporate Blog and Tech Blog, or follow us on Twitter and LinkedIn.

Investor Relations

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

Media Relations

Marie Fabiunke
Director Corporate Communications & PR
Fon: +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.

Scout24 also uses alternative performance measures, not defined by IFRS, to describe the Scout24 Group’s results of operations. These should not be viewed in isolation, but treated as supplementary information. The special items used to calculate some alternative performance measures arise from the integration of acquired businesses, restructuring measures, impairments, gains or losses resulting from divestitures and sales of shareholdings, and other material expenses and income that generally do not arise in conjunction with Scout24’s ordinary business activities. Alternative performance measures used by Scout24 are defined in the “Glossary” section of Scout24’s Annual Report 2016 which is available at www.scout24.com/financial-reports.

Due to rounding, numbers presented throughout this statement may not add up precisely to the totals indicated, and percentages may not precisely reflect the absolute figures for the same reason. Information on quarterly financials have not been subject to the audit and thus are labelled "unaudited".