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

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.

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

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. It included non-operating costs of EUR 3.2 million, which were attributable to costs related to M&A activities and personnel expenses. Personnel expenses mainly relate to the reorganisation carried out, but also include share-based compensation for management equity programs as well as performance-based remuneration from share purchase agreements. 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%). In spite of the acquisition of Gebrauchtwagen.at and a voluntary prepayment towards the syndicated bank loan in August, cash and cash equivalents amounted to EUR 52.9 million as of 30 September 2017, highlighting the strong free cash flow generation. Total net financial debt therefore amounted to EUR 593.7 million, leading to a leverage (ratio of net debt to ordinary operating EBITDA of the last twelve months) of 2.46:1 (31 December 2016: 2.82:1).

ImmobilienScout24 (IS24)

(EUR millions)	Q3 2017	Q3 2016	% change	9M 2017	9M 2016	% change
Revenue from core agents (Germany)	40.1	39.2	2.3%	118.8	117.1	1.5%
Revenue from other agents	9.0	8.9	1.1%	26.9	26.3	2.3%
Other revenues	26.4	23.2	13.8%	76.3	68.1	12.0%
Total external revenues	75.5	71.3	5.9%	222.1	211.5	5.0%
Ordinary operating EBITDA	47.4	45.6	3.9%	138.8	133.5	4.0%
Ordinary operating EBITDA - margin %	62.7%	64.0%	(1.3)pp	62.5%	63.1%	(0.6)pp
EBITDA	44.1	40.9	7.8%	128.8	120.3	7.1%
Capital expenditure	4.6	2.6	76.1%	9.9	7.7	27.4%

 

Revenues from core agents slightly increased year-on-year to EUR 40.1 million mainly supported by low churn in the core agent base. At 17,230, the number of core agents slightly increased compared to June 2017 (17,046 core agents) and decreased by 0.8% against September 2016 mainly due to agents leaving the market. In Q3 2017, including agents leaving the market, core agent numbers increased against Q2 2017 on the back of very low churn levels and sustainably high winback and acquisition rates. The positive development in core agent trends in Q3 2017 exceeds core agent numbers in Q2 2017 as well as our guidance of stable core agent numbers. Revenues from other agents remained mainly flat year over year. Other revenues increased by 13.8 % to EUR 26.4 million in the third quarter of 2017 (Q3 2016: EUR 23.2 million), mainly due to consumer monetization initiatives.

Due to its superior content, IS24 maintained its strong competitive lead in listings share as well as consumer traffic and engagement in the third quarter of 2017.

AutoScout24 (AS24)

(EUR millions)	Q3 2017*	Q3 2016	% change	9M 2017*	9M 2016	% change
Revenue from core dealers (Germany)	16.6	14.0	18.6%	48.7	40.7	19.7%
Revenue from core dealers (Benelux/Italy)	14.9	12.6	18.3%	42.9	36.1	18.8%
Revenue from other dealers	3.5	3.5	0.0%	10.5	10.2	2.9%
Other revenues	8.2	7.8	5.1%	24.8	23.5	5.5%
Total external revenues	43.2	37.8	14.3%	126.9	110.5	14.8%
Ordinary operating EBITDA	22.5	17.7	27.1%	62.0	47.5	30.5%
Ordinary operating EBITDA - margin %	52.0%	46.8%	5.2pp	48.9%	43.0%	5.9pp
EBITDA	20.7	15.8	31.0%	55.5	41.9	32.5%
Capital expenditure	1.7	1.3	29.3%	5.3	5.6	(5.9)%

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

External revenues in the AS24 segment reported a strong growth with an increase of 14.3 % in Q3 2017 compared with Q3 2016. This dynamic development predominantly reflects the sustainable growth in revenue from core dealers of 18.6% in Germany, and of 18.3% in Benelux/Italy. Revenues from other dealers and other revenues increased at a slightly slower pace than expected due to a less dynamic development in "Express Sale" respectively display revenues.

AS24 sustained its content leadership positions in Belgium, Netherlands and Italy with regards to general classifieds and automotive classified competitors and continued to work on closing the gap towards its competitor in Germany.

Outlook

The performance of Scout24 Group in the nine months 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. For details, please refer to our 2017 half-year financial report, which is available in the investor relations section at www.scout24.com. Scout24 will provide an outlook for 2018 upon publication of its Full Year 2017 results in March 2018.

Conference Call

On Wednesday, 8 November 2017, 1:00 p.m. CET, Scout24 will host a conference call and webcast for financial analysts and investors. You may dial in using the following numbers:
DE: +4969222229043
UK: +442030092452
USA: +18554027766
Participant PIN code: 82438614#

The webcast, as well as a replay, will be made available at:
http://scout081117-live.audio-webcast.com/

Next events and reportings

On 14 November 2017, the first Capital Markets Day of Scout24 AG will take place in Berlin.

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".