Scout24 AG, DE000A12DM80

Scout24 AG, DE000A12DM80

07.11.2018 - 07:32:20

Scout24 AG concludes third quarter of financial year 2018 with double-digit revenue growth

Scout24 AG concludes third quarter of financial year 2018 with double-digit revenue growth

Group revenues up 13.6%, with mainly organic growth Ordinary operating EBITDA-margin stands at 55.8% Management reiterates the outlook for financial year 2018  

Berlin / Munich, 7 November 2018 - Scout24 AG ("Scout24" or "the Group"), a leading operator of digital marketplaces specialising in the real estate and automotive sectors in Germany and other selected European countries, has concluded a strong third quarter of 2018 with solid revenue growth across its segments.

According to the unaudited interim consolidated financial statements, Group revenues, excluding the effects of the FINANZCHECK.de acquisition, increased by 10.8% to EUR 131.3 million in the third quarter of 2018. (Q3 2017: EUR 118.5 million). Accounting for the acquisition of FINANZCHECK Finanzportale GmbH ("FINANZCHECK.de") in the third quarter of 2018, Group revenues amounted to EUR 134.6 million (13.6% year-on-year growth). In the first nine months of 2018, Scout24 Group revenues amounted to EUR 385.8 million, marking a 11.1% growth against the previous year (10.1% excluding FINANZCHECK.de). The Group's profitability in the third quarter 2018, in terms of ordinary operating EBITDA-margin, increased 2.9 percentage points year on year to 55.8% (+4.5 percentage points to 57.4% without accounting for FINANZCHECK.de). Scout24 is well on track to achieve the previously communicated financial targets for the financial year 2018 and the Management Board thus reiterates the full year outlook. FINANZCHECK.de showed a positive development, with a EUR 3.3 million revenue contribution for the month of September and is thus well on track to reach the targeted revenue contribution of EUR 12 million by the end of the financial year. The product related integration of FINANZCHECK.de into the Scout24 market network has also shown good progress in the past quarter. "We concluded the first nine months of 2018 with very good results. We are within the double-digit growth range and are thus very confident, that we will fulfil our financial targets for the full year 2018. We are especially pleased that ImmobilienScout24 showed a good growth in the first nine months, with an acceleration in revenue from Residential Real Estate Partners of around 9% year-on-year. We have thus delivered a solid foundation for continued growth at ImmobilienScout24, as we've previously guided towards. Also, we have strengthened our focus on our market-network strategy. The FINANZCHECK.de acquisition will help us to realize our vision to grow Consumer Services to a EUR 250 million business in the mid-term. FINANZCHECK.de showed solid results in the first nine months of 2018 and is well on track to reach the revenue and earnings targets for 2018, and also the product-related integration into the market network has shown good progress," says Christian Gisy, Chief Financial Officer of Scout24 AG.Overview of financial results The table below provides a summary overview of the Group's performance in the first nine months and the third quarter ended 30 September 2018.

(EUR millions) Q3 2018* Q3 2017** +/- 9M 2018* 9M 2017*/** +/- External revenues 134.6 118.5 13.6% 385.8 347.4 11.1% IS24 63.5 59.2 7.2% 185.8 175.6 5.8% AS24 45.8 39.5 16.0% 132.5 114.6 15.6% CS* 25.3 19.3 31.1% 67.3 56.8 18.5% Ordinary operating EBITDA2 75.1 62.7 19.8% 213.9 185.5 15.3% IS24 42.4 40.5 4.7% 125.9 118.9 5.9% AS24 26.1 20.1 29.9% 69.3 54.6 26.9% CS* 9.5 6.4 48.4% 25.3 20.2 25.2% Ordinary operating EBITDA margin, %2 55.8% 52.9% 2.9pp 55.4% 53.4% 2.0pp IS24 66.7% 68.4% (1.7pp) 67.8% 67.7% 0.1pp AS24 57.0% 50.9% 6.1pp 52.3% 47.6% 4.7pp CS* 37.6% 33.5% 4.1pp 37.6% 35.5% 2.1pp EBITDA3 64.9 59.4 9.3% 196.0 171.5 14.3% Capital expenditure (adjusted)6 4.6 6.3 (27.0%) 22.6 15.7 43.9% Cash contribution4 70.6 56.3 25.4% 191.3 169.8 12.7% Cash conversion5 93.9% 89.9% 4.0pp 89.4% 91.5% (2.1pp) * As of 1 September, the result of FINANZCHECK.de is included in the financial figures of Scout24 AG. FINANZCHECK.de is attributed to the Scout24 Consumer Services segment. The revenue contribution for the period amounts to EUR 3.3 million, the contribution to ordinary operating EBITDA is a negative EUR 0.3 million.

** The following change was made compared with the figures reported for 2017: IFRS 15 was applied as of 1 January 2018 and the figures for 2017 have been restated retrospectively.

1 Ordinary operating EBITDA refers to EBITDA adjusted for non-operating and special effects, which chiefly include restructuring expenses, expenses in connection with the capital structure of the Company and business combinations (realised and unrealised) as well as effects from share-based compensation programs recognised in income. The 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 gains or loss on the sale of subsidiaries.3 Cash contribution is defined as ordinary operating EBITDA less capital expenditure (adjusted).4 The cash conversion rate is defined as ordinary operating EBITDA less capital expenditure (adjusted) divided by ordinary operating EBITDA.5Capital expenditure (adjusted) does not include capital expenditure incurred due to the application of IFRS 16 in the financial year 2018. Capital expenditure incurred due to the first-time application of IFRS 16 amounts to EUR 35.7 million for the first nine months 2018.

The Group's EBITDA for the third quarter of 2018 included non-operating costs of EUR 10.2 million, which mainly comprised of personnel expenses of EUR 6.8 million, of which EUR 4.8 million were for share-based compensation, and costs related to M&A activities were EUR 2.2 million. Consolidated reported net profit attributable to shareholders of the parent company in the third quarter 2018 amounted to EUR 36.2 million (Q3 2017: EUR 28.7 million), which translates into basic earnings per share of EUR 0.34 (Q3 2017: EUR 0.27).

The cash contribution (excluding capital expenditure resulting from the application of IFRS 16) increased by 25.4% to EUR 70.6 million in the third quarter of 2018, respectively by 25.9% to EUR 70.9 million without considering FINANZCHECK.de (Q3 2017: EUR 56.3 million). The cash conversion rate of 93.9% based on ordinary operating EBITDA (without considering FINANZCHECK.de: 93.9%) increased compared with the third quarter of 2017 (89.9%).

Cash and cash equivalents amounted to EUR 61.5 million as of 30 September 2018 (30 June 2018: EUR 33.6 million; 31 December 2017: EUR 56.7 million). This includes the cash inflow of EUR 215.0 million from the first Schuldschein loan issue of Scout24 AG as well as the cash outflow of EUR 250.0 million from an early repayment towards the existing bank loan at the end of March 2018 and the dividend distribution of EUR 60.3 million which was paid on 26 June 2018. Net financial debt amounted to EUR 795.8 million, resulting in a leverage ratio (ratio of net debt to ordinary operating EBITDA for the last twelve months) of 2.83x, (31 December 2017: 2.22x). The EUR 202.1 million increase in net financial debt compared to the same quarter of the previous year is mainly attributable to the acquisition of FINANZCHECK.de (Q3 2017: EUR 593.7 million).

The statement for the third quarter including the interim consolidated financial statements and additional details on segment level is available at ? www.scout24.com/financial-reports.Business development Scout24 concluded a strong third quarter 2018 with solid organic revenue growth. This was mainly driven by a stronger growth in the ImmobilienScout24 ("IS24") segment compared to the first half of 2018, as anticipated by the Group, and sustained growth in the AutoScout24 ("AS24") and Scout24 Consumer Services ("CS") segments.ImmobilienScout24 (IS24)

(EUR millions) Q3 2018 Q3 2017** % Change 9M 2018 9M 2017** % Change Total external revenues 63.5 59.2 7.2% 185.8 175.6 5.8% Ordinary operating EBITDA 42.4 40.5 4.7% 125.9 118.9 5.9% Ordinary operating EBITDA margin, % 66.7% 68.4% -1.7pp 67.8% 67.7% 0.1pp ** The following change was made compared with the figures reported for 2017: IFRS 15 was applied as of 1 January 2018 and the figures for 2017 have been restated retrospectively.

External revenues in the IS24 segment increased by 7.2% to EUR 63.5 million in the third quarter of 2018 compared with EUR 59.2 million in the third quarter of 2017 and were up 2.7% quarter-on-quarter (Q2 2018: EUR 61.8 million). The segment noted a stronger growth in the third quarter compared to the first half of 2018, underpinning the Group's positive outlook on revenue growth in the IS24 segment for the second half of 2018. This momentum is primarily due to the positive development in Revenue with Residential Real Estate Partners and Revenue with Business Real Estate Partners. This was mainly driven by the increased monetisation of the existing customer base in the contractual residential real estate segment and additional VIA product sales, but also a further increase in the number Residential Real Estate Partners. Revenue with Business Real Estate Partners also noted a strong year-on-year development, mainly driven by increased monetisation of the customer base and additional volume through the VIA product range. The profitability of the segment, in terms of ordinary operating EBITDA-margin, for the third quarter 2018 stood at 66.7%, and below the previous year's comparable quarter reflecting timing differences (Q3 2017: 68.4%). Overall, the segment is well on track to achieve the growth targets for the financial year 2018: revenue growth of between 5.0% and 6.0%, ordinary operating EBITDA margin of at least 68.0%.AutoScout24 (AS24)

(EUR millions) Q3 2018 Q3 2017** % Change 9M 2018 9M 2017** % Change Total external revenues 45.8 39.5 16.0% 132.5 114.6 15.6% Ordinary operating EBITDA 26.1 20.1 29.9% 69.3 54.6 26.9% Ordinary operating EBITDA margin, % 57.0% 50.9% 6.1pp 52.3% 47.6% 4.7pp ** The following change was made compared with the figures reported for 2017: IFRS 15 was applied as of 1 January 2018 and the figures for 2017 have been restated retrospectively.

The sustained positive revenue development in the AS24 segment is mainly attributable to the growth in Revenue with Dealers, both in Germany and in the European Core Countries. Both revenue lines benefit from the successful implementation of price adjustments as well as additional volume through the MIA product range, for example the 360-degree option for car exposés in Germany and the European Core Countries. Revenues with OEMs and Other Revenues performed in line with expectations. The segment's profitability in terms of ordinary operating EBITDA-margin reached 57.0% in the third quarter of 2018 (Q3 2017: 50.9%). With a mid-teens percentage growth rate in the first nine months of 2018, AS24 is well on track to achieve the targets for financial year 2018: revenues target of at least EUR 180.5 million and margin of around 52%.Scout24 Consumer Services (CS)

(EUR millions) Q3 2018* Q3 2017** % Change 9M 2018* 9M 2017** % Change Total external revenues 25.3 19.3 31.1% 67.3 56.8 18.5% Ordinary operating EBITDA 9.5 6.4 48.4% 25.3 20.2 25.2% Ordinary operating EBITDA margin, % 37.6% 33.5% 4.1pp 37.6% 35.5% 2.1pp * As of 1 September, the result of FINANZCHECK.de is included in the financial figures of Scout24 AG. The revenue contribution for the period amounts to EUR 3.3 million, the contribution to ordinary operating EBITDA is a negative EUR 0.3 million.

** The following change was made compared with the figures reported for 2017: IFRS 15 was applied as of 1 January 2018 and the figures for 2017 have been restated retrospectively.

The segment generated external revenues of EUR 25.3 million in the third quarter of 2018, up 31.1% compared to the third quarter of 2017 (Q3 2017: EUR 19.3 million). Without accounting for FINANZCHECK.de, total external revenues for the third quarter 2018 in the Scout24 Consumer Services segment summed up to EUR 22.0 million, reflecting 14.3% increase in revenues. The increase in revenues was mostly driven by Services Revenues and Revenues with Financing Partners. Particularly Services Revenues showed a good development on the back of increased consumer monetisation. 3rd Party Display Revenue also showed a positive development compared to the third quarter 2017. The segment's profitability in terms of ordinary operating EBITDA-margin, of 37.6% came in above the previous year's figure (Q3 2017: 33.5%). Without taking FINANZCHECK.de into account, the ordinary operating EBITDA-margin for the third quarter of 2018 stood at 44.6%.

The CS segment is well on track to achieve the targets for the full financial year (without taking FINANZCHECK.de into account), as communicated in the Group Interim Report H1 2018: Revenue of around EUR 87.0 million, increase in the ordinary operating EBITDA-margin by at least one percentage point.

With the acquisition of FINANZCHECK.de in the third quarter 2018, Scout24 has taken an important strategic step towards offering its users greater support during their consumer journey and further tapping into the Group's market network potential. The product related integration in the Scout24 market network has shown good progress in the past quarter. Revenue wise, FINANZCHECK.de yielded a positive development, with a EUR 3.3 million revenue contribution for the month of September and is thus well on track to reach the targeted revenue contribution of EUR 12 million by the end of the financial year.Outlook The performance of Scout24 Group in the nine months of 2018 was fully in line with the management's expectations. The Management Board is reiterating the guidance for the full year 2018, with an expected organic revenue growth between 9.0% and 11.0% and a revenue contribution of around EUR 12.0 million from FINANZCHECK.de. Taking FINANZCHECK.de into account, Group revenue growth is expected to be between 11.5% and 13.5% for financial year 2018. Organic Profitability (ordinary operating EBITDA-margin) is expected to range between 56.0% and 57.5%. For FINANZCHECK.de, a negative contribution to ordinary operating EBITDA in the low single digit million range is expected, and thus an ordinary operating EBITDA-margin between 54.5% and 56.0% for the group for the full year 2018 is expected.

Scout24 will publish the outlook for the financial year 2019 together with the results for the financial year 2018 in March 2019.Conference call On Wednesday, 7 November 2018, 2:00 p.m. CET, Scout24 will host a conference call and webcast for financial analysts and investors. You can dial in using the following numbers: DE: +4969201744220 UK: +442030092470 USA: +18774230830Participant PIN code: 86144736#

The webcast, as well as a replay of the conference call, will be made available at:https://webcasts.eqs.com/scout2420181107  

Next reporting dates Scout24 expects to report preliminary results for the full financial year 2018 on Tuesday, 12 February 2019  

About Scout24

With our leading digital marketplaces ImmobilienScout24 in Germany and AutoScout24 across Europe we are inspiring people to make their best decisions on finding a home and a car. Additional services, such as credit information, the brokerage of relocation services or construction and car financing, are bundled in the Scout24 Consumer Services business division. More than 1,200 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 Tel.: +49 89 44456 3278 Email: ir@scout24.com  

Media relations Jan Flaskamp Vice President Communications & Marketing Tel.: +49 30 24301 0721 Email: mediarelations@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 Group Interim Report 2018, 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 the quarterly financials has not been subject to audit and is thus preliminary.

07.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: Scout24 AG Bothestr. 11-15 81675 Munich

Germany Phone: +49 89 44456 - 0 Fax: +49 89 44456 - 3000 E-mail: ir@scout24.com Internet: www.scout24.com ISIN: DE000A12DM80 WKN: A12DM8 Indices: MDAX Listed: Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London   End of News DGAP News Service

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