US Markets

Norway's Adevinta returns to growth in Q3 as markets recover

Norway's Adevinta, which is in the process of taking over eBbay's online classifieds business, saw a rebound in third-quarter revenue as its markets gradually recovered from the coronavirus pandemic, it said on Tuesday.

Adds quote, outlook, detail

OSLO, Oct 27 (Reuters) - Norway's Adevinta ADEV.OL, which is in the process of taking over eBbay's EBAY.O online classifieds business, saw a rebound in third-quarter revenue as its markets gradually recovered from the coronavirus pandemic, it said on Tuesday.

The Oslo-listed company's July-September revenue rose 1.6% year-on-year to 183.3 million euros ($216.64 million), in line with a preliminary Oct. 19 statement and beating the 16% drop seen in the April-June quarter.

Growth still lags the company's long-term goal however, which is to expand by between 15% and 20% annually.

Adevinta in July agreed to buy eBay's classified ads unit in a $9.2 billion cash and shares deal to form the world's largest online classifieds group with a presence in 20 countries, aiming to close the transaction in early 2021.

Adevinta's earnings before interest, tax, depreciation and amortization, including joint ventures, rose 6% to 57.1 million euros in the third quarter from 54.1 million euros a year ago, up from just 38.7 million in the second quarter.

Earnings were boosted by cost cuts during the pandemic, leading to an "exceptionally high" profit margin for the quarter, although this margin will erode as the company raises investments to boost growth, Adevinta said.

"As a consequence of the current crisis, we see an acceleration of the trends that support the development of the digital economy," the company said in a statement.

($1 = 0.8461 euros)

(Reporting by Terje Solsvik, editing by Gwladys Fouche)

((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters Messaging: terje.solsvik.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

EBAY

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More