Kinnevik:Avito trading statement second quarter 2015

30 Jul 2015, 8:00 AM


Investment AB Kinnevik (publ) ("Kinnevik") today announced that Avito AB ("Avito") reported a trading statement for the second quarter 2015.

Avito owns and operates Russia's largest online classifieds website, Avito.ru, and reports non-audited results and key performance indicators for the second quarter 2015. During 2014 and 2015, all revenues were generated from the Avito.ru website.

Key performance indicators for the second quarter 2015:

  • Revenues of RUB 1,572m[1] (USD 28.3m[2]), grew by 47% compared to RUB 1,069m in the second quarter 2014.
  • Adjusted EBITDA margin of 50.5% or RUB 794m1 (USD 14.3m2), compared to 53.2% or RUB 569m in the second quarter 2014.
  • Page views[3] amounted to 24bln (mobile views accounted for 44%[4]) compared to 17bln (mobile views accounted for 30%4) for the same period in the previous year.
  • Desktop monthly audience[5] in June 2015 of 25.7m compared to 25.8m for the same period in the previous year.

Key performance indicators for the first half-year 2015:

  • Revenues of RUB 2,779m1 (USD 50.1m2), grew by 45% compared to RUB 1,921m for the same period in the previous year.
  • Adjusted EBITDA margin of 48.7% or RUB 1,354m1 (USD 24.4m2), compared to 50.1% or RUB 962m for the same period in the previous year.
  • Cash and cash equivalents were in excess of USD 163m2.
  • Page views3 amounted to 50bln (mobile views accounted for 42%4) compared to 34bln (mobile views accounted for 28%4) for the same period in the previous year.

In May 2014, Avito AB set up a subsidiary, Domofond Holding AB ("Domofond"), together with Korbitec Singapore PTE LTD, a subsidiary of the Naspers group, to jointly develop and operate a property portal in Russia under the brand name Domofond. Domofond.ru is in a development state and is not generating any revenues. During the first half-year of 2015, Avito invested material amounts in Domofond, and Domofond.ru launched TV-campaigns in the 15 largest cities in Russia including Moscow and St. Petersburg.

Avito provides no guidance on future performance.

Subsequent events after the end of the reporting period

On 16 July 2015, Avito completed the sale of its 48% share in its Moroccan associate, Le Rouge AB, which owns and operates the Avito.ma website for a cash consideration of USD 13.5m.

Use of non-GAAP financial measures

Adjusted EBITDA means net profit plus (i) depreciation and amortization expenses; (ii) share-based compensation expense; and (iii) income tax expense; less (iv) finance income and expenses.

The information is of such character, which Kinnevik shall disclose in accordance with the law on Trading with Financial Instruments (1991:980) and/or the Securities Market Act (2007:528). The information was distributed for disclosure at 08.00 CET on 30 July 2015.

For further information, visit www.kinnevik.se or contact:

Torun Litzén, Director Investor RelationsPhone +46 (0)8 562 000 83
 Mobile +46 (0)70 762 00 83

Kinnevik is an entrepreneurial investment group focused on building digital consumer businesses in four sectors: Communication, E-commerce & Marketplaces, Entertainment, and Financial Services. We work in partnership with talented founders and managers to create, invest in and lead fast growing digital businesses both in developed and developing countries. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families.

Kinnevik's shares are listed on Nasdaq Stockholm's list for large cap companies under the ticker codes KINV A and KINV B.

 


[1] Non-audited IFRS data.

[2] RUB amounts have been translated into USD at a rate of RUB 55.5240 to USD 1.00, the official exchange rate quotes as of 30 June 2015 by the Central Bank of the Russian Federation.

[3] Source: Internal company information.

[4] Mobile views include mobile HTML and applications, tablets are counted as desktop views.

[5] Source: TNS Russia, desktop traffic only.