Scout24 AG: Scout24 further cementing its leading market position

DGAP-News: Scout24 AG / Key word(s): Interim Report/Half Year Results

2016-08-11 / 07:30
The issuer is solely responsible for the content of this announcement.

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Scout24 further cementing its leading market position

  - 14.2% increase in Group revenues to EUR 215.9 million

  - Ordinary operating EBITDA margin of 50.7%

  - Strong increase of cash contribution by 14.4% underpinning fast balance
    sheet deleveraging

  - Full year 2016 targets confirmed with margins now expected at high end
    of range

Berlin / Munich, 11 August 2016 - Scout24 AG ("Scout24" or "the Group"),
the leading operator of digital marketplaces specializing in the real
estate and automotive sectors in Germany and other selected European
countries, announces its results for the first half-year and the second
quarter of the financial year 2016.

According to the unaudited, yet reviewed by the auditor, consolidated
financial statements, Group revenues for the first six months ending June
30, 2016 increased by 14.2% to EUR 215.9 million (H1 2015: EUR 189.1
million). Group ordinary operating EBITDA was up 14.6% to EUR 109.4
million, representing a margin of 50.7%. Furthermore, cash contribution
(ordinary operating EBITDA reduced by investments) increased strongly by
14.4%, underpinning the Group's ability to swiftly delever its balance
sheet.

"Our business performance during the first half of 2016 is further proof
that Scout24 continues to be the leading marketplace to both our audiences
and our customers and that we are on a dynamic and steady growth track."
said Greg Ellis, CEO of Scout24 Group and added: "We are highly confident
that we will meet our full year targets for 2016 and are very exited about
the Company's long term growth prospects."

"Scout24 continued on its growth path and, once again, proved its strong
financial performance. We were able to make a voluntary partial repayment
towards the existing syndicated loan  of EUR 40.0 million and completely
finance the acquisition of AutoTrader.nl  (European Autotrader B.V.) with
the amount of EUR 27.7 million from  our operating cash flow. As a result
our strong cash position offers possibility for further debt reduction as
well as potential further acquisitions", 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 first half-year and the second quarter ended June 30, 2016.

(EUR millions)     Q2 2016   Q2 2015  +/-     H1 2016   H1 2015  +/-
External             110.1      96.4  14.2%     215.9     189.1     14.2%
revenues
IS24                  71.1      65.2   9.0%     140.2     129.1      8.6%
AS24                  37.6      29.8  26.2%      72.7      57.4     26.7%
Ordinary              57.2      49.8  14.9%     109.4      95.5     14.6%
operating
EBITDA1
IS24                  45.5      39.8  14.3%      87.9      78.2     12.4%
AS24                  15.9      12.9  23.3%      29.8      23.6     26.3%
Ordinary             52.0%     51.7%  0.3pp     50.7%     50.5%     0.2pp
operating
EBITDA-margin
IS24                 64.0%     61.0%  3.0pp     62.7%     60.6%     2.1pp
AS24                 42.3%     43.3%  1.0pp     41.0%     41.1%  (0.1) pp
EBITDA2               51.1      43.7  16.9%      99.7      84.8     17.6%
IS24                  40.2      37.6   6.9%      79.5      73.2      8.6%
AS24                  13.4      11.6  15.5%      26.0      21.6     20.4%
Capital                4.7       4.3   9.3%       9.6       8.3     15.7%
expenditure
Cash                  52.5      45.5  15.4%      99.8      87.2     14.4%
contribution3

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.

The full half-year financial report including financial statements and
additional details on segment level is available at www.scout24.com/
financial-reports.


Business Development

Group

Driven by the launch of the visibility products at AutoScout24 ("AS24"), a
consistent expansion of activities as part of services for users through
Scout24 Media, and targeted, portfolio-enhancing corporate acquisitions
Scout24 continued on its growth path in the first half-year of 2016.

Reported Group EBITDA for the first half-year of 2016 was up EUR 14.9
million compared to the first half-year of 2015, reaching EUR 99.7 million.
Included here are EUR 9.6 million of non-operating costs (H1 2015: EUR 10.6
million), reflecting EUR 4.0 million of personnel expenses connected with
reorganisation measures (H1 2015: EUR 3.1 million), EUR 2.2 million for the
Management Equity Program, EUR 2.0 million of costs connected with
corporate acquisitions, and EUR 1.2 million of obligations from purchase
agreements. Non-operating costs in the second quarter of 2016 amounted to
EUR 6.1 million. Ordinary operating EBITDA in the first half of 2016 was up
by 14.6% compared with the first half of 2015 to reach EUR 109.4 million.
Consolidated net income attributable to parent company owners amounted to
EUR 29.5 million in the reporting period (H1 2015: EUR 40.3 million), which
corresponds to EUR 0.28 of earnings per share (H1 2015: EUR 0.40).

The cash contribution in the first half of 2016 was up by EUR 12.6 million,
or by EUR 7.1 million in the second quarter, compared with the respective
equivalent period of 2015. The Cash Conversion Rate, based on ordinary
operating EBITDA, remained stable at 91.3%. Cash and cash equivalents
amounted to EUR 56.4 million as of June 30, 2016 (December 31, 2015: EUR
70.6 million). Net financial debt (nominal value of interest bearing
liabilities less cash and cash equivalents) amounted to EUR 685.4 million,
compared with EUR 711.3 million as of December 31, 2015. The ratio of net
debt to ordinary operating EBITDA over the last 12 months was reduced to
3.36:1 (December 31, 2015: 3.74:1).

ImmobilienScout24 (IS24)

(EUR millions)   Q2 2016    Q2 2015    +/-    H1 2016    H1 2015    +/-
Revenue from          38.8       37.2   4.3%       77.9       72.9   6.9%
core agents
(Germany)
Revenue from           8.9        8.4   6.0%       17.4       17.1   1.8%
other agents
Other revenues        23.4       19.6  19.4%       44.9       39.1  14.8%
Total external        71.1       65.2   9.0%      140.2      129.1   8.6%
revenues
Ordinary              45.5       39.8  14.3%       87.9       78.2  12.4%
operating
EBITDA
Ordinary             64.0%      61.0%  3.0pp      62.7%      60.6%  2.1pp
operating
EBITDA - margin
%
EBITDA                40.2       37.6   6.9%       79.5       73.2   8.6%
Capital                2.6        2.3  13.0%        5.2        4.6  13.0%
expenditure


External revenues of the IS24 segment remain on their growth track,
reporting 8.6% year-on-year growth to reach EUR 140.2 million in the period
under review (H1 2015: EUR 129.1 million). The largest revenue share is
attributable to revenue from core agents, which was up by 6.9% to EUR 77.9
million (H1 2015: EUR 72.9 million). This growth was driven by ARPU
(average revenue per core agent) up 23.4% to EUR 703 for the first half of
2016 (H1 2015: EUR 569), which compensated for a declining number of core
agents. The average number of core agents decreased by 2,870 compared with
the first half of 2015 from 21,349 to 18,479 as a result of churn, smaller
agents shifting to the professional pay-per-ad model, and agents going out
of business following the introduction of the so-called "Bestellerprinzip"
in June 2015. The revenues of other agents remained stable year-on-year
with a growth rate of 1.8%, mainly due to slightly decreasing revenues in
the area of professional pay-per-ad revenues due to a decrease in booking
numbers after the introduction of the "Bestellerprinzip". This negative
trend was offset mainly by higher revenues from real estate marketplaces in
Austria. Consumer monetization initiatives, driven by the cross-Group
function Scout24 Media, was the main reason for the 14.8% growth of other
revenues of EUR 44.9 million in the first half of 2016 (H1 2015: EUR 39.1
million). The private classifieds also made a positive contribution to
revenue growth due to rising booking figures as a result of the
"Bestellerprinzip". Here included are EUR 0.8 million revenues of
classmarkets GmbH, Berlin ("classmarkets"), which was acquired on September
8, 2015.

Importantly, IS24 has increased its listing market share versus its closest
competitor (from 1.3x to 1.5x). IS24 maintained a strong competitive lead
in consumer traffic and engagement (2.7x vs. closest competitor).

AutoScout24 (AS24)

(EUR millions)     Q2 2016  Q2 2015  +/-      H1 2016  H1 2015  +/-
Revenue from core  13.5     10.3     31.1%    26.7     20.0     33.5%
dealers (Germany)
Revenue from core  12.6     8.9      41.6%    23.5     17.3     35.8%
dealers (Benelux/
Italy)
Revenue from       3.4      2.9      17.2%    6.7      5.6      19.6%
other dealers
Other revenues     8.2      7.7      6.5%     15.8     14.5     9.0%
Total external     37.6     29.8     26.2%    72.7     57.4     26.7%
revenues
Ordinary           15.9     12.9     23.3%    29.8     23.6     26.3%
operating EBITDA
Ordinary           42.3%    43.3%    (1.0)pp  41.0%    41.1%    (0.1)pp
operating EBITDA
-margin %
EBITDA             13.4     11.6     15.5%    26.0     21.6     20.4%
Capital            2.0      1.8      11.1%    4.3      3.4      26.5%
expenditure


Following the trend of the first quarter of 2016, external revenues in the
AS24 segment reported a strong growth with an increase of 26.7% for the
first half of 2016 compared with the first half of 2015. The average number
of core dealers in Germany grew by 9.9% to 22,767 as of June 30, 2016 with
an increase in core dealer ARPU (average revenue per core dealer) of 21.6%
to 195 EUR compared with the first half of 2015 (H1 2015: EUR 161). A
similarly positive trend is also evident in Benelux and Italy, where ARPU
was up by 25.0% to EUR 217 (H1 2015: EUR 174), accompanied by a 8.6% higher
average number of core dealers (including core dealers of AutoTrader.nl,
excluding duplications). AutoTrader.nl contributed a total of EUR 2.9
million to revenue during the first half-year, with EUR 2.7 million being
attributable to revenue from core dealers. easyautosale GmbH, Munich
("easyautosale"), which AS24 acquired in April 2015, made a EUR 1.3 million
contribution in the first half of 2016 included in revenue from other
dealers (H1 2015: EUR 0.4 million).

Pressing ahead with the strategic focus on market leadership with regards
to listings and continuous implementation of the strategy of new dealer
aquisition, AS24 achieved growth of 16.3% in its listing inventory in
Germany by reaching 1,254 thousand listings in June 2016 (compared with
1,077 thousand in June 2015).  In addition AS24 extended its market
leadership based on the number of listings in Belgium (including
Luxembourg), the Netherlands and Italy.


Outlook

Scout24 reported a successful half-year of 2016 with 14.2% revenue growth
and an ordinary operating EBITDA margin of 50.7%, which is fully in line
with the Management's expectations as communicated in the Annual Report
2015 and has once again underlined the Group's ability to deliver
sustainable and profitable revenue growth.

The online advertising outlook in Germany and Europe remains positive as
both consumers and customers are becoming increasingly digital. Scout24 is
well positioned to benefit from this structural shift due to the market
leading positions of our ImmobilienScout24 and AutoScout24 platforms, with
both divisions benefiting from the shift of marketing budgets from
traditional marketing channels (mainly print) to online marketing channels.
The profitable growth is especially driven by revenues from core agent and
core dealers partners as well as increasing consumer monetization.

Management is confident that this momentum will continue in the second half
of 2016, and expects group revenue to record a low double-digit percentage
growth rate, in line with its guidance given in the Annual Report 2015.
Reflecting the scalable nature of the business model, the cost base should
grow at a disproportionally lower rate than revenues and combined with
continually strong ARPU growth, Management now expects an ordinary
operating EBITDA margin between 50.0% and 50.5% slightly above previous
guidance given in the Annual Report 2015.

IS24 is currently expected to achieve a mid-single digit percentage revenue
growth rate in 2016, slightly lower than previous guidance given in the
Annual Report 2015. This is due to lower than expected core agent revenues,
while ARPU growth should remain strong in a high teens to low twenties
range.

The cost base should grow at a disproportionally slower rate than revenues.
Together with a better product mix, Management now expects an ordinary
operating EBITDA margin of at least 61.5% and representing the upper end of
the previously guided range of 60.5% to 61.5%.

Management expects AS24 (including the contribution of our recent
acquisition Autotrader.nl) to grow stronger than previously expected, with
a low twenties growth rate, with the ordinary operating EBITDA margin
increasing to at least 41%. This development is mainly attributable to
sustained ARPU growth driven by increasing visibility product penetration
and some dealer growth.

Moreover, Management expects 2016 total non-operating costs to amount to
approximately EUR 16.0 million, approximately 1.5 million higher than
previously guided, due to a higher non-recurring restructuring charge of
approximately EUR 6.5 million (previously EUR 5.0 million). The increase is
mainly driven by accelerated reorganization which Management expects to
start yielding benefits in the coming quarters. As previously guided,
capital expenditure will be slightly lower than in 2015.

Conference Call

On Thursday, August 11, 2016, 2:00 p.m. CEST, Scout24 will host a
conference call and webcast for financial analysts and investors. You may
dial in using the following numbers:
DE: +4969222210640
UK: +442033645728
USA: +16462543373
Participant PIN code: 4799410

The webcast, as well as a replay, will be made available at:
scout110816-live.audio-webcast.com

Next events and reportings

Scout24 expects to report results for the first nine months of the 2016
financial year on Wednesday, November 9, 2016.

About Scout24

Scout24 operates leading digital classifieds platforms in Germany and other
selected European countries. The main operations under the umbrella brand
Scout24 are the digital marketplaces ImmobilienScout24 and AutoScout24.
ImmobilienScout24 is the leading digital real estate classifieds platform
in Germany, based on consumer traffic and time spent as well as customer
numbers and listings. AutoScout24 is a leading automotive digital
classifieds platform in Europe, in terms of unique monthly visitors and
listings. Scout24's digital marketplaces are empowering people to realise
their property and car-owning dreams simply, efficiently and stress-free.
Further information is available at www.sout24.com.

Investor Relations contact

Britta Schmidt
Vice President Investor Relations & Treasury
Tel.: +49 89 44456 3278 
Email: [email protected]

Press contact

Svenja Lahrmann
Instinctif Partners
Tel.: +49 221 42075 23
Email: [email protected]


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.


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2016-08-11 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.

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   Language:    English                                                     
   Company:     Scout24 AG                                                  
                Dingolfinger Str. 1 - 15                                    
                81673 Munich                                                
                Germany                                                     
   Phone:       +49 89 44456 - 0                                            
   Fax:         +49 89 44456 - 3000                                         
   E-mail:      [email protected]                                              
   Internet:    www.scout24.com                                             
   ISIN:        DE000A12DM80                                                
   WKN:         A12DM8                                                      
   Indices:     SDAX                                                        
   Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated   
                Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,  
                Munich, Stuttgart, Tradegate Exchange                       


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