Vend Marketplaces reports solid Q2 with EBITDA beat

Investing.com -- Vend Marketplaces ASA on Friday delivered second-quarter results showing strong EBITDA growth that exceeded expectations, despite mixed revenue performance as the company continues its transformation to a pure-play classifieds business.

The Norwegian classifieds company reported Q2 revenue and Adjusted EBITDA that were 1.6% and 13.2% ahead of company-compiled consensus, respectively.

All segments outperformed on Adjusted EBITDA, with margins improving to 25.4% compared to 24.9% in the first quarter.

Marketplace segments grew by 1% on a constant foreign exchange basis, compared to -0.1% in Q1.

Mobility and Real Estate revenues showed positive growth of 4% and 10% respectively, while Jobs and ReCommerce revenues declined by 11% and 6%.

Revenue development was driven by solid Average Revenue Per Advertisement (ARPA) growth across verticals but was held back by soft advertising revenues and strategic decisions to streamline the ReCommerce and Jobs businesses.

Vend has not provided specific financial guidance for fiscal year 2025, instead offering qualitative statements that volume trends are not expected to improve after a mixed first half.

The company noted that its exit from Jobs, wind-down of non-core revenue streams in ReCommerce, and closure of Mobility operations in Finland will continue to impact performance.

The company also indicated that advertising revenue remains under pressure, while its cost-cutting agenda is on track.

Vend reiterated that year-over-year operating expense declines will moderate in the second half of the year.

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Vend maintained its existing medium-term targets.

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