Adevinta first-quarter profit beats; ad cuts by auto sector hit revenues

Adds quote, CEO estimate, facts and qualifications

OSLO, Could 24 (Reuters) – Norwegian promotion company Adevinta ADEA.OL posted a larger-than-forecast first-quarter core earnings on Tuesday, even though earnings growth lagged estimates as automobile sellers minimize advert spends because of to a world wide semiconductor shortage hitting creation.

The world’s biggest categorised advertisements business described adjusted earnings ahead of interest, tax, depreciation and amortization (EBITDA) of 137 million euros ($146.1 million) for the three months finished March 31, up from 136 million euros a calendar year-back. Analysts on typical had expected EBITDA of 120 million euros, Refinitiv knowledge showed.

A shortage of semiconductors has constrained world-wide vehicle generation, hampering sales and so advertising and marketing, major to Adevinta’s German Cell.de unit reporting a 3% earnings fall.

Adevinta’s revenue rose 5% calendar year-on-year to 387 million euros for the quarter, lagging analysts’ common forecast of 409 million euros as very well as the firm’s more time-time period objective of expanding by 15% each year.

“Regardless of the present difficult ecosystem, I am self-assured we will achieve the economical targets that we established for this yr and our mid-to-extended-phrase targets,” Main Executive Officer Rolv Erik Ryssdal explained in a assertion.

The enterprise managed its forecast of a “small double-digit profits growth in core marketplaces” this year and fundamental EBITDA, excluding discontinued operations, of 575 million to 600 million euros.

Adevinta expects earnings and revenue this year to display “sequential improvement” quarter by quarter, it included.

($1 = .9378 euros)

(Reporting by Terje Solsvik Modifying by Kim Coghill and Rashmi Aich)

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