DGAP-News: Scout24 AG / Key word(s): Final Results Scout24 AG announces record 2016 results and robust outlook for 2017 29.03.2017 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Scout24 AG announces record 2016 results and robust outlook for 2017 * Strong top-line growth with revenues up 12.3% to EUR 442.1 million * Surge in profitability with ordinary operating EBITDA up 18.4% to EUR 224.5 million yielding a margin of 50.8% * 20.4% increase in cash contribution supports deleveraging * Positive outlook for the financial year 2017: high-single-digit revenue growth and continued margin expansion Berlin / Munich, 29 March 2017 - Scout24 AG ("Scout24" or "the Group"), the leading operator of digital marketplaces specialising in the real estate and automotive sectors in Germany and other selected European countries, announces its full year results for the year ended 31 December 2016. According to the audited consolidated financial statements published today, Group revenues for the financial year 2016 increased by 12.3% to EUR 442.1 million. Group ordinary operating EBITDA was up 18.4% to EUR 224.5 million, representing an uplift in margin of 2.6 percentage points to 50.8%. Cash contribution increased by 20.4%, further reducing leverage to 2.82x ordinary operating EBITDA. These figures fully confirm the preliminary financial results published on 13 February 2017. "2016 was another very good year for Scout24. We maintained our growth momentum, delivering not only world-class digital services but also record-breaking financials. Next to top performance of our core verticals, product innovations through Scout24 Media have begun to pay off. Based on our proven ability to generate high cash flows, we were able to further reduce debt reaching a leverage ratio of 2.82:1at the end of 2016. Against the backdrop of the successful financial year, together with the Supervisory Board we will propose our first post-IPO dividend payment to the Annual General Meeting", said Greg Ellis, Chief Executive Officer of Scout24 AG, commenting on the strong performance of financial year 2016. Overview of Financial Results The table below provides a summary overview of the Group's performance for the fourth quarter and the financial year ended 31 December 2016. (EUR Q4 2016 Q4 2015 +/- FY FY +/- million) 2016 2015 (unaudited) (unaudited) External 115.8 105.2 10.1% 442.1 393.6 12.3% revenues IS24 73.1 69.8 4.7% 284.6 266.7 6.7% AS24 41.5 33.4 24.3% 152.0 120.7 25.9% Corporate 0.2 1.2 (83.3)% 1.3 2.8 (53.6)% Ordinary 57.0 45.0 26.7% 224.5 189.6 18.4% operating EBITDA IS24 45.7 40.0 14.3% 179.2 159.2 12.6% AS24 16.7 8.9 87.6% 64.2 43.8 46.6% Corporate (1.7) (2.3) (26.1)% (7.1) (8.7) (18.4)% Reconciliati- (3.7) (1.9) 94.7% (11.6) (5.5) 110.9% on of management fee Ordinary 49.2% 42.7% 6.5pp 50.8% 48.2% 2.6pp operating EBITDA - margin % IS24 62.5% 57.3% 5.2pp 63.0% 59.7% 3.3pp AS24 40.2% 26.7% 13.5pp 42.2% 36.2% 6.0pp EBITDA 53.1 41.2 28.9% 206.8 166.9 23.9% IS24 42.3 35.8 18.2% 162.6 147.9 9.9% AS24 14.1 8.1 74.1% 55.9 39.7 40.8% Capital 5.8 5.5 5.5% 19.5 19.3 1.0% expenditure Cash 51.2 39.5 29.6% 205.0 170.3 20.4% contribution Cash and 43.4 70.6 cash equivalents Net 633.9 711.3 financial debt Equity 990.8 921.3 Equity ratio 46.5% 42.4% Employees 1,135 1,120 (FTEs, end of period) The complete financial statements and management report for the financial year 2016 is available at report.scout24.com/2016. Business Development and Group results The strategy of consistently focusing on users' needs, boosting the listings base, improving service commitment through additional products, as well as further development from a classifieds portal to a market network, have set the base for our sustainable growth and high profitability. Scout24 remains on its growth track, in both revenues and profitability. This growth is mainly attributable to a higher number of customers and increasing penetration of visibility products at AS24, programmatic advertising, and an improved offering of services along the real estate selling and rental process. Acquisitions also contributed to growth in 2016, especially the acquisition of the Dutch digital automotive classifieds platform European AutoTrader B.V. ("AutoTrader.nl"). The Group-wide Scout24 Media function, which bundles all activities in field of consumer services and supports activities in display advertising sales , extended its position in 2016 and further strengthened the positioning of Scout24 as a leading data-driven digital marketer in Germany and Europe. Ordinary operating EBITDA increased by 18.4 % from EUR 189.6 million to EUR 224.5 million. This translates into a significantly increased ordinary operating EBITDA margin of 50.8 % (2015: 48.2 %), further underlining our profitability. Reported Group EBITDA for the financial year 2016 was affected by non-operating costs of EUR 17.8 million. The non-operating costs essentially consist of personnel expenses as well as costs in the context of M&A transactions. Personnel expenses include personnel expenses from share-based compensation for management equity programs totalling to EUR 4.1 million as well as performance-based remuneration from share purchase agreements totalling to EUR 2.8 million. The Management Board together with the Supervisory Board will propose a dividend of EUR 0.30 per share for the year 2016 to the Annual General Meeting on 8 June 2017. This corresponds to an overall payment of EUR 32.28 million. In relation to the share price at 30 December 2016, this represents a dividend yield of 0.9 %. ImmobilienScout24 (IS24) External revenues in the IS24 segment grew by 6.7 % in the reporting period compared to 2015. As in the previous year, the largest revenue share is attributable to revenues from core agents, which were up by 4.9 %. This revenue growth was driven by strong ARPU growth of 18.1 % to EUR 711 for the full 2016 year (2015: EUR 602), partially offset by a declining number of core agents. The number of core agents decreased by 1,944 to 17,411 at the end of December 2016 due to churn and shifts to the professional pay-per-ad model, as well as some agents leaving the market in response to the so called "Bestellerprinzip" introduced in June 2015 and market conditions in Germany. As customer migration to the membership model continues, 86.9 % of the approximately 90.0 % of core agents to which the membership model was offered in 2016, have already switched. Initiatives in the field of services across the entire real estate selling and rental process, driven by the Group-wide Scout24 Media function, contributed primarily to the 10.7 % growth in other revenues. Most important, IS24 further expanded its market position during the past financial year. Though the overall number of listings on the IS24 platform reduced slightly in 2016 (around 466 thousand listings vs. 504 thousand listings) in line with the market trend, market share expanded and the number of listings compared with the next competitor went up from 1.4 x in 2015 to 1.6 x in 2016. Based on its extensive content offering, IS24 also maintained its leading position in terms of consumer traffic and engagement. An average of 72 million visits per month (2015: 72 million) resulted in an average of 477 million minutes monthly time spent (desktop and mobile, 2.6 x vs. closest competitor). Supported by the "mobile-first" approach the average number of visits via mobile devices grew by 9.6 % now accounting for 68.6 % of total visits (63.2 % in 2015). AutoScout24 (AS24) External revenues in the AS24 segment showed a strong growth of 25.9 % compared to the 2015 financial year. This dynamic growth was mainly due to a higher-than-expected rise in revenues from core dealers in Germany of 28.9 % and Benelux/Italy of 35.8 % as well as the acquisition of AutoTrader.nl in February 2016 which accounted for some four percentage points of the revenue growth. Both regions are benefiting from a growing number of core dealers as well as strong ARPU growth (average revenue per core dealer per month). The ARPU growth is largely attributable to increasing penetration of visibility products. The number of core dealers in Germany grew by 9.5 % to 24,421 and in Benelux/Italy the number of core dealers was up 7.6 % to 18,747. ARPU in Germany rose by 16.4 % to EUR 199, in Benelux/Italy ARPU grew by 27.1 % to EUR 225. By executing further on its strategic focus to increase the listings base and enhance user-friendliness, an improved offering for mobile devices, as well as continuing the strategy of acquiring new dealers over the past twelve months, AS24 achieved a further increase in its total listing base in Germany of 6.6 % to 1,286 thousand in December 2016 (1,206 thousand in December 2015). Driven by mobile functionality enhancements, mobile visits in Germany increased to 63.0 % of total visits up on a year-average basis in 2016 (2015: 49.7 %). Moreover, AS24 successfully defended its market leadership based on numbers of listings in Belgium (including Luxembourg), the Netherlands and Austria, and further expanded its market leadership in Italy. The average share of visits via mobile devices in relation to total visits in Belgium, the Netherlands and Italy was up from 53.1 % to 63.5 % over the same period. Outlook The trend in ordinary operating EBITDA reflects the success of Scout24's overall strategy of focusing on sustainable and profitable growth. Revenue growth of 12.3 % was mainly driven organically, but also through targeted acquisitions that bolster the leading market positions. Based on margin quality, strong cash contribution, solid balance sheet structure and good leverage ratio, Scout24 is in an outstanding position to progress the transformation of the Company from a provider of digital classifieds portals to a sector-leading provider of digital marketplaces, as well as to further grow profitability. Moreover, Scout24 continued to streamline its organisational structure, leveraging on synergies across the businesses. The Management Board is therefore confident that the Group's growth momentum will continue also in 2017. Specifically, organic Group revenues are expected to record a growth rate in the high single-digit area, while the cost base should grow at a disproportionally lower rate. The Management Board therefore expects ordinary operating EBITDA margin to increase by around one percentage point. In particular, the Management Board expects IS24 to achieve a mid-single-digit percentage organic revenue growth rate. Revenue growth will be weighted towards the second half, where the Management Board expects an acceleration to a mid to high single-digit percentage rate. As in previous years, underlying costs are expected to grow at a disproportionately lower rate than revenues. However, IS24 is stepping up investment in marketing and product innovation for both customers and consumers. These investments are expected to have a positive impact on top line growth, starting in the second half of 2017. As a result, the Management Board expects an ordinary operating EBITDA margin at a similar or slightly lower level than in 2016 (but at least 61%). The number of core agents as of December 2016 declined by 10.0 % compared to December 2015 with a stabilization of agent numbers in the fourth quarter 2016, mainly in line with the general market development. Core Agent numbers are assumed to remain stable excluding any potential impact of agents leaving the business as a result of prevailing market conditions throughout the year. As a result, we expect revenues from core agents to increase by a low single-digit percentage rate with an accelerated growth rate in the second half of 2017. At AS24, the Management Board expects revenues to grow by a mid-teens percentage growth rate and for ordinary operating EBITDA margin to expand further by at least five percentage points. Total non-operating costs are expected to amount to approximately EUR 10.0 million, of which approximately EUR 6.0 million relate to share-based compensation for management equity programs and performance-based remuneration from share purchase agreements. A non-recurring charge for reorganisation of approximately EUR 4.0 million is anticipated. Finally, the Management Board expects capital expenditure to be on a comparable level to 2016, further improving the cash conversion potential of the group. Conference Call On Wednesday, 29 March 2017, 1:00 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: +4969222229043 UK: +442030092452 USA: +18554027766 Participant PIN code: 82438614# The webcast, as well as a replay, will be made available at: http://scout290317-live.audio-webcast.com Next reporting Scout24 expects to report results for the first quarter of the 2017 financial year on Wednesday, 10 May 2017. About Scout24 With our leading digital marketplaces ImmobilienScout24 and AutoScout24 in Germany and across Europe we are inspiring people to make their best decisions on finding a home and a car. More than 1,000 employees are working on the success of our products and services, putting the consumers' needs first in order to create a connected network for living and mobility. Scout24 is listed on the Frankfurt Stock Exchange (ISIN: DE000A12DM80, G24). For further information, please visit http://www.scout24.com/, our Corporate Blog and Tech Blog, or follow us on Twitter and LinkedIn Investor Relations Britta Schmidt Vice President Investor Relations & Treasury Fon: +49 89 44456 3278 Email: [email protected] Media Relations Marie Fabiunke Head of Corporate Communications & PR Fon: +49 30 24301 1427 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. --------------------------------------------------------------------------- 29.03.2017 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 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 Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London End of News DGAP News Service --------------------------------------------------------------------------- 559189 29.03.2017