Q3 2024 Allegro.eu SA Earnings Call Transcript
Key Points
- Allegro.EU SA (LTS:0A5O) reported a strong GMV growth of 12.3% year-on-year in Q3 2024, outperforming the overall retail consumption growth in Poland.
- The company successfully completed its migration to a product-based view of the marketplace across all markets, enhancing operational consistency.
- Advertising revenue grew robustly by over 30% year-on-year, significantly outpacing GMV growth.
- The Smart! user base continues to expand with double-digit growth in annual subscriptions, supported by a successful brand campaign.
- Allegro.EU SA's logistics operations have seen substantial progress, with Allegro Delivery services growing sevenfold in volume over the past year.
- The international segment, particularly the Mall segment, continues to face challenges with a GMV decline of 34.6% year-on-year due to significant SKU reductions.
- The company anticipates a larger adjusted EBITDA loss in the international segment for Q4 2024, driven by inventory sell-offs and reduced margins.
- Shopping frequency in international markets, especially in Czechia, is not increasing as quickly as desired, impacting GMV growth.
- Increased marketing expenses are expected in Q4 2024, partly due to heightened competition in Poland, which may pressure margins.
- The transition to a common tech stack across international operations is ongoing, with cost savings expected only in the medium term.
Ladies and gentlemen, thank you for standing by. I am Jota, your Chorus Call operator. Welcome, and thank you for joining Allegro Group earnings call and live webcast to present and discuss the third quarter 2024 results. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Tomasz Poźniak, Investor Relations Director. Mr. Pozniak, you may now proceed.
Thank you, Jota, and welcome to all participants of our call. Let me introduce the presenters of today, Roy Perticucci, the CEO of Allegro, who will provide you with an overview of the third quarter business highlights; and Jon Eastick, our CFO, who will guide you through the financials and the outlook for the fourth quarter.
As usual, our results presentation is available for download from our Investors web page at allegro.eu. You may also download the slides from the link available on the webcast screen. As a reminder, today's presentation and discussion contains forward-looking statements.
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