Q2 2024 Allegro.eu SA Earnings Call Transcript
Key Points
- Group GMV grew by 11.1%, reflecting steady gains in active buyers and GMV per active buyer in Poland.
- Take rate improvements in Poland increased by 1.3 percentage points to 12.5%, boosting revenue.
- Advertising revenue grew by almost 30%, contributing significantly to overall revenue growth.
- Polish EBITDA performance increased by 35% year-on-year, indicating strong profitability.
- Successful international expansion, with the first positive contribution to GMV growth from the mall acquisition.
- Retail sales in Poland fell from 5.6% in Q1 to 4.9% year-on-year in Q2, indicating a challenging retail environment.
- Adjusted EBITDA growth is expected to slow to 11-13% in Q3 due to increased costs and marketing expenses.
- International operations, particularly the mall segment, continue to face challenges with a 35.9% decline in GMV.
- Higher delivery costs and investments in Allegro One and Allegro Delivery are impacting margins.
- Increased competition from platforms like Temu, AliExpress, and SHEIN, though currently at mid-single-digit transaction share.
-- the floor is yours.
Thanks very much, Tom. It's my great pleasure to join you again my ninth time since becoming the Chief Executive of Allegro.
We've got another set of great results for Q2 '24 and I should sort of stay upfront that we either met or exceeded our guidance on all measures and also stay within our midterm guidelines in terms of spending on various initiatives. I think overall, we've made solid progress on quite a number of our priorities. Group GMV grew by 11.1%. That's 2.2 percentage points improvement quarter-on-quarter, and that reflects steady gains in both active buyers and also in GMV per active buyer inside Poland.
That strength in GMV performance was further strengthened by improvements in the take rate. These are changes that we made earlier this year in Poland, the take rate has risen by 1.3 percentage points to 12.5%, and advertising continues to go from strength to
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