Trader.com Announces Measures to Accelerate
EBITDA Growth for 2001 and Guidance
Amsterdam, The Netherlands
- January 17, 2001 -
Trader.com N.V., a global leader in
classified advertising, announces today actions
implemented to accelerate future EBITDA growth.
Trader.com's action plan comprises an enhanced
focus on two core segments, the acceleration of
its e-business transformation and a significant
reduction in its cost structure.
Key Strategic Initiatives:
Strong focus on two core segments:
Trader.com will principally concentrate on
the automobile and real estate segments of
the classified and display advertising industry.
It will accelerate the development of its
successful on-line solutions, such as Power Pages,
an online inventory listing solution for car
dealerships and real estate agents, to further
cement its partnership with these local businesses
on the Internet. The Company has eliminated
non-core websites such as the international
vertical initiatives in employment, boats,
luxury goods and heavy equipment.
Acceleration of e-business transformation:
Print and online local sales forces have been integrated.
Local print and online operations
have also been consolidated, streamlining marketing,
production and customer service costs in a seamless
operating platform. Local markets will fully leverage
the brand capital of the Company's market
leading local publications such as La Centrale in France,
Buy & Sell in Canada and Segundamano in Spain,
rather than investing in the development of new brands.
Reduction of cost structure:
Trader.com has implemented a cost reduction program,
reducing employee headcount by 275 people,
closing certain non-core websites and
consolidating facilities.
It expects the program to generate EBITDA savings
of approximately 18 million euros annually.
As a result of the cost-reduction measures,
the Company will record a restructuring charge
in 2000 in the range of 22 million euros
to 25 million euros. The Company has recorded
12 million euros, of which approximately 10 million euros
will reduce consolidated EBITDA, and is finalizing
its assessment of the write-down of software costs
for non-core websites, expected to be in the range of
10 million euros to 13 million euros.
"These strategic measures will accelerate the
Company's transformation to a fully integrated
print and Internet business. Furthermore,
they will increase efficiency and profitability
while reinforcing our leadership in local markets.
By applying rigorous discipline, we are confident
of achieving our targets," said Didier Breton,
new Chief Operating Officer who joined the Company
in July 2000.
Financial Outlook:
Expected 2000 results
The Company expects to report total revenues of
approximately 370 million euros for the year 2000,
up 31% versus 1999, of which approximately 20%
is organic growth and of which 6% relates to
favorable exchange rate movements.
The Company expects to report a slightly positive
EBITDA before restructuring charges for the year 2000.
The Company has available under its committed bank
facilities approximately 111 million euros
as of December 2000. The Company anticipates
no additional borrowing requirements for 2001,
excluding acquisitions.
Guidance for 2001
For 2001, the Company expects total revenues to grow
organically at approximately 15% at constant exchange
rates. The Company expects consolidated EBITDA in the
region of 50 million euros, excluding potential acquisitions.
Future financial targets
"By sustaining the growth of our sales and focusing
on expanding EBITDA margin, Trader.com expects to
increase shareholder value. Based on our successful
track record and the implementation of our strategy,
our intention is to grow consolidated revenue in the
mid-teens and reach consolidated EBITDA margins
in the mid-20 percent level over the mid-term."
said John H. MacBain, President and Chief Executive Officer.
The Company expects to announce 4th quarter 2000 revenues
on January 31, 2001 and complete audited results
on April 5, 2001.
Refer to the Company's investor relations web site for
the Company's complete 2001 schedule of
financial reporting announcements.
www.trader.com
* 281 Publications in 18 Countries as of November 2000
* More than 7 million readers per week
* 14 million unique advertisements for the
first eleven months of 2000
* 135 million page views per month as of November 2000
* Listed on the NASDAQ (TRDR) and Premier Marche
(First Market of the Paris Stock Exchange -
SICOVAM code 5729 and Reuters code: TRD)
Forward Looking Statements
Certain statements in this press release may be
considered to be "forward looking statements"
as that term is defined in The United States'
Private Securities Litigation Reform Act of 1995,
such as statements that include the words or phrases
"will likely result," "are expected to," "will continue" ,
"is anticipated," "estimate," "guidance," "project,"
"outlook" or similar expressions, including statements
regarding the adequacy of our cash flows, expected cash flows,
expected future financial targets, EBITDA savings and margins,
revenue growth and draw downs under our credit facility.
Such statements are not promises or guarantees,
and are subject to risks and uncertainties which could cause
actual results to differ materially from those suggested
by any such statements. Those factors include,
but are not limited to, the preliminary nature of
the information disclosed in this press release
as well as those discussed or identified in our
initial public offering prospectus and 1999 Form 20-F,
which were filed with the United States Securities and
Exchange Commission, including risks or uncertainties
relating to our history of reported losses, the control
of our company by a small group of shareholders,
our highly competitive industry, our ability to make
and integrate acquisitions, political and
economic conditions of the countries in which
we operate including Russia, the currencies in which
we do business, our dependence on our management team,
our workforce requirements, our content, our brands,
our dependence on advertising including print and
online advertising, our ability to expand our online
business, the limited history of our online business,
our online strategy and execution of it and the expenditures
required to implement it, the expansion of the Internet and
our dependence on the growth of Internet usage, as well as
general economic and market conditions.
These statements are made as of the date hereof.
We disclaim any obligation to update or supplement
the information in this press release due
to changed circumstances.
Public Relations & Investor Relations Contact Information:
Gavin Anderson & Company Paris
Tel: +33 1 5383 9316
Fax: +33 1 5383 9323
Fabrice Baron: [email protected]
Gavin Anderson & Company New York
Tel: +1 (212) 515-1950
Fax: +1 (212) 515-1919
Scott Tagliarino: [email protected]
Gavin Anderson & Company London
Tel: +44 207 456 1469
Fax:+44 207 457 2330
Graham Prince : [email protected]
French Public Relations Contact Information:
Image 7 Paris
Tel: +33 1 5370 7458
Fax: +33 1 5370 7460
Marie-Charlotte Czerny : [email protected]
