Hemnet Group Interim report Q2 2023

Summary for the period April-June 2023

• Net sales decreased by -0.8 percent to SEK 267.6m (269.7)
• EBITDA decreased -3.2 percent to SEK 140.7m (145.3)
• Operating profit decreased -4.5 percent to SEK 121.7m (127.5)
• ARPL, average revenue per listing, increased 30.8 percent to SEK 4,138 (3,163)
   

Summary for the period January-June 2023

• Net sales increased by 1.9 percent to SEK 457.7m (449.3)
• EBITDA decreased -1.3 percent to SEK 227.9m (230.8)
• Operating profit decreased -2.8 percent to SEK 189.8m (195.3)
• ARPL, average revenue per listing, increased 33.5 percent to SEK 3,956 (2,963)
  
   

* Alternative Performance Measure. see pages 18-21 for derivation and definitions.
 

Chief Executive’s Comments

Operational highlights

• The average revenue per listing (ARPL) increased 30.8 percent to 4,138 (3,163) SEK, driven by continued increased demand for value-added services
• Net sales for the quarter amount to SEK 267.6m (269.7). Revenues from property sellers increased by 3.9 percent despite a continued challenging housing market with 21.6 percent fewer published listings
• EBITDA decreased 3.2 percent to SEK 140.7m (145.3), resulting in an EBITDA margin of 52.6 percent (53.8). The decrease is mainly explained by fewer listing combined with continued investments in product development.

Comments

Continued hesitation among property sellers and buyers resulted in 21.6 percent fewer listings published during the quarter compared to the same period last year when we had a significantly more active housing market.

Despite the decline in volume, we are increasing our revenues from property sellers by 3.9 percent, and the average revenue per listing, ARPL, by 30.8 percent. One of the key drivers behind the growth in ARPL is higher demand for Hemnet Premium. Renewal, with sales doubling compared to last year, also contributes to the ARPL growth.

Reduced investments in marketing and display advertising from our B2B customers, particularly property developers, is behind the decline of 14.2 percent in B2B revenue over the quarter. However, we continue to see increased revenue from value- added services to real estate agents and a stable demand from our bank customers.

We continuously invest in our product development to improve our offering. One of the updates from the quarter includes being the first property platform in the country to enable pictures of sold properties, a highly requested feature among our visitors.

We are proud to provide a platform that gives property sellers the exposure they need to maximize their opportunities in the housing market. On July 4th, the Statistics Sweden released housing market statistics for the full year of 2022. In terms of the total number of sold homes nationwide during the year, the number of homes sold that were advertised on Hemnet during the same period corresponds to 87.4 percent which is in line with previous year (2021). This reconfirms that 9 out of 10 homes sold in Sweden are advertised on Hemnet during their sale.

Increasing revenues from property sellers during a very challenging quarter demonstrates our continued ability to successfully navigate through a tougher market. It also highlights the strength of our business model and indicates the potential, especially in a more normal market. We have a positive momentum in our organization as we work with a clear focus on consumer, property seller, and real estate agent-oriented product development, with several ongoing initiatives that will create value for our different target groups and drive our business forward.
 

Cecilia Beck-Friis
CEO
July 2023

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In connection with the report, a webcast will be held at 10.00 CET where Hemnet's CEO Cecilia Beck-Friis and CFO Anders Örnulf will be presenting the results. A Q&A session will be held after the presentation. The presentation will be held in English.

The presentation can be viewed live via this link. Written questions can be posted via the webcast.

If you wish to participate via teleconference please register here. After registration you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference, or via the chat function in the webcast.

The report and presentation material will be available on hemnetgroup.com.
 

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For more information please contact:

Press enquiries
Staffan Tell, Head of PR
M: +46 733 67 66 85
E: staffan.tell@hemnet.se

IR enquiries
Anders Örnulf, CFO
M: +46 72 732 10 12
E: anders.ornulf@hemnet.se

Nick Lundvall, IR Manager & Head of Corporate Development
M: +46 76 145 21 78
E: nick.lundvall@hemnet.se

This is information that Hemnet Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 19 July, 2023 at 08:00 CET.
 

About Hemnet

Hemnet operates the leading property platform in Sweden. The company emerged as an industry initiative in 1998 and has since transformed into a "win-win" value proposition for the housing market. By offering a unique combination of relevant products, insights and inspiration, Hemnet has built lasting relationships with buyers, sellers, and agents for more than 20 years. Hemnet shares a mutual passion for homes with its stakeholders and is driven by being an independent go-to-place for people to turn to for the various housing needs that arise through life. This is mirrored in the Company’s vision to be the key to your property journey, supplying products and services to improve efficiency, transparency and mobility on the housing market. Hemnet’s is listed on Nasdaq Stockholm (‘HEM’).

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