Hemnet Group Interim report Q3 2022

Summary for the period July-September 2022

• Net sales increased by 22.0 percent to SEK 238.9m (195.8)
• Adjusted EBITDA increased 25.6 percent to SEK 128.5m (102.3)
• Operating profit increased 34.1 percent to SEK 110.9m (82.7)
• ARPL, average revenue per published listing, increased 28.8 percent to SEK 3,404 (2,642)
   

Summary for the period January-September 2022

• Net sales increased by 24.9 percent to SEK 688.2m (550.8)
• Adjusted EBITDA increased 32.9 percent to SEK 359.3m (270.4)
• Operating profit increased 92.3 percent to SEK 306.2m (159.2)
• ARPL, average revenue per published listing, increased 33.5 percent to SEK 3,105 (2,326)
   

* Alternative Performance Measure, see pages 18-20 for derivation and definitions.

¹ The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period. As no market price is available to set against the exercise price and the number of warrants is limited in relation to the number of ordinary shares, the dilution effect for periods before Hemnets IPO on 27 April, 2021, has been calculated based on the maximum theoretical dilution. For periods beginning after 27 April, 2021, the calculation of dilution is made based on the average share price during each respective period.

 

Chief Executive’s Comments

Operational highlights

• Average revenue per published listing (ARPL) increased by 28.8 percent to SEK 3,404 (2,642)   
• Number of new published listings on par with the same period last year
• Revenue from business customers increased by 5.9 percent (9.0 percent excluding items affecting comparability), benefiting from investments in brand building products

Comments

Net sales in the third quarter increased by 22.0 percent to SEK 238.9 (195.8) million and adjusted EBITDA increased by 25.6 percent to SEK 128.5 (102.3) million.

Revenue from property sellers increased 29.1 percent, driven by continued strong demand for our value-added services. We are pleased to see that customers are opting for the benefits associated with our larger packages, and that products such as Hemnet Plus and Hemnet Premium are now a key part of our offering. In parallel with conversion and product development, we continue our work with pricing to ensure that the impact and value of each product is reflected in its price.

Sales to our business partners and other customers increased 5.9 percent year-on-year, or 9.0 percent excluding items affecting comparability, and the growth rate also increased from the previous quarter. This was mainly driven by sales to real estate agents, which increased 19 percent year-on-year.

There were 52,000 new listings on Hemnet during the quarter, in line with last year’s record high numbers. The total number of listings on Hemnet remains at a high level as we continue to see a buyer’s market with lower property prices and longer selling times, combined with a stable supply of new listings. Since Hemnet is paid for each published listing, and not on the basis of a completed property transaction, we are well positioned for the current market.

Over the last 12 months, Hemnet has averaged 54 million visits per month. During the same period, each listed apartment averaged 3,500 visits and each villa 8,500 visits. This is a level of traffic and visibility unmatched by any other player in the Swedish housing market. A recent comparison between Hemnet and number two on the market showed that a listing on Hemnet averaged 19 times as many visits. This market leadership means that we can offer the best conditions and products to maximise the exposure of a home for sale and help our customers improve their chances of selling, also in a more challenging market.

While mindful of the current economic uncertainties, I remain confident in the strength of Hemnet’s platform as the number one choice for Swedish home buyers, sellers and real estate agents, and in our important role as an enabler of an open and efficient housing market. We will continue to innovate and invest in product development to drive consumer engagement, increase revenue per listing, and grow and expand our offering to our business partners.

Cecilia Beck-Friis, CEO
October 2022
 

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

In connection with the report, a webcast will be held at 10.00 CET where Hemnet's CEO Cecilia Beck-Friis and Interim CFO Jens Melin 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 on https://tv.streamfabriken.com/hemnet-q3-2022/ where it also will be available afterwards.

If you want to ask a question you will need to participate via telephone. A list of dial-in numbers is available in this link. Questions can also be sent in advance to ir@hemnet.se.

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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
Jens Melin, Interim CFO
M: +46 709 99 33 59
E: jens.melin@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 20 October, 2022 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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