Hemnet Group Interim report Q2 2024
Summary for the period April-June 2024
- Net sales increased by 51.3 percent to SEK 405.0m (267.6)
- EBITDA increased 53.7 percent to SEK 216.2m (140.7)
- Operating profit increased 60.7 percent to SEK 195.6m (121.7)
- ARPL, average revenue per listing, increased 51.6 percent to SEK 6,274 (4,138)
Summary for the period January-June 2024
- Net sales increased by 43.8 percent to SEK 658.4m (457.7)
- EBITDA increased 47.4 percent to SEK 335.9m (227.9)
- Operating profit increased 55.2 percent to SEK 294.5m (189.8)
- ARPL, average revenue per published listing, increased 44.0 percent to SEK 5,695 (3,956)
|
|
Apr-Jun |
Jan-Jun |
Last twelve months |
FY |
||||
|
(SEK million, unless stated otherwise) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
ending Jun 2024 |
2023 |
|
Net sales |
405.0 |
267.6 |
51.3% |
658.4 |
457.7 |
43.8% |
1,205.4 |
1,004.7 |
|
EBITDA* |
216.2 |
140.7 |
53.7% |
335.9 |
227.9 |
47.4% |
633.5 |
525.5 |
|
EBITDA-margin*, % |
53.4% |
52.6% |
0.8 pp |
51.0% |
49.8% |
1.2 pp |
52.6% |
52.3% |
|
Operating profit* |
195.6 |
121.7 |
60.7% |
294.5 |
189.8 |
55.2% |
552.9 |
448.2 |
|
Net profit for the period |
148.7 |
91.9 |
61.8% |
221.1 |
142.6 |
55.0% |
417.2 |
338.7 |
|
Earnings per share, basic, SEK1 |
1.55 |
0.94 |
64.9% |
2.30 |
1.45 |
58.6% |
4.32 |
3.47 |
|
Earnings per share, diluted, SEK1 |
1.54 |
0.94 |
63.8% |
2.29 |
1.45 |
57.9% |
4.31 |
3.47 |
|
Cash flow from operating activities |
204.8 |
125.7 |
62.9% |
295.3 |
199.4 |
48.1% |
491.8 |
395.9 |
* Alternative Performance Measure, see pages 17-19 for derivation and definitions.
¹ The calculation of dilution of shares is made based on the number of days that the incentive programmes that have been active during each respective period.
Chief Executive’s Comments
Operational highlights
- Net sales for the second quarter increased 51.3 percent and amounted to SEK 405.0 million (267.6)
- Average revenue per published listing (ARPL) increased 51.6 percent to SEK 6,274 (4,138). Increase was mainly driven by growing demand for our value-added services and in particular a higher uptake of Hemnet Premium
- EBITDA increased 53.7 percent to SEK 216.2 million (140.7) and the EBITDA margin increased to 53.4 percent (52.6)
- 9 out of 10 homes sold in Sweden 2023 were advertised on Hemnet, according to updated Statistics Sweden data¹
Comments
Hemnet’s strong results for the second quarter were mainly driven by higher demand for our value-added services from property sellers. We also benefited from a steady increase in the number of published listings as the positive trends in the property market continued with more properties for sale, more transactions and increasing property prices.
Revenue from property sellers grew 67.9 percent, and ARPL increased by 51.6 percent. This growth was mainly fueled by growing demand for our value-added services, and as a result the portion of ARPL coming from these products more than doubled compared to last year. The increased sales of our value-added services are further explained by the improvements we have made over time in our products, payment options and purchasing flow. It is great to see that our work and investments are having the desired effect and we will continue to calibrate and improve our offering. We are delighted that our packages are proving so popular with Sweden’s property sellers and that the majority give us a 9 or 10 (on a scale of 1 to 10) when asked if they would recommend Hemnet to others. The increase in revenue from property sellers was also driven by a 10 percent increase in the number of published listings as well as pricing.
On July 1, we launched our new compensation model for agents that reinforces our strong partnership with the industry and is weighted more heavily towards sales of our value-added services and therefore better aligns with Hemnet’s growth strategy. The new model is designed to give agent offices, who are active partners, even better possibilities to earn more from their partnership with Hemnet and we see this as one of the many opportunities to strengthen our relationships with the industry.
Many of our B2B customers, especially property developers, are still impacted by macroeconomic factors. This is having an effect on our B2B revenues, in particular the sale of our display advertising services. The demand for our established B2B-products however continues to be stable, and we see potential in continuing to develop products that leverage Hemnet’s unique value to our business partners.
On June 30, Statistics Sweden released their data for property sales in Sweden in 2023. By comparing this data with listings on Hemnet it shows that we continue to list 9 out of 10 homes sold in Sweden at some point during the sales cycle, and in fact even managed to increase our share slightly compared to last year. With unmatched traffic exceeding 40 million monthly visits, 550% more than the second-largest player², Hemnet is the clear leader among Swedish property portals. Our unrivaled audience provides the best possible exposure for anyone selling a home in Sweden and we are fully committed to making our platform even more effective and engaging by continuing to invest and innovate across our products and target groups.
Cecilia Beck-Friis
CEO
July 2024
¹Statistic Sweden, June 2024
²Google Analytics and SBAB’s Quarterly report, 2024:1
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In connection with the report, a presentation of the results will be held at 10.00 CET by Hemnet's CEO Cecilia Beck-Friis and CFO Anders Örnulf. A Q&A session will be held after the presentation. The presentation will be held in English.
The presentation can be viewed live via the link below. https://ir.financialhearings.com/hemnet-q2-report-2024
If you wish to participate via teleconference please register on the link below. 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.
https://conference.financialhearings.com/teleconference/?id=50048619
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: [email protected]
Jessica Sjöberg, Chief Communication and Brand Officer
M: +46 730689933
E: [email protected]
IR enquiries
Anders Örnulf, CFO
M: +46 72 732 10 12
E: [email protected]
Nick Lundvall, IR Manager & Head of Corporate Development
M: +46 76 145 21 78
E: [email protected]
This is information that Hemnet Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 18 July, 2024 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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