Hemnet Group Interim report Q4 2023

Summary for the period October-December 2023

• Net sales increased by 36.8 percent to SEK 275.0m (201.0)
• EBITDA increased 59.5 percent to SEK 141.6m (88.8)
• Operating profit increased 70.4 percent to SEK 121.5m (71.3)
• ARPL, average revenue per published listing, increased 46.2 percent to SEK 5,911 (4,044)

Summary for the period January-December 2023

• Net sales increased by 13.0 percent to SEK 1,004.7m (889.2)
• EBITDA increased 17.3 percent to SEK 525.5m (448.1)
• Operating profit increased 18.7 percent to SEK 448.2m (377.5)
• ARPL, average revenue per published listing, increased 37.1 percent to SEK 4,490 (3,275)
• Total distribution to shareholders of SEK 374.0m, from dividend and share repurchases
• The board of directors proposes a dividend of SEK 1.20 (1.00) per share, in line with the company’s dividend policy and corresponding to approximately one third of earnings per share and an increase of +20.0 percent

	Oct - Dec			Jan - Dec
(SEK million, unless stated otherwise)	2023	2022	Change	2023	2022	Change
Net sales	275.0	201.0	36.8%	1,004.7	889.2	13.0%
EBITDA*	141.6	88.8	59.5%	525.5	448.1	17.3%
EBITDA-margin*, %	51.5%	44.2%	7.3 pp	52.3%	50.4%	1.9pp
Operating profit*	121.5	71.3	70.4%	448.2	377.5	18.7%
Net profit for the period	93.3	54.5	71.2%	338.7	293.8	15.3%
Earnings per share, basic, SEK1	0.96	0.55	74.5%	3.47	2.93	18.4%
Earnings per share, diluted, SEK1	0.96	0.55	74.5%	3.47	2.93	18.4%
Cash flow from operating activities	67.6	31.5	114.6%	395.9	356.0	11.2%

* 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 warrant programmes that have been active during each respective period.

Chief Executive’s Comments

Operational highlights

• Net sales increased 36.8 percent and amounted to SEK 275.0 million (201.0) for the fourth quarter. For the full year revenue reached SEK 1,004.7 million (889.2).
• Average revenue per published listing (ARPL) increased 46.2 percent to SEK 5,911 (4,044) for the quarter. For the full year ARPL increased 37.1 percent to SEK 4,490 (3,275). This increase was driven by continued growing interest for our value added services.
• EBITDA increased 59.5 percent to SEK 141.6 million (88.8) for the quarter and 17.3 percent for the full year to SEK 525.5 million (448.1).The EBITDA margin for the quarter was 51.5 percent (44.2) and 52.3 percent (50.4) for the full year.
   

Comments

Hemnet’s full year results demonstrate our growth capabilities also in challenging market conditions with fewer listings compared to 2022. The main driver behind our growth is an increased demand for our value-added services along with product development and work around packaging and pricing.

In the quarter, revenue from property sellers increased by 55.2 percent, and the average revenue per published listing (ARPL) increased by 46.2 percent. ARPL from our value-added services notably nearly doubled for the fourth quarter compared to last year. Looking at the full year, revenue from property sellers grew 22.2 percent and ARPL with 37.1 percent. A large part of the growth can be attributed to the increasing demand for Hemnet Premium, as more agents and property sellers want to tap into the increased audience engagement that comes with our value-added services. The recovery of property market activity that we began to see in the third quarter has continued, and during the fourth quarter, the number of listings exceeded last year’s volumes for the first time in 2023, with a 5.3 percent YoY increase.

The current market and other macroeconomic factors have continued to impact our B2B customers, particularly property developers, resulting in lower net sales in this segment compared to 2022. Over the past year, we have continued to experience high demand from real estate agents for our unique Hemnet products such as Mäklartipset and Hemnet Business. These types of products align well with our strategy to develop integrated advertising solutions that create value for both our customers and users.

Throughout the year we have released several new features and products and the fourth quarter was no exception. In October we launched ‘Pay when listing is removed’ that allows our customers to choose whether to pay for the Hemnet listing as it is published or when it is removed. This new flexibility has been very well received by real estate agents as well as property sellers.

We are proud of our unique partnership with real estate agents, where a substantial portion of our revenue is reinvested into the industry. In 2024 we look forward to further strengthen this partnership with more value-creating products and a revised commission model that aims to more effectively reward agents who are proactive in recommending and advising on our products.

With 9 out of 10 sold properties in Sweden being advertised on our platforms* and with the largest audience among Swedish property portals by far, Hemnet is the natural go-to-place for anyone buying or selling a home. Coupled with a high product development pace, strong organisation and an ambitious sustainability agenda, this positions us for another year of growth, driven by our passionate team dedicated to lead the market.

Cecilia Beck-Friis, CEO
January 2024

*Data of sold homes in Sweden 2022 from Statistics Sweden, released in July 2023, and Hemnet.

 

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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, CFO Anders Örnulf and COO Lisa Farrar. 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. Written questions can be posted via the webcast.

https://ir.financialhearings.com/hemnet-q4-report-2023/register

 
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, or via the chat function in the webcast.

https://financialhearings.com/event/47327   

 
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: +46 730 68 99 33
E: [email protected]

 

IR enquiries
Nick Lundvall, IR Manager & Head of Corporate Development
M: +46 76 145 21 78
E: [email protected]
 
Anders Örnulf, CFO
M: +46 72 732 10 12
E: [email protected]
 

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 31 January, 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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