CEO letter 2023
Record revenue and increased margin driven by product development and a resilient business model
Hemnet’s results for 2023 demonstrate the strength and resilience of our business model, even under challenging market conditions. During the year, our net revenue increased by 13 percent and EBITDA by 17 percent, despite a 12 percent decrease in the number of listings. This increase, driven by continued investments in product development, meant that our net sales for the first time exceeded one billion SEK. These results underscore the high operational quality of our business and the effectiveness of our strategic initiatives.
2023 posed significant challenges for Sweden’s property market, driven by high inflation, we saw rapidly rising interest rates, which led to an uncertain period in the market with hesitant home sellers and buyers. As a consequence, Hemnet’s listing volumes in the first half of the year saw a 20 percent decrease compared to the more active 2022, to recover somewhat in the second half of the year. Despite these market fluctuations, our focus remained steadfast on areas within our control: developing new products, enhancing our offering, and continuing to deliver value to our customers.
Our revenue from property sellers increased by 22 percent and our Average Revenue Per Listing (ARPL) by 37 percent. Meanwhile, total listing volumes were down 12 percent for the full year. The main drivers behind our growth are a combination of our commitment to continuously enhance the value of our products, alongside strategic pricing and packaging initiatives.
Creating new business opportunities for real estate agents
One of our top priorities is to ensure that Hemnet offers the best possible environment and products for agents to build their brand and find new business opportunities. Throughout the year we have implemented several improvements to help agents find new customers, adding new smart ways to nudge our visitors into contact an agent. Furthermore, we continued to focus our B2B product development on finding unique marketing solutions that leverage Hemnet’s extensive and relevant audience.
We are proud of the unique partnership we have with real estate agents, where a substantial portion of our revenue is reinvested into the industry. We are excited to further strengthen this partnership in 2024, with more value-creating products and a revamped, updated model for compensation and commission for agents.
Enriching user experience
Many of the improvements and new features we launched during the year have been aimed at enriching the user experience on Hemnet, providing more relevant information and content to our visitors. We have improved our valuation data, ensuring that homeowners who register their home on Hemnet today gain access to a comprehensive valuation range that covers nearly all owned properties in Sweden. As the first property portal in Sweden to do so, we have also added pictures for sold properties, a move that has noticeably increased visitor engagement for these listings. This not only enhances the user experience but also creates value for real estate agents, as our visitors often come here specifically to look for their next agent. In October, we further enhanced user convenience by introducing the ’Pay when listing is removed’ option. This feature offers our customers the flexibility to choose when to pay for their Hemnet listing, either upon publication or upon its removal.
Taking responsibility and driving our ESG agenda
During the year, we have gained control over our carbon footprint by thoroughly mapping all direct and indirect emissions. We believe it is important that the efforts of the business sector to achieve global climate goals are based on research and science. This is why we joined the Science Based Targets initiative in 2022 by committing to a short-term emission target. In 2023, we complemented this target by also submitting a long-term net-zero emission target, which we are now pleased to have had approved by the SBTi.
We have continued to make progress in our commitment to being a leading employer in Sweden, another of our sustainability targets. Key initiatives include the formation of a Diversity, Inclusion and Belonging (DIB) group, which plays a crucial role in advancing our DIB agenda. Moreover, we have enhanced our approach to health and safety and executed a management education program to further strengthen our leadership. Our continued high employee satisfaction reflects our focused work on creating a work environment that supports and engages.
Sustaining our path toward continued success and growth
Reflecting on this year, I am immensely proud of our team’s accomplishments and the stability of our results, especially given the challenges that have faced the property market in 2023. During the year, Hemnet demonstrated its financial strength by returning over SEK 517 million to its shareholders through a mix of dividends and a share buyback program. This led to approximately 2.2 million shares being set for redemption at our next Annual General Meeting, a testament to Hemnet’s strong cash conversion.
We are here to engage our audiences and to help people successfully sell their current property and find their new dream home. With a total of over 500 million visits to our platforms during the year, and our listings receiving on average 19 times more visits than those of our nearest competitor, Hemnet is the largest and most relevant hub in the country for marketing or locating homes. These strong results have been driven by the passionate team at Hemnet, who are committed to our purpose of delivering unparalleled value to our users, as well as contribute to a more mobile, efficient, and transparent property market. I am excited about the opportunities ahead, and look forward to continuing our journey in building Sweden’s most effective and value-creating property platform.