Hemnet Group Interim report Q1 2022

Summary for the period January-March 2022

• Net sales increased 26.0 percent to SEK 179.6m (142.5)
• Adjusted EBITDA increased 49.5 percent to SEK 85.5m (57.2)
• Operating profit increased 398.5 percent to SEK 67.8m (13.6)
• ARPL, average revenue per listing, increased 41.3 percent to SEK 2,681 (1,898)
   

* Alternative Performance Measure, see pages 14-16 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

• Strong growth in average revenue per listing (ARPL), which increased 41.3 percent to SEK 2 681 (1 898).
• Number of published listings increased by 3.9 percent compared to the same period last year, and a record for the number of published listings in March.
• Launch of a new section that highlights real estate agents in an area, creating new opportunities for home sellers and real estate agents to connect on Hemnet.
   

Comments
Hemnet’s net sales for the first quarter of 2022 increased by 26.0 percent to SEK 179.6m (142.5) and adjusted EBITDA increased by 49.5 percent to SEK 85.5m (57.2).

Revenues from property sellers grew by 47.1 percent, as more and more property sellers chose to maximize their properties’ exposure on Hemnet. This increased demand is also driven by our product improvements that make services such as Hemnet Plus and Hemnet Premium increasingly valuable, in combination with a growing proportion of real estate agents actively recommending the services through the purchase flow on Hemnet. Together with our continuous focus on pricing this leads to strong growth in ARPL.

Revenue also increased because of a higher number of published listings during the quarter. The housing market continues to be very active, with a record number of published listings for March, including a record for both apartments and houses, while at the same time asking prices are at record highs. While there is currently some uncertainty around macroeconomic factors, Sweden’s property market is highly efficient and transparent, and has proven to be relatively stable over time.

Revenues from other customers decreased by 2.6 percent in the quarter. This was mainly due to a decline in traffic compared to a very strong 2021. At the same time, revenue from our most important customer group, real estate agents, is increasing, which is clear evidence that Hemnet continues to be the key partner for the real estate industry.

In terms of our product development, a new section was launched where local real estate agents are listed, based on the last reported final price. This list is making it easier for our visitors to connect with a real estate agent, while also creating another relevant place for agents to build their brand on Hemnet. We will continue to expand this area throughout the year. During the quarter we also worked to improve and clarify our offering for property developers, where we will soon be launching a number of new features. Our product focus on business customers will remain in 2022 and we will continue to expand our range of services that create new business opportunities for our customers.

Finally, I look forward to celebrating all the great achievements within the property industry in May, when Hemnet once again will be hosting Guldhemmet, Sweden’s largest real-estate awards ceremony.

Cecilia Beck-Friis
CEO
April 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 CFO Carl Johan Åkesson will be presenting and commenting on 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-q1-2022/ where it also will be available afterwards.

If you want to ask questions after the presentation you will need to participate via telephone, call +46 8 566 42 703. More dial-in numbers with additional country codes are available on this link. Questions can also be sent in advance to [email protected].

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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]

IR enquiries
Carl Johan Åkesson, CFO
M: +46 708 30 70 57
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. The information was submitted for publication, through the agency of the contact persons set out above, on 28 April, 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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