Hemnet Group Interim report Q4 2021
1 February 2022
Strong growth in net sales and adjusted EBITDA
Summary for the period October-December 2021
- Net sales increased 24.2 percent to SEK 177.3m (142.7)
- Adjusted EBITDA increased 76.3 percent to SEK 84.6m (48.0)
- Operating profit increased 175.3 percent to SEK 64.7m (23.5)
- ARPL, average revenue per listing, increased 45.0 percent to SEK 3,029 (2,089)
Summary for the period January-December 2021
- Net sales increased 33.8 percent to SEK 728.1m (544.1)
- Adjusted EBITDA increased 75.7 percent to SEK 355.0m (202.1)
- Operating profit increased 102.6 percent to SEK 223.9m (110.5)
- New compensation model for real estate agent offices and segmented pricing model for Hemnet Bas launched on 1 March
- Initial public offering (“IPO”) on Nasdaq Stockholm, Large Cap list on 27 April
- Entered into a new SEK 500m revolving credit facility (“RCF”) on 27 April, and at the same time settled and repaid the previous credit facility
- In line with the company’s dividend policy, the board of directors proposes a dividend of SEK 0.55 (-) per share, corresponding to approximately one third of earnings per share, and intends to submit a proposal to the annual general meeting for the repurchase of up to ten percent of the outstanding shares
|(SEK million, unless stated otherwise)||2021||2020||Change||2021||2020||Change|
|Adjusted EBITDA-margin*, %||47.7%||33.6%||14.1 pp||48.8%||37.1%||11.7 pp|
|Earnings per share, basic, SEK1||0.49||0.14||250.0%||1.55||0.67||131.3%|
|Earnings per share, diluted, SEK1||0.49||0.14||250.0%||1.55||0.67||131.3%|
* Alternative Performance Measure, see pages 20-22 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 after 27 April, 2021, the calculation of dilution is made based on the average share price during each respective period.
Chief Executive’s comments
As Hemnet presents its results for 2021, including the fourth quarter, we are summing up the busiest and most successful year in the company’s history. We have kept a high pace in development throughout the year with many important changes when it comes to products, packaging and pricing. On the back of strong customer demand from both consumers and business partners, we have exceeded our full-year financial growth target and increased our profitability to be in line with our financial profitability target. We are starting the new year with great confidence that we will keep this momentum as we continue to scale and develop our business.
The fourth quarter result was driven by our revenues from listings (Hemnet Bas) and value-added services for property sellers. Net sales increased by 24.2 percent to SEK 177.3m (142.7) and adjusted EBITDA increased by 76.3 percent to SEK 84.6m (48.0). For the full year, net sales amounted to SEK 728.1m, a growth of 33.8 percent from the previous year, and adjusted EBITDA totalled SEK 355.0m, an increase of 75.7 percent.
Over the past year we have seen our value-added products growing in popularity and during the fourth quarter more than one third of home sellers upgraded their listing to Hemnet Plus or Hemnet Premium, the corresponding share for the same period 2020 was 20 percent. Looking at the fourth quarter, revenues from value-added services for property sellers almost doubled compared to the same quarter last year. This development is a result of constant product enhancements, where we during the year have made Hemnet Plus and Premium listings even more visible, built a smoother purchasing flow and improved the way agents can recommend these products to their clients.
We continue to generate growth from Hemnet Bas driven by our segmented price model. The number of listings declined slightly in the quarter (-1.5 percent) but was above pre-Covid levels and increased 4.8 percent for the full year compared to 2020. The growth in value-added services for sellers and Hemnet Bas lifted the average revenue per listing (ARPL) in the fourth quarter by 45.0 percent to SEK 3,029 (2,089).
Looking at our offering of advertising services and other revenue we continue to see a strong demand from real estate agents, which is particularly gratifying as we want to provide the best possible environment for brand building and business opportunities for our close partners, while revenue from property developers and other advertisers are decreasing. As we have moved into the new year, we have accelerated our focus on improving our offering and branding opportunities for our business-to-business customers, in particular real estate agents and property developers.
I am proud of the whole team and what we have managed to achieve together during the year in the form of constant development and forward movement. In addition to a strong operational result, we have also carried out a successful listing on Nasdaq Stockholm, thereby showcasing our great company and welcoming new shareholders. During the year, Hemnet had an average of more than 60 million visits a month to our apps and website, making us one of Sweden's most visited digital platforms, and an obvious part of the country’s housing market. This trusted position within the Swedish housing market provides great opportunity to continue the journey we are still only at the beginning of.
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-q4-2021/
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].
For more information please contact:
Staffan Tell, Head of PR
M: +46 733 67 66 85
E: [email protected]
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 1 February, 2022 at 08:00 CET.
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’).