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HYPOPORT SE
Earnings Release • Nov 15, 2024
218_10-q_2024-11-15_14570be4-6ef7-4313-93f7-a891f4b1bee7.pdf
Earnings Release
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(1) HYPOPORT
Key performance indicators
| Revenue and earnings (€'000) | Q1-Q3 2024 | Q1-Q3 2023 | Change | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | 331,945 | 267,125 | 24\% | 113,858 | 88,124 | 29\% |
| thereof Real Estate \& Mortgage Platforms | 230,531 | 169,721 | 36\% | 80,286 | 56,007 | 43\% |
| thereof Financing Platforms | 54,443 | 51,290 | 6\% | 18,105 | 16,312 | 11\% |
| thereof Insurance Platforms | 48,409 | 47,179 | 3\% | 15,901 | 16,195 | $-2 \%$ |
| thereof Holding and Reconciliation | $-1,438$ | $-1,065$ | $-35 \%$ | $-434$ | $-390$ | $-11 \%$ |
| Gross profit | 170,321 | 152,760 | 11\% | 56,624 | 50,560 | 12\% |
| thereof Real Estate \& Mortgage Platforms | 101,550 | 86,034 | 18\% | 33,600 | 28,893 | 16\% |
| thereof Financing Platforms | 44,467 | 42,671 | 4\% | 14,511 | 13,144 | 10\% |
| thereof Insurance Platforms | 23,397 | 23,303 | \% | 8,178 | 8,246 | $-1 \%$ |
| thereof Holding and Reconciliation | 907 | 752 | 21\% | 335 | 277 | 21\% |
| EBITDA | 37,697 | 23,235 | 62\% | 12,269 | 7,647 | 60\% |
| EBIT | 11,528 | $-2,854$ | 504\% | 3,642 | $-1,131$ | 422\% |
| thereof Real Estate \& Mortgage Platforms | 20,532 | 6,883 | 198\% | 5,847 | 2,897 | 102\% |
| thereof Financing Platforms | 3,186 | 2,223 | 43\% | 1,105 | $-410$ | 370\% |
| thereof Insurance Platforms | 893 | 9 | 9,822\% | 390 | 384 | 2\% |
| thereof Holding and Reconciliation | $-13,083$ | $-11,969$ | $-9 \%$ | $-3,700$ | $-4,002$ | 8\% |
| EBIT margin (EBIT as a percentage of Gross profit) | 6,8 | $-1,9$ | 462\% | 6,4 | $-2,2$ | 388\% |
| Net profit for the year | 7,235 | $-3,239$ | 323\% | 1,861 | $-1,017$ | 283\% |
| attributable to Hypoport SE shareholders | 7,248 | $-3,096$ | 334\% | 1,806 | $-994$ | 282\% |
| Earnings per share (€) (undiluted/diluted) | 1.08 | $-0.46$ | 335\% | 0.27 | $-0.14$ | 293\% |
| Financial position (€'000) | 30 Sep 2024 | 31 Dec 2023 | Change | |||
| Current assets | 146,840 | 174,264 | $-16 \%$ | |||
| Non-current assets | 458,328 | 451,510 | 2\% | |||
| Equity | 347,933 | 340,643 | 2\% | |||
| attributable to Hypoport SE shareholders | 345,897 | 338,604 | 2\% | |||
| Equity ratio (\%) | 57.5 | 54.4 | 6\% | |||
| Total assets | 605,168 | 625,774 | $-3 \%$ |
Overview of business performance
The Hypoport Group is able to report solid results for the first nine months of 2024, even though macroeconomic conditions remain poor and it is continuing to invest heavily in the future. The mortgage finance companies in the Real Estate \& Mortgage Platforms segment looked particularly strong against the backdrop of a slowly recovering overall market. This encouraging performance was attributable to a considerable rise in transaction volumes (Europace, Finmas, Genopace) and sales volumes (Dr. Klein, Qualitypool) on the back of increasing market share and a steady revival of the overall mortgage finance market over the course of the year.
The uptrend in the overall market is being driven by a rental accommodation market that is becoming steadily less attractive from both a quantitative and a qualitative perspective and is increasingly ceasing to be an alternative to home ownership for middle-income earners. In addition to this trend, which has been ongoing for years, mortgage finance interest rates fell significantly compared with 2023 and consumers realised that, following the price decreases observed up to the end of 2023, prices for existing properties will not fall any further. Consequently, the volume relating to purchases of existing real estate proved very healthy. The volume of lending for housebuilding remains low due to growing regulation and the resulting elevated level of construction costs. This also applies to new loans taken out for energy efficiency improvements and to the refinancing of expiring loan agreements, although the primary reasons here are that energy costs have gone down and people are waiting for interest rates to fall further. With higher revenue from the property sales platform and lower revenue in the market for property valuation, which remains challenging from a regulatory perspective, the revenue of the Real Estate \& Mortgage Platforms segment as a whole rose by 36 per cent to $€ 231$ million in the first nine months of 2024.
Three different aspects shaped the performance of the Financing Platforms segment. In contrast with the weak prior-year period, the housing industry subsegment can look back on a successful first three quarters of 2024 despite lacklustre market conditions. Revenue rose by a double-digit percentage in total thanks to gains in market share across all products. In the personal loans subsegment, we expanded our partner base and increased our market share. Nevertheless, the commercial banks' ever more restrictive lending policies and a sluggish overall market meant that revenue was unable to achieve more than a high single-digit percentage increase. Although there was a rise in new business in the corporate finance business model (REM Capital), the volume of this business that was actually realised remained flat compared with the prior-year period. This was because project preparation and processing times for support programmes increased markedly. Changes in the composition of the type of advice sought led to a reduction in revenue in the corporate finance subsegment. As a result, the segment as a whole increased its revenue by just 6 per cent ( $€ 54$ million).
The Insurance Platforms segment generated modest revenue growth of 3 per cent to $€ 48$ million in a stable overall market. The migration of the insurance portfolios to the relevant B2B platforms is progressing steadily in the private insurance and occupational insurance subsegments. The industrial insurance subsegment is signing up additional pilot clients for the new Corify platform.
The Group's improved business performance is reflected in the comparison of the key performance indicators for the first nine months of 2024 and the first nine months of 2023:
- Revenue rose by 24 per cent to $€ 332$ million (Q1-Q3 2023: $€ 267$ million).
- Gross profit advanced by 11 per cent to $€ 170$ million (Q1-Q3 2023: $€ 153$ million).
- EBITDA increased by 62 per cent to $€ 38$ million (Q1-Q3 2023: $€ 23$ million).
- EBIT amounted to $€ 11.5$ million (Q1-Q3 2023: loss of $€ 2.9$ million).
- Net profit for the period came to $€ 7.2$ million (Q1-Q3 2023: loss of $€ 3.2$ million).
Business performance in detail
The shared objective of all Hypoport companies is the digitalisation of the credit, housing and insurance industries in Germany. To this end, the decentralised subsidiaries of Hypoport SE, which operate largely autonomously, have been grouped into three segments since 2024: Real Estate \& Mortgage Platforms, Financing Platforms and Insurance Platforms.
Real Estate \& Mortgage segment
The companies within the Real Estate \& Mortgage Platforms segment are primarily involved in the development of technology platforms for brokering, financing and valuing private residential properties.
This segment comprises the following: the technology of FIO Systems AG for property sales (property sales platform), Dr. Klein Privatkunden AG, Vergleich.de Gesellschaft für Verbraucherinformation mbH , the property finance activities of Europace AG, Genopace GmbH, Baufinex GmbH, Finmas GmbH, the finance activities of Qualitypool GmbH, Starpool Finanz GmbH (together: property financing platforms) and the property valuation platform Value AG.
The focus for the property sales platform was again on acquiring new clients and expanding the platform offering for large bank-affiliated estate agents. The total value of all properties sold via the platform was around $€ 8.4$ billion in the first three quarters of 2024 , a rise of 14 per cent compared with the same period of 2023.
The internet-based B2B lending marketplace Europace, the largest German marketplace for the sale of mortgage finance and building finance products, recorded a healthy year-on-year increase of 23 per cent that took the mortgage finance transaction volume to $€ 48$ billion. Within this total, the distributors affiliated with the sub-marketplaces for institutions in the savings bank sector (Finmas) and for institutions in the cooperative banking sector (Genopace) generated exceptionally high growth in their mortgage finance transaction volumes. While the volume on Finmas rose by 50 per cent to $€ 7.3$ billion, the volume on Genopace swelled by 43 per cent to $€ 11.8$ billion. The volume of new mortgage finance brokered by Dr. Klein stood at $€ 5.0$ billion in the first nine months of 2024, which was up by 23 per cent compared with the same period of 2023. Qualitypool, a brokerage pool for mortgage finance, achieved double-digit percentage growth in its transaction volume too, whereas the transaction volume of the Starpool brokerage pool was impacted by the knock-on effects of disruptions to back-office processes at our joint venture partner and saw only a single-digit percentage increase compared with the first three quarters of 2023.
The value of residential properties inspected or appraised by VALUE AG amounted to $€ 23$ billion, which equated to a year-on-year rise of 5 per cent. This smaller increase relative to the growth in the volume of lending was attributable to the delayed recovery of the valuation market and regulatory changes affecting the product mix.
The greater volume of mortgage finance transactions in the first three quarters of 2024 led to a double-digit percentage increase in revenue compared with the corresponding period of 2023. Furthermore, revenue and sub-commission expenses went up because the purchasing terms of Hypoport's financial product distributors have been combined and because additional Europace partners have been integrated into the purchasing network. The property sales platform also recorded a double-digit percentage increase in revenue, whereas the property valuation platform saw a double-digit percentage decrease.
The segment's revenue advanced by 36 per cent overall to $€ 231$ million. The Hypoport Group's gross profit remaining after deduction of selling expenses (lead acquisition fees and commission paid to Dr. Klein franchisees or sub-brokers of the poolers / purchasing network) went up by 18 per cent to $€ 102$ million. EBITDA rose by 83 per cent to $€ 31$ million and EBIT by 198 per cent to $€ 21$ million.
| Financial figures Real Estate \& Mortgage Platforms | Q1-Q3 2024 | Q1-Q3 2023 | Change | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|---|---|---|
| Operative figures (€ billion) | ||||||
| Transaction volume mortgage finance Europace* | 48.30 | 39.14 | 23\% | 17.09 | 13.64 | 25\% |
| thereof Finmas | 7.32 | 4.86 | 51\% | 2.57 | 1.77 | 45\% |
| thereof Genopace | 11.81 | 8.28 | 43\% | 4.32 | 3.14 | 38\% |
| thereof Dr. Klein private clients | 4.99 | 4.05 | 23\% | 1.73 | 1.39 | 25\% |
| Transaction volume building finance Europace | 4.89 | 5.72 | $-15 \%$ | 1.63 | 1.77 | $-8 \%$ |
| Value properties valued by property valuation platform | 23.43 | 22.40 | 5\% | 8.02 | 7.29 | 10\% |
| Value properties sold via property sales platform | 8.44 | 7.41 | 14\% | 3.09 | 2.60 | 19\% |
| Revenue and earnings (€ million) | ||||||
| Revenue | 230.5 | 169.7 | 36\% | 80.3 | 56.0 | 43\% |
| Gross profit | 101.6 | 86.0 | 18\% | 33.6 | 28.9 | 16\% |
| EBITDA | 31.1 | 17.0 | 83\% | 9.4 | 6.4 | 48\% |
| EBIT | 20.5 | 6.9 | 198\% | 5.8 | 2.9 | 102\% |
- All figures relating to the volume of financial products sold (mortgage finance and building finance) are stated before cancellations.
Financing Platforms segment
The Financing Platforms segment comprises all technology and distribution companies of the Hypoport Group that cover finance products outside the mortgage finance sector, with a particular focus on finance for the housing industry, corporate finance and personal loans.
This segment comprises the following: Dr. Klein Wowi Finanz AG, Dr. Klein Wowi Digital AG, the activities of FIO Systems AG relating to the management of accounts holding tenants' security deposits (together: housing industry subsegment), REM Capital AG, Fundingport GmbH, Hypoport B.V. (together: corporate finance subsegment) and Dr. Klein Ratenkredit GmbH, Genoflex GmbH and the personal loans business unit of Europace AG (together: personal loans subsegment).
The business models in the housing industry subsegment fared well compared with their very poor performance in the prior-year period. This was despite the weak market environment, which was characterised by muted appetite for investment in the housing sector as a result of the interest-rate hikes of the last two years, soaring construction costs due to regulation, and unattractive support programmes. The volume of new loans brokered on the property financing platform for the housing industry came to $€ 0.8$ billion in the first nine months of 2024, equating to year-on-year growth of 7 per cent. The portfolio of contracts on the property management platform for the housing industry comprised around 374,000 homes as at 30 September 2024. This increase of 41 per cent compared with the same date a year earlier was due to the acquisition of new clients. The volume of rental deposits under management also rose, swelling by 7 per cent compared with 30 September 2023 to stand at around $€ 1.2$ billion as at 30 September 2024.
The business performance of REM Capital in the corporate finance subsegment was far less positive. This came against a backdrop of discontinued support programmes as a result of the government's spending freeze, more restrictive lending by banks and the postponement of clients' investment plans. Moreover, support programmes offered by individual federal states, the German government and the EU have not been adapted to the latest climate goals and the challenges of the current crises. Although the volume of booked new business at REM in respect of support, subsidies or loan brokerage surged by 73 per cent ${ }^{1}$, the volume of business to be billed amounted to $€ 1.1$ billion and was thus on a par with the prior-year period (up by 4 per cent).
The volume of transactions in the personal loans subsegment was up by 15 per cent compared with the first nine months of 2023, but banks are becoming ever more restrictive, leading to higher rates of rejection and cancellation.
[^0]
[^0]: 1 Until the second quarter of 2024, only REM Capital's booked volume of new corporate finance business was disclosed. From the third quarter of 2024, this key figure will be supplemented by the billed volume of corporate finance business.
The higher volume of business in the housing industry subsegment in the first three quarters of 2024 gave rise to double-digit revenue growth year on year. Revenue in the personal loans subsegment did increase slightly, but the corporate finance subsegment's revenue contribution fell sharply. Overall, revenue for the segment as a whole came to $€ 54$ million, which was a slight rise of 6 per cent. Gross profit went up by 4 per cent to $€ 44$ million. EBITDA and EBIT rose by 9 per cent and 43 per cent to $€ 7.9$ million and $€ 3.2$ million respectively against a backdrop of still high levels of capital expenditure.
| Financial figures Financing Platforms | Q1-Q3 2024 | Q1-Q3 2023 | Change | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|---|---|---|
| Operative figures ( $€$ billion) | ||||||
| Property sales platform Dr. Klein Wowi | 0.80 | 0.75 | 8 | $7 \%$ | 0.28 | 0.25 |
| Number of homes managed through WoWi Digital ('000) | 374.1 | 265.6 | $41 \%$ | - | - | |
| Rental deposits under management | 1.16 | 1.09 | 8 | $7 \%$ | - | - |
| Volume of personal loan transactions* Europace |
4.77 | 4.14 | $15 \%$ | 1.51 | 1.37 | |
| Volume of new SME financing business at REM Capital ('Book') | 1.82 | 1.05 | $73 \%$ | 0.42 | 0.27 | |
| Volume of corporate finance projects at REM Capital ('Bill') | 1.09 | 1.05 | 1 | $4 \%$ | 0.51 | 0.34 |
| Revenue and earnings ( $€$ million) | ||||||
| Revenue | 54.4 | 51.3 | $6 \%$ | 18.1 | 16.3 | |
| Gross profit | 44.5 | 42.7 | 1 | $4 \%$ | 14.5 | 13.1 |
| EBITDA | 7.9 | 7.2 | 8 | $9 \%$ | 2.5 | 1.3 |
| EBIT | 3.2 | 2.2 | $43 \%$ | 1.1 | $-0.4$ |
- All figures relating to the volume of financial products sold (personal loans) are stated before cancellations.
Insurance Platform segment
The Insurance Platforms segment develops platforms for insurance product distributors and B2C insurance companies in the market for insurance products with variable pricing for private individuals and (small) businesses, in the industrial insurance market and in the occupational insurance market.
This segment comprises the following: Smart InsurTech AG, the insurance activities of Qualitypool GmbH, AmexPool AG, Sia Digital GmbH (together: private insurance subsegment), epension GmbH and E \& P Pensionsmanagement GmbH (together: occupational insurance subsegment) and Corify GmbH, Oasis GmbH (together: industrial insurance subsegment).
In the private insurance subsegment, the volume of portfolios migrated from legacy systems to the SMART INSUR platform rose by 14 per cent compared with 30 September 2023 to stand at $€ 4.7$ billion at the end of the reporting period. Running in parallel to the migration, the process to validate the policy database in cooperation with the insurance companies is gathering pace. This validation is needed in order to be able to provide further added value, e.g. AI advice. The volume validated increased substantially by 33 per cent to $€ 1.8$ billion.
The platform for occupational insurance, epension, benefited from the new clients who were signed up in 2023 and went live in 2024, with the volume on the platform climbing by 36 per cent in the first nine months of 2024 compared with the same period of 2023 to stand at $€ 0.27$ billion. In the industrial insurance business, Corify, the first marketplace for industrial insurance risk, was unveiled on schedule along with the first product applications in the second half of 2023. Since then, the first major industrial insurance brokers have been signed up as pilot clients.
The revenue of the three subsegments totalled $€ 48$ million in the nine-month period, which equates to an increase of 3 per cent. Gross profit held steady at $€ 23$ million, whereas EBITDA rose by 28 per cent to $€ 5.4$ million. EBIT was in positive territory at $€ 0.9$ million (Q1-Q3 2023: $€ 0.0$ million).
| Financial figures Insurance Platforms | Q1-Q3 2024 | Q1-Q3 2023 | Change | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|---|---|---|
| Operative figures (€ billion) | ||||||
| Private Insurance - Volume of policies migrated to SMART INSUR (annual net premiums) | 4.69 | 4.12 | $14 \%$ | - | - | - |
| Volume of policies migrated to SMART INSUR and validated (annual net premiums) | 1.80 | 1.35 | $33 \%$ | - | - | - |
| Occupational insurance - Volume of policies managed by epension Platform (annual net premiums) | 0.27 | 0.20 | $36 \%$ | - | - | - |
| Industrial insurance - Volume of policies managed by corify Platform (annual net premiums) | 0.1 | 0.0 | - | - | - | - |
| Revenue and earnings (€ million) | ||||||
| Revenue | 48.4 | 47.2 | $3 \%$ | 15.9 | 16.2 | $-2 \%$ |
| Gross profit | 23.4 | 23.3 | $0 \%$ | 8.2 | 8.2 | $-1 \%$ |
| EBITDA | 5.4 | 4.2 | $28 \%$ | 1.9 | 1.8 | $6 \%$ |
| EBIT | 0.9 | 0.0 | 9,822\% | 0.4 | 0.4 | $2 \%$ |
Financial position and financial performance
Earnings
Against the backdrop of the business performance described above, the Hypoport Group's revenue went up by 24 per cent to $€ 332$ million in the first nine months of 2024 (Q1-Q3 2023: €267 million). Gross profit advanced by 11 per cent to $€ 170$ million (Q1-Q3 2023: €153 million). The stronger increase in revenue relative to gross profit was attributable to greater use of the purchasing network that complements the Europace platform, as this not only led to revenue growth but also caused a sharp rise in the sub-commissions to be passed on.
EBITDA surged by 62 per cent to $€ 38$ million (Q1-Q3 2023: €23 million) and EBIT improved from a loss of $€ 2.9$ million to a profit of $€ 11.5$ million. The EBIT margin (EBIT as a percentage of gross profit) therefore improved from minus 1.9 per cent to 6.8 per cent in the first three quarters of 2024.
Balance sheet
The Hypoport Group's consolidated total assets as at 30 September 2024 amounted to $€ 605.2$ million, which was a 3.3 per cent decrease on the total as at 31 December 2023 ( $€ 625.8$ million). Non-current assets were up marginally at $€ 458$ million (31 December 2023: $€ 452$ million), although intangible assets were almost unchanged at $€ 354$ million (31 December 2023: $€ 351$ million). The latter predominantly comprised unchanged goodwill of $€ 229$ million (31 December 2023: €229 million) and slightly higher development costs for the financial marketplaces of $€ 105$ million (31 December 2023: $€ 100$ million). Property, plant and equipment, which totalled $€ 70$ million (31 December 2023: $€ 67$ million), primarily consisted of an increased volume of rental agreements and leasing-related right-of-use assets of $€ 54$ million (31 December 2023: $€ 50$ million).
Current assets declined to $€ 27$ million, largely due to a decrease in cash and cash equivalents to $€ 59$ million ( 31 December 2023: $€ 97$ million) that was partly offset by a rise in trade receivables to $€ 74$ million (31 December 2023: $€ 66$ million).
The equity attributable to Hypoport SE shareholders as at 30 September 2024 was up by 2 per cent or $€ 7$ million at $€ 346$ million. The equity ratio rose from 54.4 per cent to 57.5 per cent.
The $€ 9$ million decrease in non-current liabilities to $€ 162$ million stemmed primarily from a $€ 15$ million reduction in non-current liabilities to banks following a scheduled repayment. The most pronounced countervailing trend was a rise in rental and lease liabilities receivables of $€ 4$ million. Current liabilities declined sharply by 17 per cent to $€ 95$ million owing to lower trade payables. Other current liabilities, which also decreased, mainly comprised bonus commitments of $€ 5$ million (31 December 2023: $€ 5$ million), deferred income of $€ 3$ million (31 December 2023: $€ 1$ million) and tax liabilities of $€ 3$ million (31 December 2023: $€ 4$ million).
Cash flow
Cash flow grew by $€ 8$ million to $€ 31$ million thanks to the healthy earnings performance during the reporting period. The cash used for working capital rose by $€ 0.9$ million to minus $€ 13$ million (Q1-Q3 2023: minus €13 million). The total net cash generated by operating activities in the nine months to 30 September 2024 therefore amounted to $€ 18$ million (Q1-Q3 2023: €11 million).
The net cash of $€ 31$ million used for investing activities (Q1-Q3 2023: $€ 24$ million) mainly consisted of a total of $€ 9$ million for the acquisition of the remaining 49 per cent of the shares in epension GmbH and E \& P Pensionsmanagement GmbH, plus €20 million for capital expenditure on intangible assets (Q1-Q3 2023: €22 million).
The net cash of $€ 25$ million used for financing activities (Q1-Q3 2023: net cash inflow of $€ 50$ million) predominantly related to the scheduled repayment of bank loans in an amount of $€ 16$ million (Q1-Q3 2023: €13 million) and the repayment of rental liabilities under IFRS 16 in an amount of $€ 8$ million (Q1-Q3 2023: $€ 8$ million).
As a result of the changes described above, cash and cash equivalents totalled $€ 59$ million as at 30 September 2024, which was down by $€ 38$ million compared with the end of 2023.
Employees
The number of employees in the Hypoport Group rose by 1 per cent compared with the end of 2023 to 2,226 (31 December 2023: 2,209 employees). The average headcount during the first nine months of 2024 was 2,230 (Q1-Q3 2023: 2,196 employees).
Outlook
Our assessment of the sector-specific market environment for the three segments and the positioning of their business models for 2024 as a whole has not changed materially since we presented it in the 2023 annual report. With regard to the Financing Platforms segment alone, the Management Board now anticipates slightly weaker market conditions than it did at the start of the year, which may lead to this segment falling just short of the expected level of revenue. Given the Financing Platform's relatively small contribution to the overall earnings of the Group, the Management Board continues to predict that the Hypoport Group as a whole will achieve double-digit percentage growth in consolidated revenue to at least $€ 400$ million and EBIT of between $€ 10$ million and $€ 20$ million in 2024.
See the annual report, pages 50 to 53, for more detailed information.
Shareholder structure and investor relations
Hypoport SE shareholder structure as at 31 October 2024:
Fixed ownership
Ronald Slabke (Founder, CEO)
Treasury shares
Fee float
of which:
more than 5 \% BlackRock;
more than 5 \% Baillie Gifford;
more than 3 \% Union Investment;
more than 3 \% Nicolas Schulmann)
Activities in the capital markets
The intensity of investor relations activities remained high in 2023 and in the year to date. Activities included numerous one-to-one discussions with retail shareholders, institutional investors, analysts and financial journalists, as well as participation in the following conferences and investor roadshows:
| Location | Period |
|---|---|
| Frankfurt, London, Paris | Q4 2024 (planned) |
| Chicago, Frankfurt (3x), Hamburg (2x), London, Lyon, Milan, Munich (2x), New York |
Q1-Q3 2024 |
| Boston, Frankfurt (3x), Ger/Aus/Swi, Hamburg, London (2x), Lyon, Munich (2x), New York, Paris, USA (east coast) |
2023 |
Financial information
Consolidated income statement for the period 1 January to 30 September 2024
| Q1-Q3 2024 $€^{\prime} 000$ |
Q1-Q3 2023 $€^{\prime} 000$ |
Q3 2024 $€^{\prime} 000$ |
Q3 2023 $€^{\prime} 000$ |
|
|---|---|---|---|---|
| Revenue | 331,945 | 267,125 | 113,858 | 88,124 |
| Commissions and lead costs | $-161,624$ | $-114,365$ | $-57,234$ | $-37,564$ |
| Gross profit | 170,321 | 152,760 | 56,624 | 50,560 |
| Own work capitalised | 16,816 | 17,397 | 5,525 | 6,230 |
| Other operating income | 5,648 | 4,969 | 2,782 | 1,337 |
| Personnel expenses | $-124,031$ | $-117,480$ | $-40,726$ | $-38,726$ |
| Other operating expenses | $-32,226$ | $-33,983$ | $-11,951$ | $-11,660$ |
| Income from companies accounted for using the equity method | 1,169 | $-428$ | 15 | $-94$ |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 37,697 | 23,235 | 12,269 | 7,647 |
| Depreciation, amortisation expense and impairment losses | $-26,169$ | $-26,089$ | $-8,627$ | $-8,778$ |
| Earnings before interest and tax (EBIT) | 11,528 | $-2,854$ | 3,642 | $-1,131$ |
| Financial income | 1,655 | 1,059 | 478 | 702 |
| Finance costs | $-3,223$ | $-2,175$ | $-1,527$ | $-746$ |
| Earnings before tax (EBT) | 9,960 | $-3,970$ | 2,593 | $-1,175$ |
| Income taxes and deferred taxes | $-2,725$ | 731 | $-732$ | 158 |
| Net profit for the period | 7,235 | $-3,239$ | 1,861 | $-1,017$ |
| attributable to non-controlling interest | $-13$ | $-143$ | 55 | $-23$ |
| attributable to Hypoport SE shareholders | 7,248 | $-3,096$ | 1,806 | $-994$ |
| Earnings per share (€) (undiluted/diluted) | 1.08 | $-0.46$ | 0.27 | $-0.14$ |
Consolidated statement of comprehensive income
| Q1-Q3 2024 $€^{\prime} 000$ |
Q1-Q3 2023 $€^{\prime} 000$ |
Q3 2024 $€^{\prime} 000$ |
Q3 2023 $€^{\prime} 000$ |
|
|---|---|---|---|---|
| Net profit for the period | 7,235 | $-3,239$ | 1,861 | $-1,017$ |
| Total income and expenses recognised in equity*) | 0 | 0 | 0 | 0 |
| Total comprehensive income | 7,235 | $-3,239$ | 1,861 | $-1,017$ |
| attributable to non-controlling interests | $-13$ | $-143$ | 55 | $-23$ |
| attributable to Hypoport SE shareholders | 7,248 | $-3,096$ | 1,806 | $-994$ |
*) There was no income or expense to be recognised directly in equity during the reporting period.
Consolidated balance sheet as at 30 September 2024
| Assets | 30 Sep 2024 €'000 | 31 Dec 2023 €'000 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 354,421 | 351,094 |
| Property, plant and equipment | 69,899 | 67,272 |
| Long-term investments accounted for using the equity method | 5,449 | 5,474 |
| Financial assets | 628 | 1,207 |
| Trade receivables | 2,436 | 4,254 |
| Other assets | 251 | 213 |
| Deferred tax assets | 25,244 | 21,996 |
| 458,328 | 451,510 | |
| Current assets | ||
| Inventories | 885 | 935 |
| Trade receivables | 74,092 | 65,588 |
| Other assets | 9,043 | 7,179 |
| Current income tax assets | 3,896 | 3,904 |
| Cash and cash equivalents | 58,924 | 96,658 |
| 146,840 | 174,264 | |
| 605,168 | 625,774 | |
| Equity and liabilities | ||
| Equity | ||
| Subscribed capital | 6,872 | 6,872 |
| Treasury shares | $-184$ | $-184$ |
| Reserves | 339,209 | 331,916 |
| 345,897 | 338,604 | |
| Non-controlling interest | 2,036 | 2,039 |
| 347,933 | 340,643 | |
| Non-current liabilities | ||
| Bank liabilities | 93,452 | 108,805 |
| Rrental charges and operating lease expenses | 48,186 | 44,686 |
| Other liabilities | 230 | 220 |
| Deferred tax liabilities | 20,197 | 17,203 |
| 162,065 | 170,914 | |
| Current liabilities | ||
| Bank liabilities | 20,486 | 20,748 |
| Rental charges and operating lease expenses | 9,649 | 9,333 |
| Provisions | 496 | 497 |
| Trade payables | 41,957 | 47,927 |
| Current income tax liabilities | 327 | 2,825 |
| Other liabilities | 22,255 | 32,887 |
| 95,170 | 114,217 | |
| 605,168 | 625,774 |
Abridged consolidated statement of changes in equity for the six months ended 30 September 2024
| 2023 €'000 |
Subscribed capital | Treasury shares | Capital reserves | Retained earnings | Equity attributable to Hypoport SE shareholders | Equity attributable to noncontrolling interest | Equity |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 6,493 | $-189$ | 67,508 | 197,293 | 271,105 | 1,633 | 272,738 |
| Release of treasury shares | 0 | 4 | 377 | 46 | 427 | 0 | 427 |
| Capital increase | 379 | 0 | 48,863 | 0 | 49,242 | 0 | 49,242 |
| Changes to the basis of consolidation | 0 | 0 | 0 | 0 | 0 | 2,200 | 2,200 |
| Total comprehensive income | 0 | 0 | 0 | $-3,096$ | $-3,096$ | $-143$ | $-3,239$ |
| Balance as at 30 September 2023 | 6,872 | $-185$ | 116,748 | 194,243 | 317,678 | 3,690 | 321,368 |
| 2024 €'000 |
Subscribed capital | Treasury shares | Capital reserves | Retained earnings | Equity attributable to Hypoport SE shareholders | Equity attributable to noncontrolling interest | Equity |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2024 | 6,872 | $-184$ | 116,843 | 215,073 | 338,604 | 2,039 | 340,643 |
| Release of treasury shares | 0 | 0 | 43 | 2 | 45 | 0 | 45 |
| Changes to the basis of consolidation | 0 | 0 | 0 | 0 | 0 | 10 | 10 |
| Total comprehensive income | 0 | 0 | 0 | 7,248 | 7,248 | $-13$ | 7,235 |
| Balance as at 30 September 2024 | 6,872 | $-184$ | 116,886 | 222,323 | 345,897 | 2,036 | 347,933 |
Consolidated cash flow statement for the period 1 January to 30 September 2024
| Q1-Q3 2024 $€^{\prime} 000$ |
Q1-Q3 2023 $€^{\prime} 000$ |
|
|---|---|---|
| Earnings before interest and tax (EBIT) | 11,528 | $-2,854$ |
| Non-cash income / expense | $-244$ | 469 |
| Interest received | 1,655 | 1,059 |
| Interest paid | $-2,502$ | $-2,175$ |
| Income taxes paid | $-5,554$ | $-2,053$ |
| Change in deferred taxes | 254 | 2,476 |
| Profit (loss) from equity-accounted long-term equity investments | $-1,169$ | 428 |
| Dividends from equity-accounted investments | 1,194 | 0 |
| Depreciation on non-current assets | 26,169 | 26,089 |
| Profit / loss from the disposal of non-current assets | $-64$ | $-62$ |
| Cashflow | 31,267 | 23,377 |
| Increase / decrease in current provisions | $-1$ | $-123$ |
| Increase / decrease in inventories, trade receivables and other assets not attributable to investing or financing activities | $-8,538$ | 7,117 |
| Increase / decrease in trade payables and other liabilities not attributable to investing or financing activities | $-5.065$ | $-19,744$ |
| Change in working capital | $-13,604$ | $-12,750$ |
| Cash flows from operating activities | 17,663 | 10,627 |
| Payments to acquire property, plant and equipment / intangible assets | $-20,932$ | $-22,753$ |
| Proceeds from disposals of property, plant and equipment / intangible assets | 125 | 134 |
| Cash outflows for acquisitions less acquired cash | $-9,922$ | $-1,169$ |
| Purchase of financial assets | $-22$ | $-34$ |
| Cash flows from investing activities | $-30,751$ | $-23,822$ |
| Repayment of lease liabilities | $-7,788$ | $-7,606$ |
| Proceeds from the drawdown of financial loans | 0 | 20,000 |
| Redemption of loans | $-15,620$ | $-13,179$ |
| Payments to non-controlling interests | $-1,248$ | 0 |
| Payments from non-controlling interests | 10 | 2,200 |
| Proceeds from capital increases | 0 | 50,000 |
| Payments for issuing costs | 0 | $-1,099$ |
| Cash flows from financing activities | $-24,646$ | 50,316 |
| Net change in cash and cash equivalents | $-37,734$ | 37,121 |
| Cash and cash equivalents at the beginning of the period | 96,658 | 29,947 |
| Cash and cash equivalents at the end of the period | 58,924 | 67,068 |
Abridged segment reporting for the period 1 January to 30 September 2024
| €'000 | Real Estate \& Mortgage Platforms | Financing Platforms | Insurance Platforms |
Holding | Reconciliation | Group |
|---|---|---|---|---|---|---|
| Segment revenue in respect of third parties | ||||||
| Q1-Q3 2024 | 229,272 | 53,627 | 48,139 | 907 | 0 | 331,945 |
| Q1-Q3 2023 | 168,579 | 50,906 | 46,888 | 752 | 0 | 267,125 |
| Q3 2024 | 79,770 | 17,938 | 15,815 | 335 | 0 | 113,858 |
| Q3 2023 | 55,656 | 16,100 | 16,091 | 277 | 0 | 88,124 |
| Segment revenue in respect of other segments | ||||||
| Q1-Q3 2024 | 1,259 | 816 | 270 | 19,991 | $-22,336$ | 0 |
| Q1-Q3 2023 | 1,142 | 384 | 291 | 20,802 | $-22,619$ | 0 |
| Q3 2024 | 516 | 167 | 86 | 6,983 | $-7,752$ | 0 |
| Q3 2023 | 351 | 212 | 104 | 6,176 | $-6,843$ | 0 |
| Total segment revenue | ||||||
| Q1-Q3 2024 | 230,531 | 54,443 | 48,409 | 20,898 | $-22,336$ | 331,945 |
| Q1-Q3 2023 | 169,721 | 51,290 | 47,179 | 21,554 | $-22,619$ | 267,125 |
| Q3 2024 | 80,286 | 18,105 | 15,901 | 7,318 | $-7,752$ | 113,858 |
| Q3 2023 | 56,007 | 16,312 | 16,195 | 6,453 | $-6,843$ | 88,124 |
| Gross profit | ||||||
| Q1-Q3 2024 | 101,550 | 44,467 | 23,397 | 20,898 | $-19,991$ | 170,321 |
| Q1-Q3 2023 | 86,034 | 42,671 | 23,303 | 21,554 | $-20,802$ | 152,760 |
| Q3 2024 | 33,600 | 14,511 | 8,178 | 7,318 | $-6,983$ | 56,624 |
| Q3 2023 | 28,893 | 13,144 | 8,246 | 6,453 | $-6,176$ | 50,560 |
| Segment earnings before interest, tax, depreciation and amortisation (EBITDA) | ||||||
| Q1-Q3 2024 | 31,125 | 7,872 | 5,389 | $-6,689$ | 0 | 37,697 |
| Q1-Q3 2023 | 17,036 | 7,248 | 4,211 | $-5,260$ | 0 | 23,235 |
| Q3 2024 | 9,410 | 2,508 | 1,913 | $-1,562$ | 0 | 12,269 |
| Q3 2023 | 6,379 | 1,331 | 1,799 | $-1,862$ | 0 | 7,647 |
| Segment earnings before interest and tax (EBIT) | ||||||
| Q1-Q3 2024 | 20,532 | 3,186 | 893 | $-13,083$ | 0 | 11,528 |
| Q1-Q3 2023 | 6,883 | 2,223 | 9 | $-11,969$ | 0 | $-2,854$ |
| Q3 2024 | 5,847 | 1,105 | 390 | $-3,700$ | 0 | 3,642 |
| Q3 2023 | 2,897 | $-410$ | 384 | $-4,002$ | 0 | $-1,131$ |
| Segment assets | ||||||
| as at 30 Sep 2024 | 198,016 | 187,264 | 162,745 | 329,797 | $-272,654$ | 605,168 |
| as at 31 Dec 2023 | 169,879 | 182,593 | 164,036 | 347,700 | $-238,434$ | 625,774 |
Disclosures regarding the financial information
Accounting policies
The accounting policies applied are those used in 2023.
Basis of consolidation
The consolidation as at 30 September 2024 included all entities controlled by Hypoport SE in addition to Hypoport SE itself.
The table below shows the entities included in the interim consolidated financial statements in addition to Hypoport SE.
| Subsidiary | Holding in \% |
|---|---|
| 1blick GmbH, Lübeck | 100.00 |
| AmexPool AG, Buggingen | 100.00 |
| Ampr Software GmbH, Berlin | 100.00 |
| Baloise Service GmbH, Bayreuth | 70.00 |
| Bayreuth Am Pfaffenfleck 15 Objektgesellschaft mbH, Bayreuth | 100.00 |
| Bestkredit-Service GmbH, Lübeck | 100.00 |
| Corify GmbH, Berlin | 100.00 |
| Dr. Klein Finance S.L.U., Santa Ponca (Spain) | 100.00 |
| Dr. Klein Wowi Finanz AG, Lübeck | 100.00 |
| Dr. Klein Privatkunden AG, Lübeck | 100.00 |
| Dr. Klein Ratenkredit GmbH, Lübeck | 100.00 |
| Dr. Klein Wowi Digital AG, Berlin | 100.00 |
| epension GmbH, Berlin (formaly: ePension Holding GmbH, Berlin) | 100.00 |
| E\&P Pensionsmanagement GmbH, Hamburg | 100.00 |
| Europace AG, Berlin | 100.00 |
| Europace Ratenkredit GmbH, Berlin (formaly: Hypoport Pluto Vorratsgesellschaft mbH, Berlin) | 100.00 |
| FIO SYSTEMS AG, Leipzig | 100.00 |
| FIO SYSTEMS Bulgaria EOOD, Sofia (Bulgaria) | 100.00 |
| FUNDINGPORT GmbH, Hamburg | 60.00 |
| Fundingport Sofia EOOD, Sofia (Bulgaria) | 60.00 |
| Future Finance SE, Lübeck | 100.00 |
| GENOPACE GmbH, Berlin | 45.025 |
| Growth Real Estate EOOD, Sofia (Bulgaria) | 100.00 |
| Hypoport B.V., Amsterdam (Netherlands) | 100.00 |
| Hypoport Grundstücksmanagement GmbH, Berlin | 100.00 |
| Hypoport Holding GmbH, Berlin | 100.00 |
| Hypoport hub SE, Berlin | 100.00 |
| Hypoport InsurTech AG, Berlin (formaly: Hypoport Insurance AG, Berlin) | 100.00 |
| Hypoport \&P GmbH, Berlin | 100.00 |
| Hypoport Mortgage Market GmbH, Berlin (formaly: Hypoport Mortgage Market Ltd., Westport (Ireland)) | 100.00 |
| Subsidiary | Holding in \% |
|---|---|
| Hypoport I\&P GmbH, Berlin | 100.00 |
| Qualitypool GmbH, Lübeck | 100.00 |
| Hypoport Pluto Vorratsgesellschaft mbH, Berlin | 100.00 |
| Hypoport Mortgage Market Ltd., Westport (Ireland) | 100.00 |
| Hypoport Real Estate \& Mortgage Bündelungs GmbH, Berlin | 100.00 |
| Hypoport Sofia EOOD, Sofia (Bulgaria) | 100.00 |
| Maklaro GmbH, Hamburg | 100.00 |
| OASIS Software GmbH, Berlin | 100.00 |
| Primstal - Alte Eiweiler Straße 38 Objektgesellschaft mbH, Nonnweiler | 100.00 |
| Qualitypool GmbH, Lübeck | 100.00 |
| REM CAPITAL AG, Stuttgart | 100.00 |
| sia digital GmbH, Berlin | 100.00 |
| Smart InsurTech AG, Berlin (formaly: Smart InsurTech NewCo AG, Berlin) | 100.00 |
| source.kitchen GmbH, Leipzig | 100.00 |
| Starpool Finanz GmbH, Berlin | 50.025 |
| trinance GmbH, Lübeck | 100.00 |
| Value AG the valuation group, Berlin | 100.00 |
| Vergleich.de Gesellschaft für Verbraucherinformation mbH, Berlin | 100.00 |
| Vergleich.de Versicherungsservice GmbH, Lübeck | 100.00 |
| VS Direkt Versicherungsmakler GmbH, Bayreuth | 100.00 |
| Volz Vertriebsservice GmbH, Ulm | 100.00 |
| Winzer - Kneippstraße 7 Objektgesellschaft mbH, Berlin | 100.00 |
| Joint ventures | |
| BAUFINEX Service GmbH, Berlin | 50.00 |
| Dutch Residential Mortgage Index B.V., Amsterdam (Netherlands) | 50.00 |
| FINMAS GmbH, Berlin | 50.00 |
| LBL Data Services B.V., Amsterdam (Netherlands) | 50.00 |
| Associated company | |
| BAUFINEX GmbH, Schwäbisch Hall | 30.00 |
| ESG Screen17 GmbH, Frankfurt am Main | 25.10 |
| finconomy AG, Munich | 25.10 |
| GENOFLEX GmbH, Nuremberg | 30.00 |
With the exception of the aforementioned joint ventures and associates (all accounted for under the equity method owing to lack of control), all major Hypoport Group companies are fully consolidated.
Subscribed capital
The Company's subscribed capital as at 30 September 2024 was unchanged at €6,872,164.00 (31 December 2023: €6,872,164.00) and was divided into 6,872,164 (31 December 2023: 6,872,164) fully paid-up registered no-par-value shares.
Events after the reporting period
No material events have occurred since the balance sheet date that are of particular significance to the financial position and financial performance of the Hypoport Group.
Berlin, 11 November 2024
Hypoport SE - The Management Board
2024 financial calendar:
| Monday, 11 March 2024 | Preliminary financial results for 2023 |
|---|---|
| Monday, 25 March 2024 | 2023 annual report |
| Monday, 6 May 2024 | Interim management statement for the first quarter of 2024 |
| Monday, 12 August 2024 | Report for the first half of 2024 |
| Monday, 11 November 2024 | Interim management statement for the third quarter of 2024 |
2025 financial calendar:
| Monday, 10 March 2025 | Preliminary financial results for 2024 |
|---|---|
| Monday, 24 March 2025 | 2024 annual report |
| Monday, 12 May 2025 | Interim management statement for the first quarter of 2025 |
| June 2025 | Annual Shareholders' Meeting |
| Monday, 11 August 2025 | Report for the first half of 2025 |
| Monday, 10 November 2025 | Interim management statement for the third quarter of 2025 |
Note:
This interim management statement is available in German and English. The German version is always authoritative. The interim management statement can be found online at www.hypoport.com.
This interim management statement contains forward-looking statements that are based on the current experience, assumptions and forecasts of the Management Board and on currently available information. The forward-looking statements are not a guarantee that any future developments or results mentioned will actually materialise. Future developments and results are dependent on a number of factors, subject to various risks and uncertainties, and based on assumptions that may not prove to be correct. These risk factors include, but are not limited to, the risk factors set forth in the risk report in the most recent annual report. We do not undertake to update the forward-looking statements made in this interim management statement.