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HYPOPORT SE
Interim / Quarterly Report • Aug 14, 2024
218_10-q_2024-08-14_4e008d2c-9a91-45da-91da-18f278041452.pdf
Interim / Quarterly Report
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(3) HYPOPORT
Key performance indicators
| Revenue and earnings (€'000) | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | 218,087 | 179,001 | 22\% | 110,618 | 85,285 | 30\% |
| thereof Real Estate \& Mortgage Platforms | 150,245 | 113,714 | 32\% | 77,457 | 54,804 | 41\% |
| thereof Financing Platforms | 36,338 | 34,978 | 4\% | 19,077 | 16,709 | 14\% |
| thereof Insurance Platforms | 32,508 | 30,984 | 5\% | 14,821 | 14,215 | 4\% |
| thereof Holding and Reconciliation | $-1,004$ | $-675$ | -49\% | $-737$ | $-443$ | -66\% |
| Gross profit | 113,697 | 102,200 | 11\% | 56,675 | 49,971 | 13\% |
| thereof Real Estate \& Mortgage Platforms | 67,950 | 57,141 | 19\% | 33,878 | 28,203 | 20\% |
| thereof Financing Platforms | 29,956 | 29,527 | 1\% | 15,247 | 13,873 | 10\% |
| thereof Insurance Platforms | 15,219 | 15,057 | 1\% | 7,268 | 7,653 | 5\% |
| thereof Holding and Reconciliation | 572 | 475 | 20\% | 282 | 242 | 17\% |
| EBITDA | 25,428 | 15,588 | 63\% | 12,400 | 6,173 | 101\% |
| EBIT | 7,886 | $-1,723$ | 558\% | 3,587 | $-2,533$ | 242\% |
| thereof Real Estate \& Mortgage Platforms | 14,685 | 3,986 | 268\% | 6,649 | 1,102 | 503\% |
| thereof Financing Platforms | 2,081 | 2,633 | $-21 \%$ | 1,040 | 427 | 144\% |
| thereof Insurance Platforms | 503 | $-375$ | 234\% | 320 | 81 | 295\% |
| thereof Holding and Reconciliation | $-9,383$ | $-7,967$ | $-18 \%$ | $-4,422$ | $-4,143$ | $-7 \%$ |
| EBIT margin (EBIT as a percentage of Gross profit) | 6.9 | $-1.7$ | 511\% | 6.3 | $-5.1$ | 225\% |
| Net profit for the year | 5,374 | $-2,222$ | 342\% | 2,421 | $-2,450$ | 199\% |
| attributable to Hypoport SE shareholders | 5,442 | $-2,102$ | 359\% | 2,401 | $-2,605$ | 192\% |
| Earnings per share (€) (undiluted/diluted) | 0.81 | $-0.32$ | 353\% | 0.36 | $-0.40$ | 190\% |
| Financial position (€'000) | 06/30/2024 | 12/31/2023 | Change | |||
| Current assets | 148,921 | 174,264 | $-15 \%$ | |||
| Non-current assets | 460,783 | 451,510 | 25 | |||
| Equity | 346,047 | 340,643 | 25 | |||
| attributable to Hypoport SE shareholders | 344,066 | 338,604 | 25 | |||
| Equity ratio (\%) | 56.8 | 54.4 | 4\% | |||
| Total assets | 609,704 | 625,774 | $-3 \%$ |
Revenue, Gross profit and EBIT (€ million) - H1 2024 H1 2023
Group
Segment Real Estate \& Mortgage Platforms
Segment Financing Platforms
Segment Insurance Platforms
Content
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Letter to the shareholders
Management report
Business and economic conditions
Business performance
Earnings
Balance sheet
Cash flow
Capital expenditure and finance
Employees
Outlook
Interim consolidated financial statements
Shares and investor relations
Notes to the interim consolidated financial statements
$\square$
Letter to the shareholders
Dear shareholders,
The Hypoport Group returned to growth in the first half of 2024, with the companies in the Real Estate \& Mortgage Platforms segment looking particularly strong. 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 gradually increasing market share and a general rebound in the overall mortgage finance market. The uptrend in the overall market was driven by the combined effects of a structural fall in interest rates, no new regulatory hurdles and a rental accommodation market that is 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. Moreover, consumers are starting to realise that, following the slight to moderate price decreases observed between mid-2022 and the end of 2023, prices for existing properties are now unlikely to fall any 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 32 per cent to $€ 150$ million in the first six months of 2024.
Three different aspects shaped the performance of the Financing Platforms segment. The housing industry subsegment can look back on a successful first half of the year 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 corporate client base, but ever more restrictive commercial banks and a sluggish overall market meant that revenue remained flat. The volume of new projects grew in the corporate finance subsegment, but processing times for many support programmes increased as a result of the German government's spending freeze. Consequently, some of this volume cannot yet be monetised, which resulted in a reduction in revenue in this subsegment. Overall, therefore, the Financing Platforms segment's revenue rose only marginally by 4 per cent to $€ 36$ million.
The Insurance Platforms segment generated modest revenue growth of 5 per cent to $€ 33$ million in a stable overall market. The migration of the insurance portfolios to the relevant B2B platforms is progressing steadily in all three subsegments (private insurance, occupational insurance and industrial insurance).
The Group's improved business performance is reflected in the comparison of the key performance indicators for the first half of 2024 and the first half of 2023:
- Revenue rose by 22 per cent to $€ 218$ million (H1 2023: $€ 179$ million).
- Gross profit advanced by 11 per cent to $€ 114$ million (H1 2023: $€ 102$ million).
- EBITDA increased by 63 per cent to $€ 25$ million (H1 2023: $€ 16$ million).
- EBIT amounted to $€ 7.9$ million (H1 2023: loss of $€ 1.7$ million).
- Net profit for the period came to $€ 5.4$ million (H1 2023: loss of $€ 2.2$ million).
Kind regards,
Ronald Slabke
Management report
Business and economic conditions
Macroeconomic environment
Historical data shows the particular market environment in which the Hypoport Group operates the German credit, housing and insurance industries - to be relatively immune to fluctuations in the wider economy. Apart from the industry-specific factors listed below (see the 'Sectoral performance' section), moderate changes in gross domestic product (GDP), inflation and interest rates have typically had limited influence on German consumers' and businesses' demand for finance and insurance. In the recent past, only a massive macroeconomic shock (known as a black swan event) prompting the capital markets to respond with a rapid short-term change in interest rates has ever had the power to adversely affect our markets by unsettling consumers and forcing market participants to adopt a more restrictive approach.
See the information in the 2023 annual report, pages 11-16, for further explanation of these fundamental interdependencies.
Sectoral performance
The companies in the Real Estate \& Mortgage Platforms segment are primarily involved in the brokerage of financial products for private residential mortgage finance, the development of technology platforms for this type of brokerage, and related services. The key target sector for this segment is therefore the credit industry for residential property in Germany (see the 'Residential mortgage finance' section below), which focuses on the housing market in Germany (see the next section 'Housing market in Germany').
See the information in the 2023 annual report, pages 15 and 16, for details of the sector environment for the business models in the Financing Platforms segment relating to the housing industry, corporate finance, and personal loans and for the Insurance Platforms segment. These details did not change significantly in the first half of 2024.
Housing market in Germany
The German housing market has been buoyant for many years. Demand for housing has risen, and continues to rise, due to the following factors:
- Consistent net inward migration to Germany
- Higher life expectancy
- A rising number of one-person households
- The growing need for space, for example due to more people working from home
See the 'Sectoral performance - Housing market in Germany' section of the 2023 annual report, pages 12-14, for detailed information, particularly regarding residential construction and purchases of existing properties.
Residential mortgage finance
Residential mortgage lending in Germany is chiefly influenced by the following three factors:
- Developments in the German housing market (see the 'Housing market in Germany' section above)
- Level of interest rates for mortgage finance
- Regulatory requirements for consumers and the housing industry and for brokers and suppliers of residential mortgages
See the 'Sectoral performance - Residential mortgage finance' section of the 2023 annual report, pages 14-15, for detailed information.
The residential mortgage market experienced an uptrend in the first six months of the year, driven by the combined effects of a structural fall in interest rates, no new regulatory hurdles and a rental accommodation market that is 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. According to Deutsche Bundesbank, the volume of new mortgage finance business in Germany rose by 15 per cent to $€ 93$ billion in the first half of 2024 (H1 2023: €81 billion). The purchase of existing properties (apartments and one-family or two-family houses) is playing a key role in this regard. The volume of lending for new builds remains low, however, because construction costs are still very high. This also applies to new loans taken out for energy efficiency improvements and to the refinancing of expiring loan agreements.
Business performance
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 independently, are grouped into three segments: Real Estate \& Mortgage Platforms, Financing Platforms and Insurance Platforms.
Real Estate \& Mortgage Platforms 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 property sales platform of FIO Systems AG, Dr. Klein Privatkunden AG and Vergleich.de Gesellschaft für Verbraucherinformation mbH, the property finance activities of Europace AG, Genopace GmbH, Baufinex GmbH and Finmas GmbH, the finance activities of Qualitypool GmbH and Starpool Finanz GmbH (together: property financing platforms) and the property valuation platform Value AG.
In the first six months of the year, 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 $€ 5.4$ billion in the first half of 2024, a rise of 11 per cent compared with the first half of 2023.
The internet-based B2B lending marketplace Europace, the largest German marketplace for the sale of mortgage finance and building finance products, enjoyed a successful first half of 2024, increasing its mortgage finance transaction volume by 22 per cent to $€ 31$ billion. In particular, substantial growth was generated by the sub-marketplace for institutions in the savings banks sector (Finmas) and the sub-marketplace for institutions in the cooperative banking sector (Genopace), with their mortgage finance transaction volumes rising by 53 per cent to $€ 4.7$ billion and by 46 per cent to $€ 7.5$ billion respectively. This growth was achieved thanks to the migration of additional sales structures and due to the better performance of partners that had already been migrated. The volume of new mortgage finance brokered by Dr. Klein stood at $€ 3.3$ billion in the first half of 2024, which was also up by 22 per cent compared with the prior-year period. Qualitypool, a brokerage pool for mortgage finance, saw double-digit growth in its transaction volume too, whereas the transaction volume of the Starpool brokerage pool was impacted by delayed effects of disruptions to back-office processes at our joint venture partner and fell sharply compared with the first six months of 2023.
The value of residential properties inspected or appraised by VALUE AG amounted to $€ 15$ billion, which was almost the same as the figure for the first half of 2023. However, regulatory changes resulted in a marked shift in the product mix that saw a decline in higher-value products.
The greater volume of mortgage finance transactions in the first half of 2024 led to a double-digit percentage increase in revenue compared with the prior-year period. Furthermore, revenue and selling expenses went up because the combined purchasing terms of Hypoport's financial product distributors have been marketed more heavily since the start of this year 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 32 per cent overall to $€ 150$ million in the reporting period. The Hypoport Group's gross profit remaining after deduction of selling expenses (lead acquisition fees and commission paid to franchisees / individual distributors affiliated with the poolers / purchasing network) went up by 19 per cent to $€ 68$ million. The increases in EBITDA and EBIT were much stronger, with EBITDA rising by 104 per cent to $€ 22$ million and EBIT by 268 per cent to $€ 15$ million.
- 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 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, REM Capital AG, Fundingport GmbH, Hypoport B.V., Dr. Klein Ratenkredit GmbH, Genoflex GmbH and the personal loans business unit of Europace AG.
The business models in the housing industry subsegment fared very well 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. In spite of these conditions, the volume of new loans brokered on the property financing platform for the housing industry came to $€ 0.5$ billion in the first half of 2024, equating to year-on-year growth of 3 per cent. The portfolio of contracts on the property management platform for the housing industry jumped by 58 per cent to around 359,000 homes as at 30 June 2024 due to the acquisition of new clients. The volume of rental deposits under management also rose, swelling by 7 per cent compared with 30 June 2023 to stand at around $€ 1.1$ billion as at 30 June 2024.
In the corporate finance subsegment, the volume of new projects at REM Capital climbed from $€ 0.8$ billion to $€ 1.4$ billion. However, processing times for the German government's support programmes have increased markedly as a result of the 2023/2024 spending freeze and the 2025 budget negotiations, delaying the recognition of revenue from new business. Although the subsegment's revenue is expected to rise sharply in the second half of 2024 owing to seasonal factors, there is a braking effect from the current environment of fluctuating support programmes, more restrictive lending by banks, postponement of clients' investment plans and the fact that support programmes offered by individual federal states, the German government and the EU have not been adapted to the latest climate goals and international standards.
At $€ 3.3$ billion, the volume of transactions in the personal loans subsegment was up by 17 per cent compared with the first six months of 2023. However, banks are becoming ever more restrictive, leading to higher rates of rejection and cancellation.
The higher volume of business in the housing industry subsegment in the first half of 2024 gave rise to double-digit revenue growth year on year. Revenue in the personal loans subsegment did increase slightly, but there was a double-digit decrease in the corporate finance subsegment's revenue contribution. Overall, revenue for the segment as a whole came to $€ 36$ million, which was a slight rise of 4 per cent. Gross profit was also up slightly, advancing by 1 per cent to $€ 30$ million. The overall effect of the differing business performance of the subsegments, combined with sustained high levels of capital expenditure, meant that EBITDA fell by 9 per cent to $€ 5.4$ million and EBIT by 21 per cent to $€ 2.1$ million.
| Financial figures Financing Platforms | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Operative figures (€ billion) | ||||||
| Property sales platform Dr. Klein Wowi | 0.52 | 0.50 | 1 | $3 \%$ | 0.19 | 0.21 |
| Number of homes managed through WoWi Digital ('000) | 358.8 | 227.2 | $58 \%$ | - | - | |
| Rental deposits under management | 1.14 | 1.07 | 1 | $7 \%$ | - | - |
| Volume of personal loan transactions* Europace |
3.26 | 2.77 | $17 \%$ | 1.61 | 1.37 | |
| Volume of new SME financing business at REM Capital | 1.40 | 0.78 | $79 \%$ | 1.12 | 0.47 | |
| Revenue and earnings (€ million) | ||||||
| Revenue | 36.3 | 35.0 | 1 | $4 \%$ | 19.1 | 16.7 |
| Gross profit | 30.0 | 29.5 | $1 \%$ | 15.2 | 13.9 | |
| EBITDA | 5.4 | 5.9 | $-9 \%$ | 2.7 | 2.1 | |
| EBIT | 2.1 | 2.6 | $-21 \%$ | 1.0 | 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 Smart Insurance AG, the insurance activities of Qualitypool GmbH and AmexPool AG, Sia Digital GmbH, Corify GmbH, Oasis GmbH, ePension GmbH and E \& P Pensionsmanagement GmbH.
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 June 2023 to stand at $€ 4.6$ 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 has been gathering pace since 2020. This validation is needed in order to be able to provide further added value, e.g. robo-advice. The volume validated increased substantially by 34 per cent to $€ 1.7$ billion.
Further industrial insurance brokers were signed up on ePension, the platform for occupational insurance, in late 2023/early 2024 and went live on the platform in the first half of 2024. The volume on the platform therefore surged by 47 per cent year on year, amounting to $€ 0.3$ billion as at 30 June 2024.
In the industrial insurance business, Corify, the first marketplace for industrial insurance risk, was unveiled on schedule along with the first product applications at the end of 2023. The first industrial insurance brokers were signed up as clients at the same time.
The revenue of all three subsegments rose in the first half of 2024, with the revenue for the segment as a whole increasing by 5 per cent to a total of $€ 33$ million. Whereas gross profit rose by 1 per cent compared with the first half of 2023 to $€ 15$ million, EBITDA soared by 44 per cent to $€ 3.5$ million. EBIT was just into positive territory at $€ 0.5$ million (H1 2023: loss of $€ 0.4$ million).
| Financial figures Insurance Platform | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Operative figures ( $€$ billion) | ||||||
| Private Insurance - Volume of policies migrated to SMART INSUR (annual net premiums) | 4.55 | 4.00 | 14\% | - | - | - |
| Private Insurance - Validation rate (per cent) |
1.71 | 1.28 | 34\% | - | - | - |
| Occupational insurance - Volume of policies managed by ePension Platform (annual net premiums) | 0.26 | 0.18 | 47\% | - | - | - |
| Industrial insurance - Volume of policies managed by corify Platform (annual net premiums) | 0.10 | 0.00 | - | - | - | - |
| Revenue and earnings ( $€$ million) | ||||||
| Revenue | 32.5 | 31.0 | 5\% | 14.8 | 14.2 | $4 \%$ |
| Gross profit | 15.2 | 15.1 | 1\% | 7.3 | 7.7 | $-5 \%$ |
| EBITDA | 3.5 | 2.4 | 44\% | 1.8 | 1.5 | 22\% |
| EBIT | 0.5 | $-0.4$ | 234\% | 0.3 | 0.1 | 295\% |
Earnings
Against the backdrop of the business performance described above, the Hypoport Group's revenue went up by 22 per cent to $€ 218$ million in the first half of 2024 (H1 2023: $€ 179$ million) and gross profit advanced by 11 per cent to $€ 114$ million (H1 2023: $€ 102$ million). The stronger increase in revenue relative to gross profit was attributable to greater use of the purchasing network that complements the Europace platform. Besides revenue growth, this also led to a sharp rise in the selling expenses to be passed on.
EBITDA surged by 63 per cent to $€ 25$ million (H1 2023: $€ 16$ million) and EBIT improved from a loss of $€ 1.7$ million to a profit of $€ 7.9$ million. The EBIT margin (EBIT as a percentage of gross profit) therefore improved from minus 1.7 per cent to 6.9 per cent in the first half of 2024.
| Revenue and earnings (€ million) | H1 2024 | H1 2023 | Change | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | 218.1 | 179.0 | 22\% | 110.6 | 85.3 | 30\% |
| Gross profit | 113.7 | 102.2 | $11 \%$ | 56.7 | 50.0 | 13\% |
| EBITDA | 25.4 | 15.6 | 63\% | 12.4 | 6.2 | 101\% |
| EBIT | 7.9 | $-1.7$ | 558\% | 3.6 | $-2.5$ | 242\% |
| EBIT margin (EBIT as percentage of Gross profit) | $6.9 \%$ | $-1.7 \%$ | 511\% | $6.3 \%$ | $-5.1 \%$ | 225\% |
Own work capitalised
In the first six months of 2024, the Company continued to attach considerable importance to investing in the further expansion of its platforms. This investment underpins the further growth of all of the segments.
The Company maintained a steady level of investment in expansion, with around $€ 22$ million in the first half of 2024 (H1 2023: $€ 22$ million) and around $€ 11$ million in the second quarter of 2024 (Q2 2023: $€ 11$ million). Of these totals, $€ 11$ million was capitalised in the first half of 2024 (H1 2023: $€ 11$ million) and $€ 5.7$ million in the second quarter of this year (Q2 2023: $€ 5.5$ million), while amounts of $€ 11$ million for the first half of 2024 (H1 2023: $€ 11$ million) and $€ 5.5$ million for the second quarter of this year (Q2 2023: $€ 5.2$ million) were expensed as incurred. These amounts represent the personnel expenses and operating costs attributable to software development.
Other operating income
Other operating income edged down from $€ 3.6$ million in the first half of 2023 to $€ 2.9$ million in the period under review. The main reason for this was a reduction in income from the reversal of provisions to $€ 0.6$ million (H1 2023: $€ 1.2$ million). The other main components of other operating income were rental income of $€ 0.9$ million (H1 2023: $€ 0.6$ million) resulting from the subletting of office space that was temporarily not being used and income of $€ 0.7$ million from employee contributions to vehicle purchases (H1 2023: $€ 0.8$ million).
Personnel expenses
Personnel expenses went up slightly, by just under 6 per cent, to $€ 83$ million (H1 2023: $€ 79$ million), predominantly as a result of salary increases and a small rise in average headcount in the reporting period from 2,200 employees in the first six months of 2023 to 2,232 employees in the first six months of this year.
Other operating expenses
Other operating expenses for the first half of 2024 declined by 9 per cent compared with the first six months of 2023. The breakdown of other operating expenses is shown in the table below.
| Other operating expenses (€ million) | H1 2024 | H1 2023 | H1 Change | Q2 2024 | Q2 2023 | Q2 Change |
|---|---|---|---|---|---|---|
| Operating expenses | 4.3 | 4.8 | $\square$ | $-10 \%$ | 2.3 | 2.5 |
| Other selling expenses | 2.5 | 2.2 | $14 \%$ | 1.4 | 1.5 | |
| Administrative expenses | 11.2 | 12.6 | $\square$ | $-11 \%$ | 5.9 | 7.1 |
| Other personnel expenses | 0.8 | 0.5 | $60 \%$ | 0.4 | 0.3 | |
| Other expenses | 1.5 | 2.2 | $\square$ | $-32 \%$ | 0.7 | 1.0 |
| 20.3 | 22.3 | $\square$ | $-9 \%$ | 10.7 | 12.4 |
Operating expenses consisted mainly of vehicle-related costs of $€ 1.4$ million (H1 2023: $€ 1.4$ million) and ancillary rental costs of $€ 1.3$ million (H1 2023: $€ 1.6$ million). Other selling expenses related to advertising costs and travel expenses. Administrative expenses largely comprised IT-related costs of $€ 7.2$ million (H1 2023: $€ 8.8$ million) and legal and consultancy expenses of $€ 1.6$ million (H1 2023: $€ 1.3$ million). Other personnel expenses mainly consisted of training costs of $€ 0.5$ million (H1 2023: $€ 0.4$ million).
Depreciation, amortisation expense and impairment losses
Of the depreciation, amortisation expense and impairment losses of $€ 18$ million (H1 2023: $€ 17$ million), $€ 10$ million (H1 2023: $€ 10$ million) was attributable to intangible assets and $€ 7.1$ million (H1 2023: $€ 6.9$ million) to property, plant and equipment. The depreciation and impairment losses on property, plant and equipment largely consisted of a sum of $€ 5.1$ million for depreciation and impairment recognised on rental/leasing-related right-of-use assets in accordance with IFRS 16 (H1 2023: $€ 5.2$ million).
Net financial income/finance costs
The net finance costs mainly comprised interest income of $€ 1.1$ million on investments (H1 2023: $€ 0.4$ million) and interest expense and similar charges of $€ 1.2$ million stemming from the drawdown of loans and the use of credit lines (H1 2023: $€ 0.7$ million).
Balance sheet
The Hypoport Group's consolidated total assets as at 30 June 2024 amounted to $€ 610$ million, which was a 3 per cent decrease on the total as at 31 December 2023 ( $€ 626$ million).
Non-current assets amounted to $€ 461$ million (31 December 2023: $€ 452$ million). Intangible assets were almost unchanged at $€ 353$ million (31 December 2023: $€ 351$ million), mainly comprising goodwill of $€ 229$ million (31 December 2023: $€ 229$ million) and slightly higher development costs for the financial marketplaces of $€ 104$ million (31 December 2023: $€ 100$ million). Property, plant and equipment, which totalled $€ 73$ million (31 December 2023: $€ 67$ million), primarily consisted of rental agreements and leasing-related right-of-use assets amounting to $€ 57$ million (31 December 2023: $€ 50$ million).
The $€ 25$ million reduction in current assets primarily consisted of a $€ 27$ million fall in cash and cash equivalents and a countervailing $€ 1.1$ million rise in other assets.
The equity attributable to Hypoport SE shareholders as at 30 June 2024 was up by 2 per cent or $€ 5.5$ million at $€ 344$ million. The equity ratio rose from 54 per cent to 57 per cent owing to the reduction in total assets.
The $€ 1.8$ million decrease in non-current liabilities to $€ 169$ million stemmed primarily from a $€ 10$ 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 $€ 5.8$ million.
Current liabilities declined sharply by 17 per cent to $€ 94$ million owing to lower trade payables. Other current liabilities, which also decreased, mainly comprised deferred income of $€ 5.6$ million (31 December 2023: $€ 1.2$ million), bonus commitments of $€ 3.7$ million (31 December 2023: $€ 4.5$ million) and tax liabilities of $€ 2.9$ million (31 December 2023: $€ 3.6$ million).
Total current and non-current liabilities to banks came to $€ 119$ million (31 December 2023: $€ 130$ million). The reduction in liabilities to banks was due to scheduled repayments of loans in an amount of $€ 10.2$ million.
Cash flow
Cash flow grew by $€ 5.3$ million to $€ 21$ million during the reporting period. The total net cash generated by operating activities in the first six months of 2024 amounted to $€ 12.8$ million (H1 2023: $€ 6.6$ million). The cash used for working capital decreased by $€ 0.9$ million to minus $€ 8.1$ million (H1 2023: minus $€ 9.0$ million).
The net cash used for investing activities of $€ 24$ million (H1 2023: $€ 16$ million) mainly consisted of a total of $€ 9.2$ million for the acquisition of the remaining 49 per cent of the shares in ePension
GmbH \& Co. KG and E \& P Pensionsmanagement GmbH, plus €13 million for capital expenditure on intangible assets (H1 2023: €15 million).
The net cash of €16 million used for financing activities (H1 2023: net cash inflow of €48 million) related to repayments of €10.2 million as scheduled under existing loan agreements with banks (H1 2023: €8.6 million) and the repayment of rental liabilities in an amount of €5.0 million (H1 2023: €4.9 million).
As a result of the changes described above, cash and cash equivalents totalled €70 million as at 30 June 2024, which was down by €27 million compared with the end of 2023.
Capital expenditure and finance
The main areas of capital expenditure were the ongoing development of the platforms (investment in software), the acquisition of the remaining 49 per cent of the shares in ePension GmbH \& Co. KG and E \& P Pensionsmanagement GmbH and, to a lesser extent, investment in office furniture and equipment. Capital expenditure was financed by both operating cash flow and available cash.
Employees
The number of employees in the Hypoport Group rose by 2 per cent compared with the end of 2023 to 2,244 (31 December 2023: 2,209 employees). The average headcount during the first half of 2024 was 2,232 (H1 2023: 2,200 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.
For the Hypoport Group as a whole, we thus continue to expect double-digit percentage growth in consolidated revenue to at least $€ 400$ million and EBIT of between $€ 10$ million and $€ 20$ million.
See the annual report, pages 50 to 53 , for more detailed information.
Please note that this interim report contains statements about economic and political developments as well as the future performance of the Hypoport Group. These statements are assessments that we have reached on the basis of the information available to us at the present time. If the assumptions underlying these assessments do not prove to be correct or if other risks emerge, the actual results could deviate from the outcome we currently expect.
Interim consolidated financial statements
Consolidated income statement for the period 1 January to 30 June 2024
| H1 2024 $€^{\prime} 000$ |
H1 2023 $€^{\prime} 000$ |
Q2 2024 $€^{\prime} 000$ |
Q2 2023 $€^{\prime} 000$ |
|
|---|---|---|---|---|
| Revenue | 218,087 | 179,001 | 110,618 | 85,285 |
| Commissions and lead costs | $-104,390$ | $-76,801$ | $-53,943$ | $-35,314$ |
| Gross profit | 113,697 | 102,200 | 56,675 | 49,971 |
| Own work capitalised | 11,291 | 11,167 | 5,714 | 5,444 |
| Other operating income | 2,866 | 3,632 | 1,166 | 2,123 |
| Personnel expenses | $-83,305$ | $-78,754$ | $-41,671$ | $-38,925$ |
| Other operating expenses | $-20,275$ | $-22,323$ | $-10,682$ | $-12,451$ |
| Income from companies accounted for using the equity method | 1,154 | $-334$ | 1,198 | 11 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 25,428 | 15,588 | 12,400 | 6,173 |
| Depreciation, amortisation expense and impairment losses | $-17,542$ | $-17,311$ | $-8,813$ | $-8,706$ |
| Earnings before interest and tax (EBIT) | 7,886 | $-1,723$ | 3,587 | $-2,533$ |
| Financial income | 1,177 | 357 | 578 | 242 |
| Finance costs | $-1,696$ | $-1,429$ | $-843$ | $-773$ |
| Earnings before tax (EBT) | 7,367 | $-2,795$ | 3,322 | $-3,064$ |
| Income taxes and deferred taxes | $-1,993$ | 573 | $-901$ | 614 |
| Net profit for the period | 5,374 | $-2,222$ | 2,421 | $-2,450$ |
| attributable to non- controlling interest | $-68$ | $-120$ | 20 | 155 |
| attributable to Hypoport SE shareholders | 5,442 | $-2,102$ | 2,401 | $-2,605$ |
| Earnings per share (€) (undiluted/diluted) | 0.81 | $-0.32$ | 0.36 | $-0.40$ |
Consolidated statement of comprehensive income for the period 1 January to 30 June 2024
| H1 2024 $€^{\prime} 000$ |
H1 2023 $€^{\prime} 000$ |
Q2 2024 $€^{\prime} 000$ |
Q2 2023 $€^{\prime} 000$ |
|
|---|---|---|---|---|
| Net profit for the period | 5,374 | $-2,222$ | 2,421 | $-2,450$ |
| Total income and expenses recognised in equity*) | 0 | 0 | 0 | 0 |
| Total comprehensive income | 5,374 | $-2,222$ | 2,421 | $-2,450$ |
| attributable to non- controlling interests | -68 | -120 | 20 | 155 |
| attributable to Hypoport SE shareholders | 5,442 | $-2,102$ | 2,401 | $-2,605$ |
*) There was no income or expense to be recognised directly in equity during the reporting period.
| 30 June 2024 | 30 Dec 2023 | |
|---|---|---|
| Assets | €'000 | €'000 |
| Non-current assets | ||
| Intangible assets | 353,174 | 351,094 |
| Property, plant and equipment | 72,879 | 67,272 |
| Long-term investments accounted for using the equity method | 5,668 | 5,474 |
| Financial assets | 995 | 1,207 |
| Trade receivables | 3,092 | 4,254 |
| Other assets | 257 | 213 |
| Deferred tax assets | 24,718 | 21,996 |
| 460,783 | 451,510 | |
| Current assets | ||
| Inventories | 910 | 935 |
| Trade receivables | 65,979 | 65,588 |
| Other assets | 8,304 | 7,179 |
| Current income tax assets | 3,897 | 3,904 |
| Cash and cash equivalents | 69,831 | 96,658 |
| 148,921 | 174,264 | |
| 609,704 | 625,774 | |
| Equity and liabilities | ||
| Equity | ||
| Subscribed capital | 6,872 | 6,872 |
| Treasury shares | $-184$ | $-184$ |
| Reserves | 337,378 | 331,916 |
| 344,066 | 338,604 | |
| Non-controlling interest | 1,981 | 2,039 |
| 346,047 | 340,643 | |
| Non-current liabilities | ||
| Bank liabilities | 98,581 | 108,805 |
| Rental charges and operating lease expenses | 50,507 | 44,686 |
| Other liabilities | 230 | 220 |
| Deferred tax liabilities | 19,854 | 17,203 |
| 169,172 | 170,914 | |
| Current liabilities | ||
| Bank liabilities | 20,736 | 20,748 |
| Rental charges and operating lease expenses | 9,939 | 9,333 |
| Provisions | 460 | 497 |
| Trade payables | 37,159 | 47,927 |
| Current income tax liabilities | 845 | 2,825 |
| Other liabilities | 25,346 | 32,887 |
| 94,485 | 114,217 | |
| 609,704 | 625,774 |
Abridged consolidated statement of changes in equity in 2023 and 2024
| 2023 $€^{\prime} 000$ |
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 | 331 | 42 | 377 | 0 | 377 |
| 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 | $-2,102$ | $-2,102$ | $-120$ | $-2,222$ |
| Balance as at 30 June 2023 | 6,872 | $-185$ | 116,702 | 195,233 | 318,622 | 3,713 | 322,335 |
| 2024 in TEUR |
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 | 20 | 1 | 21 | 0 | 21 |
| Changes to the basis of consolidation | 0 | 0 | 0 | 0 | 0 | 10 | 10 |
| Total comprehensive income | 0 | 0 | 0 | 5,441 | 5,441 | $-68$ | 5,373 |
| Balance as at 30 June 2024 | 6,872 | $-184$ | 116,863 | 220,515 | 344,066 | 1,981 | 346,047 |
Consolidated cash flow statement for the period 1 January to 30 June 2024
| $\begin{gathered} \text { H1 } 2024 \ €^{\prime} 000 \end{gathered}$ | $\begin{gathered} \text { H1 } 2023 \ €^{\prime} 000 \end{gathered}$ | |
|---|---|---|
| Earnings before interest and tax (EBIT) | 7,886 | $-1,723$ |
| Non-cash income / expense | $-652$ | $-725$ |
| Interest received | 1,177 | 357 |
| Interest paid | $-1,229$ | $-1,429$ |
| Income taxes paid | $-3,778$ | $-755$ |
| Change in deferred taxes | 71 | 2,219 |
| Profit (loss) from equity-accounted long-term equity investments | $-1,154$ | 334 |
| Distributions from investments accounted for using the equity method | 1,069 | 0 |
| Depreciation and amortisation on non-current assets | 17,542 | 17,311 |
| Profit / loss from the disposal of non-current assets | $-43$ | $-32$ |
| Cash flow | 20,889 | 15,557 |
| Increase / decrease in current provisions | $-37$ | $-154$ |
| Increase / decrease in inventories, trade receivables and other assets not attributable to investing or financing activities | $-373$ | 10,049 |
| Increase / decrease in trade payables and other liabilities not attributable to investing or financing activities | $-7,662$ | $-18,868$ |
| Change in working capital | $-8,072$ | $-8,973$ |
| Cash flows from operating activities | 12,817 | 6,584 |
| Payments to acquire property, plant and equipment / intangible assets | $-13,954$ | $-14,887$ |
| Proceeds from disposals of property, plant and equipment / intangible assets | 105 | 82 |
| Cash outflows for acquisitions less acquired cash | $-9,922$ | $-1,203$ |
| Purchase of financial assets | $-23$ | 0 |
| Cash flows from investing activities | $-23,794$ | $-16,008$ |
| Repayment of lease liabilities | $-5,020$ | $-4,862$ |
| Proceeds from the drawdown of financial loans | 0 | 10,000 |
| Redemption of bonds and loans | $-10,238$ | $-8,617$ |
| Payouts to non-controlling interests | $-602$ | 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 | $-15,850$ | 47,622 |
| Net change in cash and cash equivalents | $-26,827$ | 38,198 |
| Cash and cash equivalents at the beginning of the period | 96,658 | 29,947 |
| Cash and cash equivalents at the end of the period | 69,831 | 68,145 |
Abridged segment reporting for the period 1 January to 30 June 2024
| €'000 | Real Estate \& Mortgage Platforms | Financing Platforms | Insurance Platforms | Holding | Reconciliation | Group |
|---|---|---|---|---|---|---|
| Segment revenue in respect of third parties | ||||||
| H1 2024 | 149,502 | 35,689 | 32,324 | 572 | 0 | 218,087 |
| H1 2023 | 112,923 | 34,806 | 30,797 | 475 | 0 | 179,001 |
| Q2 2024 | 77,068 | 18,535 | 14,733 | 282 | 0 | 110,618 |
| Q2 2023 | 54,308 | 16,622 | 14,113 | 242 | 0 | 85,285 |
| Segment revenue in respect of other segments | ||||||
| H1 2024 | 743 | 649 | 184 | 13,008 | $-14,584$ | 0 |
| H1 2023 | 791 | 172 | 187 | 14,626 | $-15,776$ | 0 |
| Q2 2024 | 389 | 542 | 88 | 6,496 | $-7,515$ | 0 |
| Q2 2023 | 496 | 87 | 102 | 7,021 | $-7,706$ | 0 |
| Total segment revenue | ||||||
| H1 2024 | 150,245 | 36,338 | 32,508 | 13,580 | $-14,584$ | 218,087 |
| H1 2023 | 113,714 | 34,978 | 30,984 | 15,101 | $-15,776$ | 179,001 |
| Q2 2024 | 77,457 | 19,077 | 14,821 | 6,778 | $-7,515$ | 110,618 |
| Q2 2023 | 54,804 | 16,709 | 14,215 | 7,263 | $-7,706$ | 85,285 |
| Gross profit | ||||||
| H1 2024 | 67,950 | 29,956 | 15,219 | 13,580 | $-13,008$ | 113,697 |
| H1 2023 | 57,141 | 29,527 | 15,057 | 15,101 | $-14,626$ | 102,200 |
| Q2 2024 | 33,878 | 15,247 | 7,268 | 6,778 | $-6,496$ | 56,675 |
| Q2 2023 | 28,203 | 13,873 | 7,653 | 7,263 | $-7,021$ | 49,971 |
| Segment earnings before interest, tax, depreciation and amortisation (EBITDA) | ||||||
| H1 2024 | 21,715 | 5,364 | 3,476 | $-5,127$ | 0 | 25,428 |
| H1 2023 | 10,657 | 5,917 | 2,412 | $-3,398$ | 0 | 15,588 |
| Q2 2024 | 10,160 | 2,686 | 1,822 | $-2,268$ | 0 | 12,400 |
| Q2 2023 | 4,473 | 2,099 | 1,499 | $-1,898$ | 0 | 6,173 |
| Segment earnings before interest and tax (EBIT) | ||||||
| H1 2024 | 14,685 | 2,081 | 503 | $-9,383$ | 0 | 7,886 |
| H1 2023 | 3,986 | 2,633 | $-375$ | $-7,967$ | 0 | $-1,723$ |
| Q2 2024 | 6,649 | 1,040 | 320 | $-4,422$ | 0 | 3,587 |
| Q2 2023 | 1,102 | 427 | 81 | $-4,143$ | 0 | $-2,533$ |
| Segment assets | ||||||
| as at 30 Jun 2024 | 186,306 | 188,143 | 164,427 | 343,226 | $-272,398$ | 609,704 |
| as at 31 Dec 2023 | 169,879 | 182,593 | 164,036 | 347,700 | $-238,434$ | 625,774 |
Shares and investor relations
Hypoport SE shareholder structure as at 30 June 2024:
Shareholder structure
Hypoport SE shareholder structure as at 30 June 2024:
Fixed ownership
- Ronald Slabke (Founder, CEO)
- Treasury shares
- Fee float
of which:
more than 5\% Baillie Gifford,
more than 5\% BlackRock,
more than 3\% Union Investment,
more than 3\% Nicolas Schulmann)
Notes to the interim consolidated financial statements
Information about the Company
The companies in the Hypoport Group ('Hypoport', 'the Hypoport Group' or 'Hypoport companies') are engaged in the development and marketing of technology platforms for the credit, housing and insurance industries (fintech, proptech, insurtech). The Hypoport companies have been grouped into the following three segments since January 2024: Real Estate \& Mortgage Platforms, Financing Platforms and Insurance Platforms. The previous structure made up of four segments (Credit Platform, Private Clients, Real Estate Platform and Insurance Platform) was reshaped into this new grouping in order to boost the efficiency of business development in the relevant markets and to reduce complexity within the Group. The Group's parent company is Hypoport SE.
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.
FIO Systems AG provides a comprehensive platform that enables bank-affiliated estate agents and large independent estate agents in Germany to fully digitalise their business operations involving the sale of residential property in Germany.
Dr. Klein Privatkunden AG and Vergleich.de Gesellschaft für Verbraucherinformation mbH focus on the brokerage of financial products for consumers, primarily residential mortgage finance in Germany. Prospective clients are acquired via the internet, while subsequent advice is provided by means of online advisory systems, during video calls or, more often, through the Dr. Klein franchise system of highly qualified financial advisors in face-to-face meetings at branches across Germany. In each case, the advisor uses the Europace platform to choose the best financial products for the client from a broad selection of all appropriate banks, savings banks, building finance associations and insurance companies. This comprehensive advice is independent of product suppliers and provides consumers with benefits in terms of the breadth and quality of the product range and the efficiency of the advisory process.
The Hypoport Group operates Europace, the largest credit platform for the sale of financial products for private clients in Germany. A fully integrated system links roughly 800 partners banks, insurers and financial product distributors.
The segment also includes Genopace GmbH, a joint venture aimed at digitalising the Cooperative Financial Network. In addition to the credit cooperatives (Volksbanken) from Düsseldorf/Neuss and Münster, which were its initial partners, all the major Cooperative Financial Network partners are now shareholders: Bausparkasse Schwäbisch Hall AG, Münchener Hypothekenbank eG, R+V Lebensversicherung AG and DZ Hyp AG.
Baufinex GmbH, a joint venture with Bausparkasse Schwäbisch Hall, provides a marketplace that is focused on mortgage finance brokers from the Cooperative Financial Network.
Finmas GmbH is a joint venture with Finanz Informatik GmbH \& Co. KG that signs up partners for
the financial marketplace within the Savings Banks Finance Group.
Qualitypool GmbH provides small and medium-sized financial product distributors with support services in relation to the brokerage of financial products via Europace.
Starpool Finanz GmbH - a joint venture with Deutsche Bank AG - makes the Europace marketplace available to financial product distributors that are closely linked to the group brands DSL Bank, Postbank and BHW, and offers a range of supplementary services.
Value AG provides property valuation services for mortgage lenders.
Thanks to steady progress with the technical integration of the business models of the FIO brokerage software, the Europace platform and Value AG, we are establishing one overall digital process within the Real Estate \& Mortgage Platforms segment for purchasing, valuing and financing private residential properties in Germany.
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.
Dr. Klein Wowi Finanz AG advises municipal and cooperative housing companies on finance and insurance for their rental housing portfolios and digitalises the associated processes. Its sister company Dr. Klein Wowi Digital AG digitalises the portfolio management and the finance and accounting functions of these companies with the help of Wowiport, an industry-specific soft-ware-as-a-service (SaaS) platform. FIO Systems AG supplements these services with a SaaS platform for managing accounts holding tenants' security deposits and managing housing companies' insurance claims.
REM Capital AG provides specialist advice on the arrangement of complex public-sector development loans for companies and financing for small and medium-sized enterprises in Germany. At Fundingport GmbH, a corporate finance marketplace is being established in partnership with IKB Deutsche Industriebank. The subsidiary Hypoport B.V. provides the SaaS platform PRoMMiSe, which helps banks to analyse and report on their credit portfolios.
Dr. Klein Ratenkredit GmbH is a specialist personal loans company that supports its affiliated banking partners in the distribution of white-label consumer loans. Genoflex GmbH provides the cooperative banking sector with a platform for personal loan products. It is a joint venture with the cooperative bank TeamBank. The technological platform behind these two companies is the personal loans business unit of Europace AG and is also used by non-captive financial product distributors and banks.
The Insurance Platforms segment develops integrated software solutions for insurance product distributors and B2C insurtechs 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.
In the insurance business with private individuals and small businesses, Smart InsurTech AG develops and operates the fully integrated Smart Insur platform for the sale and administration of insurance products with variable prices. This modular platform provides comprehensive support for the sales and management processes typical in this sector, including advisory support, comparison tools and management of in-force business for insurance brokers and nonexclusive agents. In addition, Qualitypool GmbH (for private insurance) and AmexPool AG (for small business insurance) provide support services for small and medium-sized financial product distributors in relation to the brokerage of insurance and the use of Smart Insur. Sia Digital GmbH develops, brokers and administers variable-price insurance products as an underwriting agent.
In the industrial insurance business, Corify GmbH launched a platform in 2023 that supports analyses, tender processes and fixed-price industrial insurance transactions. Oasis GmbH offers a sector-specific brokerage administration software for large companies and specialist industrial insurance brokers.
In the occupational insurance business, ePension GmbH \& Co. KG provides a digital platform for the administration of occupational retirement pension schemes and health insurance policies. Rounding off the platform offering, E \& P Pensionsmanagement GmbH acts as a service provider for employers and their staff in the field of occupational retirement pensions.
The parent company is Hypoport SE, which is headquartered in Lübeck, Germany. Within the Hypoport Group, Hypoport SE performs the role of a strategic and management holding company. Hypoport SE's objectives are the advancement and expansion of its network of subsidiaries along value chains, while making use of synergies. The subsidiary Hypoport hub SE provides shared services. Hypoport SE is entered in the commercial register of the Lübeck local court under HRB 19859 HL. The Company's business address is Heidestrasse 8, 10557 Berlin, Germany.
Basis of presentation
The condensed interim consolidated financial statements for the period ended 30 June 2024 for Hypoport SE have been prepared in accordance with the provisions of IAS 34 (Interim Financial Reporting). They are based on the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) as adopted by the European Union and take into account the interpretations of the International Financial Reporting Standards Interpretations Committee (IFRS IC). The report has been condensed in accordance with IAS 34 compared with the scope of the consolidated financial statements for the year ended 31 December 2023. These condensed interim consolidated financial statements should therefore be read in conjunction with the consolidated financial statements for the year ended 31 December 2023 and the disclosures contained in the notes thereto. These condensed interim consolidated financial statements and the interim group management report have not been audited or reviewed by an auditor.
These condensed interim consolidated financial statements are based on the accounting policies and the consolidation principles applied to the consolidated financial statements for the year ended 31 December 2023. However, the changes presented below have been introduced due to the adoption of new or revised accounting standards and due to a review of the expected useful life of software.
The interim consolidated financial statements and the separate financial statements for the entities included in the IFRS interim consolidated financial statements are prepared in euros.
To improve clarity, all figures in the IFRS interim consolidated financial statements and the interim group management report are presented in thousands or millions of euros unless stated otherwise. We wish to point out that the application and aggregation of rounded amounts and percentages and the use of automated calculation methods may give rise to rounding discrepancies.
All disclosures on the number and volume of financial products processed are calculated at a cut-off point in the product transaction process that is appropriate for the accrual method of accounting used. The growth of the subsidiaries in the Real Estate \& Mortgage Platforms segment can be seen from the volume of transactions on the Europace transaction platform. The volume of transactions is the indicator used by the management to measure the current intensity with which the Europace marketplace is being used. Transactions are initiated at the end of the advisory process. They take place after the advisor/consumer has selected a specific product and include a check against all of the product supplier's lending rules stored in the system. A query is also sent to the product supplier's external decision-making systems. Transactions are then frequently cancelled, for example because the consumer allows the offering period to expire, the product supplier rejects the transaction following the individual credit check or the consumer exercises his or her right to withdraw. The revenue for a transaction may be recognised up to three months later. This means that it is only possible to draw limited conclusions about revenue for a period from the volume of transactions in that period.
The consolidated income statement is presented under the nature-of-expense method.
Accounting policies
The accounting policies applied are those used in 2023, with the following exceptions:
- Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
- Non-current Liabilities with Covenants (Amendments to IAS 1)
- Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
- Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The first-time adoption of the standards and interpretations listed above has had no significant impact on the financial position or financial performance of the Hypoport Group or on its earnings per share.
Basis of consolidation
The consolidation as at 30 June 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 (ehemals: ePension Holding GmbH, Berlin) | 100.00 |
| ePension Verwaltungs-GmbH, Hamburg | 100.00 |
| E\&P Pensionsmanagement GmbH, Hamburg | 100.00 |
| Europace AG, Berlin | 100.00 |
| Europace Ratenkredit GmbH, Berlin (ehemals: 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 (Niederlande) | 100.00 |
| Hypoport Grundstücksmanagement GmbH, Berlin | 100.00 |
| Hypoport Holding GmbH, Berlin | 100.00 |
| Hypoport hub SE, Berlin | 100.00 |
| Hypoport InsurTech AG, Berlin | 100.00 |
| Hypoport I\&P GmbH, Berlin | 100.00 |
| Subsidiary | Holding in \% |
|---|---|
| Hypoport Mortgage Market GmbH, Berlin (ehemals: Hypoport Mortgage Market Ltd., Westport (Irland)) | 100.00 |
| Hypoport Real Estate \& Mortgage AG, Berlin (ehemals: Value AG the valuation group, 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 | 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 (ehemals: Profit NewCo AG, 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, Münich | 25.01 |
| 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.
Income taxes and deferred taxes
This item includes current and deferred tax income and expense in the following amounts:
| Income taxes and deferred taxes (€'000) | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
|---|---|---|---|---|
| Income taxes and deferred taxes | 1,993 | $-573$ | 901 | $-614$ |
| current income taxes | 2,065 | 1,646 | 934 | 695 |
| deferred taxes | $-72$ | $-2,219$ | $-33$ | $-1,309$ |
| in respect of tax loss carryforwards | $-2,067$ | $-2,912$ | $-924$ | $-1,736$ |
| in respect of timing differences | 1,995 | 693 | 891 | 427 |
The average combined income tax rates computed on the basis of current legislation remain unchanged at just under 31 per cent for Hypoport Group companies in Germany and between 10.0 per cent and 25.5 per cent for subsidiaries outside Germany.
Earnings per share
The figure for earnings per share is determined in accordance with IAS 33. Basic earnings (loss) per share is calculated by dividing the net profit (loss) for the period attributable to the shareholders of Hypoport SE by the weighted average number of outstanding shares. In the second quarter of 2024, there were no share options that would have a dilutive effect on earnings per share.
| Earnings Per Share | H1 2024 | H1 2023 | Q2 2024 | Q2 2023 |
|---|---|---|---|---|
| Net incomofor the year (€'000) | 5,374 | $-2,222$ | 2,421 | $-2,450$ |
| of which attributable to Hypoport SE stockholders | 5,442 | $-2,102$ | 2,401 | $-2,605$ |
| Basic weighted number of outstanding shares (€'000) | 6,688 | 6,647 | 6,688 | 6,687 |
| Earnings per share (€) (undiluted/diluted) | 0.81 | $-0.32$ | 0.36 | $-0.40$ |
As a result of the release of treasury shares, the number of shares in issue rose by 90 , from 6,688,209 as at 31 December 2023 to 6,688,299 as at 30 June 2024.
Intangible assets and property, plant and equipment
Intangible assets primarily comprised goodwill of €229 million (31 December 2023: €229 million) and development costs for the financial marketplaces of €104 million (31 December 2023: €100 million).
Property, plant and equipment largely consisted of rental/leasing-related right-of-use assets pursuant to IFRS 16 of €57 million (31 December 2023: €50 million) and office furniture and equipment amounting to €5.5 million (31 December 2023: €6.3 million).
Equity-accounted investments
The change in the carrying amounts of equity-accounted investments relates to the pro rata net profit (loss) for the period of the four joint ventures FINMAS GmbH, Berlin (Hypoport's interest: 50 per cent), Dutch Residential Mortgage Index B.V., Amsterdam (Hypoport's interest: 50 per cent), LBL Data Services B.V., Amsterdam (Hypoport's interest: 50 per cent) and BAUFINEX Service GmbH, Berlin (Hypoport's interest: 50 per cent) and the four associates BAUFINEX GmbH, Schwäbisch Hall (Hypoport's interest: 30 per cent), finconomy AG, Munich (Hypoport's interest: 25 per cent), ESG Screen 17 GmbH, Frankfurt am Main (Hypoport's interest: 25.1 per cent) and GENOFLEX GmbH, Nuremberg (Hypoport's interest: 30 per cent). In the first half of 2024, the profit from equity-accounted long-term equity investments amounted to $€ 1.2$ million (H1 2023: loss of $€ 0.3$ million).
Subscribed capital
The Company's subscribed capital as at 30 June 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.
Authorised capital
The Annual Shareholders' Meeting held on 4 June 2024 voted to set aside the existing authorisation that had been adopted by the Company's Annual Shareholders' Meeting on 9 June 2020 that had authorised the Management Board - subject to the consent of the Supervisory Board - to increase the Company's subscribed capital by up to a total of $€ 2,420,273.00$ by issuing new registered no-par-value shares for cash or non-cash capital contribution on one or more occasions on or before 8 June 2025.
The Annual Shareholders' Meeting held on 4 June 2024 authorised the Management Board subject to the consent of the Supervisory Board - to increase the Company's subscribed capital by up to a total of $€ 2,748,865.00$ by issuing up to $2,748,865$ new registered no-par-value shares for cash or non-cash capital contribution on one or more occasions in the period up to 3 June 2029 ('2024/I authorised capital').
Treasury shares
Hypoport held 183,865 treasury shares as at 30 June 2024 (equivalent to $€ 183,865.00$, or 2.7 per cent, of the subscribed capital of Hypoport SE), which are mainly intended to be issued to employees. The change in the balance of treasury shares and the main data relating to transactions in 2024 are shown in the following table.
| Change in the balance of treasury shares in 2024 | Number of shares | Amount of share capital (€) | Proportion of subscribed capital (\%) | Cost of purchase (€) | Sale price (€) | Gain or loss on sale (€) |
|---|---|---|---|---|---|---|
| Opening balance as at 1 January 2024 | 183,955 | 2,677 | 9,164,433.32 | |||
| Release in January 2024 | 5 | 5.00 | 0,000 | 67.50 | 783.50 | 716,00 |
| Release in April 2024 | 85 | 85.00 | 0,001 | 1,147.50 | 20,043.00 | 18,895,50 |
| Balance as at 30 June 2024 | 183,865 | 90.00 | 2,676 | 9,163,218.32 | 20,826.50 | 19,611.50 |
The release of treasury shares was recognised directly in equity and offset against retained earnings.
Reserves
The breakdown of reserves can be found in the above consolidated statement of changes in equity. Capital reserves include the premiums from the capital increases carried out (2001: €0.4 million; 2018: €46.9 million; 2023: €48.9 million), the premium from the issuance of shares under the 20022004 employee share ownership programme from 2006 to 2009 ( $€ 1.2$ million), amounts equivalent to the par value of the treasury shares recalled in 2006 ( $€ 0.1$ million), an amount equivalent to the imputed share of subscribed capital for the treasury shares recalled in 2007 ( $€ 0.2$ million), income from the sale of shares ( $€ 14.1$ million) and income from the transfer of shares to employees ( $€ 5.1$ million, of which $€ 0.02$ million relates to 2024).
Retained earnings include the profits generated by the entities included in the consolidated financial statements prior to the first-time consolidation on 1 January 2004, the capital gains on the sale of treasury shares, the losses on the recall of treasury shares and three bargain purchase gains arising from business combinations. These bargain purchase gains are reported under retained earnings, because profits had been retained after the acquisition but before the date of first-time consolidation.
The Annual Shareholders' Meeting held on 4 June 2024 voted to carry forward Hypoport SE's distributable profit of $€ 109,618,174.14$ to the next accounting period.
The cumulative net profits and losses for all periods since the date of first-time consolidation, all the remaining adjustments made under the first-time adoption of IFRS on 1 January 2004 and recognised directly in equity, and a statutory reserve of $€ 0.01$ million (31 December 2023: $€ 0.01$ million) are also reported under this item.
Non-controlling interests
The net loss for the first half of 2024 attributable to non-controlling interests was $€ 0.07$ million (H1 2023: net loss of $€ 0.12$ million). Total non-controlling interests amounted to $€ 2.0$ million as at 30 June 2024 (31 December 2023: €2.0 million), of which €0.9 million (31 December 2023: $€ 0.9$ million) related to the non-controlling interest in the equity of Starpool Finanz GmbH, Berlin, (non-controlling interest of 49.975 per cent), $€ 0.1$ million (31 December 2023: $€ 0.1$ million) to GENOPACE GmbH, Berlin, (non-controlling interest of 54.975 per cent), $€ 0.01$ million (31 December 2023: €0.01 million) to Baloise Service GmbH, Bayreuth, (non-controlling interest of 30.0 per cent), €2.4 million (31 December 2023: €2.4 million) to FUNDINGPORT GmbH, Hamburg (non-controlling interest of 40 per cent) and minus €1.4 million (31 December 2023: minus $€ 1.3$ million) to Fundingport Sofia EOOD, Sofia, Bulgaria (non-controlling interest of 40 per cent).
Share-based payment
No share options were issued in the first half of 2024.
Related parties
IAS 24 requires disclosure of the names of persons or entities that control, or are controlled by, Hypoport SE. Transactions between Hypoport SE and its subsidiaries are eliminated during consolidation and therefore do not have to be reported in this note.
IAS 24 also requires disclosure of the names of persons who can exercise significant influence over the Company.
The parties covered by the requirements also include key management personnel, their close family members and other entities via which a named person exercises control or significant influence over Hypoport SE. The parties covered by this requirement during the reporting period were the members of the Group Management Board and Supervisory Board of Hypoport SE and their close family members.
The table below shows the numbers of shares in Hypoport SE directly or indirectly held by the members of the Group Management Board and Supervisory Board as at 30 June 2024.
| Shares (number) 30 June 2024 | Shares (number) 31 Dec 2023 | |
|---|---|---|
| Group Management Board | ||
| Ronald Slabke | 2,240,381 | 2,240,381 |
| Stephan Gawarecki | 101,802 | 101,802 |
| Supervisory Board | ||
| Dieter Pfeiffenberger | 2,000 | 2,000 |
| Roland Adams | 0 | 0 |
| Martin Krebs | 115 | 115 |
The companies in the Hypoport Group have not carried out any further reportable transactions with members of either the Supervisory Board or the Group Management Board or with companies on whose management or supervisory bodies these persons are represented. This also applies to close family members related to these persons.
Revenue generated from joint ventures totalled $€ 0.6$ million in the first half of 2024 (H1 2023: $€ 0.7$ million) and $€ 0.4$ million in the second quarter of this year (Q2 2023: $€ 0.4$ million). As at 30 June 2024, receivables from joint ventures amounted to $€ 1.3$ million ( 31 December 2023: $€ 1.3$ million) and liabilities to such companies totalled $€ 2.2$ million ( 31 December 2023: $€ 3.3$ million).
Opportunities and risks
Please refer to the opportunities and risks report that forms part of the group management report in our 2023 annual report. It provides a comprehensive presentation of the Hypoport Group's risks and opportunities, which remained largely unchanged in the period currently under review.
The risks to which the Hypoport Group is exposed are limited, both in terms of individual risks and their interactions with other risks, and are not currently believed to jeopardise the existence of individual subsidiaries or the Group as going concerns.
Opportunities and risks, including positive or negative changes to them, are not offset against each other.
Seasonal influences on business activities
During the first half of 2024, there were no material seasonal effects except in the corporate finance business.
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.
Responsibility statement
"We assure that, to the best of our knowledge and in accordance with the accounting standards applicable to interim financial reporting, the interim consolidated financial statements give a fair presentation of the Hypoport Group's financial position and financial performance, the interim group management report gives a fair presentation of the Hypoport Group's business, profits and position and that the material opportunities and risks of its expected development during the remainder of the financial year are described."
Berlin, 12 August 2024
Hypoport SE - The Management Board
Ronald Slabke - Stephan Gawarecki
Financial calendar:
| Datum | |
|---|---|
| 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 |
Note:
This half-year report is available in German and English. The German version is always authoritative. The report is published online at https://www.hypoport.com/investor-relations/publications/.
This half-year report 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 forwardlooking statements made in this publication.
Hypoport SE
Heidestraße 8 $\cdot$ 10557 Berlin
Tel.: +49 (0)30 420 86-0 - E-Mail: [email protected] $\cdot$ www.hypoport.de