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HYPOPORT SE
Quarterly Report • Nov 16, 2023
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Quarterly Report
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Interim statement of Hypoport SE for the period ended 30 Sep 2023
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Interim statement of Hypoport SE for the period ended 30 Sep 2023
Key performance indicators
| Revenue and earnings (€'000) | 9M/23 | 9M/22 | Change | Q3/23 | Q2/23 | Change |
|---|---|---|---|---|---|---|
| Revenue | 267,125 | 367,500 | – 27% | 88,124 | 85,285 | 3% |
| thereof Credit Platform | 114,529 | 168,834 | – 32% | 38,519 | 38,299 | 1% |
| thereof Private Clients | 63,984 | 106,309 | – 40% | 20,837 | 19,972 | 4% |
| thereof Real Estate Platform | 42,468 | 49,698 | – 15% | 12,966 | 13,100 | – 1% |
| thereof Insurance Platform | 47,179 | 43,993 | 7% | 16,195 | 14,215 | 14% |
| thereof Holding and Reconciliation | – 1,035 | – 1,334 | 22% | – 393 | – 301 | – 31% |
| Gross profit | 152,760 | 206,359 | – 26% | 50,560 | 49,971 | 1% |
| thereof Credit Platform | 68,293 | 100,382 | – 32% | 23,065 | 23,443 | – 2% |
| thereof Private Clients | 20,653 | 36,225 | – 43% | 6,943 | 6,479 | 7% |
| thereof Real Estate Platform | 39,774 | 46,962 | – 15% | 12,050 | 12,157 | – 1% |
| thereof Insurance Platform | 23,288 | 21,977 | 6% | 8,225 | 7,656 | 7% |
| thereof Holding and Reconciliation | 752 | 813 | – 8% | 277 | 236 | 17% |
| EBITDA | 23,235 | 55,109 | – 58% | 7,647 | 6,173 | 24% |
| EBIT | – 2,854 | 30,982 | – 109% | – 1,131 | – 2,533 | 55% |
| thereof Credit Platform | 13,031 | 41,852 | – 69% | 4,865 | 4,255 | 14% |
| thereof Private Clients | 6,270 | 17,027 | – 63% | 2,278 | 1,788 | 27% |
| thereof Real Estate Platform | – 10,171 | – 6,527 | – 56% | – 4,584 | – 4,601 | 0% |
| thereof Insurance Platform | – 3 | – 3,166 | 100% | 360 | 90 | 300% |
| thereof Holding and Reconciliation | – 11,981 | – 18,204 | 34% | – 4,050 | – 4,065 | 0% |
| EBIT margin (EBIT as a percentage of Gross profit) |
– 1,9 | 15,0 | – 112% | – 2,2 | – 5,1 | 56% |
| Net profit for the year | – 3,239 | 24,081 | – 113% | – 1,017 | – 2,450 | 58% |
| attributable to Hypoport SE shareholders | – 3,096 | 24,588 | – 113% | – 994 | – 2,605 | 62% |
| Earnings per share (€) (undiluted/diluted) | – 0.46 | 3.90 | – 112% | – 0.14 | – 0.40 | 65% |
| Financial position (€'000) | 30 Sep 2023 | 31 Dec 2022 | Change | |||
| Current assets | 141,563 | 111,690 | 27% | |||
| Non– current assets | 449,771 | 471,926 | – 5% | |||
| Equity | 321,368 | 272,738 | 18% | |||
| attributable to Hypoport SE shareholders | 317,678 | 271,105 | 17% |
Equity ratio (%) 54.3 46.7 16% Total assets 591,334 583,616 1%
Overview of business performance
The Hypoport Group's performance was slightly more positive than in the second quarter of 2023, which had been weak. In particular, the mortgage finance and insurance industry business models generated increases in revenue.
As you know, Hypoport has been operating in an unusual situation in the mortgage finance market – the key market for many of our major subsidiaries – since late summer 2022. The tide began to turn at the end of 2022 / start of 2023, and lending volumes have been gradually increasing. However, there has been insufficient momentum in the market since the second quarter of this year to drive a rapid recovery.
Nonetheless, the conditions are conducive to a market bounce-back as long-term interest rates are stable thanks to the easing of inflation, property prices have fallen and are now largely holding steady, and soaring rents caused by the huge drop in new properties being built are prompting many families to consider buying their own home. The number of leads available in the market for mortgage finance advice is rising, as is the number of properties available for sale.
However, a constant stream of announcements about small and limited support programmes, high real-estate transfer taxes and unclear energy-efficiency requirements are holding back activity in relation to the sale of existing properties.
As having somewhere to live is a necessity and the temporary option offered by renting is becoming increasingly unattractive, the low rate of turnover is putting growing pressure on ever more young families and other people looking for residential properties. Properties are also taking significantly longer to sell, which is impacting on vendors. This is slowly helping to revive the mortgage finance market somewhat, even without political support. Against this backdrop, Hypoport has been able to slightly increase its market share and will benefit directly as transaction levels gradually return to normal.
In the short term, the cost reductions implemented in 2022 and 2023 are making up for the only sluggish increases in revenue. As a result, the Hypoport Group's key performance indicators improved as follows in the third quarter of 2023 compared with the second quarter of 2023:
- • Revenue increased by 3 per cent to €88 million (Q2/23: €85 million).
- • Gross profit rose by 1 per cent to €51 million (Q2/23: €50 million).
- • EBITDA advanced by 24 per cent to €8 million (Q2/23: €6 million).
- • EBIT improved to a loss of €1.1 million (Q2/23: loss of €2.5 million).
- • The net loss for the period decreased to €1.0 million (Q2/23: €2.5 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 independently, are grouped into four segments: Credit Platform, Private Clients, Real Estate Platform and Insurance Platform.
Credit Platform segment
The segment centres around the online B2B lending marketplace Europace, which is the largest German marketplace for the sale of mortgage finance, building finance products and personal loans. After a solid start to the year in the first quarter of 2023 and a slight decline in the transaction volume in the second quarter, the transaction volume on Europace returned to growth in the third quarter. The volume of transactions 1 processed on Europace for all product types amounted to around €17 billion in the third quarter of 2023, an increase of 7 per cent on the second quarter of this year. The volume of private mortgage finance transactions rose by 9 per cent to €14 billion. Compared with the second quarter of 2023, the transaction volume in the building finance product group fell by 3 per cent to €1.8 billion in the third quarter. The transaction volume in the personal loans product group held steady at €1.4 billion.
On FINMAS, the sub-marketplace for institutions in the savings banks sector, the volume of transactions rose by 13 per cent compared with the second quarter of 2023 to reach €1.9 billion, while institutions in the cooperative banking sector used the dedicated GENOPACE sub-marketplace to generate a volume of €3.2 billion (up by 19 per cent).
The higher volume of mortgage finance transactions on Europace in the third quarter led to a rise in revenue. Revenue from the Qualitypool brokerage pool also went up. However, the situation was very different in the corporate finance business, where revenue decreased due to tighter lending requirements imposed on German small and medium-sized enterprises, and for the Starpool brokerage pool, whose revenue declined owing to disruptions to Deutsche Bank's disbursement processes that adversely affected the transaction volume for financial product distributors affiliated with the Deutsche Bank group. Revenue from the personal loans business held steady in line with the volume of transactions. Compared with the second quarter of 2023, the segment's overall revenue therefore edged up by 1 per cent to €39 million in the third quarter. Gross profit fell slightly, by 2 per cent, to €23 million. EBITDA rose by 10 per cent to €7.8 million and EBIT by 14 per cent to €4.9 million. The cost savings that have been made since the third quarter of 2022 should be viewed in isolation from the continued high level of investment in the next generation of Europace and the expansion of key account resources, especially for regional banks and personal loans.
1 All figures relating to the volume of financial products sold (mortgage finance, building finance and personal loans) are stated before cancellations.
Business performance in detail
Interim statement of Hypoport SE for the period ended 30 Sep 2023
| Financial figures Credit Platform | 9M/23 | 9M/22 | Change | Q3/23 | Q2/23 | Change |
|---|---|---|---|---|---|---|
| Operative figures (€ billion) | ||||||
| Transaction volume * | 49.0 | 80.0 | – 39% | 16.8 | 15.7 | 7% |
| thereof mortgage finance | 39.1 | 65.0 | – 40% | 13.6 | 12.6 | 9% |
| thereof building finance ("Bausparen") |
5.7 | 10.8 | – 47% | 1.8 | 1.8 | – 3% |
| thereof personal loans | 4.1 | 4.2 | – 1% | 1.4 | 1.4 | 0% |
| Revenue and earnings (€ million) | ||||||
| Revenue | 114.5 | 168.8 | – 32% | 38.5 | 38.3 | 1% |
| Gross profit | 68.3 | 100.4 | – 32% | 23.1 | 23.4 | – 2% |
| EBITDA | 21.6 | 49.0 | – 56% | 7.8 | 7.1 | 10% |
| EBIT | 13.0 | 41.9 | – 69% | 4.9 | 4.3 | 14% |
* All figures relating to the volume of financial products sold (mortgage finance, building finance and personal loans) are stated before cancellations.
Private Clients segment
In the Private Clients segment, the web-based, non-captive financial product distributor Dr. Klein Privatkunden AG was able to gain significant market share in the third quarter of 2023 with the help of Europace. This shows that consumers preparing to make the significant milestone decision of buying a property are clearly interested in independent interest-rate comparisons across a broad range of products, combined with professional advice. Strong brands such as Dr. Klein have been steadily gaining market share over the course of this year. The volume of new loans brokered by Dr. Klein2 in the third quarter of 2023 amounted to €1.5 billion, which was up by 7 per cent compared with the second quarter. As a result, the Private Client segment's total revenue improved by 4 per cent to €21 million. The gross profit remaining after deduction of selling expenses (lead acquisition fees and commission paid to franchisees) increased by 7 per cent to €7 million. EBITDA in the Private Clients segment swelled by 26 per cent to €2.4 million thanks to a disciplined approach to costs in this segment, while EBIT jumped by 27 per cent to €2.3 million.
| 9M/23 | 9M/22 | Change | Q3/23 | Q2/23 | Change |
|---|---|---|---|---|---|
| 4.4 | 7.8 | – 44% | 1.5 | 1.4 | 7% |
| 545 | 646 | – 16% | 545 | 566 | – 4% |
| 64.0 | 106.3 | – 40% | 20.8 | 20.0 | 4% |
| 20.7 | 36.2 | – 43% | 6.9 | 6.5 | 7% |
| 6.6 | 17.4 | – 62% | 2.4 | 1.9 | 26% |
| 6.3 | 17.0 | – 63% | 2.3 | 1.8 | 27% |
* All figures relating to the volume of financial products sold (mortgage finance, building finance and personal loans) are stated before cancellations.
** Only those people whose main occupation is mortgage finance advisor now count as Dr. Klein advisors.
2 All figures relating to the volume of financial products sold (mortgage finance, building finance and personal loans) are stated before cancellations.
Real Estate Platform segment
The focus for the property sales platform was again on acquiring new clients and expanding the platform offering. The total value of all properties sold via the platform was around €2.6 billion in the third quarter of 2023, a rise of 6 per cent compared with the second quarter.
The total value of the properties valued on the property valuation platform came to €7.3 billion. Although this volume edged up by 5 per cent compared with the extremely weak second quarter of 2023, it is still far below the usual volumes of €8 billion to €9 billion seen in recent years. This is a consequence of the slump in the mortgage finance market.
The property financing platform for the housing industry presented a similar picture. Although the volume of new loans brokered rose by 15 per cent compared with the second quarter of 2023 to €0.25 billion, this volume was also significantly lower than the typical volume of €0.5 billion per quarter seen in previous years. As a result of the rapid rise in interest rates, surging construction costs, unattractive support programmes and the debate surrounding the German Buildings Energy Act (GEG), municipal and cooperative housing companies' inclination to do business was significantly lower than in previous years.
The focus for the property management platform for the housing industry was once again on acquiring new clients. The success achieved in this respect in previous years continued, and there was further growth of the order book. At the end of September 2023, over 250,000 homes were being managed on the platform or were about to be migrated to it. As increasingly large housing companies are being signed up as customers, the migration projects are taking longer. This led to a small quarter-on-quarter drop in revenue in the third quarter of 2023.
Compared with the second quarter of 2023, the segment's overall revenue went down a little, by 1 per cent, to €13 million in the third quarter. Gross profit also fell by 1 per cent to stand at €12 million. Thanks to slightly lower costs, EBITDA held steady at a loss of €2.4 million and EBIT at a loss of €4.6 million.
Business performance in detail
Interim statement of Hypoport SE for the period ended 30 Sep 2023
| Financial figures Real Estate Platform |
9M/23 | 9M/22 | Change | Q3/23 | Q2/23 | Change |
|---|---|---|---|---|---|---|
| Operative figures (€ billion) | ||||||
| Transaction volume of financing platform |
0.7 | 1.7 | – 56% | 0.2 | 0.2 | 15% |
| Value properties sold via property sales platform |
7.4 | 9.4 | – 21% | 2.6 | 2.5 | 6% |
| Value properties valued by property |
22.4 | 26.7 | – 16% | 7.3 | 7.0 | 5% |
| Revenue and earnings (€ million) | ||||||
| Revenue | 42.5 | 49.7 | – 15% | 13.0 | 13.1 | – 1% |
| thereof property financing platform |
7.7 | 14.1 | – 46% | 1.9 | 1.7 | 8% |
| thereof property sales platform + property management platform |
18.3 | 15.9 | 16% | 6.1 | 6.1 | 0% |
| thereof property valuation platform |
16.5 | 19.7 | – 17% | 5.0 | 5.3 | – 5% |
| Gross profit | 39.8 | 47.0 | – 15% | 12.1 | 12.2 | – 1% |
| EBITDA | – 3.8 | – 1.1 | – 238% | – 2.4 | – 2.5 | – 4% |
| EBIT | – 10.2 | – 6.5 | – 56% | – 4.6 | – 4.6 | 0% |
Insurance Platform segment
In the private insurance business, the volume of portfolios migrated from legacy systems to the SMART INSUR platform rose by 3 per cent compared with 30 June 2023 and amounted to €4.1 billion at the end of the third quarter. 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 validation rate of migrated policies rose slightly to over 30 per cent.
In the industrial insurance business, development of the Corify marketplace continued. Corify, the first marketplace for industrial insurance risk, was unveiled on schedule along with the first product applications in the second half of the year. The first industrial insurance brokers were signed up as clients in the third quarter and at the start of the fourth quarter.
Further industrial insurance brokers have been signed up or have gone live on ePension, the platform for occupational insurance. As a result, the volume on the platform rose by 13 per cent compared with the second quarter of 2023 to stand at €0.2 billion.
Interim statement of Hypoport SE for the period ended 30 Sep 2023
The segment's revenue swelled by 14 per cent in the third quarter of 2023, while gross profit rose by 7 per cent compared with the second quarter of the year. This slightly slower rise in gross profit than in revenue can be explained by the usual seasonal effects in connection with the low-margin pool business, which traditionally generates significant revenue but also high selling expenses in the first and third quarters. The steps taken in the second half of 2022 to adjust the cost structures continued to prove effective, which meant that EBITDA and EBIT improved to €1.7 million and €0.4 million respectively.
| Financial figures Insurance Platform |
9M/23 | 9M/22 | Change | Q3/23 | Q2/23 | Change |
|---|---|---|---|---|---|---|
| Operative figures | ||||||
| Migrated volume of premiums (€ billion) |
4.12 | 3.78 | 9% | 4.12 | 4.00 | 3% |
| Validation rate (per cent) | 32.9 | 25.4 | 29% | 32.9 | 32.0 | 3% |
| Revenue and earnings (€ million) | ||||||
| Revenue | 47.2 | 44.0 | 7% | 16.2 | 14.2 | 14% |
| Gross profit | 23.3 | 22.0 | 6% | 8.2 | 7.7 | 7% |
| EBITDA | 4.1 | 0.6 | 546% | 1.7 | 1.5 | 18% |
| EBIT | 0.0 | – 3.2 | – 100% | 0.4 | 0.1 | 300% |
Earnings
Against the backdrop of the business performance described above, consolidated revenue went up by 3 per cent compared with the second quarter of 2023 to stand at €88 million in the third quarter of 2023. Gross profit rose by 1 per cent to €51 million. This slightly smaller increase compared with that of revenue was due to the traditional seasonal strength of the pools and thus higher selling expenses.
As a result of the cost reduction programme implemented at the end of 2022, personnel expenses decreased slightly, by 1 per cent, to €39 million in the third quarter of 2023. Other operating expenses also went down thanks to the Group's disciplined approach to costs, declining by 6 per cent to €12 million compared with the previous quarter. This fall was largely attributable to lower occupancy costs and IT expenses.
The structural cost reduction and the rise in gross profit meant that EBITDA advanced by 24 per cent to €7.6 million. Depreciation, amortisation expense and impairment losses amounted to €9 million, a small rise of 1 per cent compared with the second quarter of the year. Accordingly, EBIT improved from a loss of €2.5 million to a loss of €1.1 million.
Balance sheet
The Hypoport Group's consolidated total assets as at 30 September 2023 amounted to €591 million, which was a little higher than the total as at 31 December 2022 (€584 million). Non-current assets fell to €450 million (31 December 2022: €472 million), primarily due to a fall in property, plant and equipment to €66 million (31 December 2022: €96 million) on the back of a €28 million decrease in rental agreements and leasing-related right-of-use assets that were depreciated in accordance with IFRS 16. Non-current intangible assets were up slightly at €353 million (31 December 2022: €347 million). They included goodwill, which was unchanged at €229 million, and development costs for the financial marketplaces, which continued to rise and stood at €101 million as at the reporting date (31 December 2022: €93.9 million). The other changes were a small decrease in non-current trade receivables and an increase in deferred tax assets vis-à-vis the tax authorities. Other non-current assets were more or less unchanged.
Current assets jumped by 27 per cent to €141 million (31 December 2022: €112 million). This was primarily due to the inflow of cash and cash equivalents following the capital increase in January 2023.
The equity attributable to Hypoport SE shareholders as at 30 September 2023 was up by 17 per cent at €318 million, with the bulk of this growth – €49.2 million – attributable to the capital increase. As a result, the equity ratio rose from 47 per cent to 54 per cent.
The reduction in non-current liabilities to €183 million (31 December 2022: €206 million) stemmed from the budgeted fall in rental and lease liabilities recognised in accordance with IFRS 16. Non-current liabilities to banks rose slightly to €95 million (31 December 2022: €91 million). Other non-current liabilities mainly consisted of purchase price liabilities of €20 million resulting from a debtor warrant.
Current liabilities declined sharply by 17 per cent to €87 million owing to lower trade payables. By contrast, current liabilities to banks increased slightly to €19 million (31 December 2022: €17 million). Other current liabilities mainly comprised purchase price liabilities of €12 million resulting from two debtor warrants (31 December 2022: €12 million) and tax liabilities of €3 million (31 December 2022: €4 million).
Total current and non-current liabilities to banks therefore came to €114 million as at 30 September 2023 (31 December 2022: €108 million). This increase resulted from the difference between a total of €20.0 million from two new loans taken out and repayments of €13 million as scheduled under existing loan agreements.
Cash flow
The substantial reduction in EBIT in the first nine months of 2023 caused cash flow to decrease to €23 million (9M/22: €46 million). Including the increased amount of cash used for working capital (from minus €8 million to minus €13 million), the net cash generated by operating activities stood at €11 million in the first three quarters of 2023 (9M/22: €38 million).
The decrease in the net cash outflow for investing activities to a total of €24 million (9M/22: €34 million) was due to a small drop in capital expenditure on non-current intangible assets and property, plant and equipment to €23 million (9M/22: €27 million) and a substantial reduction in spending on acquisitions (including cash payments in connection with debtor warrants for previous acquisitions) to €1 million (9M/22: €8 million).
Net cash provided by financing activities jumped to €50 million (9M/22: €-19 million) and largely consisted of cash of €50 million received from the capital increase less issue costs of €1 million, new borrowing from banks of €20 million (9M/22: €0.0 million), the scheduled repayment of bank loans in an amount of €13 million (9M/22: €12 million) and the repayment of lease liabilities recognised in accordance with IFRS 16 in an amount of €8 million (9M/22: €7 million).
As a result of the changes described above, cash and cash equivalents totalled €67 million as at 30 September 2023, which was up by €37 million compared with the end of 2022.
Employees
The number of employees in the Hypoport Group fell by 8 per cent compared with the end of 2022 to 2,190 (31 December 2022: 2,393 employees). The average headcount during the first nine months of 2023 was 2,196 (9M/22: 2,495 employees).
Outlook
Our assessment of the sector-specific market environment for 2023 has changed slightly since we presented it in the report for the first half of 2023.
The volume of mortgage finance has gradually improved over the course of 2023, although this recovery has been slower than the Hypoport Management Board had expected. Against this backdrop, and in light of the continued weakness of the Real Estate Platform in the third quarter, the Management Board updated its full-year forecast on 26 October 2023. The Hypoport Management Board now anticipates that, in 2023, consolidated revenue will fall by up to 25 per cent year on year (2022: €455.5 million) and that consolidated EBIT will be between €10 million and €15 million.
This EBIT figure will be achieved as a result of a series of non-recurring items, such as unused purchase price liabilities resulting from a debtor warrant and expenses for the reorganisation of the Real Estate Platform segment, the overall effect of which will be positive.
More detailed information can be found on pages 57 to 61 of the annual report and on page 20 of the half-year report.
Shareholder structure and investor relations
Activities in the capital markets
The intensity of investor relations activities remained high in 2022 and in the year to date.
| Event | Location | Date |
|---|---|---|
| Conference | Lyon, Frankfurt (2x), New York, Hamburg, Munich | 9M/23 |
| Roadshow | Boston, Ger/Aus/Swi, USA, UK | 9M/23 |
| Conference | Lyon, Hamburg, Frankfurt (3x), London, Munich (2x), Paris | 2022 |
| Roadshow | USA, UK, Ger/Aus/Swi | 2022 |
Financial information
Consolidated income statement for the period 1 January to 30 September 2023
| 9M/23 €'000 |
9M/22 €'000 |
Q3/23 €'000 |
Q2/23 €'000 |
|
|---|---|---|---|---|
| Revenue | 267,125 | 367,500 | 88,124 | 85,285 |
| Commissions and lead costs | – 114,365 | – 161,141 | – 37,564 | – 35,314 |
| Gross profit | 152,760 | 206,359 | 50,560 | 49,971 |
| Own work capitalised | 17,397 | 18,408 | 6,230 | 5,444 |
| Other operating income | 4,969 | 4,996 | 1,337 | 2,123 |
| Personnel expenses | – 117,480 | – 131,488 | – 38,726 | – 38,925 |
| Other operating expenses | – 33,983 | – 42,789 | – 11,660 | – 12,451 |
| Income from companies accounted for using the equity method | – 428 | – 377 | – 94 | 11 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | 23,235 | 55,109 | 7,647 | 6,173 |
| Depreciation, amortisation expense and impairment losses | – 26,089 | – 24,127 | – 8,778 | – 8,706 |
| Earnings before interest and tax (EBIT) | – 2,854 | 30,982 | – 1,131 | – 2,533 |
| Financial income | 1,059 | 40 | 702 | 242 |
| Finance costs | – 2,175 | – 2,349 | – 746 | – 773 |
| Earnings before tax (EBT) | – 3,970 | 28,673 | – 1,175 | – 3,064 |
| Income taxes and deferred taxes | 731 | – 4,592 | 158 | 614 |
| Net profit for the period | – 3,239 | 24,081 | – 1,017 | – 2,450 |
| attributable to non– controlling interest | – 143 | – 507 | – 23 | 155 |
| attributable to Hypoport SE shareholders | – 3,096 | 24,588 | – 994 | – 2,605 |
| Earnings per share (€) (undiluted/diluted) | – 0.46 | 3.90 | – 0.14 | – 0.40 |
Consolidated statement of comprehensive income for the period 1 January to 30 September 2023
| 9M/23 €'000 |
9M/22 €'000 |
Q3/23 €'000 |
Q2/23 €'000 |
|
|---|---|---|---|---|
| Net profit for the period | – 3,239 | 24,081 | – 1,017 | – 2,450 |
| Total income and expenses recognised in equity*) | 0 | 0 | 0 | 0 |
| Total comprehensive income | – 3,239 | 24,081 | – 1,017 | – 2,450 |
| attributable to non– controlling interests | – 143 | – 507 | – 23 | 155 |
| attributable to Hypoport SE shareholders | – 3,096 | 24,588 | – 994 | – 2,605 |
*) There was no income or expense to be recognised directly in equity during the reporting period.
Consolidated balance sheet as at 30 September 2023
| Assets | 30 Sep 2023 €'000 |
31 Dec 2022 €'000 |
|---|---|---|
| Non– current assets | ||
| Intangible assets | 353,010 | 347,128 |
| Property, plant and equipment | 65,936 | 95,582 |
| Long– term investments accounted for using the equity method | 5,595 | 5,272 |
| Financial assets | 995 | 961 |
| Trade receivables | 4,689 | 6,844 |
| Other assets | 256 | 320 |
| Deferred tax assets | 19,290 | 15,819 |
| 449,771 | 471,926 | |
| Current assets | ||
| Inventories | 501 | 1,065 |
| Trade receivables | 62,601 | 69,962 |
| Other assets | 9,467 | 6,440 |
| Current income tax assets | 1,926 | 4,276 |
| Cash and cash equivalents | 67,068 | 29,947 |
| 141,563 | 111,690 | |
| 591,334 | 583,616 | |
| Equity and liabilities | ||
| Equity | ||
| Subscribed capital | 6,872 | 6,493 |
| Treasury shares | – 185 | – 189 |
| Reserves | 310,991 | 264,801 |
| 317,678 | 271,105 | |
| Non– controlling interest | 3,690 | 1,633 |
| 321,368 | 272,738 | |
| Non– current liabilities | ||
| Bank liabilities | 95,034 | 90,664 |
| Rrental charges and operating lease expenses | 42,963 | 71,529 |
| Provisions | 47 | 47 |
| Other liabilities | 20,220 | 20,220 |
| Deferred tax liabilities | 24,326 | 23,331 |
| 182,590 | 205,791 | |
| Current liabilities | ||
| Bank liabilities | 19,375 | 16,924 |
| Rental charges and operating lease expenses | 9,340 | 8,545 |
| Provisions | 410 | 533 |
| Trade payables | 29,221 | 44,692 |
| Current income tax liabilities | 0 | 481 |
| Other liabilities | 29,030 | 33,912 |
| 87,376 | 105,087 | |
| 591,334 | 583,616 |
Abridged consolidated statement of changes in equity for the six months ended 30 September 2023
| 2022 €'000 |
Subscribed capital |
Treasury shares |
Capital reserves |
Retained earnings |
Equity attribut able to Hypoport SE shareholders |
Equity attribut able to non− controlling interest |
Equity |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2022 |
6,493 | – 193 | 66,925 | 178,557 | 251,782 | 1,650 | 253,432 |
| Release of treasury shares |
0 | 3 | 516 | 36 | 555 | 0 | 555 |
| Total comprehensive income |
0 | 0 | 0 | 24,588 | 24,588 | – 507 | 24,081 |
| Balance as at 30 September 2022 |
6,493 | –190 | 67,441 | 203,181 | 276,925 | 1,143 | 278,068 |
| 2023 €'000 |
Subscribed capital |
Treasury shares |
Capital reserves |
Retained earnings |
Equity attribut able to Hypoport SE shareholders |
Equity attribut able to non− controlling 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 |
| 9M 2023 €'000 |
9M 2022 €'000 |
|
|---|---|---|
| Earnings before interest and tax (EBIT) | – 2,854 | 30,982 |
| Non– cash income / expense | 469 | – 5,627 |
| Interest received | 1,059 | 40 |
| Interest paid | – 2,175 | – 2,349 |
| Income taxes paid | – 2,053 | – 3,275 |
| Change in deferred taxes | 2,476 | 2,642 |
| Profit (loss) from equity–accounted long– term equity investments | 428 | 377 |
| Depreciation on non– current assets | 26,089 | 24,127 |
| Profit / loss from the disposal of non– current assets | – 62 | – 760 |
| Cashflow | 23,377 | 46,157 |
| Increase / decrease in current provisions | – 123 | – 3 |
| Increase / decrease in inventories, trade receivables and other assets not attributable to investing or financing activities |
7,117 | 6,506 |
| Increase / decrease in trade payables and other liabilities not attrib utable to investing or financing activities |
– 19,744 | – 14,812 |
| Change in working capital | –12,750 | –8,309 |
| Cash flows from operating activities | 10,627 | 37,848 |
| Payments to acquire property, plant and equipment / intangible assets |
– 22,753 | – 27,385 |
| Proceeds from disposals of property, plant and equipment / intangible assets |
134 | 1,498 |
| Cash outflows for acquisitions less acquired cash | – 1,169 | – 7,908 |
| Proceeds from the disposal of financial assets | 0 | 5 |
| Purchase of financial assets | – 34 | – 50 |
| Cash flows from investing activities | –23,822 | –33,840 |
| Repayment of lease liabilities | – 7,606 | – 6,834 |
| Proceeds from the drawdown of financial loans | 20,000 | 0 |
| Redemption of loans | – 13,179 | – 12,067 |
| Contributions from non-controlling interests | 2,200 | 0 |
| Proceeds from capital increases | 50,000 | 0 |
| Payments for issuing costs | – 1,099 | 0 |
| Cash flows from financing activities | 50,316 | –18,901 |
| Net change in cash and cash equivalents | 37,121 | – 14,893 |
| Cash and cash equivalents at the beginning of the period | 29,947 | 48,922 |
| Cash and cash equivalents at the end of the period | 67,068 | 34,029 |
Consolidated cash flow statement for the period 1 January to 30 September 2023
| €'000 | Credit Platform |
Private Clients |
Real Estate Platform |
Insurance Platform |
Holding | Reconci liation |
Group |
|---|---|---|---|---|---|---|---|
| Segment revenue in respect of third parties | |||||||
| 9M 2023 | 113,948 | 63,819 | 41,718 | 46,888 | 752 | 0 | 267,125 |
| 9M 2022 | 167,682 | 106,150 | 49,217 | 43,638 | 813 | 0 | 367,500 |
| Q3 2023 | 38,290 | 20,781 | 12,685 | 16,091 | 277 | 0 | 88,124 |
| Q3 2022 | 48,278 | 27,928 | 14,104 | 14,442 | 249 | 0 | 105,001 |
| Segment revenue in respect of other segments | |||||||
| 9M 2023 | 581 | 165 | 750 | 291 | 20,802 | – 22,589 | 0 |
| 9M 2022 | 1,152 | 159 | 481 | 355 | 23,805 | – 25,952 | 0 |
| Q3 2023 | 229 | 56 | 281 | 104 | 6,176 | – 6,846 | 0 |
| Q3 2022 | 322 | 44 | 219 | 127 | 8,130 | – 8,842 | 0 |
| Total segment revenue | |||||||
| 9M 2023 | 114,529 | 63,984 | 42,468 | 47,179 | 21,554 | – 22,589 | 267,125 |
| 9M 2022 | 168,834 | 106,309 | 49,698 | 43,993 | 24,618 | – 25,952 | 367,500 |
| Q3 2023 | 38,519 | 20,837 | 12,966 | 16,195 | 6,453 | – 6,846 | 88,124 |
| Q3 2022 | 48,600 | 27,972 | 14,323 | 14,569 | 8,379 | – 8,842 | 105,001 |
| Gross profit | |||||||
| 9M 2023 | 68,293 | 20,653 | 39,774 | 23,288 | 21,554 | – 20,802 | 152,760 |
| 9M 2022 | 100,382 | 36,225 | 46,962 | 21,977 | 24,618 | – 23,805 | 206,359 |
| Q3 2023 | 23,065 | 6,943 | 12,050 | 8,225 | 6,453 | – 6,176 | 50,560 |
| Q3 2022 | 31,008 | 9,522 | 13,501 | 7,151 | 8,379 | – 8,130 | 61,431 |
| Segment earnings before interest, tax, depreciation and amortisation (EBITDA) | |||||||
| 9M 2023 | 21,566 | 6,634 | – 3,767 | 4,074 | – 5,272 | 0 | 23,235 |
| 9M 2022 | 49,032 | 17,436 | – 1,113 | 631 | – 10,877 | 0 | 55,109 |
| Q3 2023 | 7,816 | 2,400 | – 2,391 | 1,732 | – 1,910 | 0 | 7,647 |
| Q3 2022 | 13,382 | 3,303 | – 3,818 | – 175 | – 3,619 | 0 | 9,073 |
| Segment earnings before interest and tax (EBIT) | |||||||
| 9M 2023 | 13,031 | 6,270 | – 10,171 | – 3 | – 11,981 | 0 | – 2,854 |
| 9M 2022 | 41,852 | 17,027 | – 6,527 | – 3,166 | – 18,204 | 0 | 30,982 |
| Q3 2023 | 4,865 | 2,278 | – 4,584 | 360 | – 4,050 | 0 | – 1,131 |
| Q3 2022 | 10,874 | 3,172 | – 5,674 | – 1,476 | – 6,097 | 0 | 799 |
| Segment assets | |||||||
| as at 30 Sep 2023 |
153,405 | 31,738 | 169,185 | 168,969 | 330,445 | – 262,408 | 591,334 |
| as at 31 Dec 2022 |
168,127 | 36,375 | 181,223 | 187,215 | 342,775 | – 332,099 | 583,616 |
Abridged segment reporting for the period 1 January to 30 September 2023
Disclosures regarding the financial information
Accounting policies
The accounting policies applied are those used in 2022, with the following exceptions:
- • Disclosure of Accounting Policies (Amendments to IAS 1)
- • Definition of Accounting Estimates (Amendments to IAS 8)
- • Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
- • IFRS 17: Insurance Contracts
- • Initial Application of IFRS 17 and IFRS 9 Comparative Information (Amendment to IFRS 17)
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.
Changes to the basis of consolidation; corporate transactions
The consolidation as at 30 September 2023 included all entities controlled by Hypoport SE in addition to Hypoport SE itself.
A detailed description of the basis of consolidation can be found on page 33 onwards of the report for the first half of 2023.
Subscribed capital
On 20 January 2023, the Management Board of Hypoport SE decided – with the consent of the Company's Supervisory Board – to increase the Company's subscribed capital against cash contributions by €378,788.00 from €6,493,376.00 to €6,872,164.00 by issuing 378,788 new, registered no-par-value shares ('New Shares'), partially utilising the authorised capital ('Capital Increase'), so that it can seize growth opportunities in the current phase of upheaval in the home ownership market. Shareholders' statutory pre-emption rights were disapplied. The 378,788 New Shares, with full dividend rights as of 1 January 2022, were placed with qualified investors as part of a private placement by way of an accelerated bookbuilding process.
The Company's subscribed capital as at 30 September 2023 therefore amounted to €6,872,164.00 (31 December 2022: €6,493,376.00) and was divided into 6,872,164 (31 December 2022: 6,493,376) 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, 13 November 2023 Hypoport SE – The Management Board
2024 financial calendar:
| Date | Event | ||
|---|---|---|---|
| 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 | ||
All dates are provisional and may be subject to change. For changes please visit https://www. hypoport.com/investor-relations/financial-calendar/
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.
Hypoport SE Heidestrasse 8 ∙ 10557 Berlin ∙ Germany Tel: +49 (0)30 420 86 0 • Email: [email protected] ∙ www.hypoport.com
