AI assistant
Hemnet Group — Earnings Release 2022
Jan 27, 2023
2918_10-k_2023-01-27_04362dba-9541-406b-b16e-06e8d934e283.pdf
Earnings Release
Open in viewerOpens in your device viewer
"Net sales growing 22.1% for the year driven by value-added services, strong demand from real estate agents and high listing volumes"
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| (SEK million, unless stated otherwise) | 2022 | 2021 | Change | 2022 | 2021 | Change |
| Net sales | 201.0 | 177.3 | 13.4% | 889.2 | 728.1 | 22.1% |
| Adjusted EBITDA* | 88.8 | 84.6 | 5.0% | 448.1 | 355.0 | 26.2% |
| Adjusted EBITDA-margin*, % | 44.2% | 47.7% | -3.5 pp | 50.4% | 48.8% | 1.6 pp |
| Operating profit* | 71.3 | 64.7 | 10.2% | 377.5 | 223.9 | 68.6% |
| Net profit for the period | 54.5 | 50.0 | 9.0% | 293.8 | 156.5 | 87.7% |
| Earnings per share, basic, SEK¹ | 0.55 | 0.49 | 12.2% | 2.93 | 1.55 | 89.0% |
| Earnings per share, diluted, SEK¹ | 0.55 | 0.49 | 12.2% | 2.93 | 1.55 | 89.0% |
| Cash flow from operating activities | 31.5 | 69.9 | -54.9% | 356.0 | 235.0 | 51.5% |
¹ The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period. As no market price is available to set against the exercise price and the number of warrants is limited in relation to the number of ordinary shares, the dilution effect for periods before Hemnets IPO on 27 April, 2021, has been calculated based on the maximum theoretical dilution. For periods beginning after 27 April, 2021, the calculation of dilution is made based on the average share price during each respective period.
* Alternative Performance Measure, see pages 17-19 for derivation and definitions.
Net sales growth, %
22.1%
ARPL growth, % 32.8%
Adjusted EBITDA-margin, %
Year-end report
January-December 2022
Summary for the period October-December 2022
- ` Net sales increased by 13.4 percent to SEK 201.0m (177.3)
- ` Adjusted EBITDA increased 5.0 percent to SEK 88.8m (84.6)
- ` Operating profit increased 10.2 percent to SEK 71.3m (64.7)
- ` ARPL, average revenue per published listing, increased 33.5 percent to SEK 4,044 (3,029)
Summary for the period January-December 2022
- ` Net sales increased by 22.1 percent to SEK 889.2m (728.1)
- ` Adjusted EBITDA increased 26.2 percent to SEK 448.1m (355.0)
- ` Operating profit increased 68.6 percent to SEK 377.5m (223.9)
- ` ARPL, average revenue per published listing, increased 32.8 percent to SEK 3,275 (2,467)
- ` Total distribution to shareholders of SEK 374.0m, from dividend and share repurchases
- ` In line with the company's dividend policy, the board of directors proposes a dividend of SEK 1.00 (0.55) per share, corresponding to approximately one third of earnings per share and an increase of +81.8%.
Chief Executive's comments
Operational highlights
- Average revenue per published listing (ARPL) increased 32.8 percent to SEK 3,275 (2,467) for the full year and 33.5 percent to SEK 4,044 (3,029) in the fourth quarter.
- Income from real estate agents increased by 18.7 percent for the full year and 9.5 percent for the quarter. Increase was driven by a high demand for display advertising and Hemnet unique products.
- Adjusted EBITDA increased 26.2 percent to SEK 448.1 (355.0) million for the full year and 5.0 percent to SEK 88.8 (84.6) million in the quarter. The lower increase for the fourth quarter is explained by published listing volumes decreasing 10 percent coupled with investments in talent and product development.
Comments
Hemnet delivers a strong result for the fourth quarter, despite a challenging property market. Looking at the full year, we have exceeded all of our financial targets, while at the same time continuing to invest for future growth.
Net sales from property sellers grew by 20.9 percent for the quarter. While net sales were impacted by lower listing volumes in the fourth quarter compared to previous year, growth was largely driven by an increasing share of our customers upgrading to a larger package to increase the visibility of their listing. Continued product enhancements resulting in higher demand, as well as continued active work on pricing, contributed to ARPL increasing 33.5 percent.
Over the year as a whole, the volume of listings on Hemnet was in line with 2021, but fluctuated more than in a typical year. The
year began with a very active housing market and high volumes, which then declined in the autumn due to increased inflation and announced interest rate increases. In the fourth quarter, the number of listings decreased by 10% compared to the same period last year. It is difficult to predict how the property market will develop in the near future and how this will impact listing volumes. In the past, however, the Swedish property market has been stable over time and driven by people's real need to move rather than by speculation.
Demand from real estate agents continued to be strong during the quarter due to a combination of product development, packaging and pricing, while advertising sales to property developers and other business customers declined due to market factors. We continued to expand our business partner offering and now have a strong platform from which to grow our product portfolio. Among other things, we have launched a new section where our visitors can search for agents, creating new opportunities for real estate agents to find home sellers, either organically or by investing in value-added services to increase visibility. Thanks to our large audience, Hemnet has become one of Sweden's largest agent search destinations in just a few months. We have also launched a valuation service which is now available nationwide and repackaged our offering to property developers for greater clarity and more customer value.
During the year, properties with a total price of SEK 650 billion were listed on Hemnet and a total of 52.6 million hours were spent on our platforms, showing the strong engagement in our offering and content. Together with higher conversion and ARPL, increased demand from real estate agents, continued pricing power and exceeded financial targets, it is clear how Hemnet's business model has proven itself during a challenging year for the property market. We have decided to reiterate our current
financial target for profitability for 2023, despite current market conditions. In a more normalized market however, we believe the investments we are making, combined with the operating leverage of our business, creates good opportunities for margin expansion going forward and we therefore introduce a new longterm, profitability target of an adjusted EBITDA margin exceeding 55 percent.
Cecilia Beck-Friis, CEO
January 2023
Financial targets
ARPL
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| KPI | 2022 | 2021 | Change | 2022 | 2021 | Change |
| ARPL (average revenue per published listing), SEK | 4,044 | 3,029 | 33.5% | 3,275 | 2,467 | 32.8% |
| Number of published listings, thousand | 35.8 | 39.8 | -10.1% | 198.3 | 198.4 | -0.1% |
The below graph shows Hemnets ARPL development during the last nine quarters, both as isolated quarters and on LTM basis.
Growth 15-20%
Hemnet aims to achieve annual net sales growth of 15–20 percent.
Hemnet aims to achieve an adjusted EBITDA margin of 45–50 percent in the medium term.
Hemnet aims to achieve a Net Debt to Adjusted EBITDA of less than 2.0x.
Operational indicators
Financial summary, October-December 2022
Net sales Increased, despite a lower number of published listings compared to the same period last year, thanks to a continued strong increase in average revenue per published listing (ARPL). Adjusted EBITDA increased 5.0 percent to SEK 88.8m (84.6).
Net sales and profit
Net sales increased by 13.4 percent to SEK 201.0m (177.3).
Revenue from property sellers increased by 20.9 percent to SEK 143.0m (118.3). The sales of value-added services for property sellers continued to increase, which in combination with price adjustments across all products led to ARPL growing by 33.5 percent to SEK 4,044 (3,029). The number of published listings decreased by 10.1 percent compared to the same quarter last year.
Net sales from other customers decreased by 1.7 percent to SEK 58.0m (59.0). Display revenue from real estate agents and banks continued to increase while the corresponding revenue from property developers and other customers decreased. Revenue from value-added services for real estate agents increased.
Capitalised development was SEK 3.3m (0.5) and related to investments in new products for property sellers and buyers, as well as new products for property developers and real estate agents.
Other external expenses increased by 21.9 percent to SEK 74.0m (60.7). The fourth quarter 2021 included items affecting comparability of SEK 0.2m consisting of marketing campaigns conducted together with Mäklarsamfundet. SEK 41.2m (36.2) of other external expenses were administration and commission expenses to real estate agents, which increased by 13.8 percent because of the increasing revenue from listing related services. The remaining part increased by 33.9 percent to SEK 32.8m (24.5), mainly related to higher consultancy costs, following the continued focus on product development, and marketing costs.
Personnel costs increased by 26.7 percent to SEK 41.7m (32.9), as the company continued to invest in product development for future growth.
Adjusted EBITDA increased 5.0 percent to SEK 88.8m (84.6) and the adjusted EBITDA-margin was 44.2 percent (47.7).
EBITDA increased 5.2 percent to SEK 88.8m (84.4), corresponding to an EBITDA-margin of 44.2 (47.6) percent. 0
Adjusted EBITDA
A Net sales
- B Compensation to real estate agents
- C Other external expenses excl. comp. to real estate agents
- D Personnel costs
- E Other
Depreciation & amortisation amounted to SEK 17.5m (19.7), whereof amortisation of intangible assets, mainly from the acquisition of Hemnet, amounted to SEK 15.4m (17.6) and depreciation of right-of-use assets amounted to SEK 1.9m (1.8).
Operating profit increased 10.2 percent to SEK 71.3m (64.7), corresponding to an operating margin of 35.5 (36.5) percent. The decrease in operating margin is mainly due to the higher costs for product development for future growth.
Financial items - net, increased from negative SEK 1.6m to negative SEK 2.6m, partly due to higher interest costs on bank loans because of higher market rates and increased borrowing. Interest costs on bank loans amounted to SEK 2.9m (1.3).
Tax expense amounted to SEK 14.2m (13.1), corresponding to an effective tax rate of 20.7 (20.8) percent.
Net profit for the period increased by SEK 4.5m and amounted to SEK 54.5m (50.0).
Cash flow and financial position
Cash flow from operating activities decreased by SEK 38.4m and amounted to SEK 31.5m (69.9). The decrease was primarily due to higher paid income taxes, following the higher profit in 2022. The change in working capital was negative at SEK -11.9m (8.3). Taxes paid during the quarter amounted to SEK -43.0m (-21.5).
Cash flow from investing activities amounted to SEK -5.1m (-1.0). Investments in intangible and tangible fixed assets totalled SEK -5.1m (-1.0) and related almost exclusively to capitalised development expenses of SEK -4.9m (-0.8).
Cash flow from financing activities totalled SEK -52.1m (-86.9), mainly as a result share buybacks of SEK -80.3m, partly financed through an increased borrowing of SEK 30.0m. Amortisation of lease liabilities resulted in a cash flow of SEK -0.7m. During the same period last year, financing activities resulted in a cash flow of SEK -86.9m, mainly consisting of voluntary repayments on the credit facility of SEK -85.0m.
Cash and cash equivalents amounted to SEK 100.4m (94.5) and total interest-bearing liabilities amounted to SEK 328.5m (277.9). Net debt thus amounted to SEK 228.1m (188.6), which corresponds to 0.5 (0.5) times adjusted EBITDA for the last twelve months.
The company has entered into an agreement for a new premises for the head office in Stockholm from 1 Januari, 2023. This increases the right-to-use assets and leasing liabilities by SEK 56.5m as per 1 January, 2023.
Total shareholders' equity amounted to SEK 1,432.7m (1,516.9), corresponding to an equity-to-assets ratio of 68.4 (71.1) percent.
Financial position
Historical development of the Group's net debt and net debt in relation to rolling twelve months adjusted EBITDA.
Financial summary, January-December 2022
Continued strong growth in net sales, following a continued increase in average revenue per published listing (ARPL). Number of published listings in line with last year's record level. Adjusted EBITDA increased 26.2 percent to SEK 448.1m (355.0).
Net sales and profit
Net sales increased by 22.1 percent to SEK 889.2m (728.1).
Revenue from property sellers increased by 32.6 percent to SEK 639.6m (482.3). The sales of value-added services for property sellers - Hemnet Plus, Hemnet Premium, Raketen, Förnya annons (Renew ad) - increased, which in combination with price adjustments across all products led to ARPL growing by 32.8 percent to SEK 3,275 (2,467). The number of published listings decreased by 0.1 percent.
Net sales from other customers increased by 1.5 percent to SEK 249.6m (245.8). Previous year included items affecting comparability of SEK 5.7m related to marketing activities carried out with Mäklarsamfundet (for further information on campaigns with Mäklarsamfundet, see Note K28 Related Party Transactions in the Annual and sustainability report for 2021). The remaining part of net sales from other customers increased by 4.0 percent to SEK 249.6 (240.1). Display revenue from real estate agents and banks increased while the corresponding revenue from property developers and other customers decreased. Revenue from value-added services for real estate agents increased.
Capitalised development was SEK 10.0m (4.6) and related to investments in new products for property sellers and buyers, as well as new products for property developers and real estate agents.
Other external expenses decreased by 0.3 percent to SEK 299.0m (299.9). However, 2021 included items affecting comparability of SEK 57.8m, consisting of SEK 48.7m related to IPO-preparations and SEK 9.1m for marketing campaigns carried out together with Mäklarsamfundet.
Other external expenses, excluding items affecting comparability, increased by 23.5 percent to SEK 299.0m (242.1). The primary expense of SEK 184.3m (150.1) was administration and commission expenses to real estate agents, which increased by 22.8 percent because of the increasing revenue from listing related services. In addition, last year also included SEK 6.3m related to education compensation to real estate agents. The remaining part increased by 24.7 percent to SEK 114.7m (92.0), mainly related to higher consultancy costs due to the continued focus on product development.
Personnel costs increased by 17.8 percent to SEK 153.2m (130.0), as the company continued to invest in product development for future growth.
Adjusted EBITDA increased 26.2 percent to SEK 448.1m (355.0) and the adjusted EBITDA-margin was 50.4 (48.8) percent.
EBITDA increased 47.9 percent to SEK 448.1m (302.9), corresponding to an EBITDA-margin of 50.4 (41.6) percent.
Depreciation & amortisation amounted to SEK 70.6m (79.0), whereof amortisation of intangible assets, mainly from the acquisition of Hemnet, amounted to SEK 61.9m (70.7) and depreciation of right-of-use assets amounted to SEK 7.5m (7.3).
Operating profit increased 68.6 percent to SEK 377.5m (223.9), corresponding to an operating margin of 42.5 (30.8) percent. The increase in operating profit and margin is mainly following the increased net sales, with some effect also from that the period last year included SEK 52.1m of items affecting comparability. Also some positive effect from the new compensation model for real estate agents that was launched 1 March 2021.
Financial items - net, improved from negative SEK 25.8m to negative SEK 6.8m, mainly due to the impact of capitalised arrangement fees for a previous credit facility in the same period last year and partly due to higher interest costs on bank loans. Interest costs on bank loans amounted to SEK -6.6m (-9.7).
Tax expense amounted to SEK 76.9m (41.6), corresponding to an effective tax rate of 20.7 (21.0) percent.
Net profit for the period increased by SEK 137.3m and amounted to SEK 293.8m (156.5).
Cash flow and financial position
Cash flow from operating activities increased by SEK 121.0m and amounted to SEK 356.0m (235.0). The increase was primarily driven by the higher operating profit, with lower interest payments also having a positive effect, but this was partly offset by mainly higher tax payments following the higher profit in 2022. The change in working capital was positive at SEK 8.2m (-3.3). Taxes paid during the period amounted to SEK -94.2m (-49.6).
Cash flow from investing activities amounted to SEK -15.5m (17.7). Investments in intangible and tangible fixed assets were in total SEK -15.5m (-7.0) and related almost exclusively to capitalised development expenses of SEK -13.7m (-6.5). During the same period last year, all interest-bearing securities were divested, which lead to a positive cash flow of SEK 24.7m.
Cash flow from financing activities totalled SEK -334.6m (-405.3), mainly because of share buybacks of SEK -326.1m, voluntary repayments of bank loans of SEK -65.0m and paid dividend of SEK -55.6m, partly financed by increased borrowing of SEK 115.0m. Amortisation of lease liabilities resulted in a cash flow of SEK -6.5m (-7.5). During the same period last year, financing activities resulted in a cash flow of SEK -405.3m, mainly consisting of repayment of a previous credit facility of SEK -688.6m, drawdown of a new credit facility of SEK 500.0m and voluntary repayments on the new credit facility of SEK -220.0m.
Cash and cash equivalents amounted to SEK 100.4m (94.5) and total interest-bearing liabilities amounted to SEK 328.5m (277.9). Net debt thus amounted to SEK 228.1m (188.6), which corresponds to 0.5 (0.5) times adjusted EBITDA for the last twelve months.
The company has entered into an agreement for a new premises for the head office in Stockholm from 1 Januari, 2023. This increases the right-to-use assets and leasing liabilities by SEK 56.5m as per 1 January, 2023.
Total shareholders' equity amounted to SEK 1,432.7m (1,516.9), corresponding to an equity-to-assets ratio of 68.4 (71.1) percent.
Parent company, financial development January-December
Net sales of the Parent company amounted to SEK 9.2m (5.6). All revenue refers to services to other Group companies. Operating profit/loss was SEK -10.9m (-53.7), where the previous year's result included expenses related to the preparation of the IPO amounting to SEK -46.9m, which were classified as items affecting comparability.
The assets of the Parent company consist mainly of investments in Group companies and Group receivables.
The operations are financed by equity, bank loans and Group liabilities. The Parent company equity at the end of the period amounted to SEK 949.6m (996.9) and the equity ratio was 56.4 (59.3) percent.
Other information
Covid-19 effects
The Covid-19 pandemic have had a major impact on society but has not had any significant negative impact on Hemnet's financial results during 2022. The number of visits to Hemnet increased during the beginning of the pandemic and during the first half of 2021, after which the number of visits has returned to more normal levels. During the period, the number of published listings increased as well as ARPL (average revenue per listing).
Overall increased remote working during the pandemic has likely benefitted the interest in Hemnet, as the home and living environment became an even more important part of people's everyday life.
The war in Ukraine
The war in Ukraine may have had a negative impact on traffic to Hemnet during a period of time. However, the company's assessment is that this has not had and will not have a material financial impact.
Employees
The number of employees at the end of the period was 135 compared to 112 at the end of December 2021. The increase is primarily in the area of product development.
Repurchase and holding of treasury shares
The Annual General Meeting authorized the Board of Directors to, on one or more occasions during the period until the next Annual General Meeting, decide on the repurchase of own shares to such an extent that the Company holds no more than ten (10) percent of all shares in the Company at any time after the acquisition. The maximum amount for repurchases during the period shall be SEK 450 million. Acquisitions shall be made on Nasdaq Stockholm at a price per share within the price interval registered at any given time. The purpose of the authorization is to adjust the Company's capital structure by reducing the share capital. The Board of Directors therefore intends to propose to the Annual General Meeting 2023 that the repurchased shares be cancelled.
In addition to the decision to launch the share repurchase program, Hemnet's Board of Directors has decided to use the authorization of the Annual General Meeting to resolve the acquisition of a maximum of 57,200 ordinary shares to ensure the delivery of shares to the participants of the 2022/2025 Share Savings Program. Acquisitions shall take place on Nasdaq Stockholm at a price per share within the price interval registered at any given time.
The repurchase program is implemented in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and Commission Delegated Regulation (EU) No 2016/1052 (the "Safe Harbour Regulation"). The repurchase program is managed by Carnegie Investment Bank AB (publ), which makes its trading decisions regarding the timing of the repurchases of Hemnet shares independently of Hemnet.
See further information in note 4.
Seasonality
Hemnet's sales and earnings are partly affected by seasonal fluctuations, mainly linked to vacation seasons and major holidays, as the number of listings and activity on Hemnets platforms tend to be lower during these periods than during other periods of the year. Seen over a financial year, the year begins with low volumes that gradually increase until the summer months where volumes decrease to lower levels and then increase again after the summer holiday period, before they decrease again ahead of the Christmas holidays.
Overall, the first quarter in particular tends to be weaker seasonally, both in terms of sales and earnings, while the second quarter tends to be the strongest.
Average revenue per published listing, ARPL, is affected by certain seasonal effects. Listing revenue and revenue from listing related value-added services is, in accordance with IFRS, recognised over the average duration of a listing on Hemnet. The effect is that quarters that are preceded by a month with a high volume of listings and value-added services benefit. Historically, March and September have been such months with high volume of listings, giving a positive contribution to revenue and ARPL in the following month and therefore the second and the fourth quarter respectively.
Risks and uncertainties
Hemnet is through its operations exposed to risks and uncertainties. The income from listing fees is a significant part of sales. Hemnet's operations are therefore dependent on an efficient, well-functioning housing market with high mobility. Hemnet's advertising business has continued to develop positively, and we offer advertising both through direct sales and through programmatic trading. The development and trends for advertising purchases in the market can affect Hemnet's revenue both positively and negatively. For Hemnet, it is of great importance to have a good relationship with the real estate agents and to have a substantial range of listings. Hemnet's future business may be threatened if a deteriorating agent relationship would result in a reduction in the number of listings.
In addition to its own funds, the Group´s operations are also financed through borrowing. As a result, the business is exposed to financing risks and interest rate risk. The Group's overall risk management policy focuses on the unpredictability of the financial markets and strives to minimise potential adverse effects on the Group's financial results.
For a detailed description of the risk factors and how they are managed, please refer to Hemnet's Annual Report 2021, pages 57-58. Hemnet's assessment is that no other significant risks or uncertainties have arisen during the period.
Annual General Meeting 2023
Hemnet Group AB's Annual General Meeting 2023 will be held on 27 April, 2023. Additional information about Hemnet's Annual General Meeting will be available on Hemnet's website, www.hemnetgroup.se.
Hemnet's audited Annual Report for 2022 will be available at the company's head office and website during the week starting March 27, 2023.
Proposed disposition of earnings
The Board of Directors' proposal to the Annual General Meeting is a dividend of SEK 1.00 per share for the fiscal year 2022. The dividend is proposed to be paid out with proposed record date 2 May, 2023, and proposed payment date 5 May, 2023.
Proposed share buy-back program
The Board of Directors propose to the Annual General Meeting to resolve on a share buy-back program of in total maximum ten percent of the outstanding volume of shares, to be carried out during the period up until the date of the following Annual General Meeting. The purpose is to cancel the repurchased shares and reduce the share capital. The reduction of the share capital will be met by a corresponding bonus issue of shares so that the size of the share capital is restored.
About Hemnet
Hemnet operates the leading property platform in Sweden. The Company emerged as an industry initiative in 1998 and has since transformed into a "win-win" value proposition for the housing market. By offering a unique combination of relevant products, insights and inspiration, Hemnet has built lasting relationships with buyers, sellers, and agents for more than 20 years. Hemnet shares a mutual passion for homes with its stakeholders and is driven by being an independent go-to-place for people to turn to for the various housing needs that arise through life. This is mirrored in the Company's vision to be the key to your property journey, supplying products and services to improve efficiency, transparency and mobility on the housing market.
The key to your property journey
We increase efficiency, transparency and mobility on the housing market.
Christopher Caulkin Chair
Cecilia Beck-Friis CEO
Anders Edmark Member of the board
Tracey Fellows Member of the board
Håkan Hellström Member of the board
Maria Redin Member of the board
Nick McKittrick Member of the board
Pierre Siri Member of the board
This report has not been subject to a review by Hemnet's auditor.
Stockholm, 27 January, 2023 Hemnet Group AB (publ)
| Oct-Dec | Jan-Dec | |||||||
|---|---|---|---|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 | (SEK million) | 2022-12-31 | 2021-12-31 | |
| Net sales | 2 | 201.0 | 177.3 | 889.2 | 728.1 | ASSETS | ||
| Other operating income | 0.6 | 0.5 | 2.6 | 1.8 | Goodwill | 902.8 | 902.8 | |
| Total revenue | 201.6 | 177.8 | 891.8 | 729.9 | Customer relationships | 759.3 | 814.7 | |
| Right-of-use assets | 0.6 | 6.9 | ||||||
| Capitalised development | 3.3 | 0.5 | 10.0 | 4.6 | Other non-current assets | 263.3 | 255.5 | |
| Other external expenses | 3 | -74.0 | -60.7 | -299.0 | -299.9 | Total non-current assets | 1,926.0 | 1,979.9 |
| Personnel costs | -41.7 | -32.9 | -153.2 | -130.0 | ||||
| Depreciation & amortisation | -17.5 | -19.7 | -70.6 | -79.0 | Accounts receivables | 31.5 | 28.7 | |
| Other operating costs | -0.4 | -0.3 | -1.5 | -1.7 | Other current assets | 36.7 | 30.4 | |
| Total operating expenses | -133.6 | -113.6 | -524.3 | -510.6 | Cash and cash equivalents | 100.4 | 94.5 | |
| Operating profit | 71.3 | 64.7 | 377.5 | 223.9 | Total current assets | 168.6 | 153.6 | |
| TOTAL ASSETS | 2,094.6 | 2,133.5 | ||||||
| Financial income | 0.4 | 0.1 | 0.6 | 0.3 | ||||
| Financial costs | -3.0 | -1.7 | -7.4 | -26.1 | EQUITY AND LIABILITIES | |||
| Financial Items - net | -2.6 | -1.6 | -6.8 | -25.8 | ||||
| Profit before taxes | 68.7 | 63.1 | 370.7 | 198.1 | Total equity (attributable to controlling interest) 4 |
1,432.7 | 1,516.9 | |
| Liabilities to credit institutions | 328.5 | 277.9 | ||||||
| Income tax | -14.2 | -13.1 | -76.9 | -41.6 | Lease liabilities | - | - | |
| Net profit for the period | 54.5 | 50.0 | 293.8 | 156.5 | Deferred tax liabilities | 210.2 | 220.1 | |
| Net profit attributable to controlling interest | 54.5 | 50.0 | 293.8 | 156.5 | Total non-current liabilities | 538.7 | 498.0 | |
| Other comprehensive income | - | - | - | - | ||||
| Total comprehensive income | 54.5 | 50.0 | 293.8 | 156.5 | Lease liabilities | - | 5.2 | |
| Accrued expenses and deferred income | 81.1 | 68.2 | ||||||
| Earnings per share¹ | Other current liabilities | 42.1 | 45.2 | |||||
| before dilution, SEK | 0.55 | 0.49 | 2.93 | 1.55 | Total current liabilities | 123.2 | 118.6 | |
| after dilution, SEK | 0.55 | 0.49 | 2.93 | 1.55 | Total liabilities | 661.9 | 616.6 | |
| TOTAL EQUITY AND LIABILITIES | 2,094.6 | 2,133.5 | ||||||
| Number of shares | ||||||||
| Average before dilution | 99,116,712 101,131,478 | 100,345,914 100,999,394 | ¹ The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period. As | |||||
| Average after dilution | 99,116,712 101,173,173 | 100,345,914 101,180,647 | no market price is available to set against the exercise price and the number of warrants is limited in relation to the number of ordinary shares, the dilution effect for periods before Hemnets IPO on 27 April, 2021, has been calculated based on the maximum theoretical dilution. For periods beginning after 27 April, 2021, the |
|||||
| At period end | 98,838,795 101,131,478 | 98,838,795 101,131,478 |
¹ The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period. As no market price is available to set against the exercise price and the number of warrants is limited in relation to the number of ordinary shares, the dilution effect for periods before Hemnets IPO on 27 April, 2021, has been calculated based on the maximum theoretical dilution. For periods beginning after 27 April, 2021, the calculation of dilution is made based on the average share price during each respective period.
Condensed consolidated income statement Condensed consolidated statement of financial position
| Jan-Dec | Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | (SEK million) | 2022 | 2021 | 2022 | 2021 |
| Equity, opening balance | 1,516.9 | 1,349.6 | Operating activities | ||||
| Net profit for the period | 293.8 | 156.5 | Operating profit | 71.3 | 64.7 | 377.5 | 223.9 |
| Adjustments for non-cash items | 17.6 | 19.7 | 70.6 | 79.0 | |||
| Other comprehensive income | - | - | Interest paid and received | -2.5 | -1.3 | -6.1 | -15.0 |
| Total comprehensive income | 293.8 | 156.5 | Paid income tax | -43.0 | -21.5 | -94.2 | -49.6 |
| Dividend distribution | -55.6 | - | Cash flow from operating activities before changes in working capital |
43.4 | 61.6 | 347.8 | 238.3 |
| Repurchase of shares 4 |
-326.1 | - | Changes in working capital, net | -11.9 | 8.3 | 8.2 | -3.3 |
| Share and warrant issues | 4.7 | 16.8 | |||||
| Share and warrant redemption | -0.8 | -5.0 | Cash flow from operating activities | 31.5 | 69.9 | 356.0 | 235.0 |
| Issue expenses | -0.2 | -1.0 | Investing activities | ||||
| Total transactions with shareholders | -378.0 | 10.8 | Investments in intangible assets, net | -4.9 | -0.8 | -13.7 | -6.5 |
| Equity, closing balance | 1,432.7 | 1,516.9 | Investments in tangible assets, net | -0.2 | -0.2 | -1.8 | -0.5 |
| Divestment of interest-bearing securities | - | - | - | 24.7 | |||
| Cash flow from investing activities | -5.1 | -1.0 | -15.5 | 17.7 | |||
| Financing activities | |||||||
| Borrowings | 30.0 | - | 115.0 | 500.0 | |||
| Repayment of loans | - | -85.0 | -65.0 | -908.6 | |||
| Amortisation of lease liabilities | -0.7 | -1.9 | -6.5 | -7.5 | |||
| Issue of shares and warrants | 1.1 | - | 4.6 | 11.8 | |||
| Issue expenses | - | - | -0.2 | -1.0 | |||
| Warrant redemption | -0.1 | - | -0.8 | - | |||
| Repurchase of shares 4 |
-80.3 | - | -326.1 | - | |||
| Paid dividend | - | - | -55.6 | - | |||
| Cash flow from financing activities | -50.0 | -86.9 | -334.6 | -405.3 | |||
| Net change in cash and cash equivalents | -23.6 | -18.0 | 5.9 | -152.6 | |||
| Cash and cash equivalents, beginning of period | 124.0 | 112.5 | 94.5 | 247.1 | |||
| Cash and cash equivalents, end of period | 100.4 | 94.5 | 100.4 | 94.5 |
Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flow
| Oct-Dec | Jan-Dec | ||||||
|---|---|---|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 | (SEK million) | 2022-12-31 | 2021-12-31 |
| Net sales | 2.2 | 1.2 | 9.2 | 5.6 | ASSETS | ||
| Total revenue | 2.2 | 1.2 | 9.2 | 5.6 | Non-current assets | 1,644.5 | 1,660.0 |
| Current assets | 38.0 | 21.6 | |||||
| Other external costs | -3.3 | -2.5 | -11.3 | -53.4 | TOTAL ASSETS | 1,682.5 | 1,681.6 |
| Personnel costs | -4.5 | -2.7 | -8.8 | -5.7 | |||
| Other operating costs | - | - | - | -0.2 | EQUITY AND LIABILITIES | ||
| Total operating expenses | -7.8 | -5.2 | -20.1 | -59.3 | Equity 4 |
||
| Operating profit/loss | -5.6 | -4.0 | -10.9 | -53.7 | Restricted equity | 77.4 | 77.4 |
| Non-restricted equity | 872.5 | 919.5 | |||||
| Net financial items | -2,9 | -1.7 | -7.3 | -5.5 | Total equity | 949.9 | 996.9 |
| Profit before taxes | -8.5 | -5.7 | -18.2 | -59.2 | |||
| Non-current liabilities | 328.5 | 277.9 | |||||
| Allocations - Group contributions | 435.0 | 286.2 | 435.0 | 286.2 | Current liabilities | 404.1 | 406.8 |
| Income tax | -85.8 | -46.8 | -85.8 | -46.8 | Total liabilities | 732.6 | 684.7 |
| Net income (loss) | 340.7 | 233.7 | 331.0 | 180.2 | TOTAL EQUITY AND LIABILITIES | 1,682.5 | 1,681.6 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 |
| Net income (loss) | 340.7 | 233.7 | 331.0 | 180.2 |
| Other comprehensive income | - | - | - | - |
| Total comprehensive income for the period | 340.7 | 233.7 | 331.0 | 180.2 |
Condensed parent company income statement Condensed parent company balance sheet
Parent company statement of comprehensive income
Notes
Note 1 Accounting principles
This report has been prepared in accordance with IAS 34, Interim Financial Reporting, International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Interpretation Statements of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the EU. The Group applies the same accounting principles as described in Note 1 in the annual report for 2021 and no new or IFRS or IFRIC interpretations that have not yet come into force are expected to have a material impact on the Group. Net sales from external customers by customer category and service category:
The Parent company, Hemnet Group AB (publ), applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation (RFR 2), accounting for legal entities. The accounting principles are consistent with those of the previous year and, where applicable, with the Group's accounting principles.
Amounts are expressed in SEK million unless stated otherwise. Amounts and figures in brackets refer to comparative figures for the corresponding period last year. In some cases, roundings have been made, which means that tables and calculations do not always sum up exactly.
Note 2 Net sales
Revenues are in their entirety attributable to services rendered to private individuals and companies. Property sellers revenue consists of sales to consumers, while Real estate agents, Real estate developers and Advertisers represent sales to business customers. Revenue is recognized over time as performance obligations are fulfilled. The revenues are almost entirely attributable to Swedish customers.
The categorising per service has been updated from the Q1 report 2022 and now consists of Listings services and Other services. The new category Listing services consists of (i) what in previous reports was called Listing fees, as well as (ii) the part of the previous category Valueadded services that related to publishing of listings (Hemnet Plus, Hemnet Premium, Raketen, Förnya annons). The new category Other services consists of (i) what in previous reports was called Advertising and other, as well as (ii) the remaining part of the previous category Value-added services.
| Net sales by customer category | Oct-Dec | Jan-Dec | ||
|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 |
| Property sellers | 143.0 | 118.3 | 639.6 | 482.3 |
| Real estate agents | 25.4 | 23.2 | 113.2 | 95.4 |
| Real estate developers | 10.3 | 11.6 | 48.3 | 54.4 |
| Advertisers | 22.3 | 24.2 | 88.1 | 96.0 |
| Total net sales | 201.0 | 177.3 | 889.2 | 728.1 |
| Net sales by service category | Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 | |
| Listing services | 149.4 | 125.8 | 668.4 | 508.3 | |
| Other services | 51.6 | 51.5 | 220.8 | 219.8 | |
| Total net sales | 201.0 | 177.3 | 889.2 | 728.1 |
Note 3 Other external expenses
Administration and commission compensation refers to compensation to real estate agent offices regarding administration of property listings on Hemnet's platform and, for real estate agent offices having entered into a commission agreement regarding sale of Hemnet's value-added services, commission.
Note 4 Repurchase program
During the quarter 594,828 shares were repurchased for a total of SEK 80.1m under the share repurchase program of SEK 450 million. During the year a total of 2,235,683 shares have been repurchased for a total amount of SEK 318.3m. In addition, 57,000 shares were repurchased for a total of SEK 7.5m as part of the company's commitment under the 2022/2025 Share Savings Program. The total number of treasury shares at the end of the quarter thus amounts to 2,292,683. The number of shares outstanding, excluding treasury shares, as of December 31, 2022, is 98,838,795. The total number of shares in the Company is 101,131,478.
The Board of Directors of Hemnet decided to introduce a long-term incentive program for employees in the form of a performance-based share program. In the program, the participants have invested in shares in Hemnet Group. For two savings shares, the participant receives 1 matching share. The terms of the program are that the participant has retained all savings shares during the period from the end of the investment period and 36 months ahead and that the participant remains employed by the company during the savings period.
The share savings program that started in November includes shares of 11,200, at a value of SEK 1.4m and is reported in accordance with IFRS 2 and the effect on personnel costs during the year is SEK 0.013m.
Note 5 Financial instruments
Hemnet's financial instruments consist mainly of accounts receivables, other current receivables, liabilities to credit institutions, accounts payable and accrued expenses.
Liabilities to credit institutions carries a floating interest that is estimated in all material respects to correspond to current market rate, whereby fair value is deemed to approximately correspond to booked value adjusted for accrued borrowing costs (level 2). For other financial assets and liabilities, their book values are an approximation of fair value, why these items are not split according to the fair value hierarchy.
Note 6 Related party transactions
Transactions with related parties and management incentive program are described in notes G28 and G8 in the annual report for 2021.
Agreement with Svensk Fastighetsförmedling AB ("Svensk Fastighetsförmedling") regarding mediation of Hemnets advertising services
Hemnet has entered into an agreement with Svensk Fastighetsförmedling regarding mediation and coordination of display and native campaigns.
In other respects, the scope and focus of these transactions did not change significantly during the period.
Note 7 Significant events after the end of the period
On 27 January, 2023, the Board decided to update Hemnets profitability target from the current medium term adjusted EBITDA margin target of 45-50 percent to a long term adjusted EBITDA margin target of over 55 percent.
| Oct-Dec Jan-Dec |
||||
|---|---|---|---|---|
| (SEK million) | 2022 | 2021 | 2022 | 2021 |
| Administration and commission compensation | -41.2 | -36.2 | -184.3 | -150.1 |
| Other external expenses | -32.8 | -24.5 | -114.7 | -149.8 |
| Total | -74.0 | -60.7 | -299.0 | -299.9 |
| (SEK million, unless stated otherwise) | 2022 | 2021 | 2022 | 2021 |
|---|---|---|---|---|
| EBITDA | 88.8 | 84.4 | 448.1 | 302.9 |
| EBITDA margin, % | 44.2% | 47.6% | 50.4% | 41.6% |
| Adjusted EBITDA | 88.8 | 84.6 | 448.1 | 355.0 |
| Adjusted EBITDA margin, % | 44.2% | 47.7% | 50.4% | 48.8% |
| Operating profit | 71.3 | 64.7 | 377.5 | 223.9 |
| Operating margin, % | 35.5% | 36.5% | 42.5% | 30.8% |
| Net profit for the period | 54.5 | 50.0 | 293.8 | 156.5 |
| Profit margin % | 27.1% | 28.2% | 33.0% | 21.5% |
| Earnings per share, basic, SEK | 0.55 | 0.49 | 2.93 | 1.55 |
| Earnings per share, diluted, SEK | 0.55 | 0.49 | 2.93 | 1.55 |
| ARPL (average revenue per published listing), SEK | 4,044 | 3,029 | 3,275 | 2,467 |
| Net debt | 228.1 | 188.6 | 228.1 | 188.6 |
| Net debt/EBITDA (LTM), times | 0.5 | 0.6 | 0.5 | 0.6 |
| Net debt/Adjusted EBITDA (LTM), times | 0.5 | 0.5 | 0.5 | 0.5 |
| Debt/Equity ratio, times | 0.2 | 0.2 | 0.2 | 0.2 |
| Equity/Assets ratio, % | 68.4% | 71.1% | 68.4% | 71.1% |
| Cash conversion, % | 98.8% | 97.1% | 98.8% | 97.1% |
| Number of published listings during the period, thousand | 35.8 | 39.8 | 198.3 | 198.4 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| (SEK million, unless stated otherwise) | 2022 | 2021 | 2022 | 2021 |
| EBITDA | 88.8 | 84.4 | 448.1 | 302.9 |
| EBITDA margin, % | 44.2% | 47.6% | 50.4% | 41.6% |
| Adjusted EBITDA | 88.8 | 84.6 | 448.1 | 355.0 |
| Adjusted EBITDA margin, % | 44.2% | 47.7% | 50.4% | 48.8% |
| Operating profit | 71.3 | 64.7 | 377.5 | 223.9 |
| Operating margin, % | 35.5% | 36.5% | 42.5% | 30.8% |
| Net profit for the period | 54.5 | 50.0 | 293.8 | 156.5 |
| Profit margin % | 27.1% | 28.2% | 33.0% | 21.5% |
| Earnings per share, basic, SEK | 0.55 | 0.49 | 2.93 | 1.55 |
| Earnings per share, diluted, SEK | 0.55 | 0.49 | 2.93 | 1.55 |
| ARPL (average revenue per published listing), SEK | 4,044 | 3,029 | 3,275 | 2,467 |
| Net debt | 228.1 | 188.6 | 228.1 | 188.6 |
| Net debt/EBITDA (LTM), times | 0.5 | 0.6 | 0.5 | 0.6 |
| Net debt/Adjusted EBITDA (LTM), times | 0.5 | 0.5 | 0.5 | 0.5 |
| Debt/Equity ratio, times | 0.2 | 0.2 | 0.2 | 0.2 |
| Equity/Assets ratio, % | 68.4% | 71.1% | 68.4% | 71.1% |
| Cash conversion, % | 98.8% | 97.1% | 98.8% | 97.1% |
| Number of published listings during the period, thousand | 35.8 | 39.8 | 198.3 | 198.4 |
| Number of employees at period end | 135 | 112 | 135 | 112 |
* See pages 17-19 for derivation and definitions on all of our performance measures.
Group key ratios
Derivation of alternative performance measures
Certain statements and analyses presented in this interim report include alternative performance measures (APMs) that are not defined by IFRS. The company believes that this information, together with comparable defined IFRS metrics, are useful to investors as they provide a basis for measuring operating profit and ability to repay debt and invest in operations. Corporate management use these financial measurements, along with the most directly comparable financial metrics under IFRS, to evaluate operational results and value added. The APMs should not be assessed in isolation from, or as a substitute for, financial information presented in the financial statements in accordance with IFRS. The APMs reported need not necessarily be comparable to similar metrics presented by other companies. The reconciliations are presented in the tables below.
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| (SEK million, unless stated otherwise) | 2022 | 2021 | 2022 | 2021 | |
| Operating profit | 71.3 | 64.7 | 377.5 | 223.9 | |
| Depreciation & amortisation | 17.5 | 19.7 | 70.6 | 79.0 | |
| EBITDA | 88.8 | 84.4 | 448.1 | 302.9 | |
| Net sales | 201.0 | 177.3 | 889.2 | 728.1 | |
| EBITDA margin, % | 44.2% | 47.6% | 50.4% | 41.6% | |
| EBITDA | 88.8 | 84.4 | 448.1 | 302.9 | |
| Items affecting comparability: | |||||
| Advertising revenue | - | - | - | -5.7 | |
| Marketing costs | - | 0.2 | - | 9.1 | |
| Consultant costs | - | - | - | 48.7 | |
| Adjusted EBITDA | 88.8 | 84.6 | 448.1 | 355.0 | |
| Net sales | 201.0 | 177.3 | 889.2 | 728.1 | |
| Adjusted EBITDA margin, % | 44.2% | 47.7% | 50.4% | 48.8% | |
| Operating profit | 71.3 | 64.7 | 377.5 | 223.9 | |
| Net sales | 201.0 | 177.3 | 889.2 | 728.1 | |
| Operating margin, % | 35.5% | 36.5% | 42.5% | 30.8% |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| (SEK million, unless stated otherwise) | 2022 | 2021 | 2022 | 2021 |
| Net sales | 201.0 | 177.3 | 889.2 | 728.1 |
| Revenue not arising from published listings | -56.2 | -56.8 | -240.0 | -238.8 |
| Revenue from published listings | 144.8 | 120.5 | 649.2 | 489.3 |
| Number of published listings, thousands | 35.8 | 39.8 | 198.3 | 198.4 |
| ARPL, SEK | 4,044 | 3,029 | 3,275 | 2,467 |
| Non-current interest-bearing liabilities | 328.5 | 277.9 | 328.5 | 277.9 |
| Current interest-bearing liabilities | - | 5.2 | - | 5.2 |
| Cash and cash equivalents, including current interest-bearing securities | 100.4 | 94.5 | 100.4 | 94.5 |
| Net debt | 228.1 | 188.6 | 228.1 | 188.6 |
| EBITDA, LTM | 448.1 | 302.9 | 448.1 | 302.9 |
| Net debt/ LTM EBITDA, times | 0.5 | 0.6 | 0.5 | 0.6 |
| Net debt | 228.1 | 188.6 | 228.1 | 188.6 |
| Adjusted EBITDA, LTM | 448.1 | 355.0 | 448.1 | 355.0 |
| Net debt/ LTM adjusted EBITDA, times | 0.5 | 0.5 | 0.5 | 0.5 |
| Equity | 1,432.7 | 1,516.9 | 1,432.7 | 1,516.9 |
| Total assets | 2,094.6 | 2,133.5 | 2,094.6 | 2,133.5 |
| Equity/Assets ratio, % | 68.4% | 71.1% | 68.4% | 71.1% |
| Non-current interest-bearing liabilities | 328.5 | 277.9 | 328.5 | 277.9 |
| Current interest-bearing liabilities | - | 5.2 | - | 5.2 |
| Total interest-bearing liabilities | 328.5 | 283.1 | 328.5 | 283.1 |
| Equity | 1,432.7 | 1,516.9 | 1,432.7 | 1,516.9 |
| Debt/Equity ratio, times | 0.2 | 0.2 | 0.2 | 0.2 |
| Adjusted EBITDA, LTM | 448.1 | 355.0 | 448.1 | 355.0 |
| Decrease / (Increase) in net working capital, LTM | 10.3 | -3.3 | 10.3 | -3.3 |
| Capital expenditures, LTM | -15.5 | -7.0 | -15.5 | -7.0 |
| Free cash flow, LTM | 442.9 | 344.7 | 442.9 | 344.7 |
| Adjusted EBITDA, LTM | 448.1 | 355.0 | 448.1 | 355.0 |
| Cash conversion, % | 98.8% | 97.1% | 98.8% | 97.1% |
Definitions
Alternative Performance Measures (APMs) are financial measures of historical or future financial performance, financial position or cash flows that are not defined in applicable accounting regulations (IFRS). These measures are not directly comparable to similar key ratios presented by other companies.
Average revenue per published listing, calculated as revenue from home sellers published listings including related value-added products during the period, in relation to the number of published listings during the period.
This measure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets as well as amortisation of intangible assets, and independent of taxes and the company's financing structure. The measure is also adjusted
The measure reflects the business's operating profitability before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company's value creation. The measure is also adjusted for the impact of items affecting comparability to increase comparability over time.
| Alternative key ratio | Definition |
|---|---|
| ARPL (average revenue per published listing) |
products during the period, in relation to the number of published listings during the period. It is a measure that shows the company's earning capacity per published listing. |
| Adjusted EBITDA | EBITDA adjusted for items affecting comparability. for the impact of items affecting comparability to increase comparability over time. |
| Adjusted EBITDA-margin | Adjusted EBITDA in relation to net sales. |
| Cash conversion | with the exception of interest-related cash flows. |
| Debt/Equity ratio | Interest-bearing liabilities in relation to total equity. |
| EBITDA (earnings before interest, taxes, depreciation and amortisation) |
Free cash flow in relation to adjusted EBITDA. Free cash flow is defined as adjusted EBITDA, adjusted for changes in working capital and reduced with investments in tangible and intangible assets. The measure is always calculated for the last twelve month period.
This measure shows the percentage of profit that is converted into cash flow. The purpose is to analyse what percentage of earnings can be converted into cash and cash equivalents and, in the longer term, the opportunity for investments, acquisitions and dividends,
The measure shows the relation between the Company's two forms of financing. The measure shows how large a share the debt financing has in relation to the owners' invested capital. The measure reflects the financial strength, but also the leverage effect of the debt. A higher debt/equity ratio means a higher financial risk and a higher financial leverage on invested capital.
Operating profit plus depreciation of tangible and right-of-use assets as well as amortisation of intangible assets.
The measure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets as well as amortisation of intangible assets, as well as independent of taxes and the company's financing structure.
The measure reflects the business's operating profitability before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company's value creation.
The measure reflects the Company's financial position. A high equity/assets ratio provides a readiness to be able to handle periods of weak economic growth. At the same time, a higher equity/assets ratio creates a lower financial leverage.
| Alternative key ratio | Definition |
|---|---|
| EBITDA-margin | EBITDA in relation to net sales. The measure reflects the business's operating profitability before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company's value creation. |
| Equity/Assets ratio | Total equity in relation to total assets. The measure reflects the Company's financial position. A high equity/assets ratio provides a readiness to be able to handle periods of weak economic growth. At the same time, a higher equity/assets ratio creates a lower financial leverage. |
| Interest-bearing liabilities | Interest-bearing liabilities consists of debt to credit institutions and leasing debt. |
| Items affecting comparability | Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities. A separate disclosure of items affecting comparability clarifies the development of the underlying business. |
| Net financial items | Financial income less financial expenses. The measure reflects the company's financial activities. |
| Net debt | Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities. Net debt is a measure used to follow the development of debt and the size of the refinancing need. Since cash and cash equivalents can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of the total loan financing. |
| Net debt/EBITDA Net debt/adjusted EBITDA |
Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities in relation to EBITDA or adjusted EBITDA. The measure is a debt ratio that shows how many years it would take to pay off the company's debt, provided that its net debt and EBITDA or adjusted EBITDA are constant and without taking into account the cash flows regarding interest, taxes and investments. |
| Operating margin | Operating profit/loss in relation to net sales. The measure reflects the operational profitability of the business. The measure is an important component, together with net sales growth, to follow the company's value creation. |
| Operating profit/loss | Total revenue less total operating expenses. The measure indicates the company's operation profit/loss before financing and taxes and is used to measure the profit generated by operating activities. |
| Profit margin | Net profit in relation to net sales. The measure indicates the company's profit after financing and taxes and is used to measure the profit generated by operating activities. |
Net debt is a measure used to follow the development of debt and the size of the refinancing need. Since cash and cash equivalents can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of the total loan financing.
Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities in relation to EBITDA or adjusted EBITDA.
The measure is a debt ratio that shows how many years it would take to pay off the company's debt, provided that its net debt and EBITDA or adjusted EBITDA are constant and without taking into account the cash flows regarding interest, taxes and investments.
The measure reflects the operational profitability of the business. The measure is an important component, together with
The measure indicates the company's operation profit/loss before financing and taxes and is used to measure the profit
The measure indicates the company's profit after financing and taxes and is used to measure the profit generated by operating activities.
| (SEK million) | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 142.7 | 142.5 | 212.5 | 195.8 | 177.3 | 179.6 | 269.7 | 238.9 | 201.0 |
| Other operating income | 0.7 | 0.3 | 0.3 | 0.7 | 0.5 | 0.5 | 0.8 | 0.7 | 0.6 |
| Total revenue | 143.4 | 142.8 | 212.8 | 196.5 | 177.8 | 180.1 | 270.5 | 239.6 | 201.6 |
| Capitalised development | 1.4 | 2.6 | 1.2 | 0.3 | 0.5 | 2.5 | 2.9 | 1.3 | 3.3 |
| Other external costs | -64.1 | -80.3 | -96.9 | -62.0 | -60.7 | -59.0 | -86.8 | -79.2 | -74.0 |
| Personnel costs | -36.9 | -31.3 | -33.6 | -32.2 | -32.9 | -37.8 | -41.0 | -32.7 | -41.7 |
| Other operating expenses | -0.7 | -0.6 | -0.3 | -0.5 | -0.3 | -0.3 | -0.3 | -0.5 | -0.4 |
| EBITDA | 43.1 | 33.2 | 83.2 | 102.1 | 84.4 | 85.5 | 145.3 | 128.5 | 88.8 |
| Depreciation & amortisation | -19.6 | -19.6 | -20.3 | -19.4 | -19.7 | -17.7 | -17.8 | -17.6 | -17.5 |
| Operating profit | 23.5 | 13.6 | 62.9 | 82.7 | 64.7 | 67.8 | 127.5 | 110.9 | 71.3 |
| Net financial items | -5.5 | -5.2 | -16.8 | -2.2 | -1.6 | -1.6 | -1.2 | -1.4 | -2.6 |
| Profit before taxes | 18.0 | 8.4 | 46.1 | 80.5 | 63.1 | 66.2 | 126.3 | 109.5 | 68.7 |
| Taxes | -4.1 | -1.7 | -10.0 | -16.8 | -13.1 | -13.7 | -26.3 | -22.7 | -14.2 |
| Net profit for the period | 13.9 | 6.7 | 36.1 | 63.7 | 50.0 | 52.5 | 100.0 | 86.8 | 54.5 |
| Other comprehensive income | - | - | - | - | - | - | - | - | - |
| Total comprehensive income for the period | 13.9 | 6.7 | 36.1 | 63.7 | 50.0 | 52.5 | 100.0 | 86.8 | 54.5 |
| 2020 | 2021 | 2022 | |||||
|---|---|---|---|---|---|---|---|
Consolidated quarterly financial information
The table below presents the Group's condensed financial performance for the last nine quarters.
| 2020 | 2021 | 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (SEK million, unless stated otherwise) | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
| Net sales | 142.7 | 142.5 | 212.5 | 195.8 | 177.3 | 179.6 | 269.7 | 238.9 | 201.0 | ||
| Net sales growth YoY, % | 22.7% | 23.6% | 47.4% | 38.0% | 24.2% | 26.0% | 26.9% | 22.0% | 13.4% | ||
| EBITDA | 43.1 | 33.2 | 83.2 | 102.1 | 84.4 | 85.5 | 145.3 | 128.5 | 88.8 | ||
| EBITDA margin, % | 30.2% | 23.3% | 39.2% | 52.1% | 47.6% | 47.6% | 53.9% | 53.8% | 44.2% | ||
| Adjusted EBITDA | 48.0 | 57.2 | 110.9 | 102.3 | 84.6 | 85.5 | 145.3 | 128.5 | 88.8 | ||
| Adjusted EBITDA margin, % | 33.6% | 40.1% | 52.2% | 52.2% | 47.7% | 47.6% | 53.9% | 53.8% | 44.2% | ||
| Operating profit | 23.5 | 13.6 | 62.9 | 82.7 | 64.7 | 67.8 | 127.5 | 110.9 | 71.3 | ||
| Operating margin, % | 16.5% | 9.5% | 29.6% | 42.2% | 36.5% | 37.8% | 47.3% | 46.4% | 35.5% | ||
| Net profit for the period | 13.9 | 6.7 | 36.1 | 63.7 | 50.0 | 52.5 | 100.0 | 86.8 | 54.5 | ||
| Profit margin, % | 9.7% | 4.7% | 17.0% | 32.5% | 28.2% | 29.2% | 37.1% | 36.3% | 27.1% | ||
| ARPL (average revenue per published listing), SEK | 2,089 | 1,898 | 2,363 | 2,642 | 3,029 | 2,681 | 3,163 | 3,404 | 4,044 | ||
| Net debt | 415.1 | 407.5 | 332.1 | 255.7 | 188.6 | 121.5 | 77.9 | 175.1 | 228.1 | ||
| Net debt/EBITDA LTM, times | 2.2 | 2.2 | 1.5 | 1.0 | 0.6 | 0.3 | 0.2 | 0.4 | 0.5 | ||
| Net debt/ Adjusted EBITDA (LTM), times | 2.1 | 1.8 | 1.2 | 0.8 | 0.5 | 0.3 | 0.2 | 0.4 | 0.5 | ||
| Debt/Equity ratio, times | 0.5 | 0.5 | 0.3 | 0.3 | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | ||
| Equity/Assets ratio, % | 56.9% | 56.7% | 62.8% | 66.4% | 71.1% | 73.8% | 72.5% | 67.7% | 68.4% | ||
| Cash conversion, % | 97.2% | 106.9% | 96.9% | 98.7% | 97.1% | 101.8% | 102.5% | 103.8% | 98.8% | ||
| Number of published listings during the period, thousand | 40.4 | 44.0 | 62.5 | 52.1 | 39.8 | 45.7 | 64.5 | 52.2 | 35.8 | ||
| Number of employees at period end | 108 | 111 | 115 | 113 | 112 | 121 | 121 | 124 | 135 |
Group key ratios by quarter
For further information, please contact:
Interim CFO Jens Melin Phone: +46 709 99 33 59 Email: [email protected]
IR Manager Nick Lundvall Phone: +46 761 45 21 78 Email: [email protected]
Financial calendar
26 April, 2023 Interim report, Q1 2023 27 April, 2023 Annual general meeting 2023 19 July, 2023 Interim report, Q2 2023
Address
Sveavägen 9 111 57 Stockholm
Contact
Phone: +46 8 509 068 00 Email: [email protected] https://www.hemnetgroup.se
Presentation of the interim report
Hemnet invites analysts, investors and media to participate in the results presentation of the fourth quarter on 27 January, 2023 at 10:00 CET. The results will be presented by CEO Cecilia Beck-Friis and interim CFO Jens Melin. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via webcast or teleconference, see details below.
If you wish to participate via webcast please use the link below. Via the webcast you are able to ask written questions.
https://ir.financialhearings.com/hemnet-q4-2022
If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers
and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/ teleconference/?id=5004750
Publication
This is information that Hemnet Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 27 January, 2023 at 08:00 CET.