Scout24 Continues Revenue Growth Streak in Q3 Despite "Challenging Macro Trends"

Scout24, the operator of leading German real estate marketplace ImmoScout24, has released a report on its performance for the third quarter of the 2023 financial year. Highlights of from the report include:

• Revenue stood at €132.8 million, up 16% year-on-year.
• Group EBITDA was €73 million in the quarter, up 36% year-on-year.
• Adjusted EPS was up 36% YTD, reaching €1.90

The Munich-based company continued its record of recent revenue growth into Q3 with all three reporting segments logging double-digit growth compared to the corresponding quarter of 2022. Although the company's press release did note that the latest missive to the market was the first to include the fully incorporated results of the property data firm Sprengnetter, acquired in June.

Commenting on the results, Scout24 CEO, Tobias Hartmann said:

“In the third quarter we continued our track record of delivering exceptional results against challenging macro trends and real estate markets. The increased relevance of the ImmoScout24 platform for the German real estate market is manifesting itself through continuous strong demand for our core products and customer growth. The organizational updates we implemented earlier this year have increased our speed to market while taking our operating efficiency to new levels.

We will continue to be laser focused on supporting our professional clients with best-in-class products and services as they continue to navigate challenging markets. Scout24 recently turned 25 years – while the company truly has achieved a lot, we believe that the best days are still ahead. We look forward to providing an update on our future plans and growth ambitions at our Capital Markets Day at the end of February 2024."

Scout's 'Professional' business segment which houses its main B2B agent monetising products saw revenue increase 15.6% year-on-year with its immoverkauf24 seller leads business seeing a 22% uptick in revenue. The number of Scout's professional agent customers also saw a 3.3% surge compared to the comparison period in 2022.

The company's impressive 'Private' segment saw revenues increase by 17% with a 2.4% uptick in average yield per user (€16.7) as well as a 17% surge in the number of individuals using the service.

The third quarter was the second in a row in which Scout24 upgraded its full-year profitability guidance. The company said that given its performance in Q3 it would be aiming for an ooEBITDA upgrade range of between 19–21% rather than the 18–19% expected previously.

Despite continuing the double-digit revenue growth streak that has lasted since Q4 of 2021, Scout24's share price tumbled last week as speculation and uncertainty continues to hang over the European real estate portal industry.

U.S. giant CoStar announced at the recent Property Portal Watch conference that it would bring its $9 billion "war chest" to bear in the region and subsequently bought up British number three outfit OnTheMarket. There is speculation that the Washington-based company's European shopping trip may not end in the UK.