Hemnet's Q2 Revenue Remains Steady Despite 22% Listings Drop

The leading Swedish real estate portal operator Hemnet has released its figures from the second quarter of the 2023 financial year. Notable figures from the company's performance for the period included:

• Net sales decreased by -0.8 percent to SEK 267.6m (269.7).
• EBITDA decreased -3.2 percent to SEK 140.7m (145.3).
• ARPL, average revenue per listing, increased 30.8 percent to SEK 4,138 (3,163).

The underwhelming financial numbers can be explained by a hesitant Swedish housing market which saw a 22% drop in listing volumes compared to the comparison period in 2022. The company also noted that continued investment in product development also contributed to the drop in profitability in the quarter.

Despite the substantial drop in listings, Hemnet managed to keep revenue levels on par with those of Q2 2022 by making the most of its dominant market position and increasing Average Revenue Per Listing (ARPL). Hement CEO, Cecilia Beck Friis commented:

"Despite the decline in volume, we are increasing our revenues from property sellers by 3.9 percent, and the average revenue per listing, ARPL, by 30.8 percent. One of the key drivers behind the growth in ARPL is higher demand for Hemnet Premium. Renewal, with sales doubling compared to last year, also contributes to the ARPL growth."

Hemnet is one of the most dominant portals anywhere in the world and since floating on Stockholm Nasdaq in April 2021 has capitalised on its position and the fact that Sweden is a vendor-paid market. The portal has more than doubled what it makes from each listing in recent years.

Following a trend seen by many real estate portal companies over recent quarters, Hemnet's display advertising business saw weak demand in Q2. However, a company report noted that the drop was mitigated by revenue from "value-added services to real estate agents and a stable demand from our bank customers".

Beck Friis also mentioned a popular product update launched during the quarter. Hemnet became the first Swedish real estate portal to include pictures of sold properties, a functionality that had been heavily requested by users.