Frontier Digital Ventures Grows Revenue 72% and Achieves Cash Flow Break-Even in HY Results

Frontier Digital Ventures, the operator behind portal companies across LATAM, Asia and Africa, has released its unaudited H1 2022 results, noting strong performance across each continent and a recovery in the Middle East building on record numbers returned in FY21.

Highlights include:

• LATAM H1 revenues hit $22.3m ($15.75m H1 21)
• Asia H1 revenues hit $48.3m ($3.4m H1 21)
• Combined total revenue of $73.1m ($50.3m H1 21)
• Highest revenue since IPO in 2016

A company press release was keen to highlight FDV's cashflow and EBITDA breakeven with company founder and CEO Shaun Di Gregorio commenting:

"Once again, FDV has returned, within 6 months, to cash flow breakeven following the increase to 100% ownership in Encuentra24 and targeted investments in product, technology, and people in early 2022. This achievement is consistent with FDV’s history of prudently deploying growth capital and rapidly transitioning portfolio companies to profitability.

"Our attention remains firmly on further building on the strength of the core classifieds businesses and exploring opportunities to unlock their earnings potential through transactions. The performance of operating companies in Pakistan, Myanmar, and Sri Lanka this half highlights the resilience of the core classifieds model, despite external disruptions. FDV is in a strong position heading into 2H 2022 with a significantly enhanced cash flow profile providing funding flexibility."

FDV operates a portfolio of portal companies across developing markets across Asia, LATAM and Africa. The Malaysia-based company recently increased its stake in South American real estate vertical InfoCasas (from 51% to 100%) and in 2020 expanded its portfolio with the acquisition from Adevinta of real estate verticals Yapo in Chile as well as Fincaraíz in Colombia.

Latin America

Revenues of $22.3m overall ($15.8m in 2021), including portals Fincaraíz , InfoCasas and Encuentra24. InfoCasas' H1 2022 revenue hit $8.5m ($4.5m 2021), while Encuentra24 revenues reached $4.6m ($4m 2021). Fincaraíz revenues grew steadily to $4.6m ($4m 2021) with the Chilean generalist Yapo's revenues jumping to $4.5m ($3.2m 2021).

Frontier Digital Ventures LATAM Assets

Asia

FDV's biggest name player in the Asian market is Pakistani portal Zameen, in which FDV holds a 30% stake. Zameen revenues for the Half Year hit $44.3m ($27.4m 2021).

Other Asian portals of which FDV own a majority include LankaPropertyWeb ($234,000), iMyanmarhouse ($223,500) and Hoppler ($218,300), all of which grew revenues YoY.

Middle East and North Africa

FDV's West Africa segment includes Nigerian portal PropertyPro (39% owned) and Ghanaian MeQasa (69% owned). The segment's revenue over the six-month period reached $490,000, a 34% increase year-on-year.