Record Revenue at Frontier Digital Ventures in Q2 as Zameen Continues Slow Recovery

The ASX-listed online marketplace operator Frontier Digital Ventures (FDV) has revealed its numbers for the second quarter of 2024. Highlights from the Malaysian-headquartered company's report include:

• Company operating revenue was up 15% year-on-year at A$22.1 million.
• Operating EBITDA was up 10% year-on-year and up 14% on Q1 2024 at A$1.8 million.
• All operating segments (regions) grew revenue in Q2 both on a year-on-year and sequential basis, including Zameen.

Commenting on the results, founder and CEO, Shaun Di Gregorio said:

“FDV achieved a record revenue result in 2Q 2024, being our best-ever quarterly performance. This represents a 15% improvement on pcp and 14% on 1Q 2024, highlighting a positive rebound from the seasonally softer first quarter, with all our operating regions growing their revenue, including our investments in Pakistan.

Each of our operating regions are EBITDA positive, which enables us to invest in product development. The product roadmaps in each of our operating regions are targeted investments designed to drive long-term revenue growth and value creation.

Over the last 18 months, we have successfully navigated the challenges posed by uncertain economic conditions around the globe. As these conditions show signs of improvement, we expect to see improved trading conditions in the medium term.”

FDV owns and operates 12 online classifieds marketplaces across three regions worldwide and holds a 30% stake in the leading Pakistani property portal, Zameen and a 37% stake in Pakistani autos vertical PakWheels.

The company's share price has suffered over the last couple of years largely due to the subdued performance of its 'Asia Associates' brands  (Zameen and Pakwheels) which have been heavily affected by political turbulence in Pakistan.

The good news for investors is that the Asia Associates were back in the black for the second straight quarter contributing A$3.1 million in revenue (up 13% y-o-y) and EBITDA of A$0.4 million (up 296%).

Elsewhere FDV's Latin American business—known as '360 LATAM'—saw record revenue of A$14.8 million and 10% yearly growth in EBITDA (A$1.3 million) despite product investments such as a new tech platform for the company's Chilean horizontal brand Yapo.

In the Middle East and North Africa region—reported as 'MENA Marketplaces Group'—FDV's assets saw a rebound from Q1 as revenues totalled A$2.5 million while EBITDA was flat at A$0.14 million. The company chalked up the softer EBITDA figure to reduced demand for advertising and contribution from lower-margin products.

In Asia there was a standout performance from the Burmese real estate vertical iMyammarhouse which saw revenues increase 95% year-on-year in Q2 to A$0.68 million. Meanwhile, the Filippino brokerage and listings business Hoppler continued to drag down the segment's metrics as its revenues declined 40%.

Looking ahead, the company continues to have high hopes for its 'Iris' MLS-like service. The product performed well in Latin America having been introduced into select markets in 2022 and logged A$654k in revenue for the quarter, up 85% year-on-year. FDV is also moving into the B2B property materials space in Latin America and saw its 'Centrify' marketplace grow revenues significantly in the quarter.