Swedish Portal Hemnet Sees Strong Q3 Thanks to Premium Product Push

The leading Swedish real estate portal company Hemnet has published its results for Q3 of the 2022 financial year. Highlights of the company's performance for the three months ended 30th of September include:

• Net sales increased 22% year-on-year to SEK 238.9m ($21.3m).
• Adjusted EBITDA was up 25.6% to SEK 128.5m ($11.5m) and operating profit was up 34.1% to SEK 110.9m ($9.9m).
• The average revenue per published listing (ARPL) increased 28.8% to SEK 3,404 ($303).

The Swedish real estate market shares similarities with the Australian market in that the vendor is ultimately responsible for the marketing costs associated with the sale of their home rather than the listing agent. Hemnet's rise in sales has been driven by a push to steer consumers towards its Plus and Premium packages. Hemnet CEO, Cecilia Beck-Friis said:

"We are pleased to see that customers are opting for the benefits associated with our larger packages, and that products such as Hemnet Plus and Hemnet Premium are now a key part of our offering. In parallel with conversion and product development, we continue our work with pricing to ensure that the impact and value of each product is reflected in its price.

Sales to our business partners and other customers increased 5.9 percent year-on-year, or 9.0 percent excluding items affecting comparability, and the growth rate also increased from the previous quarter. This was mainly driven by sales to real estate agents, which increased 19 percent year-on-year."

Despite inflation across Europe, it seems that Swedes still want to move home. According to Beck-Friis, Hemnet's model and consistent traffic mean the company should be set to withstand any downturn in house prices:

"There were 52,000 new listings on Hemnet during the quarter, in line with last year’s record high numbers. The total number of listings on Hemnet remains at a high level as we continue to see a buyer’s market with lower property prices and longer selling times, combined with a stable supply of new listings. Since Hemnet is paid for each published listing, and not on the basis of a completed property transaction, we are well positioned for the current market."

Over the last 12 months, Hemnet has averaged 54 million visits per month. During the same period, each listed apartment averaged 3,500 visits and each villa 8,500 visits. This is a level of traffic and visibility unmatched by any other player in the Swedish housing market. A recent comparison between Hemnet and number two on the market showed that a listing on Hemnet averaged 19 times as many visits. This market leadership means that we can offer the best conditions and products to maximise the exposure of a home for sale and help our customers improve their chances of selling, also in a more challenging market."

Since floating on the Stockholm Nasdaq in April 2021, Hemnet has managed to grow sales on a year-on-year comparison basis for every quarter it has reported. The portal recently appointed a new Interim CFO and launched its new 'The Way Home' brand campaign.