Zameen Leads the Way for Record Quarterly EBITDA at FDV

Frontier Digital Ventures (ASX:FDV) has released its Q3 interim results for the three months ending 30 September, with CEO Shaun Di Gregorio commenting that the business has "recalibrated" its cost base in response to struggling markets.

Highlights include:

• Record company-wide EBITDA of A$2.3 million
• FDV LATAM revenues of A$11.1 million and EBITDA of A$843k
• Zameen's revenue was A$23.3 million (up 38% year-on-year)
• All three operating regions were EBITDA positive for the first time

Shaun Di Gregorio, founder and CEO at FDV, said of the company's Q3 performance:

"We are pleased with this quarter’s record portfolio EBITDA of A$2.3m and EBITDA margin of +11%. Our performance in 3Q 2022 reflects a recalibration of costs in light of the market environment, with greater emphasis on bottom line performance. The targeted cost restructure in FDV MENA highlights our ability to react quickly to changing economic conditions and improve the underlying performance of the businesses.

The combination of our proven track record in online marketplaces and our long history in emerging markets, provides us with a strong competitive advantage relative to many of the businesses in our regions. FDV is in a strong position heading into 4Q 2022 with a significantly enhanced earnings profile."

FDV operates a portfolio of online classifieds companies across developing markets across Asia, LATAM and the MENA region. The Malaysia-based company increased its stake in South American real estate vertical InfoCasas (from 51% to 100%) in 2021 and before that in 2020 expanded its portfolio with the acquisition from Adevinta of real estate verticals Yapo in Chile as well as Fincaraíz in Colombia.

The undoubted jewel in FDV's crown however is the market-leading Pakistani real estate vertical Zameen in which FDV owns a 30% stake. Zameen contributed nearly a third of FDV revenues and in Q3 contributed nearly A$1.5 million of FDV's A$2.3 million total EBITDA.

Having consolidated assets and given split them into regional divisions earlier this year, FDV is now openly putting emphasis on the EBITDA performance of its portfolio companies.

Shareholders will be pleased that all three of the geographical regions (MENA, LATAM and SEA) were EBITDA positive over the quarter for the first time.