PropertyGuru returns to the black in Q3 but lowers full-year revenue outlook
PROPERTYGURU reported earnings of S$312,000 in the third quarter of its fiscal year ended Sep 30, reversing from a net loss of S$7.4 million a year prior.
The New York Stock Exchange-listed online real estate portal on Tuesday (Nov 21) said its latest set of results brings the group out of its loss-making position with no income per share, as opposed to a per-share loss of S$0.05 in Q3 FY2022.
Revenue for Q3 FY2023 grew 13.2 per cent to S$39 million, driven mainly by higher contributions from Singapore, which more than offset lower revenue in Vietnam.
Singapore’s revenue contributions grew 24.1 per cent on the year to S$22.5 million as its number of agents and average revenue per agent grew over the quarter.
While revenue from Malaysia increased 11 per cent on a local currency basis due to ongoing benefits from PropertyGuru’s dual-brand strategy, revenue growth in Singapore dollar terms stood at a lower 4.5 per cent at S$6.8 million amid the depreciation of the Malaysian ringgit against the Singapore dollar.
In Vietnam, revenue fell 32.9 per cent year-on-year to S$4.1 million amid lower listing volumes, which were offset in part by higher average revenue per listing.
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Noting “challenging market conditions” within Vietnam’s marketplace, PropertyGuru’s chief financial officer Joe Dische said group revenue was up a “solid 23 per cent” excluding the country.
Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) – which no longer removes the ongoing cost of PropertyGuru being a listed entity – stood at S$5 million for Q3 FY2023, against a restated adjusted Ebitda of S$2 million in the same period a year ago.
Adjusted Ebitda margin for the latest quarter stood at 13.2 per cent, up from 5.8 per cent in Q3 FY2022.
“This is the second quarter in a row that we achieved a double-digit adjusted Ebitda margin, with all of our marketplaces delivering a profit. In addition, both net income in the third quarter and year-to-date cash flow were positive,” said Dische.
Citing macroeconomic and exchange rate challenges in Malaysia – along with no expected recovery in Vietnam’s property market for 2023 – the company has lowered its full-year revenue projections to S$148 million to S$152 million, from its previous S$160 million to S$170 million range.
Dische however said the group’s 2023 adjusted Ebitda outlook remains unchanged at S$11 million to S$15 million due to “effective expense management”.
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