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Introduction & Market Context
Hemnet Group AB (HEM) presented its Q1 2025 interim results on April 25, 2025, showcasing strong financial performance and strategic growth initiatives. The Swedish property portal maintained its dominant market position with 2.9 million unique weekly users in 2024, a 2% increase from the previous year, while ranking as the third strongest commercial media platform in Sweden.
The company’s presentation highlighted its competitive advantage, noting that Hemnet receives 16 times more clicks on listings than its nearest competitor. Despite challenging market conditions with high supply of listings and extended time-on-market, Hemnet managed to grow its business significantly in the first quarter.
As shown in the following chart of Hemnet’s market position metrics:
Quarterly Performance Highlights
Hemnet reported impressive financial results for Q1 2025, with net sales increasing by 29.6% year-over-year to SEK 328.5 million. The company achieved an EBITDA margin of 47.9%, representing SEK 157.5 million, a 31.6% growth compared to the same period last year. This strong performance was primarily driven by increased demand for value-added services within the property seller segment.
The following summary highlights the key financial metrics and business developments from the quarter:
The company’s revenue and profitability showed consistent growth over recent quarters, demonstrating strong operational leverage. The quarterly progression of net sales and EBITDA is illustrated in the following chart:
Detailed Financial Analysis
A key driver of Hemnet’s growth was the significant increase in Average Revenue Per Listing (ARPL), which grew by 36.9% year-over-year to SEK 6,722 in Q1 2025. This growth was attributed to continued high demand for Hemnet Premium and other value-added services, supported by a new compensation model that improved conversion rates.
The ARPL growth trend is visualized in the following chart:
While revenue per listing showed substantial growth, the actual number of listings remained relatively stable, with published listings growing by just 0.2% in Q1 2025 compared to the same period last year. On a last-twelve-months basis, listings grew by 3.3%. The company noted that the Swedish property market remained stable during the quarter.
The following chart shows the listing volume trends:
Breaking down the revenue by customer segments reveals that property sellers were the main growth driver, with revenue increasing by 38% to SEK 278.1 million. The real estate agents segment saw modest growth of 3% to SEK 25.4 million, while property developers and advertisers experienced declines of 5% and 13%, respectively.
The company’s EBITDA bridge analysis shows the key factors contributing to the year-over-year EBITDA growth:
Hemnet maintained a strong financial position with free cash flow (LTM) increasing by 48.4% year-over-year to SEK 739 million. The company’s leverage ratio (LTM) stood at 0.5x, representing a 0.3x reduction compared to Q1 2024. This financial strength is illustrated in the following chart:
Strategic Initiatives
A significant strategic development was the launch of Hemnet Max on April 1, 2025, just after the end of the first quarter. The company offered a discounted introduction during the first two weeks to drive initial conversion and reported positive early reactions from both sellers and agents. This new premium offering is expected to increase product diversification and potentially contribute to future ARPL growth.
The company also highlighted several other strategic focus areas, including enhancing the seller experience, improving consumer and agent interfaces, and simplifying the agent change process for sellers. These initiatives align with Hemnet’s growth strategy, which targets three key stakeholder groups: consumers, sellers, and B2B partners.
Forward-Looking Statements
Looking ahead, Hemnet emphasized its unique market position and the significant room for growth in its home market. The company plans to continue investing in product development and marketing to solidify its market position. Management expressed confidence in the opportunities linked to the core business and highlighted the organizational changes made in 2024 that have better positioned the company to execute its strategy.
CEO Jonas Gustafsson summarized the quarter as "a strong start to the year," noting the stable Swedish property market in Q1 and expressing optimism about the potential impact of the newly launched Hemnet Max service. The company’s focus remains on leveraging its strong foundation to drive continued growth and profitability in the coming quarters.
Full presentation:
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