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Investing.com -- Swedish property platform operator Hemnet Group (ST:HEM) reported a 32.4% jump in net sales for the fourth quarter of 2024, from SEK 275 million to SEK 364.1 million. The figure is in line with a company-compiled consensus.
EBITDA grew 24.5% to SEK 176.3 million, but 5.6% lower than the company-compiled consensus. The miss was driven by "higher operating expenses and a less favorable sales mix during the quarter and for the year,” the company said.
Operating profit increased 26.4% to SEK 153.6 million.
The company’s shares dropped 2% trading in Stockholm trading on Friday.
Average revenue per published listing (ARPL) climbed 43% to SEK 8,452, compared to SEK 5,911 in the prior year.
Looking ahead, Hemnet has maintained its approach to guidance and has not provided explicit targets for fiscal year 2025. The company reaffirmed its financial objectives, which include net sales growth of 15-20%, long-term EBITDA margins above 55%, and leverage below 2x.
Jefferies analysts expect the focus of Hemnet’s earnings call to center on two key areas: the revenue mix and operating expense increases that contributed to the approximately 6% EBITDA shortfall in the third quarter, and the potential shift in vendor monetization following the upcoming launch of Hemnet Max in the spring.
“Hemnet remains the best structural earnings growth story in EU online classifieds, and one of our top picks for 2025, but this second quarter in a row of missing EBITDA expectations will frustrate many, and likely apply some pressure to the equity today,” analysts led by Giles Thorne said in a note.
The company’s board of directors has proposed a dividend of SEK 1.70 per share, up 41.7% from SEK 1.20, aligning with the company’s dividend policy and representing roughly one-third of earnings per share.