Scout24 Reports Strong Preliminary First-Half Results and Upgrades 2023 Guidance

Shares in Scout24 experienced a significant boost following the company's release of higher than expected preliminary first-half revenue and earnings. As a result, the company has upgraded its guidance for the entire year.

At 0831 GMT, shares of Scout24 rose by 7.2% to EUR62.08.

Preliminary first-half earnings before interest taxes depreciation and amortization (EBITDA) from ordinary activities reached 146.5 million euros ($161.3 million), indicating a 21% organic increase. Additionally, revenue for the same period amounted to EUR243.8 million, representing a 12% organic growth.

According to UBS analysts, these figures align with consensus expectations for second-quarter revenue while also surpassing ordinary operating EBITDA estimates by 12%.

Jefferies analysts noted that the German property market slowdown has spurred digital marketing growth, which was further accelerated by factors such as the acquisition of new members, price increases higher than inflation, upselling of products, and limited incremental costs.

Scout24's upgraded guidance for 2023 can be attributed to the contributions made by the recently-acquired Sprengnetter Group, as well as the expectation of sustained strong demand. The company anticipates a 15% revenue growth and a rise in consolidated EBITDA from ordinary activities between 18% and 19%.

Consensus estimates provided by the company indicated an 11% revenue growth and a 13% rise in ordinary operating EBITDA for Scout24 in 2023.

Overall, Jefferies analysts commended Scout24's underlying trading performance, highlighting the continued robust demand for its core products. While the guidance upgrade is largely driven by the Sprengnetter acquisition, the company's overall outlook remains positive.