Frontier Digital Ventures Ltd. · ASX:FDV
Frontier Digital Ventures — H1 2023 Earnings Presentation
31 slides from Frontier Digital Ventures's earnings presentation, Aug 29, 2023
Slide 1: 2023 Half Year Results Presentation
Leading online classifieds marketplaces in emerging regions 2023 Half Year Results Presentation ASX: FDV | 29 August 2023
Slide 2: Contents
CONTENTS FDV overview 3 1H 2023 financial results 5 Operating regions – 360 LATAM, MENA 11 Marketplaces Group (“MMG”), FDV Asia Additional information 26 2
Slide 3: About FDV
ABOUT FDV Leading online classifieds marketplaces in emerging regions Proven classifieds marketplace model Classifieds marketplaces play a central role in formalising markets, with FDV focussing on high value consumer goods – property and vehicles. Classifieds have been some of the most successful o
Slide 4: Opportunity in emerging markets
OPPORTUNITY IN EMERGING MARKETS Online classifieds marketplaces have significant leverage to population and economic factors, with emerging markets amplifying the opportunity Population GDP Internet penetration Mobile connections 882m A$4.4tn 68% 125% Population of FDV‘s markets Aggregate GDP across
Slide 5: 1H 2023 financial results
1H 2023 financial results 5
Slide 6: 1H 2023 Group Financial Highlights
1H 2023 GROUP FINANCIAL HIGHLIGHTS All three regions were operating cash flow positive in 1H 2023 Statutory revenue Statutory EBITDA 360 LATAM, MMG and A$31.2m A$0.9m FDV Asia operating cash flow positive +7% on 1H 2022 +A$3.4m on 1H 2022 Revenue from Operating EBITDA1 Cash balance Associates A$1.5m
Slide 7: Revenue since IPO
REVENUE SINCE IPO Track record of continued revenue growth underpinned by organic growth and strategic acquisitions FDV Group statutory revenue since IPO (A$m) 59.0 1H 2023 51.1 29.8 29.4 20.6 15.0 12.4 12.3 29.2 31.2 9.1 7.7 21.6 6.6 4.9 8.3 4.2 5.9 7.3 2017 2018 2019 2020 2021 2022 2023 1H 2H Note
Slide 8: Half year revenue breakdown
HALF YEAR REVENUE BREAKDOWN FDV Group statutory revenue of A$31.2m driven by growth in 360 LATAM and FDV Asia on 1H 2022 FDV Group statutory revenue breakdown (A$m) 360 LATAM 31.2 360 LATAM delivered statutory revenue of A$23.9m in 1H 2023, +7% 29.2 representing a 7% increase on 1H 2022, as a result
Slide 9: Operating expenses breakdown
OPERATING EXPENSES BREAKDOWN Enhanced operating leverage reflected by 1H 2023 group operating expenses as a % of revenue of 97% (1H 2022: 108%) Group operating expenses breakdown (A$m) Group operating expenses 1H 2022 1H 2023 Total group operating expenses reduced A$1.4m in 1H 2023 to A$30.3m. As a
Slide 10: Half year EBITDA breakdown
HALF YEAR EBITDA BREAKDOWN A$1.6m improvement in operating EBITDA driven by strong performance of consolidated entities Group operating EBITDA (A$m)1 Statutory EBITDA 1.5 ▪ Record statutory EBITDA of A$0.9m2 in 1H 2023, increasing 137% from A$(2.5m) in 1H 2022, including: – 360 LATAM EBITDA of A$1.8
Slide 11: Operating regions
Operating regions 11
Slide 12: 360 LATAM
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Slide 13: 360 LATAM Financial Update
FINANCIAL UPDATE Record revenue of A$23.9m and EBITDA margin of 8% in 1H 2023 driven by increase in transaction revenues Revenue (A$m) Revenue by category (A$m)1 EBITDA (A$m) Other, 22.3 23.9 $1.6 1.8 Transactions, $3.0 Recurring subscription, $12.7 0.4 Advertising & Media, $6.6 1H 2022 1H 2023 1H 2
Slide 14: 360 LATAM Operational Update
OPERATIONAL UPDATE Roll-out of new promotional activities and MLS to drive traffic and sales commissions in upcoming quarters Optimised digital marketing strategy • Search engine optimisation (SEO) improvements and inbound marketing driving free traffic, and contributing users and leads growth • Enh
Slide 15: LATAM Real Estate Market Opportunity
LATAM REAL ESTATE MARKET OPPORTUNITY Large primary real estate commission pools provide significant opportunity for real estate marketplaces ~1.3m X ~A$155k X 0.6% = ~A$1.2bn Annual primary real estate Current commission on Annual primary real estate market transactions in 360 Average sale price1 sa
Slide 16: Iris: Overview
IRIS: OVERVIEW Iris is 360 LATAM‘s proprietary multiple listing service (MLS) platform, streamlining new development sales Problem • Developers have substantial stock of new real estate for sale however their existing sales channels alone are insufficient to fully capitalise on their inventory • Pub
Slide 17: Iris: Validated Model
IRIS: VALIDATED MODEL Iris commission sharing model has been validated by the platform‘s ability to accelerate project sales Business model Case study – new project sales (#) Real estate agent / broker access inventory and Developer uses existing sales methods, Developer adds project to with sales s
Slide 18: Iris: Platform Roll Out
IRIS: PLATFORM ROLL OUT New revenue opportunity with roll out into larger markets expected to accelerate transactions growth Planned Iris roll out Iris platform has been developed using IP generated from InfoCasas‘ platform and built to be easily deployed to other markets. Colombia: 4Q FY23 Populati
Slide 19: MENA Marketplaces Group
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Slide 20: MENA Financial Update
FINANCIAL UPDATE EBITDA margin of 10% in 1H 2023 supported by reduction in cost base while maintaining revenue growth Revenue (A$m)1 Revenue by category (A$m)2 EBITDA (A$m) Transactions & 4.5 4.5 0.4 Other, <$0.1 Recurring subscription, 1H 2022 1H 2023 $2.2 Advertising & Media, $2.3 (1.0) 1H 2022 1H
Slide 21: MENA Operational Update
OPERATIONAL UPDATE Introduction of new marketing initiatives and events expected to drive website sessions, users and leads Successful offline consumer events for auto • Successful auto events held across Morocco and Tunisia for consumers to browse for new vehicles, leading to over >250 cars being t
Slide 22: FDV Asia
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Slide 23: FDV Asia Financial Update
FDV ASIA FINANCIAL UPDATE Total revenue of A$9.4m with Zameen growing revenue from May to June 2023 Revenue (A$m) Revenue by category (A$m)1 EBITDA (A$m) 16.2 Recurring 2.4 subscription, 9.4 $2.0 2.5 0.9 13.8 6.7 0.6 Advertising & Media, $0.5 0.3 2.4 2.7 (0.1) Transactions & 1H 2022 1H 2023 1H 2022
Slide 24: FDV Asia Operational Update
FDV ASIA OPERATIONAL UPDATE Number of initiatives being completed across markets to drive engagement and key metrics Roll-out of brand campaign • Successful launch of Zameen’s brand campaign across out-of-home and digital platforms to highlight Pakistan’s resilient property and construction sector •
Slide 25: Zameen Trading Update
FDV ASIA ZAMEEN TRADING UPDATE Two consecutive months of revenue growth as conditions stabilise however remain challenging in Pakistan Zameen YTD revenue1 (A$k) Dominant marketplace in Pakistan • 17x the audience of its closest competitor in July 2023 2 reflecting its strong market position and bran
Slide 26: Additional information
Additional information 26
Slide 27: 1H 2023 Summary Statutory Results
1H 2023 SUMMARY STATUTORY RESULTS 1H 2023 1H 2022 Change Commentary on results A$000 A$000 A$000 % 1. Group statutory revenue: A$31.2m revenue from 1 Group Statutory Revenue 31,181 29,197 1,984 7% continuing operations in 1H FY23, driven by organic Group Operating Expenses (30,274) (31,666) 1,392 4%
Slide 28: Corporate Overview
CORPORATE OVERVIEW Share price performance (YTD) Substantial shareholders $1.20 Catcha Group (Patrick Grove and Luke Elliott) 11.9% Shaun Di Gregorio (Founder and CEO) 9.8% $1.00 Barca Global Master Fund 7.4% $0.80 SmallCo Investment Manager 7.3% $0.60 Financial information Share price (28-Aug-23) A
Slide 29: Financial Profiles
FINANCIAL PROFILES Statutory revenue by brand Ownership 1H 2023 2022 2021 2020 2019 2018 2017 2016 360 LATAM 23,900,755 45,181,751 38,548,887 13,914,813 8,360,954 7,474,347 6,617,180 1,587,520 InfoCasas Consolidated 100% 9,353,230 18,023,791 13,626,840 5,919,914 284,762 - - - Encuentra24 Consolidate
Slide 30: Financial Profiles (Con't)
FINANCIAL PROFILES (CON’T) Statutory EBITDA by brand Ownership 1H 2023 2022 2021 2020 2019 2018 2017 2016 360 LATAM 1,808,722 1,057,506 1,265,332 808,040 (163,777) (962,046) (527,586) (694,002) Yapo Consolidated 100% 917,228 (1,218,745) (195,817) - - - - - Encuentra24 Consolidated 100% 666,565 710,1
Slide 31: Contact Us
CONTACT US PRINCIPAL OFFICE 39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia www.frontierdv.com ABOUT FDV This announcement is authorised for release by the Board Frontier Digital Ventures (FDV) is a leading owner and operator of of Directors of Frontier Digital
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