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ASX Code: FDV 28 April 2022
1Q 2022 Quarterly Activity Report and Appendix 4C
Frontier Digital Ventures Ltd ("FDV" or the "Company") is pleased to release its Quarterly Activity Report and Appendix 4C for the March quarter ("1Q 2022").
• Record quarterly revenue of A$20.2m on an FDV % share basis, increasing 83% from A$11.0m in 1Q 2021
• Record monthly revenue in March 2022 of A$7.3m on an FDV % share basis, which annualises at A$88m and highlights continued strong revenue growth
• Portfolio EBITDA of A$0.7m on an FDV % share basis, representing FDV's third consecutive quarter of positive portfolio EBITDA, with 12 of the operating companies EBITDA positive in 1Q 2022
• Positive portfolio EBITDA margin in 1Q 2022, further highlighting FDV's ability to generate significant revenue growth on a sustainable basis
• Transaction volume increase to 4,324 in 1Q 2022, increasing 60% from 1Q 2021, with focus on organic growth initiatives as all operating companies now able to facilitate transactions
• Strong balance sheet with cash of A$48.1m as at 31 March 2022
FDV's Founder and CEO, Shaun Di Gregorio said:
"We continue to deliver significant revenue growth on a sustainable basis in 1Q 2022 with our revenue now annualising at A$88m on an FDV % share basis. Our performance in 1Q 2022 highlights the enduring nature and resilience of the online marketplace business model, irrespective of the ongoing disruptions we see from time to time in emerging markets.
Building on the strength of our online marketplace leadership positions, we continue to invest in our operating companies to accelerate their transaction capabilities and drive organic growth. Our strong underlying marketplace business model combined with developing our transactional capabilities represents a compelling value creation opportunity for FDV's shareholders. FDV remains in an enviable position with an attractive earnings growth profile and strong balance sheet."
CONTINUED STRONG REVENUE GROWTH
Figure 1 highlights the strong start to 2022, with A$20.2m revenue achieved in 1Q 2022, increasing 83% on 1Q 2021 (FDV % share basis). Notably, March represented another record month - generating A$7.3m of revenue on an FDV % share basis which annualises at A$88m.
On a 100% basis, FDV achieved revenue of A$36.3m in 1Q 2022, increasing 54% on pcp, demonstrating the strong organic growth across FDV's operating companies. In addition, FDV continues to see growth
Frontier Digital Ventures Ltd
39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia
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Tel: +60 3 2700 1591www.frontierdv.com
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in revenues derived from transactions, which now accounts for 54% of FDV's total portfolio revenue, increasing from 49% in 1Q 2021 (100% basis).
1Q 2022 results further proves the durability of the core online marketplace model since listing on the ASX in 2016 and more recently, the opportunity to facilitate transactions. Over this period, FDV has achieved a revenue compound annual growth rate (CAGR) of over 50% and quarter-on-quarter revenue growth in 20 out of 23 quarters. This record has been achieved despite the many external disruptions typical of emerging markets, such as recent political unrest in Pakistan and Sri Lanka. This demonstrates the robustness of the core online marketplace model, the opportunity to facilitate transactions, and the benefits of diversification across FDV's carefully constructed portfolio, underpinned by our management team with a proven track record.
Figure 1: Quarterly portfolio revenue (A$m, unaudited, FDV % share basis)
20.2
18.7
17.3
1Q 2020
2Q 2020
3Q 2020
4Q 2020
1Q 2021
2Q 2021
3Q 2021
4Q 2021
1Q 2022
Note: Results figures quoted for entities with continuing operations as at 31 March 2022
Table 1: Quarterly revenues by business1 (A$m, unaudited; 100% basis)
FDV ownership
(%)
FDV LATAM
1Q 2021
Revenue A$ (100% basis)Growth (% in A$)
10,779,516
6,778,823
59%
InfoCasas2 Encuentra243 Yapo4 Fincaraíz FDV Asia
100% 100% 100% 100%
3,943,232 2,318,525 2,302,980 2,214,778 23,283,432
1,892,482 2,026,401 880,453 1,979,487 14,797,473
108% 14% 162% 12% 57%
Zameen PakWheels AutoDeal LankaPropertyWeb Hoppler5
30% 37% 56%
21,373,133 728,863 498,067
13,330,221 580,753 341,240
60% 26% 46%
iMyanmarhouse CarsDB
53% 51% 53% 65%
275,773 186,940
189,884 169,512
45% 10%
FDV MENA
168,601 52,055 2,266,431
146,334 39,528
15% 32%
2,084,653
9%
Avito
100%
1,759,563
1,572,626
12%
West Africa6 Tayara Moteur7 Total revenue
N/A 100% 100%
208,378 162,223 136,267 36,329,379
159,361 212,343 140,323
31% (24%) (3%)
23,660,949
54%
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Table 2: Quarterly revenues by business1 (A$m, unaudited; FDV % share basis)
FDV ownership
(%)
Revenue A$ (FDV % basis)
1Q 2022
1Q 2021
Revenue A$ (FDV % basis)Growth (% in A$)
FDV LATAM
10,779,515
InfoCasas2
Encuentra243
Yapo4
Fincaraíz FDV Asia
100% 100% 100% 100%
3,943,232 2,318,525 2,302,980
4,379,421 986,740 532,741 880,453
146%
300% 335% 162%
2,214,778 7,271,121
1,979,487
12%
4,642,600
57%
Zameen AutoDeal PakWheels LankaPropertyWeb Hoppler5 iMyanmarhouse CarsDB
30% 56% 37%
6,360,645 277,871 268,513
3,966,775
190,378
213,961
60% 46% 25%
53% 51% 53% 65%
FDV MENA Avito Tayara Moteur7 West Africa6 Total revenue
146,187 95,433 88,735 33,737 2,163,149
100,658
68,195
77,016
25,618
45% 40% 15% 32%
2,005,742
8%
100% 100% 100% N/A
1,759,563
162,223 136,267 105,096 20,213,785
1,572,626 212,343 140,323
12%
(24%) (3%)
80,450 11,027,764
31% 83%
Notes:
1. Results figures quoted for entities with continuing operations as at 31 March 2022
2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021
3. FDV increased its shareholding in Encuentra24 to 100% on 17 December 2021
4. FDV acquired a 100% interest in Yapo on 25 February 2021
5. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021
6. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)
7. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021
GROWTH ON A SUSTAINABLE BASIS
FDV reported portfolio EBITDA of A$0.7m on an FDV % share basis, which increased from (A$0.1m) in 1Q 2021, and is the third consecutive quarter of positive EBITDA. In 1Q 2022, FDV recorded a portfolio EBITDA margin of +3%, comfortably within FDV's target range despite investments to accelerate the roll-out of the transactions model in a number of operating companies.
In 1Q 2022, 12 of the operating companies reported positive EBITDA on an FDV % share basis, up from 6 in 1Q 2021. Of the 4 companies with EBITDA losses, 3 recorded improvements in their EBITDA position, relative to the prior corresponding period, with Tayara being the exception.
Frontier Digital Ventures Ltd
39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia
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Tel: +60 3 2700 1591www.frontierdv.com
Figure 2: Portfolio EBITDA margin1 (A$m, unaudited; FDV % share basis)
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Half-year basis
1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1Q 2022
Onset of COVID-19
(32%)
(51%)
Note: Results figures quoted for entities with continuing operations as at 31 March 2022
Table 3: Quarterly EBITDA by business1 (A$m, unaudited; FDV % share basis)
FDV ownership
(%)
EBITDA A$ (FDV % basis)
1Q 2022
1Q 2021
EBITDA A$ (FDV % basis)EBITDA change (in absolute terms)
FDV LATAM InfoCasas2 Fincaraíz Encuentra243 Yapo4
325,599
138,568
187,031
100% 100% 100% 100%
FDV Asia Zameen AutoDeal iMyanmarhouse LankaPropertyWeb PakWheels CarsDB Hoppler5 FDV MENA West Africa6 Moteur7 Tayara Avito
144,040 102,384 41,809 37,366 925,923
96,679 198,060 (28,909) (127,262) 415,959
47,361
(95,676) 70,718 164,628 509,964
30%
944,759
531,312
413,447
56%
78,471
(67,624)
146,095
53%
4,805
(15,500)
20,305
53%
3,049
3,245
(196)
37%
159
23,256
(23,907)
65%
(32,643)
51%
(72,676)
(43,249) (15,480)
10,606
(545,739)
(653,785)
(57,196) 108,046
N/A 100% 100% 100%
Total EBITDA
13,646 39 (164,191) (395,233) 705,783
4,616
(8,323) (161,559) (488,519)
(99,259)
9,030 8,362 (2,632) 93,286 805,042
Notes:
1. Results figures quoted for entities with continuing operations as at 31 March 2022
2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021
3. FDV increased its shareholding in Encuentra24 to 100% on 23 December 2021
4. FDV acquired a 100% interest in Yapo on 25 February 2021
5. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021
6. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)
7. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021
Frontier Digital Ventures Ltd
39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia
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Tel: +60 3 2700 1591www.frontierdv.com
TRANSACTION MODEL UPDATE
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In 1Q 2022, FDV made significant progress in its strategy of augmenting the market leadership positions of their online marketplaces with high growth transaction-based revenue. Notably, a considerable milestone was reached with all operating companies now capable of facilitating transactions, with a total of 4,324 transactions completed, an increase of 60% on pcp.
In 1Q 2022, FDV made a number of targeted investments to further accelerate the transactional capabilities of the operating companies, with a primary focus on FDV LATAM. The investments to drive growth were designed to take advantage of our market leadership positions in a challenging operating environment for our competitors. These investments consisted of increases in advertising and marketing costs, as well as employee costs, to accelerate transaction volumes and revenues in 2022 and beyond. These short-term increases in spending are detailed in item 1.2 of the Appendix 4C.
OPERATIONAL UPDATES
FDV LATAM - 53% of 1Q 2022 revenue (FDV % share basis)
FDV LATAM continues to be a significant contributor to FDV's overall portfolio, with 1Q 2022 revenue of A$10.8m, increasing 59% on pcp (100% basis). Following a number of strategic acquisitions and portfolio optimisation activities that occurred in late 2020 and throughout 2021, FDV now owns 100% of FDV LATAM operating companies, providing significant strategic value and monetisation optionality. During the quarter, FDV made a number of targeted investment across FDV LATAM to further accelerate the transactional capabilities of the region.
InfoCasas, the leading property marketplace in Uruguay, Paraguay and Bolivia with a growing presence in Peru, recorded 1Q 2022 revenue of A$3.9m, increasing 108% on pcp (100% basis). The marketplace continued its consecutive quarters of positive operational performance, with EBITDA of A$144k (100% basis). In 1Q 2022, property transaction volumes were 249, increasing 49% on pcp, demonstrating the rapid growth of the transaction business underpinned by InfoCasas' highly scalable proprietary technology platform.
Encuentra24, the leading online marketplace across 5 key Central American markets, recorded revenue of A$2.3m in 1Q 2022, increasing 14% on pcp. Notably, Encuentra24 recorded EBITDA of A$42k, representing a significant increase of A$152k on pcp and its third consecutive EBITDA positive quarter (100% basis). Following FDV's increase in ownership to 100% (see ASX release 'Increase in
Enceuntra24 ownership and capital raising', 17 December 2021), Enceuntra24 has seen continued traction in its Consumer-to-Consumer transaction initiatives, recording 204 transactions during the quarter. The Company has leveraged learnings from its successful consumer transactions as it focuses on the high value property vertical, resulting in the facilitation of 3 real estate transactions during the quarter. The marketplace has a strong pipeline of property projects in its pipeline, providing a pathway to significantly enhance its revenue trajectory.
Yapo, the leading online marketplace in Chile with number 1 position across the high value auto and property verticals, recorded a significant revenue result of A$2.3m in 1Q 2022, an increase of 162% on pcp (100% basis). The Company's considerable operational progress is illustrated by Yapo's third consecutive quarter of positive EBITDA of A$37k, an increase of A$165k on pcp (100% basis). Notably, this result was achieved while Yapo undertook significant optimisation of its website,Yapo.cl,which improves the consumer experience, introduces new advertising products for customers and provides
Frontier Digital Ventures Ltd
39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia
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Tel: +60 3 2700 1591www.frontierdv.com
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Frontier Digital Ventures Ltd. published this content on 27 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 02:03:09 UTC.