Cian PLC (MOEX: CIAN) ('Cian', the 'Group' or the 'Company') (NYSE: CIAN), (MOEX: CIAN), a leading online real estate classifieds platform in Russia, today announced its financial results for the second quarter and six months ended June 30, 2023.
Second Quarter 2023 Key Financial and Operational Highlights1
Revenue increased by 40% Y-o-Y to RUB 2,661 million ($30.6 million).
Profit for the period amounted to RUB 404 million ($4.6 million).
Adjusted EBITDA2 increased by 23% Y-o-Y and reached RUB 590 million ($6.8 million).
Adjusted EBITDA Margin2 decreased by 3.0 pp Y-o-Y to 22.2%.
Core Business revenue increased by 42% Y-o-Y to RUB 2,528 million ($29.0 million).
Six Months 2023 Key Financial and Operational Highlights1 Revenue increased by 39% Y-o-Y to RUB 5,063 million ($58.2 million).
Profit for the period amounted to RUB 615 million ($7.1 million).
Adjusted EBITDA2 increased by 76% Y-o-Y and reached RUB 943 million ($10.8 million).
Adjusted EBITDA Margin2 increased by 3.8 pp and amounted to 18.6%.
Average UMV (Unique Monthly Visitors)3 increased by 4% Y-o-Y to 19.0 million.
Core Business revenue increased by 42% Y-o-Y to RUB 4,826 million ($55.4 million).
Core Business Adjusted EBITDA4 increased by 30% Y-o-Y to RUB 1,181 million ($13.6 million).
Core Business Adjusted EBITDA Margin5 deteriorated by 2.2 pp Y-o-Y and reached 24.5%.
Dmitriy Grigoriev, Chief Executive Officer of Cian PLC, commented: 'Cian continues to grow steadily both in our core business and new products on the back of demand recovery in the market. We remain focused on supporting our market position while generating healthy cash flow and keeping the business profitable.'
NYSE Delisting
On March 15, 2023, the Company received a written notice from the staff of the New York Stock Exchange Regulation notifying the Company that it has determined to delist the Company's American depositary shares (ADSs) from the NYSE. The Company utilized its right to a review of the determination and, accordingly, filed an appeal to this decision. Following an appeal process that included the delivery of written submissions as well as an oral presentation before a Committee of the Board of Directors of the NYSE, the Company was notified on July 21, 2023 that the Committee had reached a final decision to uphold the delisting determination.
The removal of the Company's ADSs from listing on the NYSE became effective on July 31, 2023. The Company does not expect the delisting to have any immediate effect on the terms of the ADSs under its ADS program, which will continue to exist in their current form. The trading of the Company's ADSs on the Moscow Exchange is unaffected and continues as usual.
Second Quarter and Six Months 2023 Results
Factors affecting year-over-year trends and comparisons
We believe that trends in the real estate market in the first half of 2023 were particularly characterized by the following events: (i) more stable demand in the first half of 2023 compared to respective period of the last year; (ii) in December 2022, the subsidized government mortgage was prolonged until July 2024. However, the interest rate for mortgages in this program increased from 7% to 8%. At the same time, the requirements of the government subsidized program for families were eased (the interest rate in this program is 6%). These changes put additional pressure on the mortgage market and led to crossflow of demand between subsidized programs; (iii) demand was recovering both in primary and secondary markets.
Post reporting date, on July 21, 2023, following a continued sharp depreciation of the ruble, the key interest rate was increased to 8.5% and further increased to 12% on August 15, 2023.
About Cian
Cian is a leading online real estate classifieds platform in the large, underpenetrated and growing Russian real estate classifieds market, with a strong presence across Russia and leading positions in the country's key metropolitan areas. The Company ranks among the top twelve most popular online real estate classifieds globally in terms of traffic (based on SimilarWeb traffic data for July 2023). Cian's networked real estate platform connects millions of real estate buyers and renters to millions of high-quality real estate listings of all types - residential and commercial, primary and secondary, urban and suburban. In the first half of 2023, the Company had over 1.9 million listings available through its platform and monthly audience with an average UMV of 19.0 million. Through its technology-driven platform and deep insights into the Russian real estate market the Company provides an end-to-end experience for its customers and users and helps them address multiple pain points on their journey to a new home or place to work.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2021 and long-term growth strategy, as well as statements that include the words 'target,' 'believe,' 'expect,' 'aim,' 'intend, intend,' may,' 'anticipate,' 'estimate,' 'plan,' 'project,' 'will,' 'can have,' 'likely,' 'should,' 'would,' 'could' and other words and terms of similar meaning or the negative thereof. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: the negative impact on the Russian economy of the ongoing military actions between Russia and Ukraine, any negative effects of sanctions, export controls and similar measures targeting Russia as well as other responses to the military conflict in Ukraine; our ability to maintain our leading market positions, particularly in Moscow, St. Petersburg and certain other regions, and our ability to achieve and maintain leading market position in certain other regions; our ability to compete effectively with existing and new industry players in the Russian real estate classifieds market; our heavy dependence on our brands and reputation; any potential failure to adapt to any substantial shift in real estate transactions from, or demand for services in, certain Russian geographic markets; any downturns in the Russian real estate market and general economic conditions in Russia; any effect on our operations due to cancellation of, or any changes to, the Russian mortgage subsidy program or other government support programs; further widespread impacts of the COVID-19 pandemic, or other public health crises, natural disasters or other catastrophic events which may limit our ability to conduct business as normal; our ability to establish and maintain important relationships with our customers and certain other parties; any failure to establish and maintain proper and effective internal control over financial reporting; any failure to remediate existing deficiencies we have identified in our internal controls over financial reporting, including our information technology general controls; any new or existing government regulation in the area of data privacy, data protection or other areas and other important factors discussed under the caption 'Risk Factors' in Cian's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission ('SEC') on April 27, 2023 and our other filings with the SEC as such factors may be updated from time to time.
Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. We disclaim any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Contact:
Daria Fadeeva
Email: ir@cian.ru
MOSCOW EXCHANGE MICEX-RTS 
