Scout24’s shares experienced a surge on Thursday following the company’s announcement of increased profitability guidance for the year. The online property-portal operator, known for its platform ImmoScout24, cited high demand for its core products as the driving force behind higher revenue and adjusted earnings in the third quarter.
As of 0927 GMT, Scout24’s shares were up 4.3% at EUR61.
Previously projecting a growth range of 18% to 19% in earnings before interest, taxes, depreciation, and amortization (EBITDA) from ordinary activities, the company now expects a rise between 19% and 21%. However, it reduced its sales growth outlook for 2023 to 14% from 15% due to a slower recovery in the transaction business.
In the third quarter, Scout24 reported a 16% increase in sales compared to the same period last year, reaching 132.8 million euros ($140.4 million). This growth includes contributions from the recently acquired property-data specialist Sprengnetter Group.
Additionally, EBITDA from ordinary activities rose to EUR78.1 million from EUR63.9 million, with the EBITDA margin climbing to 58.8% from 55.7%. The company attributed these improvements to cost-controlling measures and an expanded customer base.
Despite adjusting its sales growth outlook, Scout24 remains optimistic about its continued growth and profitability.