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Singapore’s PropertyGuru posts internet loss for third quarter

Non-public houses within the River Valley/Orchard space in Singapore. Returning Singaporeans and expatriates have pushed rental demand in Singapore, based on PropertyGuru’s CFO.

Lauryn Ishak | Bloomberg | Getty Pictures

Singapore-based on-line property portal PropertyGuru posted a internet lack of S$7.4 million ($5.3 million) for the quarter ended Sept. 30 — down from final quarter’s internet revenue of S$3.8 million.

However that is nonetheless decrease than the web lack of S$9.6 million in the identical interval a yr in the past, and third quarter income grew by 47% yr on yr.

In the meantime, adjusted EBITDA for the third quarter improved to constructive S$5.7 million, up from an adjusted EBITDA lack of S$1.5 million in the identical interval a yr in the past. EBITDA is a measure of profitability that exhibits earnings earlier than curiosity, taxes, depreciation and amortization.

“Our third quarter outcomes illustrate that PropertyGuru has been capable of produce sturdy enterprise efficiency whilst a few of our core markets have begun to face headwinds from the difficult financial circumstances being skilled across the globe,” mentioned Hari Krishnan, PropertyGuru Group’s CEO and managing director.

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Within the earnings name Monday evening, Krishnan cited difficult circumstances corresponding to Singapore’s rising taxes and stamp duties. In Vietnam, credit score for buying houses is now more durable to entry, he mentioned.

The web portal offers data throughout the Singapore, Malaysia, Indonesia, Thailand and Vietnam marketplaces.

‘We stay bullish’

“Even with brief time period macro headwinds, we stay bullish on the long run prospects for PropertyGuru,” mentioned Joe Dische, the group’s CFO.

In an interview with CNBC’s “Squawk Box Asia” Tuesday, Dische pointed to developments within the Malaysia and Singapore property markets.

“We have seen some good exercise in Malaysia. The federal government has been supportive of lower-end and reasonably priced houses. There have been some measures taken form of previous to the current election, to have some form of stamp responsibility concessions … kicking in for first-time patrons. So we’re undoubtedly seeing some motion being taken there to help the market,” he mentioned.

Finance Minister Zafrul Aziz had mentioned in a price range speech to Parliament in early October that the nation will increase stamp responsibility exemption to 75% from 50% on first dwelling purchases.

Digitalization, middle-class growth and urbanization are strong tailwinds for us: PropertyGuru CFO

He mentioned returning Singaporeans and expatriates, in addition to delays in supply of build-to-order residences and renovation works throughout the earlier levels of the pandemic, have pushed rental demand in Singapore.

Vietnam, then again, has been cracking down on speculative exercise, making it tough for individuals to entry credit score, mentioned Dische.

“This does have a knock-on influence on the abnormal one who is attempting to buy a property. However I believe there was some motion towards that hypothesis which drives inflation in these markets. As affordability drops, some individuals will wait and see and transfer into the rental market, rising costs and demand,” he added.

In October, the corporate made its first post-listing acquisition — Singapore-based dwelling providers know-how firm Sendhelper. PropertyGuru listed on the New York Inventory Alternate in March.

PropertyGuru shares are down 39% since its itemizing.

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