Hypoport SE: strong growth in 2020 and positive outlook for 2021 despite coronavirus

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DGAP-News: Hypoport SE / Key word(s): Preliminary Results/Annual Results
Hypoport SE: strong growth in 2020 and positive outlook for 2021 despite
coronavirus

15.03.2021 / 06:55
The issuer is solely responsible for the content of this announcement.

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Preliminary results of the Group for 2020


Hypoport SE: strong growth in 2020 and positive outlook for 2021 despite
coronavirus

- Consolidated revenue rises by 15 per cent to EUR388 million in 2020

- Credit Platform and Private Clients segments generate revenue growth of 20
per cent and 17 per cent respectively and further increase their margins

- Year of transformation for the growing Real Estate Platform and Insurance
Platform segments, with focus on scalable platform models

- Investment for the future remains high, yet EBIT advanced by 10 per cent
to EUR36.2 million

Berlin, 15 March 2021: Hypoport again generated strong growth and increased
its consolidated revenue by 15 per cent to EUR388 million in 2020, despite the
effects of coronavirus. All four segments contributed to the Group's robust
performance.

The Credit Platform segment performed particularly well, increasing its
revenue by 20 per cent to EUR170 million. This rise in revenue was mainly
driven by the growth of mortgage finance business on the Europace B2B
lending marketplace and, in particular, on the FINMAS and GENOPACE
sub-marketplaces for the savings banks and cooperative banks. Non-captive
financial product distributors and private commercial banks also recorded
significant volume growth on the platform. Revenue in the white-label
personal loans business fell as a result of declining demand and more
restrictive lending policies by banks as a result of the coronavirus crisis.
However, the sales-supporting brokerage pools and REM Capital, which
specialises in providing corporate finance advice, saw a healthy rise in
revenue. The segment's EBIT advanced at an even stronger rate than revenue,
by 26 per cent, to reach EUR39 million despite continued high levels of
investment.

In the Private Clients segment, revenue increased by 17 per cent to EUR122
million. The main B2C brand, Dr. Klein Privatkunden, captured significant
market share thanks to its highly digitalised processes, in particular the
systematic use of Europace and the deployment of video technology for
advisory meetings. The segment's EBIT grew by an exceptional 60 per cent to
reach EUR18 million as the previous year's investment in digitalisation
started to make an impact.

In the Real Estate Platform segment, revenue increased slightly, by 5 per
cent, to EUR53 million. The good operating performance of the property sales,
property management and property valuation platforms was accompanied by the
decision to forego traditional project business in favour of scalable
platform business models. The property valuation platform, which is closely
integrated with the credit platform, generated particularly strong growth
despite the temporary restrictions resulting from social-distancing
measures. Supported by slightly heightened interest-rate volatility in 2020,
the property financing platform for the housing industry reported a small
increase in revenue. EBIT fell to a loss of EUR4 million owing to the high
levels of investment and the decision to scale back project business.
Relative to its revenue, the Real Estate Platform segment represented the
biggest area of investment within the Hypoport Group in 2020. As a result of
the progress made with the segment's transition to platform-based business
models in 2020, project business will be insignificant in future.

The revenue of the Insurance Platform segment also went up slightly, by 6
per cent, to EUR45 million. By signing up additional clients in 2020, the
fully integrated SMART INSUR platform managed to increase buy-in among the
target group of small and medium-sized distribution organisations and
brokerage pools, even though the rate at which new clients were signed up
fell short of expectations owing to coronavirus. The reduction in project
business and the focus on recurring revenue streams from the platform
business resulted in a slower pace of revenue growth. The segment's start-up
losses continued to decline, amounting to EUR1 million in 2020.

As a result of the aforementioned revenue growth in the individual segments,
the gross profit of the Hypoport Group went up by 16 per cent to EUR211
million in 2020. EBITDA advanced by 22 per cent to EUR64 million. EBIT for the
entire Hypoport Group went up by 10 per cent to EUR36 million despite high
levels of investment in the operating business models of the individual
segments, further investment at the level of the holding company and the
scaling back of traditional project business.

Ronald Slabke, Chief Executive Officer of Hypoport SE, was satisfied overall
with the Group's performance in a year dominated by coronavirus: "Hypoport
was much better prepared for the far-reaching changes in 2020 than many
other companies. Our decentralised structure and high degree of
digitalisation enabled us to respond to the coronavirus crisis with great
agility. With revenue growth of 15 per cent despite the worst global
recession for decades, we have clearly demonstrated that Hypoport remains a
growth company even in times of turmoil. We will remain firmly on this
course in 2021. Moreover, we will continue to drive forward the two key
areas of investment, the Real Estate Platform and Insurance Platform
segments. This reflects our mission - the digitalisation of the German
credit, property and insurance industries - and will benefit our B2B
partners and consumers alike. In the past years, we have achieved
double-digit growth in sales and EBIT. Hypoport will continue this dynamic
growth for many years. We will also gain significant market share in 2021.
That is why our forecast is: consolidated sales of EUR430 to 460 million and
an EBIT of between EUR40 and 45 million in 2021."

The preliminary financial results still need to be verified by the auditor
and adopted by the Supervisory Board. The annual report will be published as
planned on 29 March 2021.

    (EUR million)          Q1-Q4  Q1-Q4   Q1-Q4     Q4    Q4      Q4
                          2020   2019  change   2020  2019  change
    Revenue              387.6  337.2     15%  102.9  89.6     15%
    thereof Credit       169.5  141.5     20%   48.5  39.6     22%
    Platform
    thereof Private      122.2  104.6     17%   28.8  25.0     16%
    Clients
    thereof Real Estate   52.8   50.1      5%   13.9  16.1    -14%
    Platform
    thereof Insurance     45.0   42.6      6%   12.1  10.1     19%
    Platform
    thereof Holding &     -1.9   -1.5       -   -0.6  -1.0       -
    Reconciliation
    Gross profit         210.5  181.9     16%   60.8  51.1     19%
    EBITDA                63.8   52.2     22%   20.1  13.3     51%
    EBIT                  36.2   33.0     10%   12.0   8.0     51%
    Net profit for the    27.9   24.4     14%   10.1   5.5     84%
    period
    Earnings per share    4.33   3.90     11%   1.52  0.88     72%
About Hypoport SE

Hypoport SE is headquartered in Lübeck (Germany) and is the parent company
of the Hypoport Group. The Group is a network of technology companies for
the credit, real-estate and insurance industries with a workforce of more
than 2,000 employees. It is grouped into four segments: Credit Platform,
Private Clients, Real Estate Platform and Insurance Platform.

The Credit Platform segment operates Europace, which is an online B2B
financial marketplace and the largest German platform offering mortgages,
building finance products and personal loans. A fully integrated system
links more than 750 partners - banks, insurers and financial product
distributors. Several thousand loan brokerage advisors execute approx.
35,000 transactions per month on Europace, generating a volume of more than
EUR7 billion. Besides Europace, the FINMAS and GENOPACE sub-marketplaces and
the B2B distribution companies Qualitypool and Starpool support the growth
of the credit platform. REM CAPITAL AG provides specialist advice on the
arrangement of complex public-sector development loans for companies and
financing for SMEs in Germany. At fundingport GmbH a corporate finance
marketplace is being established.

The Private Clients segment, made up of the web-based, non-captive financial
product distributor Dr. Klein Privatkunden and the consumer comparison
portal Vergleich.de, brings together all business models aimed at directly
advising consumers on mortgages, insurance or pension products.

All real estate-related activities of the Hypoport Group, with the exception
of mortgage finance, are grouped together in the Real Estate Platform
segment (previously Institutional Clients) with the aim of digitalising the
sale, valuation, financing and management of properties.

The Insurance Platform segment operates SMART INSUR, a web-based B2B
platform for advice, comparison of tariffs and the administration of
insurance policies. The segment also incorporates the insurance unit of
Qualitypool, a B2B distribution company.

The shares of Hypoport SE are listed in the Prime Standard segment of the
Frankfurt Stock Exchange (Deutsche Börse) and have been included in the SDAX
since 2015.


Contact

Jan H. Pahl
Investor Relations Manager

Phone: +49 (0)30 / 42086 - 1942
Mobile: +49 (0)176 / 965 125 19
Email: ir@hypoport.de

Hypoport SE
Heidestr. 8
10557 Berlin

www.hypoport.com


Key data on Hypoport's shares

ISIN DE 0005493365
WKN 549336
Stock exchanges symbol HYQ


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15.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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   Language:       English
   Company:        Hypoport SE
                   Heidestraße 8
                   10557 Berlin
                   Germany
   Phone:          +4930420861942
   Fax:            +49/30 42086-1999
   E-mail:         ir@hypoport.de
   Internet:       www.hypoport.de
   ISIN:           DE0005493365
   WKN:            549336
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1175423



   End of News    DGAP News Service
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1175423 15.03.2021

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