By Ed Frankl
Shares of Scout24 SE rose on Thursday after raising its forecast for 2022 as German property developments boosted demand on its ImmoScout24 platform.
At 09:30 GMT, the action rose 4.4% to 60.14 euros.
The German digital market raised its revenue growth targets to 13%-15% from the upper limit of the previous forecast of 11%-12% from May.
It also raised its outlook for growth in earnings before interest, tax, depreciation and amortization from ordinary activities to 10%-12%, from the upper limit of between 6% and 8% previously.
The rise in profits was based on improved revenue momentum, a more efficient product and marketing mix as well as additional economies of scale, the Munich-based company said.
Ahead of the August 9 first-half results, the company said revenue growth in the six months to end-June was already up 14.7% year-on-year, with Ebitda growth up 9.5%.
Scout24’s revenue momentum is expected to exceed market expectations as its products have gained traction, allowing it to increasingly monetize its customer base, RBC Capital Markets analysts Wassachon Udomsilpa and Sherri Malek said in a note.
“With the greatest potential for upside revenue surprises, Scout24 is our preferred name in the classifieds space,” they added.
Write to Ed Frankl at [email protected]