For personal use only

ASX Code: FDV 28 April 2022

1Q 2022 Quarterly Activity Report and Appendix 4C

Frontier Digital Ventures Ltd ("FDV" or the "Company") is pleased to release its Quarterly Activity Report and Appendix 4C for the March quarter ("1Q 2022").

  • • Record quarterly revenue of A$20.2m on an FDV % share basis, increasing 83% from A$11.0m in 1Q 2021

  • • Record monthly revenue in March 2022 of A$7.3m on an FDV % share basis, which annualises at A$88m and highlights continued strong revenue growth

  • • Portfolio EBITDA of A$0.7m on an FDV % share basis, representing FDV's third consecutive quarter of positive portfolio EBITDA, with 12 of the operating companies EBITDA positive in 1Q 2022

  • • Positive portfolio EBITDA margin in 1Q 2022, further highlighting FDV's ability to generate significant revenue growth on a sustainable basis

  • • Transaction volume increase to 4,324 in 1Q 2022, increasing 60% from 1Q 2021, with focus on organic growth initiatives as all operating companies now able to facilitate transactions

  • • Strong balance sheet with cash of A$48.1m as at 31 March 2022

FDV's Founder and CEO, Shaun Di Gregorio said:

"We continue to deliver significant revenue growth on a sustainable basis in 1Q 2022 with our revenue now annualising at A$88m on an FDV % share basis. Our performance in 1Q 2022 highlights the enduring nature and resilience of the online marketplace business model, irrespective of the ongoing disruptions we see from time to time in emerging markets.

Building on the strength of our online marketplace leadership positions, we continue to invest in our operating companies to accelerate their transaction capabilities and drive organic growth. Our strong underlying marketplace business model combined with developing our transactional capabilities represents a compelling value creation opportunity for FDV's shareholders. FDV remains in an enviable position with an attractive earnings growth profile and strong balance sheet."

CONTINUED STRONG REVENUE GROWTH

Figure 1 highlights the strong start to 2022, with A$20.2m revenue achieved in 1Q 2022, increasing 83% on 1Q 2021 (FDV % share basis). Notably, March represented another record month - generating A$7.3m of revenue on an FDV % share basis which annualises at A$88m.

On a 100% basis, FDV achieved revenue of A$36.3m in 1Q 2022, increasing 54% on pcp, demonstrating the strong organic growth across FDV's operating companies. In addition, FDV continues to see growth

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia

1

Tel: +60 3 2700 1591www.frontierdv.com

For personal use only

in revenues derived from transactions, which now accounts for 54% of FDV's total portfolio revenue, increasing from 49% in 1Q 2021 (100% basis).

1Q 2022 results further proves the durability of the core online marketplace model since listing on the ASX in 2016 and more recently, the opportunity to facilitate transactions. Over this period, FDV has achieved a revenue compound annual growth rate (CAGR) of over 50% and quarter-on-quarter revenue growth in 20 out of 23 quarters. This record has been achieved despite the many external disruptions typical of emerging markets, such as recent political unrest in Pakistan and Sri Lanka. This demonstrates the robustness of the core online marketplace model, the opportunity to facilitate transactions, and the benefits of diversification across FDV's carefully constructed portfolio, underpinned by our management team with a proven track record.

Figure 1: Quarterly portfolio revenue (A$m, unaudited, FDV % share basis)

20.2

18.7

17.3

1Q 2020

2Q 2020

3Q 2020

4Q 2020

1Q 2021

2Q 2021

3Q 2021

4Q 2021

1Q 2022

Note: Results figures quoted for entities with continuing operations as at 31 March 2022

Table 1: Quarterly revenues by business1 (A$m, unaudited; 100% basis)

FDV ownership

(%)

FDV LATAM

1Q 2021

Revenue A$ (100% basis)Growth (% in A$)

10,779,516

6,778,823

59%

InfoCasas2 Encuentra243 Yapo4 Fincaraíz FDV Asia

100% 100% 100% 100%

3,943,232 2,318,525 2,302,980 2,214,778 23,283,432

1,892,482 2,026,401 880,453 1,979,487 14,797,473

108% 14% 162% 12% 57%

Zameen PakWheels AutoDeal LankaPropertyWeb Hoppler5

30% 37% 56%

21,373,133 728,863 498,067

13,330,221 580,753 341,240

60% 26% 46%

iMyanmarhouse CarsDB

53% 51% 53% 65%

275,773 186,940

189,884 169,512

45% 10%

FDV MENA

168,601 52,055 2,266,431

146,334 39,528

15% 32%

2,084,653

9%

Avito

100%

1,759,563

1,572,626

12%

West Africa6 Tayara Moteur7 Total revenue

N/A 100% 100%

208,378 162,223 136,267 36,329,379

159,361 212,343 140,323

31% (24%) (3%)

23,660,949

54%

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia

2

Tel: +60 3 2700 1591www.frontierdv.com

For personal use only

Table 2: Quarterly revenues by business1 (A$m, unaudited; FDV % share basis)

FDV ownership

(%)

Revenue A$ (FDV % basis)

1Q 2022

1Q 2021

Revenue A$ (FDV % basis)Growth (% in A$)

FDV LATAM

10,779,515

InfoCasas2

Encuentra243

Yapo4

Fincaraíz FDV Asia

100% 100% 100% 100%

3,943,232 2,318,525 2,302,980

4,379,421 986,740 532,741 880,453

146%

300% 335% 162%

2,214,778 7,271,121

1,979,487

12%

4,642,600

57%

Zameen AutoDeal PakWheels LankaPropertyWeb Hoppler5 iMyanmarhouse CarsDB

30% 56% 37%

6,360,645 277,871 268,513

3,966,775

190,378

213,961

60% 46% 25%

53% 51% 53% 65%

FDV MENA Avito Tayara Moteur7 West Africa6 Total revenue

146,187 95,433 88,735 33,737 2,163,149

100,658

68,195

77,016

25,618

45% 40% 15% 32%

2,005,742

8%

100% 100% 100% N/A

1,759,563

162,223 136,267 105,096 20,213,785

1,572,626 212,343 140,323

12%

(24%) (3%)

80,450 11,027,764

31% 83%

Notes:

  • 1. Results figures quoted for entities with continuing operations as at 31 March 2022

  • 2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021

  • 3. FDV increased its shareholding in Encuentra24 to 100% on 17 December 2021

  • 4. FDV acquired a 100% interest in Yapo on 25 February 2021

  • 5. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021

  • 6. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)

  • 7. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021

GROWTH ON A SUSTAINABLE BASIS

FDV reported portfolio EBITDA of A$0.7m on an FDV % share basis, which increased from (A$0.1m) in 1Q 2021, and is the third consecutive quarter of positive EBITDA. In 1Q 2022, FDV recorded a portfolio EBITDA margin of +3%, comfortably within FDV's target range despite investments to accelerate the roll-out of the transactions model in a number of operating companies.

In 1Q 2022, 12 of the operating companies reported positive EBITDA on an FDV % share basis, up from 6 in 1Q 2021. Of the 4 companies with EBITDA losses, 3 recorded improvements in their EBITDA position, relative to the prior corresponding period, with Tayara being the exception.

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia

3

Tel: +60 3 2700 1591www.frontierdv.com

Figure 2: Portfolio EBITDA margin1 (A$m, unaudited; FDV % share basis)

For personal use only

Half-year basis

1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 1H 2021 2H 2021 1Q 2022

Onset of COVID-19

(32%)

(51%)

Note: Results figures quoted for entities with continuing operations as at 31 March 2022

Table 3: Quarterly EBITDA by business1 (A$m, unaudited; FDV % share basis)

FDV ownership

(%)

EBITDA A$ (FDV % basis)

1Q 2022

1Q 2021

EBITDA A$ (FDV % basis)EBITDA change (in absolute terms)

FDV LATAM InfoCasas2 Fincaraíz Encuentra243 Yapo4

325,599

138,568

187,031

100% 100% 100% 100%

FDV Asia Zameen AutoDeal iMyanmarhouse LankaPropertyWeb PakWheels CarsDB Hoppler5 FDV MENA West Africa6 Moteur7 Tayara Avito

144,040 102,384 41,809 37,366 925,923

96,679 198,060 (28,909) (127,262) 415,959

47,361

(95,676) 70,718 164,628 509,964

30%

944,759

531,312

413,447

56%

78,471

(67,624)

146,095

53%

4,805

(15,500)

20,305

53%

3,049

3,245

(196)

37%

159

23,256

(23,907)

65%

(32,643)

51%

(72,676)

(43,249) (15,480)

10,606

(545,739)

(653,785)

(57,196) 108,046

N/A 100% 100% 100%

Total EBITDA

13,646 39 (164,191) (395,233) 705,783

4,616

(8,323) (161,559) (488,519)

(99,259)

9,030 8,362 (2,632) 93,286 805,042

Notes:

  • 1. Results figures quoted for entities with continuing operations as at 31 March 2022

  • 2. FDV increased its shareholding in InfoCasas from 51% to 100% on 23 June 2021

  • 3. FDV increased its shareholding in Encuentra24 to 100% on 23 December 2021

  • 4. FDV acquired a 100% interest in Yapo on 25 February 2021

  • 5. FDV increased its shareholding in Hoppler from 42% to 51% on 15 July 2021

  • 6. West Africa includes PropertyPro (Nigeria: 39% owned) and MeQasa (Ghana; 69% owned)

  • 7. FDV increased its shareholding in Moteur from 56% to 100% on 21 January 2021

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia

4

Tel: +60 3 2700 1591www.frontierdv.com

TRANSACTION MODEL UPDATE

For personal use only

In 1Q 2022, FDV made significant progress in its strategy of augmenting the market leadership positions of their online marketplaces with high growth transaction-based revenue. Notably, a considerable milestone was reached with all operating companies now capable of facilitating transactions, with a total of 4,324 transactions completed, an increase of 60% on pcp.

In 1Q 2022, FDV made a number of targeted investments to further accelerate the transactional capabilities of the operating companies, with a primary focus on FDV LATAM. The investments to drive growth were designed to take advantage of our market leadership positions in a challenging operating environment for our competitors. These investments consisted of increases in advertising and marketing costs, as well as employee costs, to accelerate transaction volumes and revenues in 2022 and beyond. These short-term increases in spending are detailed in item 1.2 of the Appendix 4C.

OPERATIONAL UPDATES

FDV LATAM - 53% of 1Q 2022 revenue (FDV % share basis)

FDV LATAM continues to be a significant contributor to FDV's overall portfolio, with 1Q 2022 revenue of A$10.8m, increasing 59% on pcp (100% basis). Following a number of strategic acquisitions and portfolio optimisation activities that occurred in late 2020 and throughout 2021, FDV now owns 100% of FDV LATAM operating companies, providing significant strategic value and monetisation optionality. During the quarter, FDV made a number of targeted investment across FDV LATAM to further accelerate the transactional capabilities of the region.

InfoCasas, the leading property marketplace in Uruguay, Paraguay and Bolivia with a growing presence in Peru, recorded 1Q 2022 revenue of A$3.9m, increasing 108% on pcp (100% basis). The marketplace continued its consecutive quarters of positive operational performance, with EBITDA of A$144k (100% basis). In 1Q 2022, property transaction volumes were 249, increasing 49% on pcp, demonstrating the rapid growth of the transaction business underpinned by InfoCasas' highly scalable proprietary technology platform.

Encuentra24, the leading online marketplace across 5 key Central American markets, recorded revenue of A$2.3m in 1Q 2022, increasing 14% on pcp. Notably, Encuentra24 recorded EBITDA of A$42k, representing a significant increase of A$152k on pcp and its third consecutive EBITDA positive quarter (100% basis). Following FDV's increase in ownership to 100% (see ASX release 'Increase in

Enceuntra24 ownership and capital raising', 17 December 2021), Enceuntra24 has seen continued traction in its Consumer-to-Consumer transaction initiatives, recording 204 transactions during the quarter. The Company has leveraged learnings from its successful consumer transactions as it focuses on the high value property vertical, resulting in the facilitation of 3 real estate transactions during the quarter. The marketplace has a strong pipeline of property projects in its pipeline, providing a pathway to significantly enhance its revenue trajectory.

Yapo, the leading online marketplace in Chile with number 1 position across the high value auto and property verticals, recorded a significant revenue result of A$2.3m in 1Q 2022, an increase of 162% on pcp (100% basis). The Company's considerable operational progress is illustrated by Yapo's third consecutive quarter of positive EBITDA of A$37k, an increase of A$165k on pcp (100% basis). Notably, this result was achieved while Yapo undertook significant optimisation of its website,Yapo.cl,which improves the consumer experience, introduces new advertising products for customers and provides

Frontier Digital Ventures Ltd

39-8 The Boulevard, Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur, Malaysia

5

Tel: +60 3 2700 1591www.frontierdv.com

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Frontier Digital Ventures Ltd. published this content on 27 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 02:03:09 UTC.