Singapore’s PropertyGuru posts net loss for third quarter

Private houses within the River Valley/Orchard space in Singapore. Returning Singaporeans and expatriates have pushed rental demand in Singapore, in accordance with PropertyGuru’s CFO.

Lauryn Ishak | Bloomberg | Getty Images

Singapore-based on-line property portal PropertyGuru posted a net loss of $7.4 million Singapore {dollars} ($5.3 million) for the quarter ended Sept. 30 — down from final quarter’s net revenue of SG$3.8 million.

But that is nonetheless decrease than the net loss of SG$9.6 million in the identical interval a yr in the past, and third quarter income grew by 47% yr on yr.

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Meanwhile, adjusted EBITDA for the third quarter improved to optimistic SG$5.7 million, up from an adjusted EBITDA loss of SG$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 results illustrate that PropertyGuru has been able to produce strong business performance even as some of our core markets have begun to face headwinds from the challenging economic conditions being experienced around the globe,” stated Hari Krishnan, PropertyGuru Group’s CEO and managing director.

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In the earnings name Monday night time, Krishnan cited difficult situations corresponding to Singapore’s rising taxes and stamp duties. In Vietnam, credit score for buying houses is now tougher to entry, he stated.

The on-line portal supplies data throughout the Singapore, Malaysia, Indonesia, Thailand and Vietnam marketplaces.

‘We stay bullish’

“Even with short term macro headwinds, we remain bullish on the long term prospects for PropertyGuru,” stated 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’ve seen some good activity in Malaysia. The government has been supportive of lower-end and affordable homes. There were some measures taken sort of prior to the recent election, to have some sort of stamp duty concessions … kicking in for first-time buyers. So we’re definitely seeing some action being taken there to support the market,” he stated.

Finance Minister Zafrul Aziz had stated in a funds speech to Parliament in early October that the nation will elevate stamp obligation exemption to 75% from 50% on first dwelling purchases.

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

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

Vietnam, however, has been cracking down on speculative exercise, making it troublesome for folks to entry credit score, stated Dische.

“This does have a knock-on impact on the ordinary person who is trying to purchase a property. But I think there has been some action against that speculation which drives inflation in those markets. As affordability drops, some people will wait and see and move into the rental market, increasing prices and demand,” he added.

In October, the corporate made its first post-listing acquisition — Singapore-based dwelling providers technology firm Sendhelper. PropertyGuru listed on the New York Stock Exchange in March.

PropertyGuru shares are down 39% since its itemizing.

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