Hypoport : revenue growth in H1 2018 strongest since its IPO

Press release

Key figures for H1 2018

Hypoport's revenue growth in H1 2018 strongest since its IPO

•  Consolidated revenue rises by 28 per cent to around €122 million in the first half of 2018

•  For the Hypoport Group as a whole, EBIT increases by 11 per cent to €14.8 million in the first half-year

•  Confirmation of forecast, as adjusted upward in June, to revenue of €240 million to €260 million and EBIT of €29 million to €34 million for 2018 as a whole

Berlin, 6 August 2018: Today, the Hypoport Group confirmed the preliminary results for the first half of 2018 that were released on 25 July 2018. Consolidated revenue increased by 28 per cent to €121.7 million and thus exceeded the €120 million mark for a half-year period for the first time (H1 2017: €95.3 million). The growth-oriented Group thus accelerated the pace of its expansion once again and achieved the highest level of growth since it went public in 2007.

This outstanding revenue performance was supported by all four segments of the Hypoport Group.

The Credit Platform segment benefited from the strong operational performance of the EUROPACE financial marketplace, which increased its transaction volume by 16 per cent in the first six months of 2018 from €24.0 billion to €27.9 billion. The revenue generated by the brokerage pools that belong to the Credit Platform segment also rose, raising the total segment revenue by 34 per cent to €53.2 million (H1 2017: €39.7 million). The segment's EBIT advanced by 27 per cent, from €8.9 million to €11.4 million.

The Private Clients segment saw a continuation of the upward trend in the proportion of consumers with a preference for independent financial advice. The financing specialist Dr. Klein Privatkunden, which now employs 575 advisors (H1 2017: 511*; up by 13 per cent), was able to tap into this demand with great success. Revenue for the segment as a whole increased by 18 per cent to €44.1 million (H1 2017: €37.5 million). The segment's EBIT advanced by 26 per cent to €6.9 million (H1 2017: €5.4 million).

The name of the former Institutional Clients segment has been changed to Real Estate Platform to reflect the shift in focus of its business models following the acquisitions of FIO Systems AG and Value AG. The segment will now be home to all real estate-related B2B activities of the Hypoport Group and its objective will be to digitalise the sale, valuation and management of properties. In the first six months of 2018, revenue increased by 28 per cent compared with the former Institutional Clients segment to €14.5 million (2017: €11.3 million). Contributions by FIO and Value AG were

included in the consolidated financial statements on a pro-rata basis from May 2018. The segment's EBIT advanced by 7 per cent to €3.2 million (H1 2017: €3.0 million).

In the Insurance Platform segment, business relationships with both existing and new clients  insurance brokers and start-up B2C insurtech companies  expanded in the first half-year of 2018 and segment revenue grew by 46 per cent to €10.6 million (H1 2017: €7.2 million). Stephan Gawarecki, the Management Board member responsible for the Insurance Platform segment, explains: "We have received a huge amount of positive feedback from market participants and, on this basis, we believe that we will take the insurance industry into the digital age with our SMART INSUR platform and change it for the long term. The result will be similar to the impact that we had with EUROPACE in the mortgage finance sector." The investments that are required to step up the integration of the acquired companies into the Group and to achieve the company's ambitions are being made successfully. But the associated costs had a slightly bigger impact on the segment's performance in the first half of 2018 than previously expected. Therefore the segment's EBIT dropped to minus €1.7 million (H1 2017: minus €0.3 million) in the first six months of 2018. The acquisition of ASC Assekuranz-Service Center GmbH, which will be consolidated from July 2018, has brought in additional volume and complementary products to the existing portfolio. This will help to promote the continued expansion of the Insurance Platform segment.

Chief Executive Officer Ronald Slabke concludes: "We are very happy with the performance of our company network in the first half of 2018. The level of growth that we have achieved is particularly impressive in view of the fact that the overall mortgage finance market has grown only slightly compared with the previous year and that the contributions to revenue and earnings of our recent acquisitions are only partially included in our excellent half-year results. All three new companies  FIO, Value AG and ASC  will further boost the already dynamic growth of the Hypoport Group in the second half of 2018. We have therefore adjusted our forecasts for the full year upward in June and now expect revenue to be at a level of €240 million to €260 million and EBIT to be at a level of €29 million to €34 million in 2018."

* The comparative prior-year tax figures have been adjusted and are explained in section 4 of the notes to the interim consolidated financial statements "Comparative figures for 2017"

About Hypoport AG

Hypoport AG is headquartered in Berlin and is the parent company of the Hypoport Group. The Group is a technology service provider for the financial, real-estate and insurance sectors with a workforce of around 1,400 employees. It is made up of a network of independent subsidiaries that are grouped into four segments: Credit Platform, Private Clients, Property Platform and Insurance Platform.

The Credit Platform segment operates EUROPACE, which is an online financial marketplace and the largest German software platform offering mortgages, building finance products and personal loans. A fully integrated system links more than 500 partners - banks, insurers and financial product distributors. Several thousand loan brokerage advisors execute some 35,000 transactions per month on EUROPACE, generating a volume of around €4.5 billion. Besides EUROPACE, the FINMAS and GENOPACE sub-marketplaces and the B2B distribution companies Qualitypool and Starpool support the growth of the credit platform.

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 and management of properties.

The Insurance Platform segment operates Smart InsurTech, a web-based B2B platform for advice, comparison of tariffs and the administration of insurance policies.

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

Contact

Hypoport AG Klosterstraße 71 10179 Berlin

Internet:www.hypoport.comTwitter:www.twitter.com/Hypoport

Investor Relations

Jan H. Pahl

Investor Relations Manager

Phone: +49 (0)30 / 42086 - 1942

Mobil: +49 (0)176 / 965 125 19 Email:ir@hypoport.dewww.hypoport.com

Key data on Hypoport's shares ISIN DE 0005493365

WKN 549336

Stock exchanges symbol HYQ