BERLIN (dpa-AFX) - Financial services provider Hypoport continues to suffer from the difficult real estate financing business. Due to the weak development in the real estate platform segment, the company is becoming more pessimistic for the full year. This is compounded by the subdued market recovery in private real estate financing, the SDax-listed company announced on Thursday evening. The Berlin-based company's shares, which had already been battered in recent months, were trading little changed in the morning.

Shortly after the start of trading, the stock fell by a good seven percent, which meant prices below the 100 euro mark for the first time since January. However, the share price then recovered quickly. Most recently, the shares were up 0.66 percent at 106.60 euros.

However, in July the share was still worth almost 200 euros at its high for the year. In the fall of 2021, the price was in part still above 600 euros, before the world's major central banks significantly raised their key interest rates in the fight against high inflation and thus made financing more expensive for real estate buyers.

A trader spoke of a continuing impairment of the real estate sector, triggered primarily by the increased interest rates. Further declines in house and apartment prices argued against a recovery in trading activity. Market expectations around Hypoport's business are now likely to be cut again significantly, he said.

A reduction in the forecast was indeed expected in the market, wrote Warburg analyst Marius Fuhrberg. However, this should be the end of bad news, because the basis for comparison with the fourth quarter is becoming easier and a slight market recovery is expected for the coming year. From a medium-term perspective, prices below 100 euros are an excellent buying opportunity, Fuhrberg wrote.

In terms of annual revenue, a year-on-year decline of up to 25 percent is now to be expected, Hypoport said. Most recently, the company had still expected a minus of up to 15 percent compared to the nearly 456 million euros achieved in 2022. Analysts had roughly agreed with this.

Earnings before interest and taxes are expected to be 10 to 15 million euros in 2023 - after around 25 million last year. Previously, Hypoport had only spoken of an operating profit of at least 10 million euros. Experts had previously expected an amount just below this mark.

For the full year, earnings before interest and taxes will be achieved through a number of net positive one-off effects, it said in explanation. The one-off effects include unused purchase price liabilities from a debtor warrant and expenses for the reorganization within the Real Estate Platform segment, it said in explanation.

According to preliminary calculations, revenue in the third quarter had fallen by 15 percent year-on-year to €88 million. Before interest and taxes, Hypoport was in the red with a loss of one million euros, after a small plus a year ago.

In terms of revenue and earnings, Hypoport failed to meet the expectations of experts, who had expected a more significant improvement on the previous quarter. According to Hypoport, the main reason for the problems in the business is the significant slump in the private real estate financing market since late summer 2022.

Hypoport will present its detailed figures for the third quarter on November 13./men/he/mis/jha/