Cian PLC Announces First Quarter 2023 Financial Results
LARNACA,
First Quarter 2023 Key Financial and Operational Highlights1
-
Revenue increased by
39% Y-o-Y toRUB 2,402 million ( ).$31.2 million -
Profit for the period amounted to
RUB 211 million ( ).$2.7 million -
Adjusted EBITDA2 increased by
530% Y-o-Y and reachedRUB 353 million ( ).$4.6 million -
Adjusted EBITDA Margin2 increased by 11.5 pp Y-o-Y to
14.7% . -
Core Business revenue increased by
42% Y-o-Y toRUB 2,298 million ( ).$29.8 million
Dmitriy Grigoriev, Chief Executive Officer of Cian PLC, commented: “Our business continues to show steady revenue growth backed by positive signals of a gradual demand recovery. Among other things, it sets the backdrop to allow our business to continue growing at a good pace. We believe it is crucial to leverage part of this growth to support our market positions in our key regions.“
NYSE delisting notification
On March 15, 2023, the Company received a written notice from the staff of the New York Stock Exchange Regulation notifying the Company that it has determined to delist the Company’s American depositary shares (ADSs) from the NYSE. The Company utilized its right to a review of the determination and, accordingly, filed an appeal to this decision. The appeal process is currently ongoing.
Neither the notice of delisting nor the appeal has any effect upon the suspension of the ADSs from trading on the NYSE which has been in effect since February 28, 2022, though it is expected that a delisting of the Company’s ADSs will be stayed pending the conclusion of the appeal process. The trading of the Company’s ADSs on the Moscow Exchange is unaffected and continues as usual.
1
2 Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures. See “Non-IFRS Financial Measures and Supplemental Financial Information” elsewhere in this release for a description of these measures and their reconciliation from the most directly comparable IFRS financial measures.
First Quarter 2023 Results
Factors affecting year-over-year trends and comparisons
We believe that trends in the real estate market in the first quarter of 2023 were particularly characterized by the following events: (i) more stable demand in the first quarter of 2023 compared to respective period of the last year and the normalized key interest rate (from
Revenue
Revenue for the three months ended March 31, 2023 amounted to
The following table outlines a breakdown of revenue by segment and type for the periods indicated (in millions of RUB and USD):
|
Three months ended (unaudited) |
||||
|
March 31,
|
March 31,
|
March 31,
|
Y-o-Y
|
|
|
RUB |
RUB |
USD (1) |
|
|
Total Revenue |
1,726 |
2,402 |
31.2 |
|
|
Core Business |
1,622 |
2,298 |
29.8 |
|
|
Mortgage Marketplace |
69 |
86 |
1.1 |
|
|
Other Segments Revenue |
35 |
18 |
0.2 |
( |
|
____________________
1
Core Business segment revenue
Core Business revenue reached
Mortgage Marketplace segment revenue
Mortgage Marketplace revenue amounted to
Operating expenses
Total operating expenses increased by
The following table sets forth a breakdown of our operating expenses for the periods indicated (in millions of RUB and USD):
|
Three months ended (unaudited) |
||||
|
March 31,
|
March 31,
|
March 31,
|
Y-o-Y
|
|
|
RUB |
RUB |
USD (1) |
|
|
Operating expenses |
1,913 |
2,270 |
29.4 |
|
|
Marketing expenses |
691 |
844 |
10.9 |
|
|
Employee-related expenses |
884 |
1,058 |
13.7 |
|
|
IT expenses |
136 |
165 |
2.1 |
|
|
Depreciation and amortization |
68 |
60 |
0.8 |
( |
|
Other operating expenses |
134 |
143 |
1.9 |
|
|
____________________
1
Profit for the period
Profit for the three months ended March 31, 2023 was
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the three months ended March 31, 2023 reached
Adjusted EBITDA Margin increased by 11.5 pp to
First Quarter 2023 Financial Results Conference Call
Considering the existing uncertainty and market volatility, the Company will not be conducting its first quarter 2023 conference call. Investors, analysts, and media are welcome to send their inquiries to the Company using the contact details provided in this release.
About Cian
Cian is a leading online real estate classifieds platform in the large, underpenetrated and growing Russian real estate classifieds market, with a strong presence across
Source: Cian PLC
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any express or implied statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements regarding our financial outlook for 2021 and long-term growth strategy, as well as statements that include the words “target,” “believe,” “expect,” “aim,” “intend, intend,” may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation: the negative impact on the Russian economy of the ongoing military actions between
Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. We disclaim any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Consolidated Statement of Profit or Loss and Other Comprehensive Income (in millions of RUB and USD, except share and per share amounts)
|
Three months ended (unaudited) |
|||||
March 31, 2022 |
March 31, 2023 |
March 31, 2023 |
||||
|
RUB |
RUB |
USD(1) |
|||
|
(unaudited) |
(unaudited) |
(unaudited) |
|||
Revenue |
|
1,726 |
2,402 |
31.2 |
||
|
|
|||||
Operating expenses: |
|
|||||
Marketing expenses |
|
(691) |
(844) |
(10.9) |
||
Employee-related expenses |
|
(884) |
(1,058) |
(13.7) |
||
IT expenses |
|
(136) |
(165) |
(2.1) |
||
Depreciation and amortization |
|
(68) |
(60) |
(0.8) |
||
Other operating expenses |
|
(134) |
(143) |
(1.9) |
||
Total operating expenses |
|
(1,913) |
(2,270) |
(29.4) |
||
|
|
|||||
Operating profit / (loss) |
|
(187) |
132 |
1.7 |
||
Finance costs |
|
(4) |
(6) |
(0.1) |
||
Finance income |
|
12 |
47 |
0.6 |
||
Foreign currency exchange gain, net |
|
185 |
121 |
1.6 |
||
Other income |
|
9 |
12 |
0.2 |
||
Profit before income tax |
|
15 |
306 |
4.0 |
||
Income tax (expense) / benefit |
|
29 |
(95) |
(1.2) |
||
Profit for the year |
|
44 |
211 |
2.7 |
||
Total comprehensive income for the year |
|
44 |
211 |
2.7 |
||
|
|
|||||
Profit / (loss) per share, in RUB |
|
|||||
Basic profit / (loss) per share attributable to ordinary equity holders of the parent |
0.63 |
3.02 |
0.039 |
|||
Diluted profit / (loss) per share attributable to ordinary equity holders of the parent |
|
0.62 |
|
2.90 |
|
0.038 |
1
Consolidated Statement of Financial Position (in millions of RUB and USD)
|
|
As of |
||||
|
|
December 31, 2022 |
March 31, 2023 |
|
March 31, 2023 |
|
RUB |
RUB |
USD(1) |
||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Assets |
|
|
|
|
|
|
Non-current assets |
|
|||||
Property and equipment |
|
68 |
68 |
0.9 |
||
Right-of-use assets |
|
74 |
62 |
0.8 |
||
Goodwill |
|
785 |
785 |
10.2 |
||
Intangible assets |
|
1,077 |
1,054 |
13.7 |
||
Deferred tax assets |
|
137 |
119 |
1.5 |
||
Other non-current assets |
|
8 |
7 |
0.1 |
||
Total non-current assets |
|
2,149 |
2,095 |
27.2 |
||
|
|
|||||
Current assets |
|
|||||
Inventories |
|
30 |
29 |
0.4 |
||
Advances paid and prepaid expenses |
|
99 |
103 |
1.3 |
||
Trade and other receivables |
|
414 |
492 |
6.4 |
||
Prepaid income tax |
|
3 |
7 |
0.1 |
||
Cash and cash equivalents |
|
4,110 |
4,693 |
60.9 |
||
Other current assets |
|
169 |
172 |
2.2 |
||
Total current assets |
|
4,825 |
5,496 |
71.3 |
||
Total assets |
|
6,974 |
7,591 |
98.5 |
||
|
|
|||||
Equity and liabilities |
|
|||||
Equity |
|
|||||
Share capital |
|
2 |
2 |
0.0 |
||
Share premium |
|
7,702 |
7,702 |
99.9 |
||
Equity-settled employee benefits reserves |
|
648 |
809 |
10.5 |
||
Accumulated loss |
|
(3,343) |
(3,132) |
(40.6) |
||
Total equity |
|
5,009 |
5,381 |
69.8 |
||
|
|
|||||
Liabilities |
|
|||||
Non-current liabilities |
|
|||||
Lease liabilities |
|
28 |
17 |
0.2 |
||
Deferred tax liabilities |
|
127 |
124 |
1.6 |
||
Deferred income |
|
108 |
101 |
1.3 |
||
Total non-current liabilities |
|
263 |
242 |
3.1 |
||
|
|
|||||
Current liabilities |
|
|||||
Contract liabilities |
|
554 |
574 |
7.4 |
||
Trade and other payables |
|
642 |
921 |
11.9 |
||
Income tax payable |
|
66 |
20 |
0.3 |
||
Other taxes payable |
|
366 |
380 |
4.9 |
||
Lease liabilities |
|
41 |
40 |
0.5 |
||
Deferred income |
|
33 |
33 |
0.4 |
||
Total current liabilities |
|
1,702 |
1,968 |
25.5 |
||
Total liabilities |
|
1,965 |
2,210 |
28.7 |
||
Total equity and liabilities |
|
6,974 |
7,591 |
98.5 |
1
Consolidated Statement of Cash Flows (in millions of RUB and USD)
|
Three months ended (unaudited) |
||||
|
March 31, 2022 |
March 31, 2023 |
March 31, 2023 |
||
|
RUB |
RUB |
USD(1) |
||
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Cash flows from operating activities |
|
|
|
|
|
Profit before income tax |
15 |
306 |
4.0 |
||
Adjusted for: |
|||||
Depreciation and amortization |
68 |
60 |
0.8 |
||
Employee share-based payment expense |
175 |
161 |
2.1 |
||
Finance income |
(12) |
(47) |
(0.6) |
||
Finance costs |
4 |
6 |
0.1 |
||
Foreign currency exchange gain, net |
(185) |
(121) |
(1.6) |
||
Reversal of expected credit losses |
(7) |
— |
— |
||
Working capital changes: |
|||||
Decrease / (increase) in trade and other receivables |
57 |
(78) |
(1.0) |
||
Increase in advances paid and prepaid expenses |
(54) |
(3) |
(0.0) |
||
Decrease / (increase) in other assets |
100 |
(2) |
(0.0) |
||
(Decrease) / increase in trade and other payables |
(124) |
279 |
3.6 |
||
(Decrease) / increase in contract liabilities and deferred income |
(47) |
8 |
0.1 |
||
Increase in other liabilities |
16 |
15 |
0.2 |
||
Cash generated from operating activities |
6 |
584 |
7.6 |
||
Income tax paid |
(61) |
(131) |
(1.7) |
||
Interest received |
12 |
47 |
0.6 |
||
Interest paid |
(2) |
(1) |
(0.0) |
||
Net cash generated from / (used in) operating activities |
(45) |
499 |
6.5 |
||
|
|||||
Cash flows from investing activities |
|||||
Purchase of property and equipment |
(15) |
(7) |
(0.1) |
||
Purchase of intangible assets |
(19) |
|
(26) |
|
(0.3) |
Net cash used in investing activities |
(34) |
(33) |
(0.4) |
||
|
|||||
Cash flows from financing activities |
|||||
Payment of principal portion of lease liabilities |
(11) |
(11) |
(0.1) |
||
Net cash used in financing activities |
(11) |
(11) |
(0.1) |
||
|
|||||
Net increase / (decrease) in cash and cash equivalents |
(90) |
455 |
5.9 |
||
Cash and cash equivalents at the beginning of the period |
2,419 |
4,110 |
53.3 |
||
Effect of exchange rate changes on cash and cash equivalents |
242 |
128 |
1.7 |
||
Reversal of allowance for expected credit losses |
7 |
— |
— |
||
Cash and cash equivalents at the end of the period |
2,578 |
4,693 |
60.9 |
1
Non-IFRS Financial Measures and Supplemental Financial Information
Use of Non-IFRS Financial Measures
We use Adjusted EBITDA, Core Business Adjusted EBITDA for
Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not calculated in accordance with IFRS. These non-IFRS financial measures should not be considered in isolation or as an alternative or a substitute to loss for the period, which is the most directly comparable IFRS measure, or any other measure of financial performance calculated and presented in accordance with IFRS. Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools. Some of these limitations are:
- they exclude depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future, increasing our cash requirements;
- they do not reflect foreign currency exchange loss (gain), which reduces (increases) cash available to us;
- they do not reflect income tax payments that reduce cash available to us;
- they do not reflect share-based compensation expenses and, therefore, do not include all of our employee-related expenses; and
- other companies, including companies in our industry, may calculate those measures differently, which reduces their usefulness as comparative measures.
The tables below provide detailed reconciliations of each non-IFRS financial measure we use from the most directly comparable IFRS financial measure.
Reconciliation of Adjusted EBITDA from Profit for the period, the most directly comparable IFRS financial measure (in millions of RUB and USD)
|
Three months ended (unaudited) |
||||
|
March 31, 2022 |
March 31, 2023 |
March 31, 2023 |
||
|
RUB |
RUB |
USD(1) |
||
Profit for the period |
44 |
211 |
2.7 |
||
Income tax expense / (benefit) |
(29) |
95 |
1.2 |
||
Profit before income tax |
15 |
306 |
4.0 |
||
Depreciation and amortization |
68 |
60 |
0.8 |
||
Finance income, net(2) |
(8) |
(41) |
(0.5) |
||
Foreign currency exchange gain, net |
(185) |
(121) |
(1.6) |
||
Share-based payments |
175 |
161 |
2.1 |
||
Income from the depositary |
(9) |
(12) |
(0.2) |
||
Adjusted EBITDA(3) |
56 |
353 |
4.6 |
||
Adjusted EBITDA Margin(4) |
|
|
|
1
2 Comprises finance costs and finance income for the respective periods
3 Defined as profit / (loss) for the period adjusted to exclude income tax (benefit) / expense, finance costs, finance income, foreign currency exchange loss / (gain), net, depreciation and amortization, share-based payments under equity-based incentive program consisting of restricted share units, and income from the depository
4 Defined as Adjusted EBITDA divided by revenue for the respective periods
View source version on businesswire.com: https://www.businesswire.com/news/home/20230519005190/en/
Investor contacts:
Daria Fadeeva
ir@cian.ru
Media contacts:
Olga Podoliaka
po@cian.ru
Source: Cian PLC