Duna House Revenue and EBITDA Up Significantly

Duna House Group`s revenue grew by 89% to HUF 8.9 billion and EBITDA tripled to HUF 1.6 billion in Q4 2022 compared to the previous year. For the full year 2022, consolidated revenue doubled to HUF 30.3 billion and EBITDA jumped by 120% to HUF 4.4 billion, the company reported on the website of the Budapest Stock Exchange.

The strong year-end performance of the Italian subsidiaries and the continued delivery of apartments in the Forest Hill project pulled the Group out of the third quarter slump following record results in the second quarter of 2022.

In Q4 2022, the Group achieved adjusted core EBITDA of HUF 1,035 million (+69% y/y). Adjusted core after tax profit was HUF 641 million, up 39% y/y. While volumes declined in core loan, real estate and related services in Hungary and Poland, the completion of the Forest Hill project and the continued delivery of its apartments contributed significantly to the Group's results.

By the end of the quarter, a total of 44% of the apartments had been handed over, and the Group realized EBITDA of HUF 1,040 million on the total revenue of HUF 4.1 billion recognized to date, of which HUF 1.2 billion in revenue and HUF 550 million in EBITDA in Q4 2022. At current sales prices, the Group expects a further net cash flow of HUF 4.7 billion from the project after December 31, 2022.

Of the venues of Duna House activities, Italy achieved a quarterly EBITDA of HUF 843 million. Hungarian operations generated an EBITDA of HUF 825 million, while Poland continued to post losses, with EBITDA falling to HUF -87 million. Management's focus is on network expansion and market acquisition. It expects the negative impact of the current very tight borrowing constraints on the market to be mitigated in the short term and the Polish market to return to growth from Q2 2023.

In the full year of 2022, the Group has achieved revenues of HUF 30.3 billion (+109% y/y), clean core EBITDA of HUF 3.5 billion (+49% y/y) and clean core profit after tax of HUF 2.3 billion (+31% y/y), and its real estate development activity generated additional EBITDA of HUF 1.0 billion, thereby achieving all its result targets for the year.

The Board of Directors plans to propose the AGM on April 27, 2023 a dividend of HUF 3 690 million, ie. HUF 107.3 per share. The proposed dividend is 25.86% of the closing share price on February 28, 2023.