Substantial Revenue Growth at Duna House Group

Duna House Group`s revenue grew by 143% to HUF 9.4 billion and EBITDA increased by 47% to HUF 832 million in Q1 2023 compared to the previous year. Management believes that the current quarter was the low point of the market decline since mid-2022 and expects an improving trend in the Group’s core results in 2023, the Group published in its quarterly report.

In Q1 2023, the Group achieved an adjusted core EBITDA of HUF 351 million (-36% y/y). Clean core after tax profit decreased by 40% y/y to HUF 308 million. Core credit and real estate volumes reached a bottom during the quarter. The continued delivery of apartments in the Forest Hill project contributed significantly to the Group's results, with a particularly large number of loan-financed apartments being finalized during the quarter.

By the end of the quarter, a total of 71% of the apartments had been delivered, and on the total revenue of HUF 7.5 billion recognized to date, the Group realized EBITDA of HUF 1,521 million, of which HUF 3.4 billion in revenue and HUF 481 million in EBITDA in Q1 2023. At current sales prices, the Group expects a further net cash flow of HUF 4.2 billion from the project after March 31, 2023. Sales of the remaining apartments are expected to be slower than in the previous period due to the current market environment.

Duna House Italy achieved a quarterly EBITDA of HUF 302 million. Hungarian operations generated an EBITDA of HUF 618 million, while in Poland. EBITDA stagnated at HUF -86 million as at Q4 2022. Management's focus is on network expansion and market acquisition and expects the negative impact of the current very tight borrowing constraints on the market to be mitigated in the short term and the Polish and Hungarian markets to return to growth from Q2 2023.