Hypoport SE (HYPOF) Q4 2024 Earnings Call Transcript

2025-03-10 15:17:05 ET

Hypoport SE (HYPOF)

Q4 2024 Results Conference Call

March 10, 2025 12:00 PM ET

Company Participants

Ronald Slabke - CEO

Jan Pahl - Head of Investor Relations

Presentation

Ronald Slabke

So welcome to the Hypoport SE 2024 Preliminary Results of Hypoport. I have to start this recording here by myself for now. Jan Pahl, you all know him has some technical issue, so he can't introduce me. But, well, we will handle this together here.

As you are aware already because you read already our communication from the morning, Hypoport had a strong year 2024. We had a double-digit growth again as we are used to be -- as we are all used to be and close with solid numbers. Core reason for this positive development, where the real estate and mortgage business, where we saw a significant recovery of the market.

So the trend has turned and after the worst mortgage years for decades, 2024 was a certain uplift again. And we used this added our market share gains, and used our new cost level for an outperformance on the profitability side. Financial platform and insurance platforms as well distributed positive impact to the group level on their level.

So let's start right away with the most important area, real estate and mortgages. The segment is linked to the German housing market. Just to memorize it German housing is linked to net migration to Germany to and high demand from the existing population to acquire their first home when they are triggered. Triggered means, typically when they expect children’s and want to create their nest. And Germans buy once in a lifetime, and they still do this. Nothing changed in this dynamic in 2024.

What changed in 2024 is that historically, 58% of Germans are living in a renting market. Only 42 choose to acquire their own home. And in our current environment of regulation for rents, it's -- we are in a locked situation of the renting market. People have pretty old low renting contracts, don't leave their apartments anymore, so new families can't move in, because nothing comes to the market. This leads to the fact that more and more middle class families when they are triggered need to choose, to go for the homeowner market. They can't rent again....

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