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Frontier Digital Ventures reveals step change in EBITDA and maiden net profit of $1.3m

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By Colin Hay - 
Frontier Digital Ventures ASX FDV half yearly results
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Leading online marketplace owner-operator Frontier Digital Ventures (ASX: FDV) has turned in a strong financial performance across its three operating divisions.

Releasing its 2023 annual report, Frontier revealed its group statutory revenue for FY23 increased 15% to $67.9 million.

The result was driven by organic growth at 360 LATAM (15%), MENA Marketplaces Group (MMG) (7%) and FDV Asia (25%).

Frontier also earned an additional $12.7m in 2023 revenue from associates.

EBITDA on the rise

The group’s operating earnings before interest, taxes, depreciation and amortisation (EBITDA) hit $4.8m in FY23, including $4.4m from 360 LATAM, $1.7m from MMG, $0.7m from FDV Asia and $1.2m from FDV Asia Associates.

Those results were offset by corporate costs of $2.9m.

Group statutory EBITDA improved $8.3m in FY23 due to what the company described as restructuring initiatives, prudent cost management and revenue growth across the regions.

Strength in Latin America

Frontier’s LATAM division revenue jumped 15% on the previous calendar period to $52.1m, driven by strong performance in the property vertical, the company’s launch of its Iris technology, improved sales team productivity and new product initiatives such as bundling and new feature launches.

Transactions revenue increased 123% to $7.5m, representing 14% of 360 LATAM total revenue, supported by transaction technology sharing across 360 LATAM.

Frontier is expecting further strong growth from its new Iris line in 2024.

Launched in 2023, Iris is 360 LATAM‘s proprietary multiple listing service (MLS) platform, streamlining new development sales.

It offers an MLS database of developments and real-time project information, providing access to new developments for all sizes of brokers, expanding their portfolios while increasing the marketing reach and sales channels.

Iris continues to gain momentum, achieving $1.2m in revenue for 2023 with only a minor contribution from launch into new markets in 2H 2023, which is expected to further accelerate growth in 2024.

Asia division on the rise

The FDV Asia division achieved a record revenue of $6.2m and EBITDA of $0.7m, representing an $0.8m EBITDA improvement and significant 25% jump in revenue.

The strong performance was supported by revenue growth of Hoppler (+81%) and iMyanmarHouse (+28%), with iMyanmarHouse and AutoDeal now generating over $2m in annual revenue.