Frontier Digital Ventures Ltd (ASX:FDV), an operator of online marketplace businesses in fast-growing emerging markets, has increased its operating revenue in 1H 2022 by 42% compared to 1H 2021.
The company, with a portfolio of 16 businesses across 20 markets, has achieved strong organic revenue growth, particularly in LATAM (37%) and Asia excluding Pakistan (56%).
FDV achieved operating cash flow breakeven in 2Q 2022, with both FDV LATAM and FDV Asia operating cash flow positive.
LATAM- Latin America, MENA- Middle East and North Africa.
FDV works alongside local management teams across property, automotive and general classifieds, providing strategic oversight and operational guidance.
The company is focused on augmenting the market leadership positions of its operating companies with high-growth transaction-based revenue, to grow equity value and realise their full potential.
FDV’s share of portfolio revenue in A$ million.
FDV’s principal activities during 1H 2022 were developing and operating online classifieds businesses in emerging and developing countries that are at an early stage of online development, but with anticipated strong growth prospects.
Over the course of the year, the group has continued its geographical focus on target markets in developing Asia (excluding China and India), Central and South America, and Africa/MENA, with a particular focus on Southeast Asia and South America.
Notably, FDV achieved breakeven EBITDA in 1H 2022 compared to a negative A$3 million in 1H 2021, in line with prudent cost management while also investing in transaction capabilities and strategic acquisitions.
Breakeven group operating EBITDA in 1H 2022.
Following a number of strategic acquisitions and portfolio optimisation activities that occurred in late 2020 and throughout 2021, FDV now owns 100% of FDV LATAM operating companies, providing significant strategic value and monetisation optionality.
In early 1H 2022, FDV made multiple targeted investments across FDV LATAM to further accelerate the transactional capabilities of the region.
This included the optimisation of Yapo’s website, Yapo.cl, which improves the consumer experience, introduces new advertising products for customers and provides the foundation to further accelerate the facilitation of real estate and auto transactions.
Operating metrics.
FDV had a cash balance of A$41.7 million as at 30 June 2022, providing funding flexibility underpinned by the company’s cash flow trajectory.