Frontier Digital Ventures (ASX: FDV), a marketplace operator focused on emerging markets, saw revenue fall 7% year-on-year to A$9.8 million ($7 million U.S.) in the first half of this year. The company attributed the drop to worldwide lockdowns.

In Q2, earnings before interest, taxes, depreciation, and amortization (EBITDA) of 10 out of 12 operating companies improved quarter-on-quarter. The company saw growth at InfoCass, AutoDeal, IMyanmarHouse, CarsDB and LankaPropertyWeb, all of which saw revenue increase.

However, Zameen.com, Encuentra24 and Pakwheels posted revenue decreases. Zameen had a negative EBITDA of A$245,545 in Q2, compared to a positive EBITDA of A$180,291 in Q1. PakWheels reported EBITDA of negative A$106,087, compared to A$68,365 last quarter. The divergence was due primarily to the timing of the temporary lockdowns, which occurred later in Pakistan than in other countries.

“The temporary lockdowns have led to permanent cost reductions, and the return of website traffic and leads in June positions our portfolio strongly for the future,” said Shaun Di Gregorio, FDV’s founder and CEO.

FDV said its balance sheet is stronger than ever, with cash of A$16.3 million as at June 30, 2020. This was in addition to A$6.5 million raised from the strategic placement on July 13 of this year.

FDV said it expected to improve its cash flow position next quarter, which it says will be the result of normalizing markets and cost reduction measures.

“FDV has seen a steady return of website traffic and leads across many of its operating companies in June, with the increase in commercial activity linked to the easing of temporary restrictions,” it said. “Strong operational and financial performance provides the key foundations for growth, with FDV actively assessing a range of potential acquisition opportunities.”

Frontier’s stake in the Central American horizontal Encuentra24 will come down to 26.3% from 42%, after Prosus takes a stake in E24.

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