Scout24 SE (G24) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the Scout24 H1 Q2 2026 Results Conference Call. I'm Moritz, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Filip Lindvall, Vice President, Group Strategy and Investor Relations. Please go ahead, sir.

Good afternoon, everyone, and welcome to Scout24 Second Quarter and First Half 2026 Earnings Call. My name is Filip Lindvall, and I'm Vice President, Group Strategy and Investor Relations at Scout24. With me on the call today are Ralf Weitz, our Chief Executive Officer; and Martin Mildner, our Chief Financial Officer. Ralf will start the presentation with key business highlights, and Martin will provide a detailed overview of our financial results. As always, we will conclude the call with a Q&A session. You can find today's presentation on our website under Financial Reports and Presentations. This session will be recorded, and a replay will be made available shortly after the event. Please take note of the disclaimer on Page 2. Ralf, over to you.

Thank you, Filip. Good afternoon, everyone, and thank you for joining us. The second quarter of 2026 shows that Scout24 continues to combine strong financial performance with leadership in AI and innovation. In the second quarter, we delivered 20% revenue growth, continued double-digit organic growth and further organic margin expansion. And less than 3 months after our CMD, we are already making strong progress on the strategic priorities we set out there. Our B2B subscription business continues to deliver industry-leading growth. On the consumer side, our B2C subscriptions are gaining momentum in a challenging market with more seekers choosing higher-value memberships that include our recently launched AI features. Immo AI is increasingly becoming part of every customer journey across our platform. We are seeing exponential growth in AI usage, new products and new revenue streams. I will come back to this in more detail later. At the same time, AI is changing how we work internally. Since our CMD, the use of AI agents across the company has continued to grow, and we are making good progress building our agent factory. This is accelerating how we develop products, automate workflows and innovate across Scout24. We also continue to strengthen one of our biggest competitive advantages, exclusive content. Our platform, brand and product innovation continue to attract unique inventory, giving customers access to more properties than any competitor in Germany. Beyond Germany, Spain is developing in line with our expectations. Integration is progressing well, while our German business continues to expand margins and demonstrate the scalability of our operating model. These results reinforce our confidence in the year ahead, and we are confirming our full year guidance. Let's take a closer look at customer growth, which remains one of the clearest indicators of the strength of our business. In Professional, we continue to add customers across all major customer groups, while customer migration to our membership offering continues to progress well. We now have migrated more than 16,000 customers, and most of them are still on BOS memberships. That gives us significant potential for future migration and ARPU growth. Delivering this level of customer growth quarter after quarter in an already highly penetrated market is exceptional. On the consumer side, we said at our Q1 earnings call that customer growth would accelerate during the second quarter. That is exactly what we delivered. Our subscription strategy continues to gain momentum, driven by the updated Search Plus membership tiering and Living Plus. We are continuously expanding the value we offer our private customers, and I will show you some of these innovations in just a few minutes, and there is much more to come in the second half of the year. Turning to Page 6. I will give you an update on the German real estate market. What we are seeing here is a clear proof that our platform is becoming more relevant. As our brand strength and product initiatives continue to gain traction, active listings increased by almost 18% year-on-year. Our tenant network now includes more than 50,000 listings, up from around 25,000 at the time of our Capital Markets Day. Today, the Scout24 property network gives seekers access to more than 6.5 million properties across Germany, something no competitor in Germany can offer. The sales market remained healthy throughout the first half of 2026 despite a more challenging macroeconomic environment and higher interest rate expectations. Contact request volumes remained at healthy levels. The rental market continues to suffer from a structural undersupply of affordable housing after years of underinvestment in new construction. At the same time, higher rents and continued macroeconomic uncertainty are reducing overall search activity. Even in this environment, ImmoScout24 continues to gain market share, with search volumes proving more resilient than the broader German market. Continuing on the topic of the real estate market, conditions in new build remain very challenging. As the chart shows, housing completions declined from around 300,000 in 2021 to around 200,000 in 2025 with a further decline expected in 2026. That leaves the market around 40% below peak levels. High interest rates, elevated construction costs and regulatory hurdles continue to weigh on new build activity. Even so, our membership business continues to grow strongly. We continue to add customers, grow revenues and deepen customer relationships through broader product adoption. Our developer and new homebuilder businesses are both growing by around 15% year-to-date despite one of the weakest new build markets in years. The reason is simple. We are no longer just offering marketing products. We are becoming part of our customers' daily workflows through solutions such as Postec, Buinggisa and Nebo Compass. That makes our products more relevant, strengthens customer relationships and makes our business more resilient across market cycles. At our CMD, we showed how AI search had already become part of the ImmoScout24 experience and was beginning to take off. We also explained how combining natural language search with our unique data assets would create a new intelligence flywheel. Just a few months later, the data is already validating that strategy. AI search actions on ImmoScout24 are up 47x year-on-year, reaching 3.3 million in June alone. More importantly, AI users are more engaged, spend more time on the platform and generate higher quality leads. This is exactly how the intelligence flywheel starts to work. Every customer interaction makes our intelligence better. Better intelligence creates a better product. Better product drives more engagement, stronger monetization and even more customer interaction. There's another very interesting insight. One year into the debate about AI disruption search, we still see virtually no meaningful traffic coming from external LLMs. The data leads us to a clear conclusion. Consumers want to use AI at the source of truth on ImmoScout24. Continuing on AI, this time on consumer subscriptions. At our CMD, we said we would integrate premium AI services into our B2C subscriptions. Less than 3 months later, we have done exactly that. We have launched the AI application assistant as part of our top-tier unlimited package, which has an ARPU of EUR 30, 100% higher than our standard product. The assistant helps customers manage their property search by continuously monitoring the market, automatically submitting applications and keeping searches up to date, making the whole experience easier and more valuable. Since the launch, we have already seen a strong uptake of the unlimited tier with sign-ups doubling. This reinforces the message from our CMD. When AI is integrated into the product in the right way, it creates real consumer value and increases engagement. The same pattern we are seeing on the consumer side is now clearly visible in professional. AI is now integrated into our silver and gold memberships. It helps customers create better content, improve relevance and generate better leads. We can now offer relevance and visibility products for AI-powered search alongside our existing search and listing products. We are also seeing strong momentum in Propstack. AI customer usage has almost doubled during the first half, while Propstack continues to grow revenues by around 20% year-to-date. And finally, Immopoints are becoming the digital currency of our professional ecosystem. More than 9,000 customers are already actively using them, generating EUR 3.2 million of MRR. As we continue to launch new AI capabilities, we expect Immopoints revenues to grow even further. The message is simple. AI is already driving customer growth, stronger customer value and new monetization opportunities across our professional business. Let me close by putting today's progress into the broader context of our Capital Markets Day. At CMG 2024, our focus was on interconnectivity. We had completed the investment phase and built the leading digital real estate platform. The next step was to connect our products, our customers and our ecosystem to create a much stronger business. We also laid the groundwork for our AI road map well ahead of the curve. Over the last 3 years, we have consistently delivered on that strategy quarter after quarter. We have strengthened our products, expanded our ecosystem and continue to deliver outstanding financial results. At the same time, we have become the innovation leader in our industry. Today, AgenticOS is the next step in our journey, powered by Immo AI and our Agent factory. It extends our interconnectivity strategy by embedding AI across products, workflows and transactions, accelerating innovation across the platform. We started our AI journey early, and that is now becoming a real competitive advantage. Our AI product suite is already helping our customers find properties faster, more efficiently and make better decisions. At the same time, it is helping us to automate more processes and become a more AI-native organization. We are now starting to see those benefits translate into financial results. On the revenue side, AI is creating new recurring revenue streams. On the cost side, it is improving productivity and strengthening our operating leverage. We are ready on the technology side. We are seeing the first benefits come through, and we are still only at the beginning of that journey. With that, let me hand over to Martin, who will show you how this translates into an even stronger financial model.

Thanks, Ralf, and welcome also from my side. Before I will start with the presentation of our numbers, I'd like to summarize my first 5 months at Scout24. After the preparation of our Capital Markets Day in May and seeing how fast we are able to implement our AgenticOS strategy to life, I'm even more convinced than at the beginning of my role that this is a truly special company. We combine a product innovation first mindset with leading pricing power and a relentless focus on execution. That combination allow us to deliver consistent growth quarter after quarter while continuing to invest in the future. In the current market environment, that is a rare combination. Our second quarter once again demonstrates the quality of the business model. We delivered 20% revenue growth, continued double-digit organic growth and further organic margin expansion. This operating leverage translates directly into earnings with adjusted EPS increasing by 19% in the first half of 2026. Underlying cash generation also remains strong. Excluding the temporary LTIP cash out, our operating cash flow increased broadly in line with organic revenue growth. So I will now take you through the financial performance in more detail. Let me start on Page 14 with our Professional segment, which continues to demonstrate why it is our highest quality business. The German subscription business remains exceptionally strong, delivering industry-leading mid-teen growth, supported by high retention, customer growth, pricing power and double-digit ARPU growth. This reflects the success of our membership strategy and the growing contribution of AI capabilities. And as Ralf already explained, the introduction of our digital currency, our Immopoints clearly shows that our new AI-driven products are not only highly valued by our customers, but that we are also able to monetize these new features. At the same time, we continue to reshape transaction enablement towards more scalable digital businesses. Software-as-a-Service and digital valuation products are growing at double-digit rates, while we are becoming increasingly selective in less scalable parts of the portfolio. Moreover, Spain also continues to develop in line with our expectations, contributing EUR 15 million of revenue in the quarter. On the cost side, we remain in the integration phase. We continue to incur transitional service costs as we complete the carve-out from the former owner. These costs will gradually decline over the next 6 to 9 months as the integration progresses. What I find most encouraging is the profitability. Our organic operating EBITDA margin in the Professional segment exceeded 65% in the second quarter. This reflects not only pricing power, but also our ability to successfully integrate acquisitions while improving margins. Just 1 year after closing, all 3 acquisitions, in particular, the acquisition of Sprengnetter and Buinggesa are already contributing to margin expansion. That gives us a proven blueprint for Spain and reinforces our confidence that we will continue to improve margins through the second half of 2026 with the full benefits becoming increasingly visible as we enter 2027. Now let's come to Page 15 and take a look at our private business, where we continue to see encouraging momentum. Overall growth remained strong at 8.4% in the second quarter, broadly in line with the first quarter. The most encouraging development is our subscription business. Search+, Living Plus and our new AI capabilities are driving accelerated subscription growth with momentum improving both sequentially and year-over-year. This gives us confidence that our product strategy is working and as I said at the Capital Markets Day, with further product launches still to come later this year. Our Paper ad business also continued to perform well. It is benefiting from our growing content base and a more demanding rental market. While growth naturally moderated in the second quarter against a stronger comparison, it remained close to double digits. More importantly, it demonstrates that our content strategy is working. We are increasingly able to monetize different market environments, making the business more resilient as conditions evolve. And finally, the slightly lower margin reflects targeted marketing investments supporting the rollout of our new B2C products, especially with the so-called gray market initiatives, which already lead to an impressive number of increasing listings of rental offerings on our platform, as you can read from our press release. These are deliberate investments that support the accelerating subscription momentum we are seeing today. With Page 16, I will now switch from the revenues to our cost development. The development of our cost once again highlights the strength of our operating model. 3 months after our Capital Markets Day, we continue to invest behind exactly the priorities we outlined. AI, product innovation, brand and the integration of Spain. Yet our organic cost base increased by only 6.4% compared with 10.5% organic revenue growth. Please note that you will find in the appendix to this presentation a detailed breakdown of our reported and our organic cost development, separating the costs which are allocated to Spain into our organic core business. But let me highlight 3 examples that demonstrate the strength of our operating model and why we are confident that we can apply the same approach in Spain with the effect of an improving overall margin within the next 2.5 years as we demonstrated it within our CMD. First, personnel costs, of course, our largest cost bucket declined by 3.5% organically in the first half, exactly what we outlined, reflecting our higher organization effectiveness, productivity improvements and our continued transition towards a more AI-native organization. Second, organic IT costs grew by only 8.4%, well below organic revenue growth despite continued investments in technology, automation and our AI road map. At a time when many companies are experiencing AI-related cost inflation, we continue to fund innovation while keeping technology costs well under control. Third, marketing costs increased by 18.9% organically, exactly as planned, reflecting targeted investments behind our brand, new B2C products and in addition, marketing costs were also impacted by the integration of Spain. Taken together, this demonstrates the scalability of our operating model. We continue to invest behind innovation, while at the same time, keeping organic cost growth way below revenue growth. Our organic ordinary operating EBITDA margin reached 64% in the second quarter. And please let me make one additional point on Spain. We are very confident in our ability to optimize the cost base over the coming quarters and we complete the carve-out and integration into Scout24. We have successfully applied the Scout24 playbook across multiple acquisitions, and we are already doing exactly the same in Spain. That gives us strong confidence that we will deliver a steadily improving margin trajectory over the coming quarters and years, creating significant long-term value from this acquisition. So continuing on the next page, where you can see that the items below our ordinary operating EBITDA developed favorably in the second quarter as well, supporting strong first half earnings growth on both a reported and adjusted EPS basis. The nonoperating effects were materially lower year-on-year, mainly reflecting much lower share-based compensation costs, but I will come to these items in more detail on the next slide. D&A increased moderately, reflecting the higher amortization of acquisition-related assets following the Spain acquisition. Our adjusted EPS increased by 18.8% to EUR 1.97, outpacing revenue growth despite the expected dilution from Spain. Basic EPS also increased strongly to EUR 1.87, benefiting from the lower nonoperating effects. Overall, our first half earnings growth is another proof point to the stability and quality of the Scout24 operating model. Strong operating performance remains the primary driver of earnings growth, complemented by our value-accretive share buyback program, which further supported EPS through a 3% lower weighted average share count. On Page 18, you can see the bridge between our reported and our adjusted net income for the first half of the year 2026. Within these bridge items, there are 4 key elements I would like to highlight. So first, our nonoperating effects, excluding share-based compensation, declined significantly, reflecting mostly lower M&A-related costs. Of course, this was partly offset by continued PMI and restructuring costs as we implement the organizational transformation outlined at our CMD and build a more AI-native organization. Second, share-based compensation was broadly neutral in the first half. The positive effect from the release of the provisions for the LTIP payouts, which we made in the first quarter of 2026 were largely offset by new provisions in the second quarter, covering the new LTIP tranches for 2026 and also by an increased share price. Third, PPA D&A increased as expected, reflecting the higher amortization of acquired intangible assets following the Spain acquisition. And finally, the financial result benefited from around EUR 4 million of fair value gains on our VC fund investments and approximately EUR 2 million from the revaluation for the Sprengnetter call options. So before I will come to our cash flow and our capital structure, please let me first put today's results into the broader context of our CMD. As I already said, after my first 5 months at Scout24, I am absolutely convinced about the quality of the business and its long-term potential in the light of our CMD and our presented strategy of the Agentic operating system. If you go back to our CMD in 2024, we had a clear strategy, a strong operating model and ambitious financial objectives. Today, I believe the opportunity is even larger, not because our strategy has changed, but because the business itself has become stronger and supported by continuous important strategic investments in our ecosystem. Over the last 2 years, we have consistently executed, delivered on our commitments and proven that our operating model is scaled. But perhaps the biggest difference today compared with our Capital Markets Day in 2024 is AI. Two years ago, it was a strategic ambition, which we already highlighted as a key pillar of the future development. Today, it is becoming a major part of how Scout24 operates. AI helps us build better products, deepen customer engagement and most importantly, for a CFO, creates new monetization opportunities. At the same time, it enables us to innovate faster. automate more processes and significantly shorten the time from an idea to customer impact. In other words, AI is strengthening both sides of our P&L. It supports sustainable revenue growth while making our operating model even more scalable and increasing our operating leverage. Combined with our industry-leading subscription businesses, expanding monetization across the customer journey and our proven ability to integrate acquisitions while expanding margins, I believe the foundation of the business is stronger than ever. For me, the most important change since our CMD in 2024 is that our growth drivers are no longer developing independently. They are reinforcing one another. Better products drive stronger customer engagement. AI accelerates innovation and efficiency. A scalable operating model translates those advantages into consistent financial delivery. That is why I believe Scout24 is becoming an even stronger compounding model for shareholders than we have seen 2 years ago and why I'm so confident in the opportunities that lie ahead of us. Turning now to Page 20 and our free cash flow development. Starting from a net income of EUR 132 million at the end of the first half of last year, free cash flow amounted to EUR 101 million in the first half of this year. The main driver of the year-on-year decline was around EUR 25 million of LTIP cash outflows, reflected in working capital and provisions relating to incentive programs from previous financial years. Excluding this effect, free cash flow would have increased year-on-year, underlying the strength of our cash generation. Cash conversion remained strong at 73% of adjusted net income and 45% of ordinary operating EBITDA. Turning to leverage and capital allocation. During the first half of this year, we deployed almost EUR 400 million of capital across strategic M&A, share buybacks and dividends. To remind you, we paid a dividend of EUR 105 million in the second quarter, and we already bought back more than 1.7 million of shares in the first half of the year with a cash consideration of EUR 123 million. By the end of the first half of the year, we had more than 3.8 million treasury shares, representing 5.25% of our share capital. As you know, we are currently running another share buyback tranche in the second half of the year with an outstanding buyback volume of around EUR 220 million today. In addition to the free cash flow generated during the period, these investments were funded through a EUR 300 million Schuldschein or an English promissory note issued at attractive terms and additional debt. As a result of our investments in M&A, share buybacks and the dividend payout, our financial leverage increased to just 0.99x at the end of the second quarter, leaving us with significant financial flexibility. So let me conclude on Page 22 with our guidance. Based on our strong first half year performance, we are, of course, confirming our full year guidance for 2026 with a very high level of confidence. We continue to expect revenue growth of 16% to 18%, including around 6 to 7 percentage points from Spain and an ordinary operating EBITDA margin of up to 61% or up to 64% on an organic basis. Let me make a few comments on phasing. Based on our first half revenue performance and the outlook for the second half, we are currently tracking towards the upper end of our revenue growth range. As always, we will provide a more specific update with our third quarter results when we have even greater visibility for the remainder of the year. On profitability, the second quarter already demonstrates the strength of our operating model with a group level organic operating EBITDA margin of 64%. This reflects the efficiency of our German business and our proven ability to expand margins following acquisitions. The path towards our guidance of up to 61% reported operating EBITDA margin will continue to build through the second half of this year. This will be supported by lower TSA costs in Spain, continued optimization of the Spain cost base and further efficiency gains in our German business as we continue the transition towards an AI-native organization. Based on our track record of integrating acquisitions and executing PMI programs, we are highly confident in our ability to deliver the same outcome in Spain. Consistently delivering on our commitments while improving profitability has become a hallmark of the Scout24 business model, and we are confident that 2026 will be another example of that. So thank you for your continued interest in Scout24. Ralf and I are now happy to take your questions. Please limit your questions to 2 questions per speaker. I will now hand over to the operator again, and thank you for your interest.

[Operator Instructions] And the first question comes from Ed Young from Morgan Stanley.

My first question is on private subscriptions. Could you give a bit of color on the churn during Q2? You obviously entered and exited at a higher number than the average during the quarter. So what's caused that? Was it concentrated in any particular packages or cohorts? And how should we think about growth in private subs coming out of the period? And then the second question is on AI. You mentioned on the consumer side, you've seen search interactions increasing nearly 50x year-on-year. I just wondered if you could give some color on whether you're seeing any change in the consumer behavior or any associated increase in engagement or paid conversion or leads being sent to agents?

Yes, Ralf here, happy to take your questions. I mean on the private business, what we can say is that the we exited the Q2. So the numbers in June are 522,000 subscribers on the consumer side, so plus subscriptions. And this is actually a positive development. So we are accelerating our subscriber growth compared to Q1 and this is something we see is possible to continue in July already. We see higher numbers here as well. And so if you sum it up and you take the run rate, the current one we have, then we would land double-digit revenue growth. So therefore, we are quite happy with the progress we are making. I mentioned it last time. Maybe to give a bit of context of the number I mentioned in the last call, where I said 530,000 in April. That was the test we did where we did a win-back campaign in April. And the campaign actually was quite successful, but we decided and led to subscriptions of over 530,000 in April, but we decided in May to take the campaign down and not to count the customers from that campaign into the subscriber numbers. So as I said, 522,000 end of June. This is really a sustainable growth, and we are making progress, as I said, and can accelerate the revenue growth for the private business. That was question number one. Question number 2 was regarding the AI usage of the audience. I have to say we are quite happy. We see that the people are more engaged if they are using our AI features. That's true for both for consumers as well for professional customers. If they are more engaged, they actually what they experience as a consumer or as a user of it, they experience a better matching experience. And so that means their search experience becomes more efficient, and we are more relevant to them because we can provide a better matching than our competition can do at the moment. And so that means also that the quality of leads those consumers generating contact requests to real estate agents, they have a better quality. And so the consumers, they gain some efficiency on the search experience and our professional customers, they win more or they get a better quality in terms of leads and contact requests.

And the next question comes from Adam Berlin from Goldman Sachs.

My first question is on ARPA in the professional business, which grew 10% in the first half and in the second quarter. Can you give us any color on the drivers of that 10% ARPA growth? How much of it is coming from upgrades to these new AI-powered tiers? Is there any kind of dimination of ARPA because of the new subscribers? How much is just price? Any color you can give us on the kind of drivers of that 10%? That's the first question. Second question is, can you give us an underlying growth rate for the Spain business, please, revenue growth?

So yes, I can start and maybe for Spain, if possible, Martin, you can put some color on. So yes, if it comes to ARPA growth, I mean, it's always a mix value in the packages. So we see customers upgrading their memberships into a higher tier. We are also migrating customers from the old membership world into the new one. Still, we do upsell with Immopoints for AI features. So what we see actually is that we see higher perception or higher usage of AI features on the V side, and we see that we are able to monetize those AI usage or intelligence usage via Immopoints. I think we disclosed the revenue we do with Immopoint. And it's really -- it's a strong growth here, and you see that -- and this is actually driven by AI features. So yes, this is what I can share. Other than that, we are not disclosing actually -- but yes, I mean, ARPA is not just driven by price increases. I mean, this is not the approach we follow. As you know, we have a different approach. We call it responsible pricing. So most of the ARPA growth has to come from membership upgrades and multiproduct usage.

Yes, maybe from my side, it's Martin speaking. Regarding the underlying growth rates in Spain, I think currently to have a broader view more from a 30,000 feet perspective on Spain, you know that we took over Spain in March, and we are now really working on the integration of Spain and putting, as I said in the call or in our script, putting the playbook of Scout24 in Spain. And there are some homework to do. So therefore, currently, you see that we are roughly having EUR 5 million per month on the revenue side in Spain, if you count it up from March onwards, and we said over the entire year for 12 months, and you know that we have only 10 months in our books for this year. But for a 12-month period, we said that we'd like to achieve EUR 60 million of revenues in our press release in September last year. And we are, as we said, quite confident that we are reaching these numbers. And currently, our focus is really to have the same playbook as here. To have much more longer contracts with our customers, which leads then also to more subscription safe revenue model where you have an increase month-over-month. And as we said in other calls, currently, Spain is structured in a much different way than we are doing our business. So the contracts are much shorter. You have sometimes the dip in the month over the summer where the contracts are canceled, and we are now turning this into our model where you really have more long-term contracts. And therefore, I would say, please give us some time for this year to make the transformation and to see then in the next year that the playbook is the same way as in Germany and that we then have also having not any more the TSA transition cost that we have more synergies -- but overall, we're clearly focusing on our EUR 60 million run rate for an entire year multiplied or divided by 12, multiplied with 10 months. But I think this is where we are approaching for the full year, and we are really focusing on getting the costs under control, having cost reductions by GSA, but also by having synergies. I apologize that I had a broader view on this, but maybe this helps you a little bit how we are looking also on the Spain business.

And the next question comes from Doyinsola [indiscernible] from Citi.

My first question is on. I think we saw that 60% of customers are now using them. I understand that usage is expected to grow, but can you give us a bit of color on where you see penetration reaching -- and maybe what AI features are most popular? And then on Spain, thanks for the underlying color, but it would be helpful to understand how growth is -- what's driving growth? Is it more so membership growth? Or is it pricing? And then on the share of advertising in Spain, I think the plan was to take down the share of advertising as a share of revenues. Is that still the case?

I maybe I start with the point. So the way how it works, I mean, we presented at the Capital Markets Day that we established ImmOpointsN as our currency within our ecosystem where people can consume additional services and AI features are in this perspective, additional services. So in the moment where our customers consume more intelligence in the system because we are creating or building or we build partially our ImMoAI system. So -- and in the moment where people consume intelligence, for instance, if they want to create a virtual staging or if they need the floor plans, AI build and so on, then they have to use ImmOpoints for that. And actually, all the AI features in particular, they will drive the Imopoint consumption. So -- and we see that this is working. What it also drives is the the multiproduct usage of the -- for our customers. So in our ecosystem, we have many different products here. they are all in a way, connected to each other. So you can transfer the data from one feature to the other easily. This is actually the biggest advantage of having one ecosystem here. And if you want to use more services within the ecosystem, you also have to spend then the ImmOPoints, for instance, if you want to use the -- our software business or agent software product, for instance, and you can use ImOPoints for it. So ideally -- not ideally, but ideally, we will see more usage coming with that customer because you mentioned the number. Hopefully, in the future, more customers will use Immopoint. They will also commit to ImMOON. So it's not that we want to have recurring revenue even with the ImMOpoints. So -- and we see with the -- we also see that we are able to bring more and more products on this, let's say, on this model where we monetize the intelligence. So as more products we are adding to our Immopoint universe so that we can pay with Immopoint as more, let's say, revenue we are going to see in the Immopoint revenue line. So yes, this is what I can say to ImmopN. On Spain, what it drive revenue? I mean, Martin just mentioned it a bit. It's actually the normal or the the normal classified playbook where you have memberships where you need to grow in customer numbers, where you have to add some on top products to it. Hopefully, customers will buy it, but this is actually what we have to establish in Spain. Many of the contracts we have in Spain with our professional customers, they are not long term. They are short-term contracts. And if you -- but if you move, let's say, the customers into long-term contracts, of course, the volatility for revenue will go down, in particular during the summer. And this is actually what we want to do there. as I said, normal execution of the classified playbook. You asked about the advertising revenues. I think we said it in one of the other calls already. Actually, we want to become more independent from those advertising revenues. I don't know, I don't have the exact numbers, how much it is at the moment from the revenue side, if we have it?

Low to mid-single digit.

We are not disclosing it fully. So yes, so we want to focus because it's important, in particular, if you are the #2 in the market that we have a good product experience. So -- and I mean, the revenues are not that big. So ideally, we can replace those revenue easily if we are doing a good job on the membership side here for professionals, and that's actually the strategy.

Maybe just one tiny follow-up. On the Immo point using the AI features, I think it was asked earlier. Can we get any sense of how much that is driving ARPU?

We want to disclose it? No. Not yet.

What we can say is that Immopoint is growing very fast. We started off in '24, we came out with the concept at the CMV. And today, we're doing over 3 million run rate. So that obviously gives you a feeling for the growth, and it's obviously growing materially faster than the membership line overall. So it has a net positive contribution to ARPU.

Then the next question comes from Craig Abbott from Kepler Cheuvreux.

I'd like to just come back, please, to the private segment. Thank you for sharing some color earlier on how you're thinking about the subscriber growth developing throughout the back half of the year. My first question would be, how do you see those marketing costs developing and kind of like the EBITDA margin progression we should be thinking about? And the second question is there -- maybe it's not that material, but I would just like to gain some more color, please, on the landlord Plus product. How is it developing? How material is it? How sticky are those subscribers? If I'm not mistaken, I think the average duration here is longer compared with your other Plus products. Any color you could provide here would be appreciated.

Greg, let me start with the private business. You asked about the marketing costs. I mean as you probably know, we tested a lot in the last couple of months on the product side. And of course, if you are -- if you are introducing new product tiers, you have to do some marketing around that. So -- and this is actually what we did, and that's what you can see reflected in the marketing here. So we had to promote a bit the product features. We had to explain them to consumers, but also to professional customers if they are receiving a need here what's the difference. What we see already, and this is what I didn't mention before, we have in the highest tier at the moment, there's a new AI features in. It's our application assistant. So with this assistant, seekers, they can apply automatically for relevant homes for them and they are faster than others, even faster than -- faster than other Plus subscribers if they are on the lower tiers. So this is actually driving also ARPU on the Plus subscription side. So again, what you see on the professional side with Immopoint also something we experienced on the consumer side with our Plus subscription. So I think it was a good decision to tier the product into different tiers and put more value in for those who have -- want to be faster than the others because that was a bit the issue that the product became commodity here in Germany. So this is what we have changed and is good. And of course, we have to do marketing. Other than that, I think we reconfirm today our margin guidance. And of course, this is what we will deliver. And yes, -- that was number one. Number two was the -- the product. The landfill products, right? Yes, I think you said it correctly that the stickiness of homeowners using the product is higher in the paid product. But the entry product actually is a free product for homeowners. They -- what we see in this free bucket, let's say, that we were able to increase the engagement here. This is important because if you want to upsell into paid products, you need to have engagement on the free product first. But we still have to do some work here on the products really in the early stage. It's a bit like what we did with the Plus product 10 years ago where we had to chase the market the same here on the homeowner side. We are really happy with the content homeowners delivering to the platform. Now we have 6.5 million properties in our homeowner product. And this is actually content no other portal can offer to seekers. And to give access here to give seekers access to this content is really an advantage for the platform. So there's not just value in monetizing homeowners, there's also a value for the seeker side and also for Plus subscribers. So therefore, from the content contribution topic or perspective, we are really happy. If it comes to monetization, there's still potential, and we -- as I said before, we have to shape the market here first.

Okay. So it does -- if I take a step back and look at your overall Plus portfolio, that's like you're developing the subscriber base there. You're already using content also across your other products. But in terms of driving the actual revenue line and therefore the EBITDA line is the other Plus products with potential in the future to come from the landlord product. Is that the way we should think about it?

Yes. I mean, at least -- I mean, you said from the strategy perspective, we would like to move deeper into the gray market as more markets are regulated. And that's what you can see at the moment here in Germany. The market gets more regulated by the government. And as more content is going into this hidden or gray market. So our landlord product actually is unlocking this gray market. So -- and what we do is we do a kind of matching even -- so we call it premarket. So we do a kind of matching in the premarket. And this is accessible in particular for Plus subscribers. So they can sign up for a waiting list for every address in Germany in the future. So -- and therefore, you are right. Ideally, the landlord or homeowner product is driving Plus subscriptions at the end. But this is not just -- it's not the only, let's say, feature we have in the pipeline to drive Plus subscriptions. There are also other things we can imagine. For instance, we have the product that's called Living Plus, right? Ideally, we have products where people move from the search phase into the living phase, and we stay relevant for those users. So if we are able to -- if we are successful with that, then we can expand the lifetime from today, 6 to 12 months into 8 months because that's the average lifetime of a tenant here in Germany.

And the next question comes from Will Packer from BNP Paribas...

Two for me, please. Firstly, thanks for the framing on the new home segment. It does sound somewhat familiar from what we've heard in other markets where eventually the supply crunch feeds through and results in more disappointing classified revenue. Could you remind us what percentage of professional revenue is generated in new homes? And then perhaps frame a little bit more on the supply outlook in Germany and perhaps what gives you confidence that, that will improve in due course? And then secondly, whilst the competitive backdrop has also been pretty stable in the last few years, there's been lots of changes of control. Can you just help us think through any recent developments on the competitive side? Or is it all still pretty quiet?

Maybe I'll start with the competition. So what we see that we -- I mean, on the -- let's start maybe with the rent side and then on the new homes, Filip will give you the details and background here. So I mean, as many other markets in Europe, I mean, the real estate market at the moment, they are challenging, not just on the new home side, also on the rent side because there's a lot of uncertainty. So the economy is weak, people -- prices to rent an apartment in Germany, they are high. So this is making something with the overall demand for properties if it comes to properties for rent. And so the overall demand for rent properties in Germany is going down. But we are participating here. So we are gaining market share because -- the percentage, which is, let's say, where the demand is going down on our website is lower than it is with the competition. It shows us that we are even able in tough markets to grow market share. So -- and one reason for that is that we are able to deliver content others cannot deliver. So this exclusive content strategy we presented first in 2024, and now we are executing along this, and we updated the strategy on the Capital Markets Day this year as well here. I think it's paying off now. So people appreciate that they find content, which they cannot find on other portals. And therefore, we can win market share here in this rent space, in particular, even if the overall demand for rent properties is going down in Germany. So on new home, maybe Filip, you can -- because we have the numbers, you can share.

Yes, yes, Will. And actually, the reason we put in the slide, we wanted to talk about the story is that we're actually able to -- we want to show that we're able to grow in all the markets across cycle. This was also a topic at the CMD. And one of the reasons is that we offer products for the entire transaction flow. So it's much more than just marketing. We're deeply integrated into the workflows of these customers and actually even some products where we just share the transactional upside with the customer. So we're not charging anything upfront. So we have a flexible approach. And what we wanted to say also on the slide is that our membership business continues to grow through the cycle. And we didn't put the number specifically, but our new homebuilder business and developer business is growing around 15% year-to-date. It's obviously very strong numbers. And in terms of the total pie, slightly less than 20% of the of the membership business.

I mean there's one effect maybe we can also put into consideration is that the prices -- the square meter prices to build new homes still increasing. They are still increasing here in Germany. So that leads to high square meter prices when it comes to sales of new homes. And so that means also from the developer perspective, we have to do more marketing in order to sell those properties. And this is actually where we step into, right, where we say, look, I mean, here's a product for you to convert your high square meter prices into a sale because with high interest rates we are having here at the moment, I think it's not getting easier for the developer. It's the other way around, and they need more marketing support as well, and they need also more intelligence. So targeting the right buyers and finding them in the ecosystem, that's also what we do now. We are doing specific campaigns for developers. And that's how we can grow the business even in challenging times.