Swedish online property marketplace Hemnet Group reported a challenging second quarter on Friday, with revenue and profit both coming under pressure as the industry's transition to the new Swedish Property Listings (SFPL) data standard continued to disrupt listing volumes. The company posted a slight decline in quarterly revenue compared to the same period last year, while operating profit margins narrowed as costs related to the SFPL migration and increased investment in artificial intelligence weighed on the bottom line.
Hemnet's management acknowledged that the SFPL transition—a mandatory shift to a standardised property data format for all Swedish estate agents—has created a 'complex operating environment'. The change has temporarily slowed the flow of new listings as agents adapt their systems, directly impacting the platform's core transaction-based revenue streams. Despite the near-term headwinds, the company reiterated that the standardisation is expected to improve data quality and user experience in the long run.
In response to the slowdown, Hemnet is accelerating its push into AI-powered services. The firm has rolled out new features including automated property valuation models and AI-driven personalised search filters, designed to keep users engaged even as listing volumes fluctuate. Analysts at Swedish bank SEB noted that while the AI investments are necessary for future competitiveness, they are unlikely to deliver meaningful revenue contributions until late 2026 or early 2027.
The results carry implications for the UK property market, where similar data standardisation efforts—such as the push for a single property data spine—have been discussed by industry bodies. UK-listed property portals like Rightmove and OnTheMarket could face analogous short-term revenue disruption if mandatory data standards are introduced, though the long-term benefits of cleaner data and improved consumer trust are widely acknowledged.
Hemnet shares were trading modestly lower in Stockholm on Friday afternoon, reflecting investor caution over the timing of the recovery. For UK investors with exposure to European property tech stocks through funds or pensions, the quarter underscores the risks of regulatory transitions in digital marketplaces, even when the underlying rationale is sound.