Note G2 Important estimates and assessments for accounting purposes The estimates and assessments are evaluated on an ongoing basis and are based on historical experience and other factors, including expectations of future events that can be considered reasonable under the prevailing conditions. Important estimates and assessments for accounting purposes The Group makes estimates and assumptions about the future. The estimates for accounting purposes that result from these will, by definition, rarely correspond to the actual result. The estimates and assumptions that pose a significant risk of material adjustments in the carrying amounts of assets and liabilities during the next financial year are dealt with in the main feature as follows. (a) Impairment testing of intangible assets Customer relationships and platform acquired as part of business acquisitions are recognised at fair value at the time of acquisition and are amortised on a straight-line basis over the forecasted useful life corresponding to the estimated time, they will generate cash flow. Assets are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill and trademarks have been assessed to have an indefinite useful life and are tested for impairment annually or as soon as indications arise that imply that the asset in question has decreased in value. See notes G1 and G13 for accounting principles and estimated useful lives and note G13 for reported values. (b) Useful life of intangible assets Trademarks are attributable to the value in Hemnet as a brand and held with ownership. The company does not see any limitation in the useful life of trademarks and their useful life is thus considered indefinable. The majority of customer relationships have an estimated useful life of 20 years, and the remaining depreciation period is 14 years. See notes G1 and G13 for accounting principles and estimated useful lives and note G13 for reported values. (c) Capitalised development costs The Group carries out software development work related to the technical platform and website hemnet.se. Accounting for self-accumulated intangible assets means that the company must make a number of assessments about the future. The decision to activate an asset is based on an estimate of whether it is technically feasible to complete the asset, the company intends to complete the asset, it is likely that the asset will generate future economic benefits and that there are resources to complete the development. See also notes G1 and G13. Note G3 Revenue from contracts with customers
which give a more prominent exposure of the property listing compared with the basic version. Revenue recognition and performance obligations for the various product areas are shown below: Listing services: The revenue for the listing ad is accrued over average maturity. Hemnet is considered to have satisfied its performance obligation with regard to property listings when the listing is removed for advertising, which is done by way of terminating the assignment by the real estate agent who arranged it. Revenue for value-added services attributable to the listing ad, such as the products Hemnet Plus and Premium, is accrued over average maturity. Hemnet is considered to have satisfied its performance obligation for value-added services related to property listings when the listing is removed for advertising or when the period for which the value-added service extends is over. For example, the product Raketen is active for a certain number of days after purchase. Real estate agents are an important partner, as they administer the property sellers' listings on Hemnet and provide information about Hemnet's services. For arranging the property listing, the real estate agent receives administrative compensation. For their mediation of additional services linked to property advertising, the real estate agent has the option of entering into a mediation agreement and receiving commission compensation. See also note G6. Other services: Other services consist, among other things, of income from real estate agents for value-added services and brand marketing, as well as from real estate developers who market their objects and brands. Advertisements are recognised as revenue over the period that the advertising campaign is exposed on Hemnet.se and in Hemnet's apps. Other services are recognised as revenue during the period in which the service is used. Advertising and similar services are considered to be delivered when the advertisement is published according to agreed conditions and the agreed publication time has expired. The majority of the services are invoiced with 30 days payment due. Advertising services are billed in line with campaign times. Invoicing for property listing takes place in connection with publication. Since 2020, home sellers have been offered to pay their home listing via Klarna up to seven days after publication. In the event that the sellers choose to pay via Klarna, an invoice will be drawn up via Klarna and Hemnet will receive a settlement claim on Klarna. If the property seller does not choose to pay via Klarna within seven days, a paper invoice will be issued. Accrued income is reported in the balance sheet for published listings that have not been invoiced as of the balance sheet date. The portion relating to the remaining publication period regarding invoiced and accrued invoicing is reported as prepaid income in the balance sheet. The remaining performance obligations as of Dec. 31, 2022 amounted to SEK 12.3 million (7.6), including prepaid income reported as contractual liabilities. Performance obligations are essentially expected to be executed and revenue is reported within one month from the balance sheet date. Furthermore, no revenue related to performance obligations that were fulfilled in previous years has been recognized as revenue in 2022.
G1 G2 G3 G4 G5 G6 G7 G8 G9
G10 G11 G12 G13 G14 G15 G16 G17 G18 G19 G20 G21 G22 G23 G24 G25 G26 G27 G28
Revenue breakdown by customer category
2022 639.6 113.2
2021 482.3
Note G4 Other operating income
P1 P2 P3 P4 P5 P6 P7 P8 P9
Property sellers Real estate agents
95.4 54.4 96.0
2022
2021
Real estate developers
48.3 88.1
Reminder fees and interest for late payments
Advertisers
1.6 0.5 0.1 0.4 2.6
0.9 0.2 0.2 0.5 1.8
Total
889.2
728.1
Commission income
Exchange rate differences receivables of an operative nature
Revenue breakdown by service category
2022 668.4 220.8 889.2
2021 508.3 219.8 728.1
Listing services Other services
Other Total
Total
Note G5 Other operating costs
The entire Group is followed up as a segment and the revenues are in principle exclusively attributable to Swedish customers. Hemnet's revenues come from services that target the following main customer groups: Property sellers, Real estate agents, Real estate developers and Advertisers. The single largest revenue stream comes from the property sellers' property listings. In order for property sellers to be able to influence their property sales, value-added services such as Hemnet Plus and Hemnet Premium are offered,
2022
2021
Foreign exchange losses
-0.2 -1.3 -0.0 -1.5
-0.7 -1.0 -0.0 -1.7
Reminder and debt collection costs
Other Total
54 · Hemnet Group | Annual and sustainability report 2022
Financial statements
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