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Listed aggregator bullish despite $20m loss

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Listed aggregator bullish despite $20m loss

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James Mitchell 3 minute read

One of Australian largest aggregators has outlined an aggressive growth strategy as it looks to rebuild after a tough 2015.

While eChoice recorded a statutory net loss after tax of $21.1 million for the 2015 financial year, CEO Peter Andronicos said the financial results should be seen in the context of setting the business on a new growth path and the significant investment associated with this.

“The new strategy required a considered re-evaluation of resource allocation and the value of certain assets,” Mr Andronicos said.

“This past year has been about transformation and renewal.”

Mr Andronicos said the supply and sale of an expanding suite of financial products through brokers, using eChoice's expertise in digital marketing and sales, was an integral part of the company’s future.

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“We are now well positioned to aggressively grow our aggregation business while at the same time leverage our extensive industry expertise and specialist in-house talent in the digital space so that we become the dominant player in online mortgages and related financial services,” he said.

“The launch earlier this month of firsthomebuyers.com.au through our now established partnership with Fairfax's Domain.com.au is another important milestone in that strategy.”

Cementing new alliance partnerships with product providers in specialist financing and insurance has been a key highlight for the group.

Last month eChoice announced that it had formed alliances with Mildura Finance and Resicom, increasing broker accessibility to asset finance and specialist lending solutions.

“As we see the lending landscape and borrowing conditions continue to change, we have purposely sought to collaborate with like-minded partners who also recognise the need for brokers to remain progressive in line with the market and what borrowers need,” eChoice general manager of products and services Kon Shizas said at the time.

“These alliances will create another integral layer to an ever-broadening client service proposition for our brokers who can now access critical asset finance through Mildura Finance, while Resicom will offer a trusted gateway to their panel of specialist funders.” 

In July the group partnered with ALI Group and Allianz, expanding its insurance offering.

Meanwhile the aggregator has been busy recruiting specialist industry professionals to drive its key business divisions.

Mr Andronicos said early results from the new strategy, such as the recent growth in settlements, were encouraging.

“Momentum has been building across the key pillars of the business, which we are confident will ultimately drive improving revenue and profitability,” he said.

[Related: Aggregator offers new avenue for broker diversification]

Listed aggregator bullish despite $20m loss
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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