Powered by MOMENTUM MEDIA
the adviser logo
Lender

Property group posts $29.3m third-party revenue

by Reporter4 minute read
Money, Australian dollars

A property group has delivered growth through its financial services division off the back of its investments in the third-party home lending space.

According to REA Group’s full-year 2018 (FY18) results, it reported financial services revenue of $29.3 million ($10.8 million EBITDA), which it has said was driven by the group’s acquisition of Smartline in August 2017, and its purchase of a 70 per cent stake in realestate.com.au Home Loans, funded by NAB-owned aggregator Advantage Finance Services, in September 2017.

The group has said that since launching realestate.com.au Home Loans, it has saved over 350,000 financial profiles and generated more than $75 million per month in loan applications.

However, the group has noted that the result was affected by slower credit conditions as a result of tighter lending criteria.

==
==

“This result is at the upper end of previous guidance reflecting a reduction in the run off rate of mortgages as banks have tightened lending practices. These conditions have also impacted the volume of new loans written.”

The group reported a total revenue of $807.7 million, up 20 per cent from FY17, with its net profit after tax also increasing, rising 23 per cent to $279.9 million.   

REA notes risks to growth

Despite reporting positive growth, REA Group has warned that a continued softening in the Australian housing market conditions could pose “significant risk” to its income streams.

“A decline in market conditions could result in a significant reduction in the number of property listings on REA’s sites. 

“The property market is driven by employment, interest rates and consumer confidence. A substantial change in these market indicators could result in a deterioration in the performance of the property market.” 

[Related: Bank lauds broker contribution, lauds PC ‘changes’]

cash dollars million ta
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more