iProperty Group Ltd (ASX: IPP) the owner of Asia’s No. 1 network of property portal sites under the iProperty brand announced its results for the financial year ended 31 December 2013, highlighted by profitability on the back of strong revenue growth in the second half of the year.
In 2013 the Group had total income of $24 million, up 35% on 2012, with revenue from continuing operations up 23%. Revenue in the second half of 2013 was up 49% versus the first half of 2013 and 44% on the corresponding period in 2012 from continuing operations, showing a strong growth trend through the second half of the year and into 2014.
The strong increase in revenue in the second half of 2013 helped drive an improved result at an EBITDA level for the year and for the first time, the Group achieved a profit from operations in that period.
*includes proceeds from sale of iCar Asia Ltd Shares
This significant growth in revenue in the second half of the year also meant the Group had positive operating cash flow for the first time in the 4th quarter of 2013.
The Malaysia business, ‘iProperty.com.my’ continues to dominate its market and recorded half on half revenue growth of *67% off the back of a continued uplift in agent depth revenue, strong developer display revenue and an improvement in revenue from events. Average revenue per agent (ARPA) doubled over the course of 2013, with continued improvement in yield expected to continue.
The Hong Kong business achieved revenue growth of *81% for 2013, including *51% half on half growth. This strong result was achieved despite continued cooling measures from Government and now clearly positions GoHome.com.hk as the number 1 property portal in Hong Kong.
In Indonesia ‘Rumah123.com’ extended its leadership position in the market and grew revenue by *29% over 2013, even while continuing to primarily focus on the growth of its key operating metrics. In 2013 the number of licensed real estate agents paying to list on the site grew by 42%, the number of developer customers grew by 66% and unique visitors to the website peaked at over 1.2m per month.
A focus on cost reduction in the Singapore business delivered operating margins in line with 2012 despite significant cooling measures introduced by the Government and a highly competitive operating environment.
iProperty Group Chief Executive, Shaun Di Gregorio, commented “These results are a testament to the extreme focus we have on executing against our strategy and the positive trend we have been seeing in our business. Reaching profitability and being cash flow positive, coupled with our strong balance sheet, see us perfectly positioned to capitalise on the continuing growth in our markets. Our key operating metrics continue to advance strongly and our leadership position is strengthening and growing. Not only do we have absolute clarity about the future direction and prospects of our business, we believe we are poised to continue to ride the trend our business is on and to execute on this tremendous opportunity.”
*Measured in local currency
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