Australia's Onthehouse Holdings Limited has published its results for the full year ended 30 June 2015 (FY15) with revenue of $26.0 million underpinning continued investment in the future growth of the company’s Real Estate Solutions (RES) and Consumer Online and Data (COD) divisions.
Key highlights for FY15
Key financial results for FY15
“Onthehouse’s focus on right-sizing the management team and a range of cost efficiency measures drove growth in underlying earnings, with underlying EBITDA up 12.2% to $6.5 million. These efficiency measures also improved the cash balance from $1.2 million at the half to $1.8 million for the full year, while importantly making possible the funding of a 25% increased investment in software development. The underlying net profit before tax was relatively steady on the prior year with reduced financing costs offsetting increased amortisation.”
Mr Meehan said; “The strategic review was completed and announced in June, outlining the company’s strategy to maximise the opportunity in the RES business, and seek investment in the COD division given its higher risk profile but higher reward upside.”
“RES has strong market share, is very profitable and delivers strong cash flow to the Onthehouse Group. The intention is to reinvest some of that cash flow to redevelop the existing technology into a SaaS platform. This will build on our current market position and provide an integrated set of real estate marketing and backend software solutions to enable real estate agents to confidently grow their businesses.
“The new SaaS platform will enable Console to continue to grow and retain its customer base, increase revenue per agent through cross selling of additional products developed in-house or via partners and explore new revenue opportunities.”
“The company plans to develop the COD business within a non-listed JV vehicle in which OTH Holdings would maintain an interest of between 30% and 49%. Early discussions continue with potential partners and the process is expected to take up to six months.
“In the meantime the COD business continues to have strong growth in traffic, agent listings and consumer engagement. We have launched the beta site in July and the next stage is the launch of our newly enhanced next generation Onthehouse.com.au website in the December quarter this year.
This new site will have improved usability and a new set of products to offer to real estate agents to drive monetisation,” said Mr Meehan. Mr Meehan said any new investment in COD will focus on increasing marketing and the ongoing product development of the Onthehouse.com.au website. “Until we secure a partner for the Consumer
Online division we will continue to invest appropriately in both businesses. We have the resources to market and develop the next generation Onthehouse.com.au website and have increased investment in technology resources to commence the work on the new SaaS platform,” added Mr Meehan.