Newly listed OnTheHouse (ASX:OTH) has just released its results for the first half of 2012. For the 6 months ended 31 December, revenues were up 20% on the previous corresponding period (i.e. 6 months to Dec 2010) to AU$9.6m (US$10.3m). The business delivered an EBITDA of AU$3.3m (US$3.5m) - a margin of 34% of revenues. (Note this EBITDA is after removing one off transaction related costs.)
Key highlights for the first half of 2012 include:
According to CEO and MD, Michael Fredericks, "the last six months have been transformational. We have successfully integrated the Console and PortPlus businesses and also acquired 50% of Residex."
While PortPlus, Console and Residex have all been acquired, it is the Consumer Marketing Division's www.onthehouse.com.au that is new. According to management unique visitors to the site was greater than 920,000 in January 2012. While progress is good, Google Ad Planner ranks onthehouse.com.au the number 5 portal in Australia.
Having built good traffic to the onthehouse.com.au site, the next step is monetisation. The business has rolled out a number of new products around lead generation, publisher platforms, online advertising and industry applications.
The company confirmed that it was still on track to deliver its prospectus forecast of AU$20.1m in revenues and AU$8.0m in EBITDA for the full year.
However, while the business appears to be tracking to the prospectus forecast, the market wasn't that impressed with the result sending the shares sharply lower to 51.5c, a decrease of 4.6% over the day. Also, the business is currently trading at nearly a 50% discount to its listing price of $1.00.