It's safe to say that the online property portal industry is not going to collapse any time soon. Purplebricks' UK operations, according to a commentator, are "meaningfully profitable."
Analyst Mike DelPrete recently said Purplebricks results showed an overall group loss of £27.3m for the first half of its 2019 financial year, with a slight reduction in full-year revenue guidance.
But, says DelPrete: “The top line numbers don’t come close to telling the full story (hint: it’s not as bad as it sounds).
“Purplebricks’ core UK market continues to grow and is meaningfully profitable, proving that the model works.
“Key performance indicators in its other three markets reveal a deeper story of investment growth, and challenges.”
He says that the popular narrative – that the entire online business model is near collapse – “is seductive but factually incorrect”.
He goes on: “Purplebricks is an international collection of businesses at various stages of growth. In the UK, Purplebricks’ most mature market, it continues to grow revenues and operating profit. At maturity and scale the business model absolutely works; there is no evidence to support otherwise.”
Read more here
Join us in Bangkok the 19th to the 22nd of March for the Property Portal Watch Conference.
