Aggregator Sites Drag Lifull's Bottom Line Down in Q1 Results

The Tokyo-based real estate marketplace and aggregator operator Lifull has released its results for Q1. Highlights from the company's performance for the three months ended December 31st include:

• Total revenue of JPY 8,190 million ($54 million), up 8% year-on-year.
• Operating loss of JPY 46 million ($345k).
• Net loss of JPY 397 million ($2.6 million).

Lifull noted that although the performance of its Japanese portal business exceeded expectations the quarter was affected by one-off costs in its overseas business related to a change in management and a significant year-on-year increase in the cost of sales.

Lifull's domestic HOME'S portal saw a boost in the number of real estate agent clients (up by 500 on the comparison quarter) and saw its bottom line benefit from the scheduling of branding costs as segment profits rose 16% to JPY 695 million.

Meanwhile, Lifull's Overseas business saw a 43% jump in revenue attributable to the consolidation of FazWaz (acquired in February 2023) and Lamudi Mexico (acquired in March). While the brokerage business and portal businesses saw revenue in line with targets, the company's aggregation businesses (Mitula, Trovit, Nestoria, Nuroa) continued to struggle with lower levels of traffic and reduced spending from clients.

A presentation accompanying the results announced the move to a new centralised management structure for Lifull's Overseas division with its European, Southeast Asian and Latin American operations all reporting to newly appointed boss Kiyoshi Shishido.

Lifull has one of the most diverse portfolios of any real estate portal operator in the world. Domestically it runs the Homes.co.jp portal as well as several adjacent businesses including senior care, a search engine for storage solutions and an investment company.

Lifull's Overseas segment includes aggregators Mitula, Trovit and Nestoria and real estate verticals dotproperty, Hipflat, LaEncontré and Properati.