PropNex Q1 shows profits down 66%

May 16, 2019
Share this Post: 

Though the profit has dropped 66%, the company's balance still seems to be in the up and up

Real estate agency PropNex posted a net profit of $2.3 million in the first quarter of 2019, down 66.6 percent from $7 million in Q1 2018.

Revenue also fell 27.8 percent to $74.2 million from $102.7 million previously, mainly due to a 60.6 percent drop in commission income from project marketing services.

The decline in commission income came as a significant number of option-to-purchase have yet to be completed as at end-March.

“The first quarter is traditionally a subdued period for us, as new launches and buying activity tend to taper off during the Lunar New Year period. The reduced number of new launches in the first two months of the year, compounded by the effects of the property cooling measures and increase in interest rates have inevitably impacted our financial performance,” said Ismail Gafoor, Co-Founder, Executive Chairman and CEO of PropNex.

“In March, however, we observed developer sales rebounding strongly, signifying that buyers and investors are starting to feel more confident in entering the market again with developers continuing to price their developments sensitively. The transactions in March will be recognized in the following quarters.”

Despite the drop in profit, the group’s balance sheet continued to be healthy with cash and cash equivalents of $79.7 million as at 31 March and no gearing.

Read more here

Join us in Miami Beach, June 5-7 for the Global Online Marketplaces Summit.

Miabannermay12

May 16, 2019

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Zillow No Sale
Zillow Reneges on Pledge and Cancels 400 Offers Contracts

According to local press reports from Phoenix Arizona, Zillow's iBuying division is cancelling agreements to buy around 400 homes and...

Read More
Portal Products We Like Edited
7 Great 'Under the Radar' Property Portal Products

At OnlineMarketplaces we get sent a lot of press releases around new portal products and, if we're being honest, sometimes...

Read More
Rentpay Skyline
Rent.com.au Signs Agreement to Have Leading Rentals Agency Promote its End-To-End RentPay Product

Australian rental portal and end-to-end specialist Rent.com.au has announced that it has signed an agreement with prominent rental management agency...

Read More
Immoscout24 House Value
ImmoScout24 Extends Data Cooperation Agreement with Sprengnetter for More Accurate AVM Modelling

Leading German real estate portal company Scout24 has extended its data-sharing agreement with appraisals and market data specialist Sprengnetter to...

Read More

Popular News