This article is from the Australian Property Journal archive
PEXA saw first-half profit fall by 59% as the market cooled, and the operator of the world’s first digital property exchange platform says ongoing interest rate hikes and a slowing economy present downside risk.
Interim profit was $4.0 million, while revenue slipped 3% to $140.9 million and operating EBITDA fell 31% to $52.4 million.
Transaction volumes were down 9% compared to the 1H22, and were down 1% on the second half.
“1H23 Exchange volumes performed in line with guidance provided in November 2022. Volumes have been relatively stable on 2H22 but downside risk remains as interest rates rise and the Australian economy slows,” it said.
PEXA Exchange penetration of 88% was up three percentage points on 1H22 and up one percentage point on 2H22, as PEXA expanded in Queensland and ACT. The Exchange platform delivered revenue of $135.1 million, down 7.0%, which combined with $5.8 million from PEXA International and PEXA Digital Growth, resulted in group revenue of $140.9 million.
Property transfer transaction revenue dropped 11.2% to $102.4 million.
Refinancing transaction revenue lifted 12.2% to $23.8 million.
PEXA group managing director and CEO Glenn King said the group continued to meaningful progress on its international growth strategy, which is focused on entering the UK market. During the half it signed up and went live with the first lenders on its UK platform, and acquired UK-based remortgage processing firm Optima Legal.
PEXA also yesterday announced its has acquired a minority interest in OPEX – a cloud-based platform that connects law firms, developers, purchasers, real estate agents and financiers with digital contracts in real-time.
OPEX stems from PEXA’s Launchpad program, an initiative designed by PEXA for Australian start-ups that have developed a product or service for consumers, businesses or government departments within the property sector. Together with PEXA’s existing platform for property projects, the investment in OPEX will enable an end-to-end transaction workflow, from digital contract exchange through to e-settlement.
The platform delivers efficiencies to law firms and conveyancing teams, while giving their property developer clients, agents and banks real-time visibility over the progress of property sales.
Founded last year, OPEX was originally proprietary technology of boutique property law firm, Bugden Allen Graham Lawyers who used the platform to manage the sales of over 3,000 properties in New South Wales and Queensland. The latest version of OPEX officially launched this month and secured signed commitments from seven law firms to pilot the program, including two national firms.
