Digital property advertiser REA Group remains bullish around its foray into home finance, despite declining revenues in the business line as the flat property market affected mortgage settlements over the 2019 financial year.
REA Group’s full-year results, released last week, showed an 8 per cent decline in revenues in its financial services business, which the group has invested significantly in over the past two years through the launch of a digital home finance solution with NAB and the 100 per cent acquisition of mortgage broking group Smartline last month.
While tighter credit access was likely to continue having an impact on the business in the short term, a spokesperson for REA Group said the firm was confident its investment in home finance as a business line would bear fruit.
“We see great long-term opportunities in the financial services industry and believe we are well positioned to succeed in this space,” a spokesperson for REA Group said.
“Our audience, brand strength and digital expertise provides a unique position for long-term growth within the financial services industry.”
Between its realestate.com.au-branded mortgage brokers and Smartline, the group said it now has over 400 brokers providing finance to users of its property search platform.
Since launching the branded broking solution with NAB in 2017, the group had processed more than $1.8 billion in digital home loan applications, according to its investor presentation.
At the same time, over 12,500 unique visitors used its finance content hub per day.
However, with the property market showing few signs of bouncing back quickly, the group flagged it would likely make cuts across the business over the 2020 financial year.
“While we’re continuing to invest in growth initiatives, planned efficiency gains and strong cost management will significantly reduce the rate of cost growth,” the spokesperson said.