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Onthehouse Holdings has posted a big loss due to more than $10 million of one-off costs, although its revenue and debt positions have improved.
The group delivered a $9.1 million loss for the six months to 31 December 2014 after reporting a $587,000 profit the year before.
The red ink was due to pre-tax impairment charges of $10.5 million, relating to intangible assets in the group’s Consumer Online and Data Analytics business.
Disregarding those one-off costs, Onthehouse posted a $93,000 underlying profit – an 86.7 per cent drop on the previous year.
Onthehouse reported positive traffic numbers for onthehouse.com.au, with more than three million property profile reports being viewed every month.
The website has also enjoyed a 162 per cent increase in listings page views, a 59 per cent increase in agencies providing listings and a 22 per cent increase in consumer membership.
Onthehouse also reported improvements in two key financial categories, with revenue climbing 0.6 per cent to $13.0 million and borrowings falling 35.7 per cent to $1.1 million.
The group’s Real Estate Solutions division, which provides software for agents, saw its revenue grow 1.6 per cent to $10.7 million.
This business has “stable, annuity-style revenue streams and is very profitable”, according to Onthehouse.
The group’s other division, Consumer Online and Data Analytics, which provides data and valuation products, saw revenue fall 3.2 per cent to $2.3 million.
This is a start-up business that “requires significant additional investment but has high upside potential if [its] disruptive model succeeds”.
Onthehouse chairman Tony Scotton said the group is well positioned due to “strong relationships with numerous real estate agencies” and a “highly-engaged online audience”.
“We have a clear set of short-term priorities to conserve cash, while continuing to drive the Real Estate Solutions segment through sales and service initiatives and product innovation,” Mr Scotton said.
“We will drive the Consumer Online division through enhanced consumer engagement, product development and additional revenue opportunities.”
[Related: Onthehouse announces strategic shake-up]
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