Shares of Australia’s Pexa Group (PXA.AX) are experiencing their largest weekly decline since September as the online property company reported a lower-than-expected annual profit. The company’s shares dropped by up to 11%, reaching their lowest level since June 20, 2022, which could mark the worst session if losses are sustained.
Pexa Group’s net profit after tax for the fiscal year ending June 30 was reported at A$17.6 million ($11.29 million), significantly below UBS’s estimate of A$43.3 million. The group also reported a net loss from ordinary activities after tax of A$21.8 million, in contrast to a profit of A$21.9 million in the prior year.
The company attributed its lower profit to high prices, challenges in property markets, and a decrease in transaction volumes compared to the record highs of the previous year. Glenn King, Group Managing Director and CEO, noted that the fiscal year 2023 presented significant challenges for property markets.
Despite the challenges, Pexa Group remains optimistic about its future performance. As a digital property exchange platform, the company anticipates delivering strong cash flow and maintaining operating EBITDA margins in the range of 50% to 55% throughout the fiscal year 2024. The group’s annual business revenue for the 2023 fiscal year was reported at A$283.4 million, a slight increase from A$279.8 million in the previous year.