The mortgage business of REA Group lifted its game over the year to June 2024, though REA and Mortgage Choice are far away from getting anywhere near to the aspiration of being “Australia’s number one retail broker business.”
Financial services’ operating revenues “saw an 8 per cent increase” over the year, REA said. Revenue from financial services after franchisee commissions was $73.6 million.
EBITDA for the segment over the year to June was $16.2 million, up from $8.9 million in 2023.
REA said the loan book of its financial services division increased one per cent to $89.3 billion over the year.
Settlements fell one per cent to $21.7 billion.
Mortgage Choice’s broker numbers increased one per cent to 1078.
Financial services represents 5 per cent of REA revenue and 2 per cent of profit.
“Financial services is well positioned to leverage a market recovery” REA said on Friday “[by] improving market momentum, increasing white label penetration and brand investment, [which] will underpin future growth.”
REA said the division experienced “lower run-off rates, and increased penetration of higher-margin white label products.”
Like most broking businesses over the last year “our Financial Services business, Mortgage Choice, faced challenging conditions during the year with continued softness in the lending market” REA said.
“However, there were positive signs towards the end of FY2024, and our business is well positioned for a market recovery.”
REA called out the “performance of our white-label product suite, Mortgage Choice Freedom powered by Athena Home Loans.”