Purplebricks Australian rollout still in the red

Purplebricks Australian rollout still in the red
Purplebricks Australian rollout still in the red

Purplebricks sold around 2200 homes in its first 14 months of operations in Australia.

It represented $1.1 billion of residential real estate sales.

The UK fixed fee company has disclosed the sales as part of its latest interim results to its London shareholders.

Its revenue from its Australian business rose to £6.8 million ($11.9 million) for the six months to October 31, up from £400,000 in the prior corresponding period, after it had been trading for two months.

However, Australian interim losses more than doubled to £5.1 million amid high staff turnover as the company marketing was ramped up especially on 7Mate and 9Gem television.

Purplebricks now has 105 estate agents who charge an average fixed-fee of $5282, put from $4500 for private treaty offerings. 

Its Australian website has 1348 properties currently for sale, claiming its marketing makes the property available to "millions of buyers."

It has eight listings for sale priced above $2.5 million. 

The company launched in September last year with the Purplebricks CEO Michael Bruce again telling Fairfax Media the Australian business was "on track" and performing ahead of expectations.

"Our market share in Australia is greater than our market share was in the UK at the same time in its evolution," he said again.

Purplebricks claims it is the third most recognised real estate brand in Australia, behind Ray White and LJ Hooker.

Total group revenue more than doubled to £46.8 million with its UK business posting a £3.2 million operating profit. 

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