Real estate marketplace Lifull Home’s, the flagship brand of Japanese Lifull Co. Ltd., saw income grow 18.1% to Y3.9 billion during the current fiscal year ended September 30.
In FY2020, the company curtailed investments in advertising and outsourcing to stimulate growth in the wake of a Covid-related slowdown. A reduction in expenses resulted in increased profits, Lifull said in an earnings announcement.
Homes.co.jp’s revenue fell 8.5% to 27.1 billion. However, recovery has already started with the property site recording 125% year-on-year growth in organic visits in Q4, compared to 119% in Q3 and 106% in Q2.
“After the initial drop in users due to Covid-19, traffic and inquiries have been gradually increasing indicating increased interest in relocation,” Lifull wrote in the announcement.
Tepid demand from realtors and sales discounts brought down average revenue per agent to Y84,005 ($809 U.S.) during the fiscal year compared to Y91,609 ($882 U.S.) a year earlier. Nonetheless, its client network remained stayed stable at around 27,000 agents.
Revenue from Lifull’s overseas segment declined 17% to Y6.4 billion due to delays in the reopening of economies in Southeast Asia, Europe and America. The segment’s profit dropped 21.2% to Y807 million.
Overall, Lifull saw revenue fall 9.9% to Y35.4 billion and net profit plunged 51.4% to Y1.2 billion.
In FY2021, revenue is forecasted to rebound 8.7% to Y38.5 billion. The company expects net profit to snap the downtrend with 74% growth to Y2 billion. Lifull’s service sales is expected to recover 8.7% to Y29.5 billion.