Shares of Australia's Pexa Group experienced a sharp decline of more than 10% on Wednesday, marking their worst session in nearly four months. This drop came after the digital property settlements platform highlighted ongoing uncertainties in its key markets.
The stock tumbled by as much as 10.5% to A$11.080, registering its most significant intraday loss since August 25 and reaching its lowest level since November 17. Pexa Group emerged as the top loser on the benchmark stock index.
Pexa Group cited a variety of uncertainties that continued to impact the markets where it operates, specifically Australia and the UK, throughout November and into December.
Looking ahead, the group anticipates recording business revenue ranging from A$315 million to A$325 million (equivalent to $212.66 million-$219.41 million) in fiscal 2024, excluding the impact of its acquisition of UK-based conveyance technology provider Smoove. Approximately half of this revenue is expected to be generated in the first half of the fiscal year.
The group's operating earnings before interest, tax, depreciation, and amortization are projected to fall between A$109 million and A$115 million.
Furthermore, Pexa Group forecasted that revenue from its Digital Growth business for the first half of the fiscal year would be 5%-10% lower sequentially, or approximately flat after adjusting for the effect of a large one-off fee received in the previous period.
The article concluded with the exchange rate of $1 being equal to 1.4813 Australian dollars.
The decline in Pexa Group's shares reflects the challenges posed by ongoing market uncertainties, particularly in Australia and the UK. Despite these challenges, the group remains optimistic about its revenue prospects for fiscal 2024, driven in part by its acquisition of Smoove. However, the projection of lower sequential revenue from its Digital Growth business indicates potential headwinds in that segment. Investors will likely closely monitor how Pexa Group navigates these challenges in the coming months.
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