Real estate agent McGrath's half year profit has plunged 72 per cent as property listings remain low and it works to replace a large number of agents that recently left the company.
Net profit fell to $2.4 million in the six months to December 31, excluding the financial impacts of its share market listing in December 2015.
McGrath warned in January that "unprecedented" low volumes of listings, partly due to a reluctance to sell because of affordability concerns, were not yet showing signs of improvement.
It said listings with its company-owned offices were down 20 per cent in the half year, and challenging conditions are expected to continue in the second half.
Agent numbers are also down, and McGrath said it was working to attract and retain high performing salespeople.
It has also commenced a strategic review focussed on improving the productivity and performance of its existing operations, and exploring new revenue opportunities.
Chief executive Cameron Judson said the company's aim was to improve contributions from its property management operations and reduce the volatility of its earnings.
McGrath shares were down three cents at 61 cents at 1255 AEDT.
CHALLENGING MARKET HITS MCGRATH'S PROFIT
* Half-year pro forma net profit down 72 pct to $2.38m
* Pro forma revenue down 11 pct to $66.9m
* Interim dvidend of one cent, fully franked
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