Australia's PEXA hits record low on flagging revenue hit from proposed fee cuts (updated)

PEXA

03/07/2026 03:59

Changes media packaging code, adds shares moves and details from paragraph 2
July 3 (Reuters) - Australia's PEXA Group PXA.AX warned on Friday that a draft proposal to cut transaction fees in New South Wales would reduce its annual revenue, sending the property exchange platform operator's shares to a record low.
The group said the proposal from the New South Wales Independent Pricing and Regulatory Tribunal, or IPART, would remove about A$70 million ($48.41 million) from annual revenue.
In its draft report, IPART said transfer fees charged during property transactions should fall, including PEXA's, citing the company's near-total hold on the eConveyance market.
"PEXA's transfer fees are its highest fees. They do not appear to be aligned with the costs of providing transfer services," tribunal member Sharon Henrick said in a statement.
Shares of the property platform fell as much as 19.8% by 0200 GMT to a record low of A$8.7 and were the worst performers on the benchmark S&P/ASX 200 index .AXJO, which was last up about 1%.
The company said the draft proposed a roughly 20% cut in PEXA Exchange's regulated revenue requirement through lower fees on certain transfer transactions. 
The group said any fee changes would not take effect before July 1, 2027, and that phasing any reduction over four years was critical to managing the business.
"A government-mandated price cut of 20% for a company like PEXA will lead to pressure for significant cost cuts," CEO Russell Cohen said in an investor briefing.
     
($1 = 1.4459 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Subhranshu Sahu)
 ((Shruti.Agarwal@thomsonreuters.com;))