Easyhome Leasing Revenue Slides for Third Year

Revenue generated by Easyhome’s core furniture, appliance and electronics leasing business continued to shrink for both the fourth quarter and full 2023 year, even as its parent company’s financial segments propelled it to new record highs for sales and earnings.

The publicly held Goeasy, which also operates non-prime consumer lending specialist Easyfinancial and retail point-of-sale finance provider LendCare, reported consolidated revenue for Q3 2023 was $338.1 million, up 23.7 per cent from $273.3 million for the same period a year earlier.

LendCare and Easyfinancial accounted for $299.5 million of the quarter’s revenue, a 27 per cent increase from the comparable period’s $235.9 million.

Net earnings were a record high $74.6 million or $4.34 per share, compared to $28.6 million or $1.71 per share — a rocket-fuelled 153.8 per cent advance on a per share basis.

Revenue for 2023 was $1.25 billion, an increase of $1.02 billion over the prior year.

Net earnings totalled $247.9 million or $14.48 per share, compared to $140.2 million or $8.42 per share for the 2022 fiscal year, up 72 per cent on a per share basis.

LendCare and Easyfinancial contributed $1.1 billion to annual revenue, growing 26.1 per cent from the previous year’s $869.5 million.

While Easyhome’s overall revenue for the fourth quarter of 2023 grew 3.2 per cent to $38.6 million and increased 2.3 per cent to $153.3 million for the full year, it was the lease-to-own merchant’s internal non-prime lending service driving the uptick. Revenue from interest on its loans to consumers grew 21.5 per cent for the year at $35.7 million.

Other revenue streams rose four per cent during the same time period to $17.7 million.

According to Goeasy’s report to shareholders, traditional leasing revenue, including fees, was 3.4 per cent lower on a year-over-year basis at $105.9 million, which was attributed to a smaller lease portfolio.

Indeed, the company reported the total number of lease agreements in force at the end of 2023 had fallen 4.3 per cent to 70,733 from the previous year’s 73,895, although the average monthly payment rose to $108.21 from $106.47 in 2022.

The product mix didn’t vary greatly from year-to-year; however, the company reported both furniture and appliances saw their share grew slightly to 42.6 and 14.5 per cent, respectively. Both electronics and computers saw their share of the overall product mix fall on a year-over-year basis.

During the course of 2023, the Easyhome banner closed 10 of its corporately-owned brick-and-mortar stores. It now operates 144 stores across the country, including 34 franchise locations. It also operates 300 Easyfinancial locations.

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