EGP photographers probably average 7,500 home shoots/yearAs an investor, I have read numerous press releases. They are informative, but are often peppered with superfluous statements and are often short on financial guidance.
Upon reading the headline of the press release, my first reaction was the new partner is a large photo shop located in a major metropolitan area with branches in several provinces.... my hopes were brought down to my own turf - les Laurentides.
The new partner is EGP TechnoVirtuel. EGP provides "real estate web site marketing services and serves some of the top real estate agents in Canada". OK. So where is EGP located? Sainte-Therese. If you do not live in Quebec, you might be thinking Sainte-Where? Sainte-Therese is located 35 km north of Montreal and has a population of ±27,500.
Twenty years ago, two brothers founded EGP, and over this period, 3,500 real estate agents have done business with EGP and more than 150,000 homes have been photographed. EGP photographers probably average 7,500 home shoots per year. EGP charges $125 for 25 photos and $250 for 25 photos, plus a virtual tour, floor plans and the use of a measuring tool.
The press release states that EGP has selected UI as its "preferred 3D tours and floor plan provider". Preferred is nice, but exclusive would have been better.
EGP photographers will be using UI's technology and fees will flow to UI's top line. The unknown factor is how many of these ±7,500 shoots will transit on UI virtual tour platform?
What is the percentage of home listing that include some type of virtual tour? Could not find any statistics, so I went to the MLS website and did a search of residential homes for sale located in Montreal.
https://www.centris.ca/fr/maison~a-vendre~montreal-ile?view=Thumbnail&uc=0
I verified 320 of the 1,714 single family properties listed and found that 104 homes or 33% (104 / 320) were listed with a virtual tour. I believe the trend will continue its upward trajectory.
So maybe, EGP will over time annually purchase 1,500 - 2,500 - 3,500+ single property websites from UI for 15 credits, a content delivery page for 3 credits, an immersive 3D tours (up to 50 images) for 10 credits and a floor plan for 15 credits for a total of 43 credits or $45.87.
If EGP becomes one of the largest UI customers in terms of revenues, then an investor might conclude that EGP will eventually provide to UI at least $100,000 in annual revenues.
Investors should expect a few more press releases before the end of the year.
I have noticed the presentation of the virtual tours have been upgraded. The presentation of the floor plans and the measurement toll have been improved.