REA Group has reported robust financial results for the fiscal year ending June 30, 2024. The company saw a 23% increase in revenue and a 24% rise in net profit year-over-year.
The online property listings firm announced that its core operations revenue grew to $1,453 million, up by 23%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA), excluding associates, surged by 27%, reaching $825 million.
The company reported a net profit increase of 24% to $461 million, although its reported net profit declined by 15% to $303 million, primarily due to the impairment of PropertyGuru in December 2023 and other one-off factors.
CEO Owen Wilson noted that the results reflect the platform's value at all stages of the property journey. In strong markets like Melbourne and Sydney, customers opted for REA’s premium products to maximize their marketing efforts. Additionally, REA India achieved significant revenue growth, driven by increased usage and app audience growth.
Revenue from core Australian operations rose by 22% year-over-year, or 20% excluding the CampaignAgent acquisition. Residential revenue increased by 24% to $996 million, driven by a 19% rise in Buy yield, a 7% increase in national listings, and some deferred revenue impact.
Other key financial results include:
- A 12% rise in commercial and developer revenue to $159 million.
- Media, data, and other revenue grew by 25% to $122 million, or up 2% excluding the CampaignAgent acquisition's impact.
- Financial services operating revenue increased by 8% to $74 million.
- REA Group’s flagship website, realestate.com.au, continued to perform well, averaging 127.2 million monthly visits from 10.8 million users, with 5.7 million exclusively using the platform. Additionally, buyer inquiries rose by 14% year-over-year to an average of 2.2 million per month, while seller leads increased by 37%.
Highlights of the financial year include REA Group completing the acquisition of the remaining shares in Realtair for $34 million. REA India also posted a strong showing with a 31% revenue increase to $103 million.
REA Group's investment in Move, Inc., which operates realtor.com in North America, saw a 10% revenue decline in FY24 due to market challenges in the US, leading to a 3% drop in leads and lower transaction volumes overall. However, revenue growth in Seller, New Homes, and Rentals categories partially offset this decline. Despite higher marketing investments, lower employee costs resulted in an equity accounted loss of $21 million, as opposed to a $6 million loss in the previous period.
The company holds a 17.2% stake in PropertyGuru, which runs property sites in Singapore, Vietnam, Malaysia, and Thailand. PropertyGuru contributed a core equity accounted loss of $1 million in FY24, showing an improvement from a $3 million loss in the prior year, with growth in Singapore balancing out challenges in Vietnam and Malaysia.
CEO Owen Wilson remains positive about the property market, citing strong demand supported by high employment and immigration levels. He noted that supply is also robust, with confident sellers and quick property sales. Wilson anticipates that interest rates will remain steady through the first half of the next calendar year, and together with positive market fundamentals, this stability should continue to bolster market confidence.