Core Australian revenue up 24% year on year
REA Group, the online real estate advertising company that also owns broker network Mortgage Choice, has released its financial results for the nine months ending March 31, showing significant growth in revenue and earnings.
The report highlights a 20% increase in revenue to $1.06 billion compared to the same period last year. Additionally, earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding associates, rose by 24% to $616 million.
For the third quarter, REA Group reported a 24% increase in revenue to $334 million. EBITDA, excluding associates, for the quarter also saw a substantial increase of 30%, reaching $177 million.
The group experienced a significant 24% year-over-year increase in core Australian revenue for the third quarter, driven by robust growth in both residential and commercial sectors. Even after adjusting for the effects of the CampaignAgent acquisition, revenue growth stood at 21%.
According to its Q3 FY24 financial information, the company’s Australian residential business witnessed a particularly strong performance, with a 27% surge in revenue. This growth was attributed to a 19% increase in Buy yield and a 6% rise in national listings, along with positive revenue deferral impacts. Buy yield was further bolstered by a 13% average rise in national prices, enhanced penetration of Premiere+ listings, and a favourable geographical mix.
Rent revenue rose due to an 8% average price increase and deeper market penetration, although these gains were slightly offset by a 5% decrease in listings.
The commercial and developer segments also saw revenue growth. Commercial revenue was propelled by an 11% average price increase and greater listing depth penetration, while developer revenue remained stable despite lower project commencements.
REA Group experienced growth in its media, data and other revenues. This included a notable increase in PropTrack data and insights revenues and a rise in media revenues, primarily from higher developer display advertising, which was slightly reduced by a drop in programmatic display. Other revenue streams also grew, significantly supported by strong performances from Flatmates and CampaignAgent.
Financial services also reported modest growth, driven by greater market penetration of higher-margin white label products, although this was partially offset by a 2% drop in settlements. The broker network expanded by 1% year-over-year, reaching 1,058 members by the end of the quarter.
“The Australian property market maintained its strong momentum during the quarter with seller confidence and healthy buyer demand driving activity,” said Owen Wilson (pictured above), chief executive of REA Group. “Australian consumers’ preference for our premium products and our focus on customer value delivered an exceptional result in this strong market.”
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