The multinational property services group has released its full-year results, recording 8 per cent revenue growth despite “unprecedented market conditions”.
REA Group has released its full-year results for the 2019 financial year (FY19), reporting revenue growth of 8 per cent for its Australian division to $862.3 million.
According to the group, the improvement was driven by an increase in residential property services-related revenue of 8 per cent to $555 million and the inclusion of the Hometrack business.
However, REA Group’s financial services division has recorded an 8 per cent reduction in revenue when compared to the FY18, down from $29 million to $27 million.
The group attributed the decline to “tighter lending conditions” and the “subdued property market”, which it said impacted mortgage settlements across the industry.
REA added that while the federal election result and recent changes in the lending market have “reduced uncertainty”, it expects the decline in mortgage settlements to continue into the first half of FY20.
When including its global operations, REA Group’s revenue increased from $807.7 million to $874.9 million.
The global group’s net profit after tax (NPAT) increased by 6 per cent to $295.5 million.
Reflecting on the overall results, REA Group CEO Owen Wilson commented: “REA has delivered a strong result in a year of unprecedented market conditions.
“Our continued revenue growth was achieved despite significant declines in listings and new developments, a clear illustration of the value we deliver to customers and consumers.”
REA Group assumes full ownership of brokerage
REA Group has also confirmed that it has purchased the remaining minority stake in Smartline Personal Mortgage Advisers for $16 million.
REA Group, which is the parent company of realestate.com.au, initially acquired 80.3 per cent of the Smartline business in June 2017 for $67 million, while also entering into a strategic partnership with NAB.