REA Group, owner of realestate.com, has announced a 30 per cent increase in profit in the second half of 2013.
The results, posted yesterday on the Australian Securities Exchange (ASX) show the group's revenue for the first half of the financial year rose to $209.4 million, a 30 per cent increase on the prior corresponding period.
Earnings before interest, taxes, depreciation and amortization rose by 38 per cent to $106.8 million and net profit increased by 37 per cent to $70.7 million.
REA Group managing director and CEO Greg Ellis said a new focus away from subscription-style services was paying off.
“Our first-half performance is the result of taking a long-term view of our business. We saw where the property advertising market was heading and made a deliberate decision to shift our focus from subscriptions to depth products which meet specific market needs," he said.
“In Australia, revenue from listing depth products grew by 67 per cent this half, and we continued our depth product rollout in Italy and greater Luxembourg.”
REA has been busy expanding in the first half of the financial year, both locally and internationally.
“During the first half we acquired Italian property site Attico.it and announced plans to launch our Chinese site, myfun.com," Mr Ellis said.
“Since the period ended, we have acquired online rental application service 1Form.com and launched a beta version of myfun.com.
“These developments support our strategy and are consistent with our company purpose, which is to help people to live their property dreams by making the entire property process simple, efficient and stress free,” he said.