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The property technology giant has unveiled its full-year financial results for FY23, flagging “challenging market conditions” as a reason for its dampened results.
In an announcement to the ASX, REA Group reported revenue of $1,183 million for the year ended 30 June 2023, an increase of 1 per cent on the financial results the year prior, and one that the group considered a “resilient result”.
It also reported an EBITDA (excluding associates) decrease of 3 per cent to $651 million, while net profit was down 9 per cent to $372 million.
REA India was to thank for the growth in revenue, with the business reporting revenue up 46 per cent year-on-year (YoY).
At the same time, Australian revenue was down 1 per cent, with the company reporting “yield growth across our advertising products being more than offset by the challenging market and very strong prior year comparatives”.
To combat pressures, REA Group outlined that Australian operating cost growth was restricted to 1 per cent, through tight management of employee costs and lower marketing spend.
But, this combined with higher operating costs in India, which derived from “continued investment in people, increased marketing and growth in revenue-related costs” and saw the group’s operating costs increase by 7 per cent.
Addressing the market, group CEO Owen Wilson said: “Our year-on-year performance reflects the comparatively very strong listings environment in 2022.”
He continued: “Despite the significantly lower listings in FY23, REA Group’s result demonstrates the strength and resilience of our business as customers continued to prioritise our premium products, leading platforms and superior audience.”
Highlighting the group’s strong Indian showing for the financial year, Mr Wilson also stated that the business “continued to deliver exceptional revenue growth and extended its leadership position as the no. 1 property portal by audience in the Indian market”.
On Australian shores, it’s been a busy period for the tech giant, which recently revealed the onboarding of a new chief technology officer in its executive leadership team, who will join the business in October 2023.
It also revealed a move to 100 per cent ownership of CampaignAgent back in July, an upgrade from the 27 per cent stake in the finance business it purchased two years ago.
With this consolidation taking place in July 2023, it’s expected to be “broadly EBIDTA and EPS neutral in FY24” – the first year the new ownership structure will be present within REA’s books.
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