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REA Group starts financial year strong

By Orana Durney-Benson
09 February 2024 | 10 minute read
owen wilson REA reb kmoeyc

The latest financial statement from REA Group reveals a strong half-year result for FY202324, with revenue growing 18 per cent.

According to their half-year financial report uploaded to the ASX, REA Group reported a total revenue of $726 million across their Australia and India firms, with REA Australia raking in $682 million.

This comfortably outweighs the group’s operating expenses of $287 million in total and $224 million for Australia between July and December 2023. In total, the group made a half-yearly profit of $250 million, up 22 per cent compared to FY2022’s half-yearly result.

REA Group operates several leading real estate sites, including realestate.com.au, realcommercial.com.au, PropTrack and Mortgage Choice.

Owen Wilson, chief executive officer of REA Group, stated that the company “has delivered an outstanding result driven by strong yield growth and the benefit of a more normalised listings environment”.

Mr Wilson said normalising listings “resulted in a strong uptake of our premium products as customers sought to leverage out leading audience to maximise their campaigns in the strengthening market”.

In Australia, residential revenue saw a 19 per cent increase in the last six months, bringing the total residential revenue to $505 million.

The firm noted the growth was driven by a 4 per cent increase in listings nationwide, and a 13 per cent national price rise, which motivated agents to turn to REA Group’s premier offerings in light of the strong sales environment.

Commercial and developer revenue saw a more moderate increase of 11 per cent, bringing the total to $80 million. The 23 per cent decline in project commencements took some steam out of this upswing, but an increase in project duration and pricing offset the decline.

The group’s flagship site realestate.com.au continued to be “Australia’s number one address in property”, the firm reported.

Mr Wilson stated: “The strength and quality of our audience delivered strong growth in both buyer enquiries and seller leads.”

“Pleasingly, our focus on the growth of our valuable active membership base continued to yield strong results as we added new features driving deeper engagement and delivering rich new insights for our customers.”

The REA Group’s statistics showed 10.6 million users visited real.estate.com.au each month, while total monthly views averaged 126 million.

Active members reportedly increased 17 per cent, and 2.1 million buyer enquiries were made on average each month, up 15 per cent year-on-year.

“This reflects both investment in our exceptional consumer experience and strengthening demand in the market,” said Mr Wilson.

REA Group starts financial year strong
owen wilson REA reb kmoeyc
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