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The ASX-listed group has shared its first quarter financials for financial year 2023, alongside a snapshot of its audience figures.
According to an announcement posted to the ASX, REA Group is reporting double-digit revenue growth to kickstart the new financial year, with its revenue of $305 million encompassing the period from 1 July to 30 September.
That’s a 16 per cent lift year-on-year, with the group also posting earnings before interest, tax, depreciation and amortisation (EBITDA) excluding associates of $174 million.
For Australian operations, revenue is also up by 14 per cent year-on-year, with the company reporting growth across all business segments, barring financial services.
According to REA Group chief executive Owen Wilson, the latest result “demonstrates the strength of our business”.
He also professed that it “reflects the significant traction of our premium products as sellers increasingly seek to differentiate their properties”.
Despite spring selling season falling flatter than usual, Mr Wilson said the listings environment was positive across the first quarter — with supply and demand rebalancing across the major metropolitan markets.
All in all, national listings increased 5 per cent during the quarter, reflecting the state lockdowns that were in effect across parts of Australia from July through to September in 2021.
In Sydney, listings figures are up by 5 per cent, with that figure climbing to 12 per cent in Melbourne.
Those listings figures come as realestate.com.au — REA Group’s flagship advertising portal — reported an average monthly audience of 12.4 million across the first three months of FY23. That figure equates to more than six in 10 Australian adults using the platform each month (61 per cent).
Mr Wilson said that strong growth on the platform was bolstered by active members and property owner tracks, “demonstrating the depth of interaction our audience has with our personalised experiences”.
From its strong user base, realestate.com.au reported 121.9 million average monthly visits over the same period, which it stated was 3.3 times more visits than the nearest competitor each month, on average.
Touting 2 million average monthly buyer inquiries, REA Group has also reported a 22 per cent year-on-year increase in active members, as well as a 51 per cent year-on-year increase in active property owner tracks.
Taking a broader view of the group’s financial results, over the same period, the group’s operating expenses have also gone up — to $131 million from $107 million for the same three-month period in FY22 — a 22 per cent increase in expenditure.
It also noted that financial services revenues declined in the quarter, which it stated was a reflection of slowing market activity impacting settlement volumes and the impact of record settlements in the prior year.
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