REA Group posts half year revenue jump

REA Group, the company that owns Realestate.com.au, posted half yearly revenue growth and EBIDTA growth beating analysts’ estimates.

Revenue grew 37 percent to $590m and an increase in EBITDA including associates of 27 percent to $368m, and a 31 percent increase in net profit to $226m.

This growth was the result from increases in all major lines of business, including a 31 percent increase in Australian Residential.

According to the business, this reflected a strong market recovery despite the impact of Melbourne and Sydney lockdowns in the first quarter.

Core operating costs, excluding acquisitions increased by 17 percent during the half. This reflects reduced operating costs in the prior period as the Group navigated through COVID uncertainty, continued investment to deliver strategic initiatives, and higher salaries in a tight labour market.

Owen Wilson, REA Group Chief Executive Officer, Owen Wilson said the Group delivered an exceptional first half result as the business continued to successfully navigate the impacts of the global pandemic.

“As anticipated, the removal of COVID restrictions saw a wave of new listings on realestate.com.au, with sellers making up for the time lost in lockdown and taking advantage of the significant buyer demand. Combined with record take up of our premium listing products in Residential and Commercial, we delivered very pleasing revenue growth,” Wilson said.

“Our flagship site realestate.com.au continued its position as the number one address in property. In October, a record of 145.5 million visits to realestate.com.au were achieved and the site has grown to be Australia’s seventh largest online brand.”

For the residential and commercial sites realestate.com.au and realcommercial.com.au, and data and insights business, PropTrack, revenue of $525m was up 25 percent for the half, driven by growth in all major Australian lines of business.

Wilson said realestate.com.au remains the clear leader in online real estate and they continued to consolidate audience engagement during the half.

“Holding the largest and most engaged audience of property seekers is core to our success, and the level of demand from the 12.6 million people visiting our site each month helped drive a record number of buyer enquiries,” he said.