Listings surge sees REA Group post strong earnings

REA Group has released its full-year financial results with the post-lockdown surge in listings on leading to a sharp jump in revenue and earnings.

The group noted national residential listing numbers increased 11 per cent over the full financial year, boosted by its new Premiere listing option and an 8 per cent national price rise.

The group saw listings surge 18 per cent higher in Melbourne, while Sydney was up 8 per cent.

The group also saw an 11 per cent increase in buyer inquiries over the financial year, while saw 124.1 million average monthly visits with a record of 145.5 million visits in October 2021 at the height of the housing boom.

The portal continues to consolidate its position as the leading listing platform in Australia with 3.36 times more visits than the nearest competitor each month on average.

REA Group Chief Executive Officer, Owen Wilson said it had been an exceptional year for REA.

“The record take up of our premium listings products enabled us to fully capitalise on the buoyant listings environment, and it demonstrates the value we provide to our customers and vendors,” Mr Wilson said.

“ has the largest and most engaged audience, with more Australians than ever before engaging with our site when seeking to transact property.

“Active members are proven to drive the most value for our customers, and our focus on personalisation and consumer experience has significantly accelerated the growth of this group during the year.”

Overall the group saw revenue growth of 26 per cent to $1.17 billion, an increase in EBITDA including associates of 19 per cent to $674 million, and a 25 per cent increase in net profit to $408 million.

The group posted a full-year dividend of 164 cents per share, up 25 per cent with an Earnings Per Share (EPS) of 308 cents, up 25 per cent.

Residential revenue increased 24 per cent to $776 million while commercial and developer revenue increased 3 per cent to $134 million.

Media, data and other revenue grew 9 per cent for the year to $97 million. Data revenues increased 28 per cent, with PropTrack benefiting from new contracts and increased desktop and automated valuation model (AVM) volumes.

Financial Services core operating revenue increased 12 per cent year-on-year on a pro forma basis to $79 million, assuming REA Group owned the recently purchased Mortgage Choice in the prior period.

REA India delivered an impressive performance with revenue growth of 92 per cent to $54 million on a pro forma basis, assuming it was owned for the full prior period.

“Key milestones were also achieved in our property data, financial services and Indian businesses, building strong momentum,” Mr Wilson said.

“These markets present great opportunities and the revenue contribution of these businesses is growing rapidly.”

According to the group, the Australian residential property market is likely to continue to moderate as interest rates rise.

While this adjustment has already impacted property prices, the current market reflects strong fundamentals including record low unemployment, high household savings and increasing migration, which should continue to support demand.

In July, national residential new listings were up 7 per cent annually, with Sydney listings increasing 18 per cent and Melbourne up 6 per cent.

“REA enters the new financial year in a very strong position with a clear strategy for future growth,” Mr Wilson said.

“While we’re mindful of changing economic conditions, with further interest rate rises expected, Australia’s property market is healthy and supported by strong underlying fundamentals.

“REA’s growth momentum is backed by an unrivalled audience and a product pipeline that will deliver exceptional value to our customers and consumers in FY23 and beyond.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.