REA Group has announced its results for FY20, and considering the state of our economy, the figures are very pleasing.
They report revenue of $820.3m, down only 6 per cent, with operating expenses of $328.2m, down 9 per cent.
They also boasted a 21 per cent reduction in operational costs in the fourth quarter.
Reported net profit increased 7 per cent, to $112.6m, in “challenging market conditions and unprecedented global uncertainty as a result of the COVID-19 pandemic”.
Two major hurdles impacted the group’s bottom line. The decline in both residential listings and new projects was “a result of the restrictive lending environment following the 2019 Financial Services Royal Commission”.
Then, any recovery the market had moved towards was dashed with the effects of COVID-19 from mid-March.
REA Group CEO, Owen Wilson, commented: “I am proud of the way REA has responded to the COVID-19 crisis, quickly adapting our products and experiences to enable Australians to continue to find, buy and sell property”.
“In these challenging conditions, our products and services are playing an increasingly vital role in supporting our customers and vendors. Ensuring Australia has a well-functioning property sector remains core to our purpose and vital for our country’s long-term economic growth.
“Pleasingly, our flagship site realestate.com.au extended its leadership position in FY20. Each month, 60 per cent of Australia’s adult population is visiting our site, with a new record of almost 12 million people in May.”
Read the full report here.