REA Group Reports Strong Q1 Growth and Positive Outlook

REA Group Ltd ( (RPGRF) ) has released its Q1 earnings. Here is a breakdown of the information REA Group Ltd presented to its investors.

REA Group Ltd is a multinational digital advertising company specializing in property, operating leading residential and commercial property websites in Australia and holding strategic investments internationally. In its latest earnings report, REA Group reported significant growth, with revenues reaching $413 million, a 21% increase year-over-year, and EBITDA excluding associates rising by 23% to $243 million. This performance was driven by strong seller confidence, increased listings, and the effective use of premium products on their platforms.

Key financial highlights include a 20% year-over-year increase in core Australian revenue, buoyed by double-digit yield growth and a rise in new listings, particularly in Sydney and Melbourne. The company also saw substantial growth in its commercial and developer revenues, bolstered by a price rise and increased depth penetration. REA India’s revenue surged by 42%, driven by the Housing Edge platform and strong performance at Housing.com.

The company continues to strengthen its strategic partnerships, including acquiring a 19.9% interest in Athena Home Loans. Operating costs rose by 19% due to strategic investments and marketing expenses linked to new campaigns. Despite these costs, REA Group maintains a positive outlook with expected double-digit residential buy yield growth for FY25, supported by a healthy Australian property market.

Looking ahead, REA Group expects continued growth, leveraging strong market activity, a robust audience, and an extensive product suite. The outlook for the Australian property market remains positive, with future interest rate cuts and high employment levels likely to sustain buyer demand and seller confidence.