REA Group (ASX: REA) has reported an impressive first-half result for FY25, driven by strong yield growth and a robust listings environment. The company recorded a 20% increase in revenue to $873 million and a 26% rise in net profit to $314 million.
Key Financial Highlights
- Revenue: $873 million (+20%)
- EBITDA (excluding associates): $535 million (+22%)
- Net profit: $314 million (+26%)
- Earnings per share: $2.38 (+26%)
- Interim dividend: $1.10 per share (fully franked, +26%)
CEO Owen Wilson credited the results to a healthy listings environment and increased buyer demand, with residential sales volumes consistently higher than last year.
Australia: Strong Performance Across Segments
Australian revenue rose 19% to $809 million, supported by:
- Residential revenue: $614 million (+21%)
- Commercial & Developer revenue: $110 million (+10%)
- Financial Services revenue: $41 million (+13%)
REA Group’s flagship platform, realestate.com.au, strengthened its position as Australia’s leading property marketplace, with 11.9 million monthly visitors and an 88% YoY increase in seller leads.
India: Rapid Expansion
REA India delivered 46% revenue growth to $64 million, fueled by:
- 153% increase in Housing Edge revenue
- 15% revenue growth in Housing.com
Balance Sheet & Dividends
- The company repaid all external debt ($209 million) following the sale of its 17.2% stake in PropertyGuru.
- Interim dividend of $1.10 per share will be paid on March 19, 2025.
Outlook: Positive Market Conditions
REA remains optimistic about double-digit yield growth for FY25, supported by strong immigration, low unemployment, and potential interest rate cuts in the second half of the year.
Owen Wilson stated:
“The Australian property market is reaching a more balanced level of supply and demand. With ongoing investment in new consumer experiences, REA is well-positioned for continued growth.”
