ASX-listed REA Group has reported an impressive financial performance for FY24, driven in part by the growth of its leading mortgage broking business, Mortgage Choice.
Core Australian revenue rose 22% to $1,350m, with a notable 8% increase in financial services operating revenue, including higher trail commission revenue from Mortgage Choice’s white label products.
“Our strategic investment in Mortgage Choice continues to pay dividends as we see increased penetration of higher-margin products,” said Owen Wilson (pictured above), REA Group CEO.
Residential revenue surged 24% to $996m, fueled by a 19% increase in buy yield and a 7% rise in national listings.
The outperformance of the Sydney and Melbourne markets contributed significantly to this growth.
“Our premium products, such as Premiere+, have seen strong uptake, driving yield growth and enhancing our market leadership,” Wilson said.
REA Group maintained its dominance in the Australian property market through its flagship sites realestate.com.au and Mortgage Choice.
“We extended our realestate.com.au audience leadership to 4.6 million Australians, reinforcing our position as the go-to platform for property transactions,” Wilson said.
Reflecting its strong financial position, the board declared a final dividend of 102 cents per share, fully franked, up 23% YoY.
Looking ahead to FY25, REA Group remains optimistic about the Australian property market.
“We continue to see a healthy balance of supply and demand, and our clear strategy to drive growth positions us well for the coming year,” Wilson said.
REA Group’s ongoing investment in digital platforms and innovative products, including the acquisition of Realtair, is expected to further strengthen its market presence and enhance customer experiences.
“Our commitment to innovation and strategic investments will deliver greater value to our customers and deeper experiences for consumers,” Wilson said.
Read REA Group’s ASX announcement here. Compare latest results with the group’s results for the half year ending Dec. 31, 2023.
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