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REA Group, owner of broker aggregator Mortgage Choice and property data firm PropTrack, has released its half-year results for the period ended December 31, 2023.
The organisation reported an 18% increase in revenue to $726 million, a 22% rise in EBITDA (excluding associates) to $439 million, and a net profit surge of 22% reaching $250 million.
Its primary Australian operations also saw revenues climb to $682 million, marking a 17% year-on-year increase, or 16% when excluding the impact of acquiring CampaignAgent.
“REA has delivered an outstanding result driven by strong yield growth and the benefit of a more normalised listings environment,” said CEO Owen Wilson (pictured above). “This resulted in a strong uptake of our premium products as customers sought to leverage our leading audience to maximise their campaigns in the strengthening market.”
Within the group’s Australian operations, residential sector revenues soared by 19% to $505 million, propelled by a 19% rise in buy yield and a 4% uplift in national listings, despite a 3% dip due to revenue deferral.
Similarly, revenue from commercial and developer segments increased by 11% to $80 million, driven by price increases, deeper penetration, and higher listings for both sales and leases. Media and data segments also reported a 21% increase in revenue to $60 million.
Meanwhile, financial services revenue edged up 4% to $36 million, even with a 4% decline in settlements. The decline was offset by greater penetration of high-margin products and a stabilisation in run-off rates, alongside a slight increase in Mortgage Choice submissions and a 2% growth in the broker network.
Operational costs across the group climbed by 11%, with a 12% increase in Australia due to higher salaries, technology expenses, and variable costs associated with revenue growth.
Additionally, REA’s operations in India reported a 21% revenue increase to $44 million, with Wilson pointing to continued momentum through “price and customer growth and new premium depth products delivering strong revenue growth.”
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