This article is from the Australian Property Journal archive
REA group (ASX: REA) has posted strong results for the first quarter, with revenue boosted after yield growth across its residential and commercial businesses and more stable market conditions.
Revenue saw a 12% up lift in to $341 million from FY23, with EBITDA excluding share of profit/losses from associates was up 13% to $198 million.
EBITDA including share of profit/losses from associates was still up 13% from $169 million in FY23 to $192 million.
While free cash flow was also up 13% over the year, from $57 million to 64% at the close of the first quarter.
“The property market started the new financial year strongly, led by Melbourne and Sydney. Healthy demand from buyers, coupled with stable interest rates for several months, gave sellers confidence to bring their properties to market,” said Owen Wilson, CEO at REA Group.
“Our strong Australian performance demonstrates the value of our premium products in a strengthening market. We were delighted that REA India also continued its rapid growth in both revenue and audience.”
From FY23, REA Group’s core Australian revenue was up 11%, attributed to yield growth across its residential and commercial businesses.
National listings were up 1% over the quarter, with Sydney listings rising 16% and Melbourne up 14%.
While project commencements were down 18% over the quarter, after a 41% drop in the previous quarter and a 14% increase in the same period in FY23.
The Australian residential business saw a 12% bump in revenue over the quarter, with buy revenue benefitting from the 13% average national price rise.
While rent revenue was up YoY, with an 8% average price rise and increased depth penetration partly offset by a 3% decline in rental listings.
Commercial revenues were up, driven by an average 11% price rise and increased depth penetration and listings, with developer revenue largely flat, due lower project commencements.
REA Group refinanced its $600 million syndicated debt facility in September. As at 30 September, the group’s total drawn debt was $401 million.
With its $200 million tranche maturing in 2025 remaining unchanged, while the maturity of the $400m tranche was extended from 2024 to 2028.
“After a strong start to FY24, we remain focused on delivering new features across our product suite. We will continue to enhance the depth and quality of engagement on our platforms with more personalised consumer experiences,” concluded Wilson.
“Together these initiatives will drive significant value for our customers and audience, underpinning future growth.”
