REA Group (REA) H2 2024 earnings summary

Executive summary

• Delivered record FY24 results with core revenue up 23% to AUD 1.45 billion and EBITDA (ex-associates) up 27% to AUD 825 million, driven by strong performance in Australia and India.

• Net profit after tax rose 24% to AUD 461 million, with EPS up 24% to AUD 3.49 and a 20% increase in full-year dividend to AUD 1.89 per share.

• Reported net profit declined 15% to AUD 303 million due to significant non-recurring items, including PropertyGuru impairment and acquisition costs.

• Strong cash position with AUD 204 million closing balance and free cash flow of AUD 464 million, supporting continued investment and capital returns.

• Strategic acquisitions of CampaignAgent and full ownership of Realtair enhanced digital and agency services capabilities.

Financial highlights

• Australian revenue grew 22% to AUD 1.35 billion; India revenue up 31% to AUD 103 million.

• Residential revenue up 24% to AUD 996 million, Commercial & Developer up 12%, Media/Data/Other up 25% boosted by CampaignAgent acquisition.

• Financial Services revenue increased 8% to AUD 74 million, with net revenue up 21% and Mortgage Choice Freedom settlements at AUD 1.2 billion.

• Group operating expenses increased 18% to AUD 628 million, with Australian expenses up 14% and India up 18%.

• Operating cash flow of AUD 589 million; closing cash balance AUD 204 million; AUD 200 million debt repaid.

Outlook and guidance

• FY25 growth to be driven by double-digit price increases in core products, strong product pipeline, and data monetisation.

• Group OpEx growth guided to high single digits, with about half due to inflation and half to strategic investment; positive operating jaws targeted.

• India EBITDA losses expected to reduce further; associate losses anticipated to be marginally lower.

• Developer market recovery expected, supported by population growth and interest rate stability.

• Revenue deferral from strong Q4 listings to benefit Q1 FY25.