REA Group (REA) H2 2024 earnings summary

Executive summary

• Delivered record FY 2024 results with revenue up 23% to AUD 1.45 billion, EBITDA (ex-associates) up 27% to AUD 825 million, and NPAT up 24% to AUD 461 million, driven by strong performance in Australia and India.

• EPS up 24% to AUD 3.49, and total dividend up 20% to AUD 1.89 per share.

• 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.

• Significant product innovation and audience growth in both Australian and Indian operations.

Financial highlights

• Residential revenue up 24% year-over-year, driven by 19% yield growth and 7% listings growth.

• Commercial and developer revenue up 12%, with commercial benefiting from 11% price rise and depth penetration.

• Media, data, and other revenue up 25%, boosted by CampaignAgent acquisition.

• REA India revenue up 31% to AUD 103 million; core EBITDA loss improved 9% to AUD 36 million.

• Operating expenses increased 18% to AUD 628 million; group EBITDA margin before associates improved to 57%.

Outlook and guidance

• FY 2025 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 for FY 2025 in both Australia and group.

• India EBITDA losses expected to reduce further; strong growth expected in core housing business.

• Revenue deferral from strong Q4 listings to benefit Q1 FY 2025.