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; EPS up 24% to 348.7 cents and full-year dividend per share of AUD 1.89, up 20%.

• Strong performance driven by robust Australian and Indian operations, increased product penetration, and strategic investments in innovation.

• Reported net profit declined 15% to AUD 303 million due to PropertyGuru impairment and other one-off items.

• Strategic focus on audience leadership, product innovation, and international expansion.

Financial highlights

• Residential revenue up 24% to AUD 996 million, driven by 19% yield growth and 7% listings growth.

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

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

• Operating expenses increased 18% to AUD 628 million, with core Australian OpEx 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

• FY 2025 residential buy yield growth to be primarily driven by a 10% price rise in Premier Plus; geo mix expected to be a small negative.

• Listings assumed flat for FY 2025, with Melbourne and Sydney potentially marginally down, offset by growth in smaller capitals.

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

• EBITDA and associate losses in India expected to be lower in FY 2025.

• Interest rates expected to remain stable until at least the first half of next calendar year.