REA Group (REA) Q1 2025 earnings summary

Executive summary

• Q1 revenue reached AUD 413 million, up 21% year-over-year, and EBITDA (excluding associates) rose 23% to AUD 243 million.

• Free cash flow increased 16% to AUD 74 million, reflecting strong operational performance.

• Growth driven by double-digit yield increases, higher listings in residential and commercial segments, and premium product uptake.

• Record audience engagement, with 11.9 million monthly users and over 1 million logged-in members in a single day.

• Strategic focus on digital innovation, disciplined capital management, and seller confidence.

Financial highlights

• Residential revenue grew 23%, driven by 15% buy yield growth and 7% increase in new buy listings.

• Commercial revenue up with a 12% average price rise and higher depth penetration; developer revenues modestly increased despite an 11% decline in project commencements.

• Financial services revenue saw double-digit growth, with settlements up 5% and higher-margin product penetration.

• REA India revenue up 42% year-over-year, led by Housing Edge platform and app-first strategy.

• Operating expenses from core operations increased 19% to AUD 170 million, with Australian expenses up 17% including the Realtair acquisition.

Outlook and guidance

• Residential buy yield growth expected to remain double-digit for FY25, supported by price rises, product mix, and add-ons.

• Group core operating cost growth anticipated in high single digits, with higher growth in H1 FY25 and positive operating jaws targeted.

• FY25 losses from associates expected to be modestly lower as US market stabilizes.

• Listings outlook upgraded to marginally up for the year, given strong start and robust market conditions.