REA Group (REA) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached AUD 413 million, up 21% year-over-year, with EBITDA (excluding associates) rising 23% to AUD 243 million, driven by double-digit yield growth and increased listings in residential and commercial segments.

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

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

• Strategic focus on expanding core and adjacent markets, highlighted by investment in Athena Home Loans and continued growth in REA India.

• Attempted acquisition of Rightmove was withdrawn due to lack of engagement, reflecting disciplined capital management.

Financial highlights

• Group revenue up 21% year-over-year to AUD 413 million; operating EBITDA (ex-associates) up 23% to AUD 243 million.

• Operating expenses rose 19% to AUD 170 million, with Australian expenses up 17% including the Realtair acquisition.

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

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

• Financial services revenue achieved double-digit growth, with settlements up 5% and strong white-label product penetration.

Outlook and guidance

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

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

• Group core operating cost growth anticipated in high single digits, with cost phasing expected to be higher in H1 than H2.

• EBITDA losses in India and associate losses expected to be marginally lower in FY25 versus FY24 as US market stabilizes.

• Australian residential market remains healthy, supported by strong employment, high immigration, and stable rates.