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 rose 24% to AUD 3.49, and full-year dividend per share increased 20% to AUD 1.89, with a final dividend of AUD 1.02 per share.

• Strong performance in both Australian and Indian operations, with significant product innovation, digital audience growth, and strategic investments.

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

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.

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

• Operating expenses increased 18% to AUD 628 million, with core Australian OpEx up 14% excluding CampaignAgent.

• 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 drag.

• 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 and associate losses expected to reduce further; strong growth expected in core housing business.

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