REA Group Limited (REA, the Group, ASX: REA) provides digital tools, information and data on websites and mobile apps for people interested in property. REA assists real estate agents, developers, property-related businesses, and advertisers to promote their services. REA has two operating segments, being Property & Online Advertising; and Financial Services. Property & Online Advertising services the real estate industry while the Financial Services segment derives its revenue through commissions earned from mortgage broking and home financing solutions offered to consumers.

Real estate price increases driving Australian revenues higher

Higher Australian residential revenues of $127 million recorded in the December 24 half-year are attributable to domestic real estate price increases, and growth in national listings.

Higher revenues from REA India also contributed to an overall 20 percent lift in Group revenue for the December half-year. Australian revenue was up 19 percent to $809 million and India revenue increased by $20 million or 46 percent to $64 million. These numbers delivered a net profit after tax from core operations of $314 million, an increase of 26 percent for the half-year. Earnings per share were also 26 percent higher at $2.38, enabling an interim dividend of $1.10 per share to be paid on 19 March 2025.

The 5 percent increase year-on-year in new national listings volumes was marked by growth in all major capital cities, met by healthy buyer demand. This 5 percent growth rate for the half-year is a healthy number because it comes off the back of strong prior corresponding period comparables.

Extended audience leadership

REA’s average monthly unique audience across all platforms was 11.9 million visitors for 130.7 million total average monthly visits for the December half-year. This is 4 times more monthly visits compared to the Group’s nearest competitor. The total average monthly visits to the realestate.com.au app was 5.5 times more than its nearest competitor at 57.4 million visits.

These numbers highlight REA’s market dominance as it attracts Australia’s largest high-intent property audience that drives more leads to REA customers, vendors, and landlords than any other real estate site. This results in REA customers winning more listings and selling property faster and making it easy to find and finance property.

REA is intent on achieving similar outcomes in the large and growing Indian market where it is achieving 37 percent year-on-year growth in app traffic and engagement. This growth is attributable to an improved search and new map experience connected through WhatsApp capabilities and AI-generated price estimates.

All debt repaid

REA’s strong operating cash flow of $325 million reflects an impressive 103 percent profit to cash conversion ratio that has enabled capex for Property, Plant and Equipment of $69 million and debt repayments of $209 million in December 2024 that saw Group debt repaid in full. A $400 million undrawn debt facility remains in place with a maturity of September 2028.

Positive current trading outlook

January national residential new Buy listings are up 3 percent year-on-year, with particularly robust growth in the Sydney real estate market. Revenue growth rates for the June 2025 half-year will reflect the strong prior period listings volumes seen in the December 2024 half.

Significantly, REA is targeting positive operating jaws in FY25 which implies continued revenue growth and ongoing cost reductions through revenue-related costs including employee incentives.

Strong employment, high immigration levels and expectations of interest rate cuts in 2025 should continue to support buyer demand and vendor confidence to list. A higher level of available residential stock is affording buyers with more choice, which has tempered house price growth. This provides for a more balanced level of supply and demand which supports the overall health of the market.

Meanwhile REA continues to invest in the next generation of consumer experiences that delivers further value to customers and superior ongoing returns to shareholders.