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Australia’s REA Group claims revenue is up 20% to AUD807.7M

By Gordana Davila 0 Comments NEWS, Home Feature

Australia's REA Group has reported its revenue increased 20% to AUD807.7M this year. The company claims to have experienced a year of record results, delivering double-digit growth across Australia and Asia. According to its Annual Report, the Group's revenue increased 20% to AUD807.7 million[1] and EBITDA increased by 22%, finishing the year at AUD463.7 million[2].

Hamish McLennan, Chairman, REA Group, stated, "This is an excellent result and has been achieved in a market of significantly lower new development project commencements, a moderate decline in residential listings in Australia, and continued challenges in many Asian markets".

According to the Group, its Australian businesses have had a strong year, with revenue growth of 21% to AUD763.4 million[1]. With its flagship site, realestate.com.au, still the market leader, this year, the lead against its competition was further extended. The company claims to have more than 1 million people visiting realestate.com.au each day, spending over 3.8 times longer on the site's app than on the number competitor's app.

McLennan added, "In a competitive landscape, these results showcase the strength of our brand and further cement us as Australians’ preferred place to find property."

The Group indicated that Asia remains an important part of its long-term global strategy. With revenue increasing 18% to AUD44.3. This being largely driven by its Chinese language site, MyFun.com, as well as their other businesses in Thailand and Indonesia.

This year realestate.com.au also began offering property financing. The portal entered into a partnership with NAB, launching an Australian-first end-to-end digital experience enabling users to search, find and finance property, all from one platform. The company has stated that since the launch of this service back in September 2017, over 350,000 users have created a financial profile with them[19].

Realestate.com.au’s Lifestyle experience provides ideas via its rich editorial and video content which is readily available to the public, making the site a destination for renovating and decorating as well, and experiencing over 20 million visits since its launch. [20]

“At REA Group, it’s not just about what we do, it’s about how we do it. Our people are passionate, creative and smart, and they genuinely care – about the business, their colleagues, and the community. This makes REA a pretty special place to work,” said Tracey Fellows, CEO, REA Group.

Read the 2018 REA Group Annual Report here.

[1] Revenue is defined as revenue from property advertising and financial services less expenses from franchisee commissions disclosed in the Consolidated Financial Statements as operating income.

[2] Financial results/highlights from core excludes significant non-recurring items such as revaluation and unwind of contingent consideration, transaction costs relating to acquisitions, brand write-off and the impact of the change in US tax rates on results of Move, Inc. In 2017, this included items such as revaluation, unwind and finance cost of contingent consideration, foreign exchange (“FX”) on proceeds from European operations, impairment charge, transaction costs and discontinued operations (net of gain on sale).

 [3] REA Internal Data, total number of financial profiles created (Sep 17 – Jun 18). 20 Adobe Analytics, total number of visits to Lifestyle on realestate.com.au, (May 2017 – Jun 18).

Edited by Gordana Davila

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