REA Group H1 FY25 Financial Information Released
| Stock | REA Group Ltd (REA.ASX) |
|---|---|
| Release Time | 6 Feb 2025, 8:19 a.m. |
| Price Sensitive | Yes |
REA Group delivers an outstanding H1 result
- Revenue up 20% to $873m
- EBITDA up 22% to $535m
- Net profit up 26% to $314m
- Interim dividend up 26% to $1.10 per share
REA Group Ltd (ASX:REA) today announced its results for the half-year ended 31 December 2024. Group financial highlights from core operations include revenue growth of 20% to $873m, an increase in EBITDA excluding associates of 22% to $535m, and a 26% increase in net profit to $314m. Reported net profit increased 246% to $441m, reflecting the gain on sale of the Group's investment in PropertyGuru and other one-off impacts. The Board has determined to pay an interim dividend of $1.10 per share fully franked, up 26% year-on-year. REA's Australian business saw revenue growth of 19%, driven by strong yield growth in a healthy listings environment. India revenue grew 46%, with adjacent services on Housing Edge increasing 153%. Group operating costs grew by 18%, with Australian costs up 16% and India costs up 24%. The company's equity accounted investments, including Move, Inc. in the US, reported mixed results, with Move's equity accounted loss flat compared to the prior period. REA Group has repaid all external debt following the sale of PropertyGuru and has a $400m undrawn debt facility in place.
REA Group expects double-digit FY25 residential Buy yield growth, although the magnitude may be impacted by geographical mix. The company anticipates low double-digit group core operating cost growth, compared to high single-digits previously, reflecting increased revenue-related costs. EBITDA losses in India are expected to be marginally lower in FY25 compared to FY24, and contributions from combined associates' losses are anticipated to be modestly higher than the prior year.
Strong employment, high immigration levels, and expectations for interest rate cuts in the first half of 2025 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. REA continues to invest in the next generation of consumer experiences and the delivery of further value to its customers.