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- REA Group (REA) delivers a “strong” third quarter as the property market continues to bounce back from COVID-19, but braces for “headwinds” in the fourth quarter
- The group saw a 23 per cent rise in revenue year-over-year to $278 million and a 27 per cent increase in EBITDA to $155 million
- Its Australian residential business delivered strong revenue growth for the quarter, reflecting higher buy listings, the price rise from July 2021, and continued growth in add-on products
- However, REA warned that national listings are likely to be down in the fourth quarter as the current phase of growth eases
- Shares in REA Group were down 8.81 per cent to $111.25 as of 10:09 am AEST
REA Group (REA) has delivered a “strong” third quarter as the property market continues to bounce back from COVID-19, but is bracing for “headwinds” in the fourth quarter.
The group enjoyed a 23 per cent rise in revenue year-over-year to $278 million and a 27 per cent increase in EBITDA to $155 million.
REA said the growth reflected higher buy listings, the price rise from July 2021, increased depth, and continued growth in add-on products.
Rental revenue, meanwhile, continued to benefit from increased depth penetration and price rise, but this was offset by a decline in rental listings.
“Australians transacted property at pace during the quarter as continued high demand gave sellers the confidence to bring their properties to market,” CEO Owen Wilson said.
“These conditions, combined with record take up of our premium products, contributed to our very strong result.”
The Australian residential property market continued its post-COVID recovery during the quarter with national listings up 11 per cent from last year. Notably, an increase of 14 per cent in Sydney and eight per cent in Melbourne.
However, the company warned that national listings were likely to fall in the fourth quarter as the current period of growth eases. It also cited potential impacts from the upcoming federal election.
REA’s flagship site, realestate.com.au, further consolidated its leadership position,
delivering a record average monthly audience in the March quarter with the website growing to become Australia’s sixth largest online brand during the quarter.
“Having the largest and most engaged audience delivers great value to our customers,” said Mr Wilson.
“This is key to our success, and we were pleased to realise a strong increase in active members during the quarter, with greater uptake of our property tracking and valuation tools.”
Shares in REA Group were down 8.81 per cent to $111.25 as of 10:09 am AEST.
