REA Group Ltd (ASX:REA) Reports Strong H1 FY25 Financial Results
Financial Performance
REA Group Ltd (ASX:REA) reported a 20% increase in revenue to $873 million for the half-year ended 31 December 2024. Operating expenses rose by 18% to $338 million, while EBITDA excluding associates grew by 22% to $535 million. Net profit increased by 26% to $314 million, with earnings per share rising to $2.38. The reported net profit, including one-off gains, surged by 246% to $441 million.
Dividend Declaration
The Board has declared an interim dividend of $1.10 per share, fully franked, marking a 26% increase year-on-year. The payment date is set for 19 March 2025.
Operational Highlights
Revenue from Australia grew by 19% to $809 million, and India revenue increased by 46% to $64 million. The flagship site, realestate.com.au, saw an average of 11.9 million monthly visitors, reinforcing its position as Australia’s leading property platform. Buyer enquiries on realestate.com.au rose by 4%, and seller leads increased by 88% year-on-year.
Executive Comments
REA Group Chief Executive Officer, Owen Wilson, stated, “REA’s exceptional first half result was driven by strong yield growth in a healthy listings environment. Vendors remained confident during the half with sales volumes consistently higher than the prior year, demonstrating the depth of demand, while buyers benefited from more choice and some moderation in price growth.”
Outlook
The company anticipates continued double-digit residential Buy yield growth for FY25, supported by strong employment and high immigration levels. REA Group expects lower year-on-year operating cost growth in the second half of FY25 due to phased spending on marketing and employee costs.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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