REA Group and carsales.com.au deliver big growth as classified ads continue to shift online

August 14, 2013 1:07

Two of Australia’s largest online classified sites have both reported strong growth in the last financial year.

Carsales.com.au recorded an EBITDA profit of $120.1m, up by 19 per cent on a year ago. And REA Group, parent company of RealEstate.com.au was up by 30 per cent to $163.7m.

The profit results come weeks after the publication of Pamela Williams’s much discussed book Killing Fairfax, which highlighted how alomg with job site Seek, these two websites have picked up much of the classifed revenues which previosuly flowed to Australia’s newspapers.

Overall revenue for Car Sales was $215.1m, up 17 per cent while the REA group was up 21 per cent to $336.5m.

Carsales CEO Greg Roebuck said: “The results are indicative of the continued long-term potential of carsales’ established business model, engaging the spectrum of dealer, private and display advertising customers in auto and similar verticals.”

Carsales.com.au used to have a substantial holding from James Packer’s PBL which eventually sold out for more than $500m.

News Corp Australia is a majority shareholder in the REA Group whose CEO Greg Ellis said: “This is a great result driven by accelerated take-up of our depth products. In Australia, our residential business recorded one of its best growth years to date.”

Carsales.com.au has a market capitalisation of $2.6bn with shares opening $10.20. REA Group has a market capitalisation of $4.34bn with shares up slight 0.09 per cent to $32.95 this morning.

Nic Christensen

Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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