REA Group delivers significant 26% growth in FY22 results
News Corp Australia-owned REA Group Ltd has today released its results for the year ending 30 June 2022, revealing revenue growth of 26% and a 25% increase in net profit. The Group’s performance has contributed significantly to News Corp’s revenue spike this reporting season.
Reported net profit increased to $385 million, with the Group reporting a full-year dividend of 164 cents per share, up 25%. The group reported a 25% increase in earnings per share to $3.08.
Group financial highlights from core operations include revenue growth of 26% to $1.17 million, an increase in EBITDA including associates of 19% to $674 million, and a 25% increase in net profit to $408 million.
Core operating costs increased 34%, largely driven by the Mortgage Choice and REA India acquisitions. Excluding acquisitions, core operating costs increased by 11%, reflecting investment to deliver strategic initiatives, higher remuneration costs, an increase in revenue-related variable costs, and investments in brand and marketing.
REA Group chief executive officer, Owen Wilson commented: “FY22 has been an exceptional year for REA. The record take-up of our premium listings products enabled us to fully capitalise on the buoyant listings environment, and it demonstrates the value we provide to our customers and vendors.
“Key milestones were also achieved in our property data, financial services, and Indian businesses, building strong momentum. These markets present great opportunities and the revenue
contribution of these businesses is growing rapidly.”
REA’s Group Investor and Analyst Presentation revealed that realestate.com.au is ‘Australia’s 7th largest online brand’, reaching 62% of Australia’s 18+ population.
The site has seen notable growth in active, engaged customers: monthly active members (MAUs) are up 25% year-on-year, and visits to the Property Owner Dashboard are up almost 200% YoY.
The group expressed optimism for their remaining 2022 forecast.
While the current market moderates as interest rates continue to hike, it still reflects strong fundamental macro trends including record low unemployment, which REA Group believes will continue to support demand.
July National residential new listings were up 7% year-on-year, with Sydney listings increasing 18% and Melbourne up 6%. YoY growth rates in the first quarter will reflect the Sydney and Melbourne lockdowns in the prior period. Growth rates beyond that will reflect the strong prior period listings volumes.
Residential Buy yield growth is anticipated to grow double-digit in FY23, driven by an average national 6% price rise, new product launches including Premiere Plus, and continued growth in depth and Premiere penetration.
“REA enters the new financial year in a very strong position with a clear strategy for future growth. While we’re mindful of changing economic conditions, with further interest rate rises expected, Australia’s property market is healthy and supported by strong underlying fundamentals,” Wilson said.
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