REA Group reports 2% drop in half year results
REA Group has released half year results for six months to 31 December 2020.
The News Corp (Australia) majority-owned real estate outlet has reported revenue of $430.4 million for the period, which equates to just a 2% drop on the previous year.
REA Group CEO, Owen Wilson, commented: “We have delivered a remarkable first half result, particularly given the Melbourne market came to a virtual standstill during the lockdown. I am proud of the way our teams focused on the things we could control to deliver outstanding customer support and product enhancements to help consumers navigate the disruptions.”
REA Group
A continued focus by the group on cost management saw 13% reduction in operating expenditure for the half. REA Group assets include realestate.com.au and realcommercial.com.au, as well as Flatmates.com.au.
“Our flagship site realestate.com.au delivered a stand-out performance for the half. In November we set a new record of 13 million people, or 65% of Australia’s adult population on our site,” said Wilson. “Buyer activity also continued to soar with enquiry volumes up 44%, delivering significantly more high-quality leads to our customers.”
Residential revenue within the group increased 4% to $295.6 million during the period, reflecting the increase in buy listings and continued growth in add-on products including Audience Maximiser. This was partially offset by the impact of COVID-19 support measures and the effect of the prolonged Melbourne lockdown on yield.
Rental revenue benefited from increased depth penetration and product mix, however this was offset in part by a decline in rental listings, which continue to be negatively impacted by lack of migration and restrictions on tenant evictions.
The financial results said national residential listings were flat in January, with an increase in Melbourne of 12% and a decline in Sydney of 1%. “We continue to see strong levels of buyer enquiry, underpinned by low interest rates and healthy bank liquidity. Consumer confidence is also improving,” it stated.
Commercial revenues are expected to remain challenged, while listings pressure is anticipated to continue in the second half.
Based on the current market outlook and excluding the impact of acquisitions, the Group anticipates core operating costs for FY21 to be broadly in line with FY20.
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Olivia Kruimel is the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.
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