REA Group Reports $873m Revenue and 26% Profit Rise in H1 FY25
REA Group has reported a robust half-year performance for H1 FY25, with revenue climbing 20% to $873 million and net profit surging 26%, driven by strong Australian and Indian market momentum and strategic technology investments.
- 20% revenue growth to $872.9 million in H1 FY25
- Net profit after tax up 26% to $314 million
- Strong buyer demand fuels 5% growth in new national listings
- Record Premiere+ penetration and enhanced customer platforms
- Continued expansion and app engagement growth in India
Financial Performance Highlights
REA Group Ltd (ASX: REA) has delivered a standout half-year result for the six months ended 31 December 2024, reporting a 20% increase in revenue to $872.9 million and a 26% rise in net profit after tax to $314 million. EBITDA before associates rose 22% to $535.4 million, underscoring the company’s operational efficiency amid expanding market activity.
The company’s Australian operations remain the core revenue driver, contributing $808.7 million, up 19% year-on-year, while its Indian segment grew 46% to $64.2 million, reflecting successful geographic diversification and digital engagement strategies.
Market Dynamics and Consumer Engagement
REA Group’s results are underpinned by a buoyant property market, with a 5% year-on-year increase in new national listings and a 4% rise in buyer enquiries. The company’s platforms, including realestate.com.au and realcommercial.com.au, continue to dominate audience share, boasting 11.9 million unique monthly users and 130.7 million monthly visits, four times that of its nearest competitor.
Innovations such as NextGen Listings and the Luxe premium add-on have driven record Premiere+ penetration, enhancing customer value and yielding higher listing prices. The company’s focus on dynamic, AI-enriched property experiences is reshaping how consumers interact with property data, fostering deeper engagement and higher quality leads.
Strategic Investments and Platform Enhancements
REA Group’s strategic investments in technology and services are evident in the growth of its customer platforms. The Ignite platform saw a 27% increase in monthly active users, while CampaignAgent and Realtair contributed to a 41% and 28% increase in customer engagement respectively. The company’s financial services arm, including Mortgage Choice and the newly acquired 19.9% stake in Athena Home Loans, reported a 13% revenue increase, driven by higher submission volumes and product innovation.
Internationally, REA India continues to expand its footprint, with a 37% year-on-year increase in app traffic and the addition of seven new Tier 2 cities. The company’s app-first strategy and AI-driven enhancements have solidified its market leadership in India’s competitive property portal landscape.
Financial Discipline and Outlook
REA Group maintains a strong balance sheet, having fully repaid its external debt in December 2024 following the sale of its PropertyGuru investment. The group ended the half with $338 million in cash, supported by robust operating cash flow of $325 million and free cash flow of $258 million.
Looking ahead, the company anticipates continued double-digit growth in Buy yield for FY25, though it notes potential geographic mix headwinds. Operating cost growth is expected to be in the low double digits, reflecting increased investments in employee incentives and technology platforms. EBITDA losses in India are forecast to be marginally lower, while associate losses may increase slightly.
REA Group’s commitment to evolving its marketplace with AI, personalisation, and enhanced financial services positions it well to sustain growth and deepen its market leadership in Australia and India.
Bottom Line?
REA Group’s strong H1 FY25 performance sets a high bar, but sustaining growth amid evolving market dynamics will be the next challenge.
Questions in the middle?
- How will geographic mix shifts impact REA’s Buy yield growth in the second half of FY25?
- What are the prospects for reducing EBITDA losses in the Indian business beyond FY25?
- How will increased investments in AI and personalisation translate into long-term customer value and revenue?
