How Did REA Group Achieve 15% Revenue Growth and a 31% Dividend Surge?

Strong Financial Performance

REA Group Ltd (ASX, REA) delivered an impressive set of results for the fiscal year ended June 30, 2025, showcasing the resilience and growth potential of Australia's leading digital property platform. Core revenue climbed 15% year-on-year to $1.673 billion, while EBITDA rose 18% to $969 million, reflecting operational efficiency alongside top-line expansion. Net profit attributable to owners surged 23% to $564 million, underscoring the company’s ability to convert growth into shareholder value.

The reported net profit, which includes one-off gains such as the sale of its stake in PropertyGuru, more than doubled to $678 million. This transaction not only boosted earnings but also enabled REA Group to repay all external debt, strengthening its balance sheet with a cash reserve of $429 million and an undrawn $400 million credit facility.

Australian Market Leadership

Australia remains the cornerstone of REA Group’s success, with revenue up 14% to $1.544 billion. The residential segment led growth, driven by a 14% increase in yield and stable listing volumes despite a competitive market. The company’s flagship site, realestate.com.au, reinforced its dominance with a 17% increase in audience lead over its nearest competitor, attracting an average of 12.1 million monthly visitors. Enhanced consumer engagement and innovative offerings like Premiere+ and Audience Maximiser contributed to deeper market penetration and higher pricing power.

Commercial and developer revenues also grew by 10%, supported by price rises and increased listings. Meanwhile, financial services and recruitment arms showed solid momentum, reflecting broader market health and the company’s diversified revenue streams.

Strategic Moves in India

REA India posted a strong 25% revenue increase to $129 million, driven by growth in adjacent services within Housing Edge and improved monetisation in Tier 2 cities. However, PropTiger revenues declined 17%, prompting REA Group to enter a binding agreement to divest this business in exchange for a 5.5% stake in Aurum PropTech Ltd. This move aims to streamline operations and sharpen focus on Housing.com’s app-first strategy, which continues to gain traction with a 19% increase in app sessions.

Outlook and Leadership Transition

Looking ahead, REA Group expects the Australian property market to remain robust, supported by strong employment and anticipated interest rate cuts. The company targets double-digit residential yield growth and positive operating leverage, while anticipating modest EBITDA losses in India due to lower Housing Edge revenues. Strategic investments in talent, technology, and consumer experience remain priorities to sustain growth momentum.

Notably, CEO Owen Wilson announced his departure, with the board confirming a professional and orderly transition to ensure continuity. Chairman Hamish McLennan praised Wilson’s leadership, highlighting the company’s strong culture and trusted brand as a foundation for future success.