REA Group (ASX: REA) delivered full-year results on Tuesday, as falling interest rates and a resurgent property market helped lift its earnings and revenues to record levels in FY25.
Revenues soared by 15% to A$1.67 billion, compared to $1.45 billion in the previous fiscal year, with the vast majority of this coming from Australia.
Its net profit also increased by 23% to A$546 million, and the board will pay a dividend of $1.38 per share, fully franked, which is a 35% jump from last year.
REA Group CEO, Owen Wilson, said these “excellent” results were helped along by improvements in the property market and interest rate cuts.
“Buyer activity increased during the year, with the first interest rate cuts in four years accelerating enquiries delivered to our customers to a three-year high in the last quarter. Demonstrating the health of the market, listings remained in line with the strong prior year,” he said.
In Australia alone, revenue grew by 14% year-over-year to A$1.54 billion. This was mainly driven by residential revenue, which was up 16% to A$1.16 billion.
The company also maintained its position as Australia’s number one address in property, according to Wilson.
“Australians continually turn to realestate.com.au as the most trusted property platform, with more listings than anywhere else,” he said.
“We further strengthened our audience position in FY25, increasing our lead over the nearest competitor by 17% on the prior year.”
According to the company, realestate.com.au had 132.2 million average monthly visitors.
REA India also experienced strong growth with revenue rising 25% year-over-year to A$129 million.
Wilson said he expects the market to remain strong in FY26, and he expects further rate cuts to support buyer demand and steady house price growth.
“These are favourable conditions for sellers to bring their properties to market,” he said.
“Our increasing investment in talent, technology, and improved consumer experiences positions REA Group for continued growth in FY26.”
This comes after Wilson told investors that he would be retiring at the end of this calendar year after six years in the top role.
“The appointment of the new CEO will be announced in the next month, and our professional and orderly transition will ensure that we have continuity, so that the strong momentum at REA Group continues,” REA group chairman, Hamish McLennan said.
At the time of writing, REA Group (ASX: REA) stocks are up 7.24% to A$255.34. The company’s market cap is A$34.13 billion.
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