REA Group CEO Owen Wilson has announced his resignation as the digital real estate advertising company handed down a 26% jump in net profit to A$314 million for the first half of the 2025 financial year (FY25).
REA, 61% owned by Rupert Murdoch’s News Corporation, said Wilson intended to retire from full time executive roles in the second half of 2025 after 10 years with the company, including six years as CEO.
The company said earnings before interest, tax, depreciation and amortisation (EBITDA) excluding associates rose 22% to $535 million, earnings per share (EPS) jumped 26% to $2.38 and revenue rose 20% to $873 million in the six months to 31 December 2024.
Reported net profit increased 246% to $441 million, reflecting the gain on sale of the Group’s investment in PropertyGuru and other one-off impacts in both periods.
The Board declared an interim dividend of $1.10 per share fully franked, an increase of 26% on a year earlier, to be paid on 19 March 2025 to shareholders on record on 5 March.
“REA’s exceptional first half result was driven by strong yield growth in a healthy listings environment,” Wilson said in ASX announcement.
Turning to the outlook for FY25, the company continued to expect double-digit growth in the FY25 residential ‘Buy yield’, it continued to target positive operating jaws (the relationship between income and expense growth), and operating cost growth was expected to ease to low double-digits from high single-digits.
REA Group also said the Board had initiated a comprehensive process to select a new CEO, was evaluating internal and external candidates and Wilson would remain with the business to ensure a smooth and orderly transition.
“His stellar leadership leaves the company exceptionally well positioned and REA is one of the best home-grown technology companies which has flourished into being a global leader,” Chairman Hamish McLennan said in an ASX announcement.
The result was higher than consensus estimates, except for dividends, which lagged expectations.
At 12:05 pm AEDT (1:05 am GMT) REA Group (ASX: REA) shares were trading down at $2.62 (1.04%) at $249.23, after ranging between $241.39 and $251.57, and capitalising the company at $32.93 billion.
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