Global digital property business REA Group said operating earnings and revenue increased more than 20% in the first quarter (Q1) of the 2024/25 financial year as listings grew strongly.
The company, which is 61% owned News Corporation, said earnings before interest, tax, depreciation and amortisation (EBITDA) excluding associates surged 23% to $243 million and revenue increased 21% to $413 million.
The results were also reported by News Corp, which earlier announced record quarterly profitability and revenue.
REA Group Chief Executive Officer Owen Wilson said seller confidence continued to drive a strong listings environment in the first quarter, delivering greater choice for buyers and some moderation in house price growth.
“In this healthy market, we hit new audience records and our customers increasingly leveraged the value of our premium products to differentiate their properties. This underpinned the strength of our financial performance,” Wilson said in an ASX announcement.
He said the Group expected losses for combined contributions from associates in the financial year to be modestly lower than the prior year, reflecting stabilising market conditions in the United States.
The Group’s share of associates contributed a $7m loss to EBITDA in Q1, compared to a $6m loss in the prior period, largely due to challenging U.S. market conditions.
“As we move further into FY25 it’s clear that the Australian property market remains in good health reflecting the expectations of future interest rate cuts, together with high employment and population growth,” Wilson said.
“October listing were at near record levels and this significant market activity, combined with the strength of REA’s audience and product suite, continues to position our business strongly for future growth.”
At its annual general meeting on 6 November, rival digital property site Domain Group (ASX: DHG) said revenue grew 8% in the first quarter of the 2024/25 year.
At 12.10pm (AEDT) REA Group (ASX: REA) shares were trading at $236.82, $3.29 (1.4%) higher, after trading between $226.63 and $237.31, capitalising the company at $30.85 billion.