REA Group’s full-year results reveal a materially stronger underlying business than headline profit figures suggest, with core operations revenue climbing 7 percent to $1,793 million and EBITDA expanding 12 percent to $1,088 million. Australian operations performed particularly well, with revenue up 11 percent and EBITDA up 13 percent, reflecting the company’s ability to grow earnings faster than revenue through operating leverage. This 4 percentage point jaws expansion demonstrates disciplined cost management despite inflationary pressures.
Reported net profit of $552 million fell 19 percent year-on-year, but this masks the true operational performance. The decline stems largely from a $111 million impairment on REA India against a prior-year $117 million reversal on the PropertyGuru sale, meaning the underlying business generated net profit of $650 million, up 15 percent, with earnings per share reaching $4.93, also up 15 percent. This distinction matters for investors assessing earnings quality and management’s capital allocation discipline.
REA’s capital return to shareholders accelerated materially. The company lifted the final dividend to $1.73 per share, up 25 percent, reaching full-year distributions of $2.97 per share, up 20 percent. Alongside this, a $200 million on-market buyback purchased over 1.25 million shares, demonstrating confidence in the business and a commitment to returning cash to shareholders. Free cash flow growth of 17 percent provided substantial scope for these returns without straining the balance sheet.
The company’s market position in Australia strengthened considerably, with residential revenue up 12 percent driven by Buy yield growth of 13 percent, where listings proved more resilient than anticipated. REA achieved record audience metrics, attracting 12.7 million average monthly visitors and generating 2.5 million buyer enquiries, up 8 percent. Beyond scale, the company is building engagement through immersive experiences, recording 14 percent growth in active members and a 15 percent increase in owner-tracked properties to 5.2 million.
REA’s diversification efforts accelerated through acquisition strategy. The group acquired a 70 percent controlling stake in Simplicity Loans & Advisory to expand Mortgage Choice into commercial lending, and consolidated Planitar’s iGUIDE 3D visualisation business, rolling out Australian operations in March. More significantly, REA is exiting India entirely by selling Housing.com to Aurum PropTech, retaining a 24.9 percent stake in the listed vehicle. AI integration across platforms, from consumer-facing assistants to broker tools, is beginning to deliver tangible commercial value.
The path forward hinges on translating record audience scale and proprietary data into sustained yield growth amid market normalisation, monetising new AI capabilities, and executing on M&A integration, particularly Planitar and the Mortgage Choice expansion. An investor day scheduled for October will provide detail on growth strategy. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About REA Group Limited (ASX: REA)
REA Group operates realestate.com.au, Australia’s leading property platform, connecting buyers, sellers, and renters. It also has property portal operations in India and other markets.
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