Realestate.com.au revenue up 20 percent despite fewer local listings
REA Group had another record year for revenues and profitability, as it plays a key role in News Corp's establishment of the world’s leading digital property business.
The real estate website REA Group has posted a full year profit of $214.5 million, up 16 percent on last year.
But the company said uncertainty surrounding the July Federal election outcome contributed to July listings being down 11 per cent compared to July last year.
The bulk of its revenues came from its two Australian websites - $555 million out of group revenues of $630 million. Its European websites had revenues of $51 million and the Asian websites $24 million.
The result followed a 20 percent growth in revenue, with the company recording revenue of $629.8 million, REA group CEO, Tracey Fellows said indicating its international expansion was a key factor.
The results followed further global expansion with its acquisition of iProperty Group in South East.
"We also launched the global property network giving consumers access to more than three million listings from 56 countries.
“We have also further cemented our leadership position in Australia on the back of record audience engagement.
"This is particularly pleasing given residential listing volumes were lower in the second half.”
Its international digital real estate websites delivered a 71 percent improvement in earnings before interest, depreciation and amortisation to $344 million – which included a $US122 million gain from a court settlement against Zillow, a competitor to News Corp's Move business.
Realestate.com.au's page figures
The News Corporation chief executive Robert Thomson has tipped real estate businesses, led by REA, Move and iProperty, to become the biggest driver of earnings.
Thomson said that digital real estate is "reshaping the growth profile of News Corp."
REA Group is majority owned by News Corp and operates the realestate.com.au and realcommercial.com.au websites.
Realestate.com.au offers the most properties.
The REA Group also owns a 21 per cent stake in iProperty Group, a stake in myfun.com, online real estate websites in France, Italy, Germany and Luxembourg, and equity in two US real estate websites, including a 20 per cent stake in Move Inc.
Fairfax Media, who recently reorganised its financials so it could details on Domain revenue, reports its update this week too.
It revealed last week Domain revenues were $223 million in 2014-15 and $113 million in 2013-14.
