The REA Group Ltd (ASX: REA) share price is in focus today after Australia's top property platform delivered half-year revenue of $916 million, up 5% year-on-year, and lifted its net profit from core operations by 9% to $341 million.
Image source: Getty Images
What did REA Group report?
- Revenue from core operations: $916 million, up 5% year-on-year
- EBITDA (excluding associates): $569 million, up 6%
- Net profit from core operations: $341 million, up 9%
- Interim dividend: $1.24 per share fully franked, up 13%
- Australian residential revenue: up 7%; commercial and new homes revenue: up 10%
- Announced on-market share buy-back up to $200 million
What else do investors need to know?
REA Group reported double-digit growth in its Buy Yield, helping offset a 6% dip in national property listings. Its flagship site, realestate.com.au, saw record online audiences, boasting 12.7 million unique visitors each month, plus growth in buyer and seller activity.
The company completed a strategic reset in India, exiting non-core businesses and refocusing on its core Housing.com platform. REA is rolling out AI-powered features, like natural language search, to drive innovation and better consumer engagement across its platforms.
What did REA Group management say?
REA Group CEO Cameron McIntyre said:
REA Group's first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement. Our customers continued to recognise the value of our premium products and their ability to maximise campaigns and support stronger sales results.
The pace of technological change is creating significant opportunity. REA's unparalleled audience and proprietary data provide a strong foundation for harnessing AI as we continue to change the way Australians buy, sell and rent property.
What's next for REA Group?
REA expects strong buyer demand to continue in Australia's property market, especially in Melbourne and Sydney where fresh listings are rising. However, Perth and Brisbane have seen slower activity, which is expected to weigh on national listing volumes.
The group anticipates residential Buy yield growth of 12–14% and plans to keep investing in new technology, including AI, to enhance its property platforms. REA's focus remains on sustainable cost management, further innovation, and maintaining its leadership in online real estate.
REA Group share price snapshot
Over the past 12 months, REA Group shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
