REA Group Limited (ASX:REA) has posted its end of year financial information via a press release on its website revealing revenue of $170 million.
Group financial highlights from core operations for the quarter ending 30 September 2016 include revenue growth of 16% to $170m and EBITDA growth of 9% to $90m. A summary table of the key financial information is presented below. This information is presented in Australian dollars and is prepared under AIFRS.
The strong revenue result was driven by the inclusion of iProperty revenue, which was not included in the prior comparative period, and a 14% increase in the Australian residential business. This was achieved in a market which saw an 8% decline in listing volumes, with the largest decreases occurring in the Sydney and Melbourne markets. The decline in listings was initially due to uncertainty surrounding the Australian federal election, however, listing volumes remained lower for the entire quarter as the lack of stock deterred potential property sellers from entering the market. Listing volumes have remained at these levels in October and we expect these conditions to continue for the remainder of the first half.
Operating expenses increased due to the consolidation of iProperty results, and a higher level of marketing expenditure. This higher rate of expenditure will continue into Q2. Excluding the impact of iProperty, we expect the rate of full year revenue growth to exceed the rate of cost growth.
REA Group Chief Executive Officer Tracey Fellows commented:
“This has been a strong first quarter for REA Group given the softer market conditions in Australia. Our focus on continuously improving consumer experience and creating value for our customers saw us deliver an increase in depth revenue.”
“Realestate.com.au maintains its clear leadership position with the largest and most engaged audience of property seekers in Australia with average monthly visits to the site being more than 2.3 times our nearest competitor . Consumers spent over 7.5 times more time on our site than any other property site in the country.”
“We are continuing to build our global network and invest in new and innovative ways to change the way the world experiences property. We are creating future revenue streams across the entire property journey which allow us to deliver the most immersive, personalised and engaging property experience.”