REA Group Sees Revenue Drop in Q3 Amid Australian Headwinds

May 12, 2023
Share this Post: 

The Melbourne-based real estate portal operator REA Group has released a report on its activities for Q3 of the Australian financial year. Highlights of a quarter affected by a challenging Australian housing market include:

  • Company revenue declined 3% year-on-year to A$269 for the quarter.
  • EBITDA excluding associates declined by 13% to A$136m.
  • Traffic to was flat year-on-year at 125 million average monthly visits.

Revenue generated by the group's domestic operations including flagship portal declined 6% year-on-year as the number of for-sale listings dropped by 21% and new build commencements fell by 17%.

The impact of the drop in inventory was offset by increased depth product penetration and a slight increase in rental revenue in the quarter.

The company's domestic financial services business, which was boosted in 2021 by the A$244 million acquisition of the brokerage Mortgage Choice, saw revenues down for the quarter. The business was impacted by reduced market activity in new home lending and lower average loan sizes.

The company did note that the integration of Mortgage Choice is now largely completed and that recruitment for the business is continuing with 1,047 brokers working as of the end of the quarter.

Commenting on his company's performance in Q3, REA Group Chief Executive Officer, Owen Wilson said:

“While interest rate uncertainty continued to impact the Australian property market, conditions have improved with the stabilisation of house prices and more vendors returning to the market. The movement in listings reflects the strong listings environment in Q3 last year prior to the commencement of the interest rate increases.

The strength of REA’s premium product offering and audience continued to support revenues, and our Indian business delivered exceptional growth.”

As well as its operations at home, REA Group operates the and Makaan portals through REA India. The company has been investing money in India over recent years and has managed to grow into a leader in terms of traffic without yet reaping any financial rewards.

The company said that Indian revenue was up 63% year-on-year in Q3 driven by which saw a 21% audience boost.

May 12, 2023
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Hemnet Vs Rea Group
Analysis: Hemnet Still Playing Catch-up to REA Group When It Comes to Vendor Paid Advertising

Vendor-paid markets are great for real estate portals. For more than a decade the leading Swedish player Hemnet has charged...

Read More
Ohmyhome Full Year Results Net Losses But Big Ambitions
OhMyHome 2023 Full-Year Results: Net Losses But Positive Outlook for Nasdaq-listed Marketplace

The Singapore-based publicly listed company OhMyHome has released its 2023 full-year financial results. Highlights include: Revenues totalled S$5.0 million (US$3.8...

Read More
Homely Financial Results
Australian Portal Homely Records 16% More Enquiries in 2023

Australian challenger portal Homely generated over 15.5 million enquiries in the 12 months from April 2023. Homely, which competes with...

Read More
Yandex Q1 Strong Performance From Divested Assets
Yandex Q1 2024: Net Losses for Remaining Assets After Large Scale Divestments

Yandex N.V., the Dutch holding company of the marketplace giant Yandex, has released its financial results for the first quarter...

Read More