With revenue upwards of $920 million, REA Group has highlighted just how much how it benefited from Australia’s strong residential market recovery across the last 12 months.
In an ASX announcement on 6 August 2021, REA Group revealed its revenue rose by 13 per cent over the 12 months to June 2021.
It reported revenue of $928 million, while net profit was up at $318 million — an 18 per cent rise on the previous financial year.
EBITDA, including associates, is also up by 19 per cent, at $565 million.
With the group result also including the consolidation of the Elara business from 1 January 2021, REA Group said that, without factoring in acquisitions, revenue was up by 11 per cent over the year, EBITDA jumped 21 per cent and the net profit after tax figure was boosted by 24 per cent.
According to REA group CEO Owen Wilson, “this has been a defining year for REA — successfully navigating the pandemic to deliver an excellent financial result and emerge an even stronger business”.
He continued: “I am very proud of our team’s ability to respond to the changing needs of our customers and consumers during the pandemic, while also accelerating our growth strategy through a number of pivotal investments.
“Our flagship site realestate.com.au delivered stellar results, extending its position as the clear market leader in digital real estate and it is now Australia’s eight largest online brand overall.”
The result means the board will be paying out a final dividend to shareholders of 72 cents per share fully franked. When combined with the interim dividend announced back in February, shareholders have received 131 cents per share for the 2021 financial year — a 19 per cent increase on the year prior.
Across Australia, REA reported a boost to revenue from its realestate.com.au website — with an 18 per cent jump in revenue reflecting higher national listing, improved depth and penetration, increased subscription revenues and continued growth in add-on products.
As well as the boost to finances, the listings platform also improved on its audience metrics, reportedly reaching “new all-time highs during FY21” — average monthly visits topping upwards of 120 million, while 12.6 million people visited the site, on average, each month.
It’s been a massive year for the group, with this year’s financials not even covering the consolidation of Mortgage Choice and Elara (for the whole year) or the divestment of Malaysian and Thai operations from 2 August 2021.
Mr Wilson indicated that the business will “continue to target positive full-year operating jaws”, while acknowledging the continuing market volatility caused by COVID-19, which he did concede “has the potential to impact the group’s performance in FY22”.
“While recent lockdowns have negatively impacted listings volumes in the affected cities, the experience over the last 12–18 months has shown that markets can recover quickly when restrictions are lifted. Despite COVID-related volatility, market dynamics remain strong, with strong levels of buyer enquiry underpinned by low interest rates and healthy bank liquidity,” he said.
Even in spite of ongoing lockdowns, the CEO said “REA is entering the new financial year with strong momentum”.
“This momentum, coupled with our strategic investments and exciting product roadmap, provides an excellent platform for our continued growth,” Mr Wilson said.
Group lands ‘great place to work’ gong
The financial year results come just days after REA Group was revealed to be Australia’s fourth Best Workplace by Great Place to Work®.
The group was behind Cisco Systems Australia, DHL Express Australia and Salesforce in the large company category, and pipped Atlassian, who took out the fifth place.
According to REA Group CEO Owen Wilson, REA Group’s rise in the rankings is “a testament to the growth and cultural evolution the organisation has undertaken in recent years”.
“Being named Australia’s fourth Best Workplace in the large company category is something all of our people can be proud of [because] each and every one of REA’s employees contribute to what makes our organisation special,” he said.
“Knowing this recognition is a direct result of our people’s assessment of their experience at REA, coupled with an in-depth review of our business and total employee experience, makes this acknowledgment particularly meaningful. ”
Mr Wilson said the certification comes as the group makes moves to recruit a significant number of newly created roles across the business.
“In a world where the competition for talent is as fierce as it’s ever been, this recognition on Australia’s Best Workplaces list will no doubt help to further attract the brightest and best talent to REA,” the CEO concluded.