REA Group Delivers Exceptional FY24 Financial Performance
REA (REA) Share Update August 2024 Thursday 8th
REA Group Reports Exceptional FY24 Financial Results
REA Group Ltd (ASX:REA) has reported outstanding financial results for the fiscal year ending 30 June 2024, showcasing significant growth across key financial metrics.
Instant Summary:
- Revenue increased by 23% to $1,453 million.
- Operating expenses rose by 18% to $628 million.
- EBITDA excluding associates grew by 27% to $825 million.
- Net profit increased by 24% to $461 million.
- Earnings per share (EPS) up by 24% to $3.49.
- Full year dividend of $1.89 per share, up 20%.
Financial Highlights
REA Group Ltd has delivered an exceptional financial performance for the fiscal year ending 30 June 2024. The Group's revenue grew by 23% to $1,453 million, driven by strong market conditions and increased customer preference for premium products. Operating expenses rose by 18% to $628 million, reflecting investments in growth and technology.
EBITDA, excluding associates, saw a significant increase of 27% to $825 million. Net profit also experienced robust growth, rising by 24% to $461 million. Earnings per share (EPS) increased by 24% to $3.49, highlighting the company's strong financial health.
Dividend and Market Performance
The Board has declared a final dividend of 102 cents per share, fully franked, representing a 23% increase year-over-year. This brings the full year dividend to $1.89 per share, up 20% compared to the previous year. This move underscores the company's commitment to returning value to its shareholders.
Regional Performance
In Australia, REA Group operates leading residential and commercial property sites, including realestate.com.au and realcommercial.com.au. The core Australian revenue increased by 22% year-over-year to $1,350 million. In India, REA Group's operations also showed strong momentum, with revenue growing by 31% to $103 million.
Residential revenue in Australia rose by 24% to $996 million, driven by a 19% increase in Buy yield and a 7% rise in national listings. Commercial and Developer revenue increased by 12% to $159 million, while Media, Data, and Other revenue saw a 25% increase to $122 million.
Strategic Investments and Acquisitions
REA Group made strategic investments to bolster its market position. The acquisition of Realtair for $34 million is expected to streamline property sales processes and enhance the company's digital capabilities. Additionally, REA Group's investment in Move, Inc. and PropertyGuru continues to provide valuable insights and opportunities for growth.
Outlook
Looking ahead, REA Group remains optimistic about the Australian property market, supported by strong demand and stable interest rates. The company plans to continue investing in innovation and customer experience to drive growth and deliver value to shareholders.
The impressive financial results and strategic investments are likely to have a positive impact on REA Group's stock price. The significant increase in revenue, net profit, and dividends will likely boost investor confidence and attract new investments.
Investor Reaction:
Analysts are expected to react positively to REA Group's financial performance, highlighting the company's strong market position and growth potential. The increase in dividends is also likely to be well-received by investors seeking stable returns.
Conclusion:
Investors should consider REA Group's strong financial performance and strategic initiatives when making investment decisions. The company's focus on innovation and customer experience positions it well for continued growth. Stay informed on REA Group and the broader property market to make informed investment choices.