REA Group - FY24 Financial Performance and Annual Report
REA (REA) Share Update August 2024 Thursday 8th
REA Group Reports Strong Financial Performance for FY24
REA Group Ltd (ASX: REA) has released its FY24 Annual Report, showcasing a robust financial performance with significant revenue growth and strategic acquisitions.
Instant Summary:
- Revenue increased by 23% to A$1,452.8 million.
- Net profit from core operations rose 24% to A$460.5 million.
- Final dividend of 102 cents per share, fully franked.
- Strong performance in Australian and Indian markets.
- Acquisition of CampaignAgent and Realtair.
Financial Performance
REA Group Ltd reported a 23% increase in revenue, reaching A$1,452.8 million for the financial year ending 30 June 2024. The net profit from core operations rose by 24% to A$460.5 million, demonstrating the company's strong operational efficiency and strategic growth.
The company's EBITDA from core operations, excluding associates, increased by 27% to A$824.8 million. This growth was driven by higher employee costs, technology investments, and marketing cost growth, along with the consolidation of CampaignAgent.
Dividend and Cash Flow
REA Group announced a final dividend of 102 cents per share, fully franked, bringing the total dividend for FY24 to A$1.89 per share, a 20% increase from the previous year. The company ended FY24 with a robust cash balance of A$204 million and generated operating cash flows of A$589 million.
Strategic Acquisitions
During the year, REA Group acquired the remaining stakes in CampaignAgent and Realtair, enhancing its agency services offering. These acquisitions are expected to provide significant value to customers by offering comprehensive digital tools throughout the property transaction journey.
Market Performance
The Australian property market showed strength in FY24, with stabilized interest rates and healthy buyer demand supporting strong listing conditions. Residential revenue increased by 24% to A$996 million, while Commercial and Developer revenue grew by 12% to A$159 million.
REA India also delivered a strong performance with a 31% YoY revenue growth, maintaining its position as the number one property portal in India.
The strong financial performance and strategic acquisitions are likely to positively impact REA Group's stock price. The increase in revenue and net profit from core operations demonstrates the company's robust growth strategy. The acquisitions of CampaignAgent and Realtair are expected to enhance customer value and drive future growth.
Investor Reaction:
Analysts have responded positively to REA Group's financial performance, noting the significant revenue growth and strategic acquisitions. The increase in dividends and strong cash flow are also seen as positive indicators for investors.
Conclusion:
Investors should consider the strong financial performance and strategic acquisitions as positive indicators for REA Group's future growth. The company's focus on enhancing customer value and expanding its digital tools portfolio positions it well for continued success.