REA profit grows 29%

By By Wenlei Ma | 17 August 2012

Online classifieds seem to be booming as REA Group, operator of realestate.com.au, reported profits of $86.8 million, an increase of 29%.

For the financial year ending June 2012, REA Group reported a year-on-year increase of 16% in revenue to $277.6 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $126 million, up 22%. REA's Australian operations saw a 15% growth in revenue.

The company will pay out a final dividend of 20.5 cents per share fully franked, an increase of 28% on 2011.

REA Group chief executive and managing director Greg Ellis said: “Our excellent results for the 2012 financial year demonstrate the strength of our business model and our ability to respond to a changing market environment. In Australia, we achieved 15% growth across the residential, commercial and media businesses and surpassed one million downloads of our realestate.com.au mobile apps.

“Our high-growth Italian business achieved revenue growth of 35% and its first full-year positive EBITDA. In other international markets we achieved solid growth and continued to increase our leadership.

“Technology is transforming the way we do business and as a digital leader we have a responsibility to help our customers prepare their own businesses for the digital world. We are committed to supporting our customers' business success through product and technology innovations and other initiatives such as our Agent Innovations seminar series which we are rolling out across Australia.”

Earlier this week, Carsales.com reported a 23% increase of net profit after tax of $71.6 million.

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