Slide 1: REA Group Investor & Analyst Presentation H1 FY25
ASX Announcement 6 February 2025 REA Group Investor & Analyst Presentation H1 FY25 On behalf of REA Group Ltd (ASX:REA) please find attached a results presentation for the half-year ended 31 December 2024. -ends- For further information, please contact: REA Group Ltd Investors: REA Group Ltd Media:
Slide 2: Half year results
Half year results 31 December 2024 Changing the way the world experiences property 1
Slide 3: Agenda
Agenda 1 Financial highlights 2 Property market update 3 Business highlights 4 Financial results update
Slide 4: Financial highlights
Financial highlights Owen Wilson Chief Executive Officer 3
Slide 5: REA Group delivers an outstanding H1 financial result
REA Group delivers an outstanding H1 financial result Reported net profit Revenue2 EBITDA1, 2, 3 Net profit after tax1, 2 after tax2, 4 $873m $535m $314m $441m +20% +22% +26% +246% 61% $1.10 $2.38 $338m Operating Dividend per share, Earnings 31 December 2024 EBITDA1, 2, 3 margin FY25 interim Per Sha
Slide 6: Property market update
Property market update Owen Wilson Chief Executive Officer 5
Slide 7: Increase in YoY new national listings volumes with growth in all major capital cities
Increase in YoY new national listings volumes with growth in all major capital cities, met by healthy buyer demand Continued vendor confidence driving 5% YoY growth in Strength in buyer demand with 4% YoY growth in enquiries2 new listings for the half, despite strong comparables and inspection inter
Slide 8: Business highlights
Business highlights • Overview and strategy • Customer platforms and services • Audience leadership • Financial Services • Consumer • India • Customer advertising and value Owen Wilson Chief Executive Officer 7
Slide 9: H1 FY25 highlights
H1 FY25 highlights Consumer highlights Customer highlights Strategic highlights 11.9m unique audience 1(A) Australia’s #1 address in property Premiere+ delivering superior value 19.9% acquisition of Athena Home Loans Highly engaged and loyal audience with 4.0x more Record Premiere+ depth penetration
Slide 10: Evolution of strategic priorities to reflect growth
Evolution of strategic priorities to reflect growth Audience & Consumer Largest audiences, Engage Australia’s largest high-intent property audience, most engaged consumers driving more leads to our customers Advertising & Value Driving the best property outcomes for our customers, vendors and landlo
Slide 11: realestate.com.au extends audience leadership
Audience leadership realestate.com.au extends audience leadership1(E) Australia’s #1 address in property Average Monthly Audience1(E) 11.9m 130.7m 57.4m Average monthly Total average monthly Total average monthly realestate.com.au unique visits to realestate.com.au visits to realestate.com.au audien
Slide 12: Leading commercial and property research platforms
Leading commercial and property research platforms Australia’s #1 commercial property website1(H) Australia’s #3 property website1(B) 1.5m 12%YoY 1.96m 34%YoY Average monthly Growth in Average monthly Growth in realcommercial.com.au unique property.com.au unique 2.0m unique audience on all audience1
Slide 13: Deep consumer engagement is driving quality leads to customers
Consumer Deep consumer engagement is driving quality leads to customers +17% YoY +88% 1 Growth in active members Increase in seller leads delivered to customers3 +29% YoY Quality buyer enquiries Moving enquiries behind login Increase in properties tracked driving membership and by their owner2 suppo
Slide 14: Moving from static listing information to a dynamic property experience
Moving from static listing information to a dynamic property experience NextGen Listings delivered over 3 priority releases NextGen Listings Phase 1 – Spring 2024 ü Phase 2 – Summer 2025 Phase 3 – Autumn 2025 Aspiring to set a new global benchmark in property listing experiences Enable consumer memb
Slide 15: Premium advertising products are underpinning customer value
Advertising and Value Premium advertising products are underpinning customer value Premiere+ & Add Ons Commercial Record Premiere+ penetration with exceptional Record Elite Plus penetration yield growth 2x more property views with Luxe in first 7 days of campaign, compared to a Premiere+ listing1 Lu
Slide 16: Superior platforms and services supporting customers to grow their business
Customer platforms and service Superior platforms and services supporting customers to grow their business Pro subscription Exclusive platforms and services Enhancing customer value across agency services and agency marketplace Access to powerful tools and enabling customer efficiencies More seller
Slide 17: Financial Services momentum continues
Financial Services momentum continues Product innovation and brand investment delivering revenue growth and value to broker network • Submission volumes increased 13% YoY as market conditions continue to improve • Enhanced realestate.com.au integration has helped drive 47% YoY in leads generated thr
Slide 18: REA India delivering the best app experience and expanding geographically
REA India delivering the best app experience and expanding geographically Monthly App Sessions1(M) Growth %2 353% 37% YoY growth in app traffic 1(D) 77% Continued investment in app-first strategy driving traffic and engagement. Enhancements include: improved search, new map 12% experience, connect t
Slide 19: Market Outlook
Market Outlook 18
Slide 20: Financial results update
Financial results update Janelle Hopkins Chief Financial Officer 19
Slide 21: Core financial operating results
Core financial operating results Group Revenue1, 2 Core results ($m)1, 3 H1 FY25 H1 FY24 Growth $ Growth % H1 FY25 872.9 Revenue2 H1 FY24 725.5 Australia 808.7 681.5 127.2 19% India 64.2 44.0 20.2 46% H1 FY23 617.3 Group revenue 872.9 725.5 147.4 20% H1 FY22 590.4 Operating expenses H1 FY21 430.4 Au
Slide 22: Statutory (reported 4D) vs core results
Statutory (reported 4D) vs core results Significant items1 Group operating expenses Statutory Significant Core H1 FY25 ($m) (reported 4D) items1 results1 • Gain relating to the sale of PropertyGuru Group revenue 2 872.9 - 872.9 • Legal and other advisor costs incurred as part of the withdrawn bid to
Slide 23: Strong growth in Residential revenue
Strong growth in Residential revenue Driven by double-digit Buy and Rent yield growth and higher listings Residential revenue ($m)1 Residential national new buy listings YoY change 30% +21% 614 20% 505 16% 10% 1% 8% 7% 6% - 4% Q1 Q2 Q3 Q4 Q1 Q2 FY24 FY24 FY24 FY24 FY25 FY25 H1 FY24 H1 FY25 National
Slide 24: Record Premiere+ penetration
Record Premiere+ penetration With YoY growth across all states Record Premiere Residential Buy Residential buy listings penetration (depth)1 listing depth penetration • Total depth penetration has increased sequentially and YoY • Premiere+ penetration has grown YoY in all states • Continued improvem
Slide 25: Commercial & Developer; Other
Commercial & Developer Other Revenue up 10% with strong growth in Commercial, and Revenue up 9%, with strong growth in CampaignAgent more modest growth in Developer offsetting declines in Media and PropTrack Commercial & Developer Developer project launches Other revenue1 ($m) revenue1 ($m) YoY chan
Slide 26: Financial Services delivers strong revenue growth
Financial Services delivers strong revenue growth Driven by continuing white label growth, improving broker productivity and higher settlements Financial Services revenue Settlements ($bn) ($m) +6% YoY 11.6 11.1 11.9 +13% 41 36 H1 FY23 H1 FY24 H1 FY25 Brokers1 0% YoY H1 FY24 H1 FY25 1,061 1,078 1,07
Slide 27: India momentum continues
India momentum continues Growth in Housing.com and Housing Edge adjacency products, offset by weakness in PropTiger India revenue ($m)1 India EBITDA ($m)1 64 H1 FY24 H1 FY25 +46% Share of App Downloads2(N) 44 31 Housing Edge 54% 12 42% 46% (14) Prope rty & Onlin e 32 33 Adve rtising (19) H1 FY23 H1
Slide 28: Equity accounted associates
Equity accounted associates Total share of associate losses increased modestly from a $13m loss in H1 FY24 to a $15m loss in H1 FY25 Move Inc.2 Share of Associates Losses ($m)1 • Revenue was flat at US$269m in H1 FY25, with growth of 2% in H1 FY24 H1 FY25 Q22 • Macroeconomic conditions remain challe
Slide 29: Positive Australian and Group operating jaws
Positive Australian and Group operating jaws Australia operating results growth1 Operational expenses ($m)1 +18% 338 23% 22% 19% India 287 REA India 22% 78 18% 63 excl. Mortgage Choice 18% 260 COGS +16% 16% 224 13 24 Ot her 11 23 11% 22 Australia excl. Mortgage Choice 20 36 1% Technology and ot her
Slide 30: Increased investment in strategic initiatives
Increased investment in strategic initiatives Group capital expenditure ($m) Depreciation and amortisation ($m)1 140 25% 125 FY24 H1 FY25 FY25 120 118 95 20% REA Group ($m) Actual Actual Forecast 100 Offi ce fit out costs Australia Depreciation & amortisation1 82 47 99-101 Amount (#039;m) 15% % of reve
Slide 31: Strong cash position with all debt repaid
Strong cash position with all debt repaid Group cash flow ($m) Strong operating cash flows • Operating cash flow of $325m, with free cash flow of $258m Continued strategic investment • Capex for PPE and intangible assets of $69m 708 • Investments in associates includes net funds from sale of investm
Slide 32: Current trading
Current trading • January National residential new Buy listings – Up 3% YoY, with Sydney increasing 5% and Melbourne declining by 2%. YoY growth rates for the second half of the financial year will reflect very strong prior period listings volumes. • Residential Buy yield – Expectation for double-di
Slide 33: Q&A
Q&A Changing the way the world experiences property
Slide 34: Supplementary information
Supplementary information 33
Slide 35: Core vs. reported reconciliation
Core vs. reported reconciliation Core vs. reported reconciliation H1 FY25 H1 FY24 Growth % Share of associate non-core costs Core operating income 872.9 725.5 20% • The current period includes REA’s share of transaction costs and Reported operating income 872.9 725.5 20% revaluation loss of financia
Slide 36: Cash flow reconciliation
Cash flow reconciliation Cash flow reconciliation ($m) H1 FY25 H1 FY24 Growth % Free cash flow EBITDA after associates 1 520.6 426.0 22% • Working capital favourability mainly due to strong Working capital movement (62.7) (73.1) 14% collections. Net interest paid (3.3) (7.6) 56% • Lower net interest
Slide 37: Revenue breakdown
Revenue breakdown Revenue category ($m)1, 2 H1 FY25 H1 FY24 Growth % Revenue category ($m)1, 2 H1 FY25 H1 FY24 Growth % Australia Australia Depth revenue3 690.1 575.4 20% Residential 614.0 505.5 21% Subscription revenue3 34.1 30.0 14% Commercial & Developer 110.3 99.9 10% Other 43.4 40.0 9% Other 43
Slide 38: Developer Display revenue restatement
Developer Display revenue restatement Developer display revenues reclassified from Media, Data and Other (now referred to as Other) to Commercial and Developer Updated View ($m) H1 FY23 H2 FY23 FY23 H1 FY24 H2 FY24 FY24 H1 FY25 Australia Residential 424.9 380.0 804.9 505.5 490.2 995.7 614.0 Commerci
Slide 39: Financial comparatives: half-year
Financial comparatives: half-year Core Financial Results1 Reported H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY25 Group results $m Growth % $m Growth % $m Growth % $m Growth % $m Growth % $m Total revenue2 430.4 (2%) 590.4 37% 617.3 5% 725.5 18% 872.9 20% 872.9 Total operating income 430.4 (2%) 590
Slide 40: Financial comparatives
Financial comparatives Core Financial Results1 Reported FY20 FY21 FY22 FY23 FY24 FY24 Group results $m Growth % $m Growth % $m Growth % $m Growth % $m Growth % $m Total revenue2 820.3 (6%) 927.8 13% 1,169.5 26% 1,183.2 1% 1,452.8 23% 1,452.8 Total operating income 820.3 (6%) 927.8 13% 1,169.5 26% 1,
Slide 41: Glossary
Glossary Buyer enquiries Buyer enquiries include email enquiry, phone number reveals, applied for inspection, SMS agent, and Developer brochure downloads. Cash Cash includes cash and cash equivalents. EBITDA Earnings before Interest, Tax, Depreciation and Amortisation excluding contribution from ass
Slide 42: Audience metric sources
Audience metric sources Ipsos iris Online Audience Measurement Service, Jul 2024 - Dec 2024 (average), P14+, PC/laptop/smartphone/tablets, text only, Homes and Property Category, Brand Group, A Realestate.com.au vs Domain, Audience (000’s). Ipsos iris Online Audience Measurement Service, Jul 2024 -