REA Group highlights its continued premier profitable dominance
The REA Group, part of the new News Corporation group, has reported revenue growth of 17% to $77.7 million, driven by continued take-up of its premium value-add products across Australia.
Its update was due to reporting requirements of its parent company by the US Securities and Exchange Commission.
The figures are for the first quarter of the 2013 financial year, ending September 30, 2012.
"REA Group’s double-digit growth in the first quarter is the result of our commitment to delivering outstanding return on investment to our real estate agent customers, and the best user experience for consumers," says Greg Ellis, the REA Group managing director.
The REA Group quarter resulted in EBITDA of $33.7 million, which was an increase of 28% on the same period last year.
The revenue increase follows the introduction of its "Highlight" value-add product, which elevates mid-range residential listings to higher among the search results on the site, following its launch in December 2011.
It claims highlight properties secure eight times more views and five times more enquiries than its standard listing.
The group also has a "Premiere" package.
The REA Group, the owner of realestate.com.au and realcommercial.com.au, posted a 29% rise in net profit for the 2012 financial year despite the challenging local property market and a slight decrease in paying agents due to agency consolidation and contraction in Queensland and NSW.
The net profit for the group and its subsidiaries surged to $86.8 million for the year to June 30, 2012, up from $67.5 million in the previous financial year, while revenue jumped 16% to $277.6 million.
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