It operates a number of different websites including realestate.com.au and realcommercial.com.au, as well as international property sites such as Italian-based casa.it and Hong Kong-focused squarefoot.com.hk.
Realestate.com.au is the group’s flagship website, which generates revenue through subscription fees levied to real estate agents and depth products, which cover priority listings, longer listing duration, and email distributions to members.
REA delivered another knockout result for FY13, with net profit rising 26% to $109.7 million. This came on the back of 21% growth in revenue. The group’s flagship websites, realestate.com.au and realcommercial.com.au, helped drive a 22% increase in Australian revenue to $301 million.Product appeal was a significant driver for the business, with listing depth revenue soaring 49% from FY12.
Listing depth is now the biggest component of overall revenue, eclipsing listing subscription revenue, which was up a modest 4% on FY12. The popularity of REA’s depth products mitigated the 4% drop in listings from FY12 to FY13, helping the company experience a 27% lift in Australian EBITDA.
The group’s offshore operations are also performing strongly, with casa.it enjoying 14% growth in revenue and a 73% surge in EBITDA. Italian subscription revenue was up a healthy 12% despite the nation’s economy experiencing difficult times.
REA’s robust profit growth is translating into strong cash flow generation. Operating cash flow climbed 50% from FY12, giving the company plenty of room to upgrade its full year dividend by 26% 41.5 cents.
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