REA Group Ltd (ASX:REA) Delivers Strong Q3 Results
Financial Performance
REA Group reported revenue of $1,247 million for the nine months ended 31 March 2025, an 18% increase year-on-year. EBITDA excluding associates rose by 19% to $734 million. In Q3, revenue grew by 12% to $374 million with EBITDA excluding associates up 12% to $199 million. Free cash flow reached $389 million, up 21%.
Operational Highlights
Realestate.com.au achieved record audiences, averaging 12.3 million monthly visitors. REA India’s revenue increased by 28% year-on-year, driven by growth in adjacency services on the Housing Edge platform.
Outlook
REA Group expects continued buyer demand supported by further interest rate cuts. Residential Buy yield growth for FY25 is projected between 13-15%, with overall listings growth of 1-2%.
Executive Comments
CEO Owen Wilson stated, “REA delivered a strong third quarter result underpinned by double-digit yield growth as we continued to drive increased value for customers across our premium products. The first interest rate cut in 4 years, combined with expectations of more to come, spurred buyer demand and supported house price growth across the country. These conditions encouraged sellers to bring properties to market with listings matching the very strong levels of this time last year.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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