Online Classified Advertisements Deliver A One-Third Profit Increase For The REA Group

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The online classified advertising company REA Group Limited, the majority-owned News Corp operator of realestate.com.au, increased its revenue by 30% to $437.5 million for the year to the end of June.

EBITDA rose 37% to $225.1 million and net profit increased by 37% to $149.9 million.

At the end of June, REA had 696,013 properties listed online with average monthly visits of more than 40 million. Of that about 30 million was just for realestate.com.au.

Mobile site traffic grew 54% to 7.2 million on average each month and app traffic was up 43% to 10.5 million.

Interim CEO Peter Tonagh said the the results reflect the company’s robust strategy for local and international markets.

“This year we have been active on the acquisition front as well as investing more than $50 million in new technology, products and initiatives such as our Chinese site myfun.com,” he said.

Tracey Fellows, a former executive at Australia Post and Microsoft, will officially start as CEO on August 20, replacing Peter Tonagh who will retain his position on the board of directors.

Australia is REA’s biggest market but it also does businesses in Europe and Asia. The chart below shows its progress over the past five years and current business by geography:

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