Sydney and Melbourne property listings are driving REA's strong revenue growth

Peter Parks/AFP/Getty Images

News Corp’s REA online property classifieds business lifted revenue by 21% to $190 million in the September quarter, driven by Australian residential housing listings.

EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew by 24% to $107 million.

“While listings nationwide remained relatively flat, listings in the key markets of Melbourne and Sydney rose, offset by lower listings in other states,” REA said in a market update.

REA shares last traded at $74.88, representing a rise of about 50% over the last 12 months.

The company says any change in the favourable listings environment in Melbourne and Sydney will have an impact on revenue growth.

The numbers at a glance:

Source: REA

CEO Tracey Fellows says it’s been a very strong start to the year.

“In Australia, is the clear number one place for property,” she says.

“We have maintained our lead with the largest and most engaged audience of property seekers, with more than twice the visits compared to the number two.”

REA has extended its reach into financial services.

“For the first time, Australians can now search, find and finance property all in the one place,” says Fellows.

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