REA Group 2H12.pdf

8/14/2019 REA Group 2H12.pdf

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developer and display media clients. Residential revenue increased by 21%, commercial

revenue increased by 25%, and media and developer revenue increased by 18% on the

previous half-year.

Together, REA Groups property websites - realestate.com.au, realcommercial.com.au and

property.com.au - accounted for an average of 75% of total minutes Australians spent on

property sites in the six months to 31 December 2012 (nearest competitor 19%)1, and

attracted average monthly visits of 19.4 million during the period (approx. 2.4 times that of

nearest competitor)2.

In addition to growth in desktop visits, our mobile sites and apps recorded exponential

growth. Average monthly visits to realestate.com.au and realcommercial.com.au m.sites

grew by 23% on June 2012 and 88% on December 20113. Downloads of realestate.com.au

and realcommercial.com.au mobile apps have now exceeded 1.7 million4.

Italy Continues to deliver growth in challenging market environment

Italys market-leading residential property site, casa.it, recorded revenue growth of 24% in

local currency to 9.7 million (AUD$11.9 million) and EBITDA growth of 383% to 1.1

million (AUD$1.3), an excellent result given challenging local market conditions. REA Group

has begun rolling out depth listings in Italy, commencing with listing products for mid-high

value properties. Take-up of these products has contributed to 35% growth in monthly

Average Revenue Per Agent (ARPA).

Traffic to casa.it increased by 24% to average monthly visits of 7.1 million for the six

months to 31 December 20123.

There was an 11% decrease in paying agents during the period due to strict application of

our credit policy and the difficult economic conditions which have contributed to a

contraction in smaller agencies. However, this was offset by casa.its growth in ARPA and in

media revenue.

Other countries Hong Kong and Europe

REA Groups Hong Kong property site, squarefoot.com.hk, achieved solid incremental

growth during the first half, including a 40% increase in agent customers and 110%

increase in average monthly visits to the site3. There was a 28% EBITDA improvement in

local currency due the consolidation of print publications. With new management in place in

Hong Kong, REA Group will continue to invest in the development of the business during the

second half of FY2013.

1Nielsen Online Market Intelligence, Total traffic for audited sites, average monthly time on site for the six month period for realestate.com.au,

realcommercial.com.au and property.com.au compared to domain.com.au and commercialrealestate.com.au2Nielsen Online Market Intelligence, Total traffic for audited sites, average monthly desktop visits for the six month period for realestate.com.au,

realcommercial.com.au and property.com.au compared to domain.com.au and commercialrealestate.com.au.3Adobe Omniture Site Catalyst, average monthly visits June-December 2012 vs June-December 2011

4Googleplace store and Apple app store. iOS and Android downloads as at December 2012 for realestate.com.au and realcommercial.com.au

combined.


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In Europe, the athome business operates the number one property site in Greater

Luxembourg as well as sites in Germany and France, which continues to be a key focus for

expansion. In local currency, the business recorded 23% revenue growth, 63% EBITDA

growth, and 38% average monthly ARPA growth during the half-year. Traffic to all sites in

the Greater Luxembourg Region increased by 46% to average monthly visits of 736,000 for

the six months to 31 December 20123.

Greg Ellis said: REA Group has a highly-engaged team of over 650 people across Australia,

Hong Kong and Europe. This team works hard every day to deliver outstanding products

and services that add value both for our customers and for the consumers who engage with

our sites. Our focus on investing in our people, technology and innovation is delivering

sustained growth in all areas of our operations.

REA Group Chairman, Hamish McLennan, commented: These excellent results are

confirmation that our strategy, together with our investment of over $45 million annually in

our platform and advertising products, continue to deliver increased value to REA Groupscustomers. On behalf of the Board, I would like to congratulate Greg and his management

team on the Groups first-half performance.

Dividend & DRP

The directors have declared a 2013 interim dividend of 16 cents per share fully franked, a

28% increase on the 2012 interim dividend of 12.5 cents per share. This growth builds on

2012 interim dividend growth of 25% (vs 2011 interim dividend of 10 cents per share) and

demonstrates the Boards commitment to returning increased value to shareholders. The

interim dividend will be paid on 20 March 2013, with a record date of 6 March 2013.

Following a review of its capital management program, the Board has decided to suspendthe Dividend Reinvestment Plan indefinitely. Any future decision to recommence the Plan

will be notified to shareholders.

ENDS

For further information please contact:

Investor Relations:

Jenny Macdonald

Chief Financial Officer

P: +61 3 8456 4341

E:[email protected]

Media:

Jennifer Parker, Sage Communications Jessica Langmead, REA Group

On behalf of REA Group P: +61 3 8456 4323

M: 0403 296 864 M: +61 428 336 004

E:[email protected] E:[email protected]
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REA Group 2H12.pdf

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