REA Group’s Australian revenue up 14% year on year
Online real estate advertising company and parent group of realestate.com.au, REA Group, has reported a total revenue increase of 16% for FY17, with its revenue from the Australian market contributing significantly to the result.
The latest results show REA Group’s annual revenue reached $671.2m, largely driven by “a 14% increase in Australia and the inclusion of iProperty revenue for the full year”.
REA puts serious heat under Fairfax. The standout number is a constant 57% EBITDA margin. Domain’s dual identity as a print/online concept is matched by a dual equity Fairfax/estate agent ownership. Domain’s margin reflects the reality of its mix but apparently not the real cost of estate agent incentives.
Many, many questions to answer when fairfax results emerge, ahead of it’s “float” of a Domain.
First question: if real estate agents earned equity instead of cash will that equity abandon ship in the “float”? If so, what happens to the incentive to push Domain?
Numbers is interesting. Explains why the big private equity game hit the wall. I wonder how Hywood will spin this one?