Group financial highlights for the quarter ending 30 September 2015 include revenue growth of 21% to $146m and EBITDA growth from core operations of 30% to $82m.
A summary table of the key financial information is presented below. This information is presented in Australian dollars and is prepared under AIFRS.
For three months ended 30 September (AUD$)
Millions FY2016 FY2015 % change Revenue 146 121 21% Operating expenses (64) (58) 10% Segment EBITDA from core operations 82 63 30% Free cash flow 49 24 103%
The strong first quarter result has been driven by the growth in our Australian top tier listing products. This, combined with higher listing volumes in the Australian market, delivered an improvement in the revenue growth rate this quarter.
The rate of growth in operating expenses has lowered reflecting the different timing of some expenses compared to the prior year.
On Monday we announced our intention to enter into a scheme arrangement to acquire iProperty Group Ltd (
In Australia, our flagship site realestate.com.au leads the market across all devices and has the most highly engaged property audience. Average monthly visits increased 33% to 42.7 million and consumers spent 257.3 million minutes a month on realestate.com.au's main and mobile site during the quarter, outperforming the average monthly time on site of the number two portal by 5.5 times.4
REA Group Chief Executive Officer Tracey Fellows commented:
"This has been a strong first quarter for REA. We've seen growth in the Australian listings markets and we've continued to provide new and exciting ways for people to be in charge of how and when they buy, sell, rent or invest in property.
"The notification you get on your Apple Watch when you walk past a property for sale, being able to search for suburbs based on lifestyle and affordability versus just location, or, most recently, the ability to look up any property in Australia and find out its estimated value - these are just some of the ways we're empowering people to make property simple, efficient and stress-free.
"Our international markets are going from strength to strength. In the US, realtor.com is now the number two site and the opportunity in Asia continues to grow as more and more people look online for property. The momentum in Europe around listings, audience and depth products has continued in the first quarter."
A full copy of News Corp's Form 10-Q to be filed with the U.S. Securities and Exchange Commission (SEC) will be lodged with the ASX when it becomes available. It is noted that the reported US Dollar figures in the News quarterly release may not agree to the Australian Dollar figures noted above, as the reported figures are presented in accordance with US GAAP by which News Corp must comply.
About REA Group Limited
REA Group Limited, formerly realestate.com.au Limited, is engaged in the provision of online advertising services. It provides online advertising of residential properties for sale and rent in multiple countries; online advertising of commercial properties for sale and lease in multiple countries; provision of online display advertising space for advertisers in various industries; provision of Website development services to the real estate industry; software licensing of estate agent back office solutions; print publications to advertise properties for sale and rent in multiple countries, and other services, such as training services through the REA Knowledge Network or data services. As of June 30, 2008, the Company operates 21 Websites in ten countries. On March 3, 2008, it acquired 51% of REA Group FZ LLC, Dubai. On April 9, 2008, through its 50%-owned subsidiary, REA UK Limited, it acquired Sherlock Publications Limited. On July 8, 2008, it acquired UK Property Shop Limited.
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