REA Group delivers $441m interim profit as CEO calls time

Owen Wilson, the head of digital property giant REA, is set to depart, and he believes that the housing market is well-placed to perform this year.

REA CEO Owen Wilson ringing the ASX bell, celebrating 25 years since the company first floated. Picture: Jane Dempster/The Australian

Digital real estate company REA Group has turned in another strong result and expects the property market to be bolstered by interest rate cuts later this year, as long-time chief executive Owen Wilson flagged his exit.

Mr Wilson has told REA’s board of his intention to retire from full-time executive roles in the second half of 2025 after a decade with the company, and six years as CEO.

His tenure was marked out by REA’s growth in the online digital advertising market, bolt on acquisitions of prop-tech companies, expansion into financial services and data, and dramatic growth in India.

The company also made a play for British portal Rightmove last year, and also helped build up the Asia-based PropertyGuru business before exiting profitably.

REA’s reported net profit for the first half jumped 246 per cent to $441m, as it reaped the benefit of selling out of the Asian property portal, PropertyGuru.

The company remains optimistic as local property market activity heads back to more normalised levels.

“Following sustained listings growth, the Australian property market has reached a more balanced level of supply and demand. Continued strength in underlying fundamentals and the expectation of at least one interest rate cut before the end of the 2025 financial year should further support the health of the market,” Mr Wilson said.

REA has reported strong financial results and expects the property market to be bolstered by interest rate cuts later this year. Picture: Max Mason-Hubers/NCA NewsWire

REA says the cocktail of strong employment, high immigration levels and expectations for interest rate cuts are supporting buyer demand and vendor confidence to list homes.

While some properties are lingering on the market, REA said buyers had more choice, which has tempered house price growth.

In January, national residential new buy listings were up 3 per cent year-on-year, with Sydney increasing by 5 per cent and Melbourne declining by 2 per cent. Growth rates in this period partly reflect very strong prior years in those capitals, and REA expects to reap double-digit yield growth as vendors switch to premium products.

REA expects low double-digit group core operating cost growth, as costs including employee incentives, and costs related to its local and India businesses are taken into account, but this will be outstripped by revenue growth. Losses on its growing India operations are also anticipated to be marginally lower this financial year.

The company’s core operations saw revenue growth of 20 per cent to $873m, and an increase in earnings before interest, taxes, depreciation and amortisation excluding associates of 22 per cent to $535m, and a 26 per cent rise in net profit to $314m.

REA will pay an interim dividend of $1.10 per share fully franked, a 26 per cent hike year-on-year.

Mr Wilson said the result was driven by strong yield growth in a healthy listings environment. “Vendors remained confident during the half with sales volumes consistently higher than the prior year, demonstrating the depth of demand, while buyers benefited from more choice and some moderation in price growth,” he said.

Australian revenue of $809m was up 19 per cent year-on-year, or 18 per cent excluding the acquisition of Realtair, which was consolidated from July.

REA’s board has kicked off a process to select a new chief executive, spanning both internal and external candidates. Mr Wilson will remain with the business to ensure a smooth and orderly transition.

Mr Wilson said the business was in excellent shape. “We have an exciting strategy and a talented and committed team to deliver it,” he said.

REA is majority-owned by News Corp, publisher of The Australian.

News Corp chief executive, Robert Thomson, paid tribute to the departing executive’s performance.

“Owen has shown extraordinary leadership in building a global success story at REA, which has become the gold standard for digital platforms. He has fashioned a dynamic, talented team and cultivated a competitive, empathetic culture. Owen’s positive influence will resonate for many years to come,” he said.

Originally published as REA Group delivers $441m interim profit as CEO calls time