REA Group Hosts First Investor Day
June 02 2022 - 9:00AM
Business Wire
Outlines Significant Growth Opportunities
with Strong Momentum in Core Business and Adjacencies
REA Group is targeting "double-digit revenue and EBITDA growth
through the cycle,” as it foresees "significant growth
opportunities" in its core business and adjacencies (REA defines
the property cycle as 3-5 years).1
REA is Australia's largest digital real estate business and is
61.4% owned by News Corp; the company shared the update at its
first Investor Day in Sydney, Australia earlier today.
Highlights from the REA Investor Day included:
- REA target of double-digit revenue and EBITDA growth through
the cycle resulting from the core business benefiting from higher
yields as a result of value enhanced products and services. Revenue
to be driven by continued growth in traditional advertising, next
generation marketplaces, scaling adjacent businesses and REA
India.
- REA has achieved unrivalled scale in Australia -
Realestate.com.au remains Australia’s #1 address for property with
127 million average monthly visits, 3.3x more than the closest
competitor, and is Australia’s 6th largest online brand. This large
and engaged audience is critical in driving significant buyer,
seller and finance leads.
- REA showcased Premiere+, a new bundle within its core
residential business, for customers and the most complete marketing
package on offer in Australia.
- REA sees significant growth opportunities across its Property
Data and Financial Services businesses. With unique propositions in
large addressable markets, the company is targeting PropTrack and
Mortgage Choice to become Australia’s #1 property data and branded
franchise mortgage businesses respectively.
- REA highlighted its focus on developing transformative products
and sees a large opportunity for property research site,
property.com.au to stimulate new listings and mortgages by driving
confidence in property owners to sell.
- REA sees India as a significant growth opportunity backed by
strong macro drivers and rapid digitization. Strong momentum within
REA India has seen the business achieve and sustain the #1 audience
position for the past six months and REA has a clear strategy to
extend leadership and expand its offering.
“REA’s investor day has shone a bright light on the company’s
thriving outlook and the benefits of being the undisputed market
leader in Australia, including the peerless value that the company
brings to consumers and to agents,” said News Corp Chief Executive
Robert Thomson. “We are also delighted by the increased
collaboration between realtor.com and REA, which share learnings
and insights, and leverage that intelligence to improve their
services and their profitability. We believe the future for both
companies is luminously lucrative.”
REA Group Chief Executive Officer Owen Wilson commented: “REA
Group’s accelerated transformation and continued investment in both
core and adjacent businesses over the last five years has delivered
an exciting platform for growth. Our first investor day has been a
significant opportunity to share a detailed view of the growth
trajectories for each business and the momentum achieved within the
broader growth agenda of the Group.”
With its strong presence in the US, Australia, India and
Southeast Asia, News Corp is a global leader in digital real
estate. Through the third quarter of Fiscal Year 2022, ended March
31, News Corp's Digital Real Estate Services segment, which
includes contributions from REA Group and Move, operator of
realtor.com®, generated $1.3 billion in total revenues, up 32%
year-over-year, leading to 20% Segment EBITDA growth. In addition,
Digital Real Estate Services represented 33% of News Corp's Total
Segment EBITDA year-to-date (through March 31), making it the
largest segment contributor to the company's profitability.
The full REA Group Investor Day presentation is available here
and contains additional information and details regarding the
highlights presented in this release, including the statistics and
metrics provided above.
Forward-Looking Statements
This release contains forward-looking statements based on
current expectations or beliefs, as well as assumptions about
future events, and these statements are subject to factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The words
“expect,” “estimate,” “anticipate,” “predict,” “believe,”
“potential” and similar expressions and variations thereof are
intended to identify forward-looking statements. These statements
appear in a number of places in this release and include statements
regarding REA Group’s intent, belief, goals, objectives,
initiatives, commitments or current expectations with respect to
REA Group’s businesses and operations, market conditions, results
of operations and financial condition, funding requirements and
risk management practices. Readers are cautioned that any
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. Many factors could cause
actual results to differ materially from those described in these
forward-looking statements. The forward-looking statements in this
release speak only as of this date and News Corp and REA Group
undertake no obligation (and expressly disclaim any obligation) to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law.
About News Corp
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The company comprises businesses
across a range of media, including: digital real estate services,
subscription video services in Australia, news and information
services and book publishing. Headquartered in New York, News Corp
operates primarily in the United States, Australia, and the United
Kingdom, and its content and other products and services are
distributed and consumed worldwide. More information is available
at: http://www.newscorp.com.
1 REA Group financial reporting is in Australian dollars and on
an International Financial Reporting Standards basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220602005515/en/
News Corp Investor Relations Michael Florin 212-416-3363
mflorin@newscorp.com
News Corp Corporate Communications Jim Kennedy 212-416-4064
jkennedy@newscorp.com
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