Page 1

REA Group ASX Announcement 5 February 2021 REA Group delivers strong performance despite volatile market conditions Financial highlights from core operations¹ compared to prior corresponding period ² : • Revenue³ of $ 430.4m , down 2 % ● Operating expenses of $ 145.8m , down 13 % • EBITDA * ( including associates ) of $ 290.2m , up 9 % • Net Profit of $ 172.1m , up 13 % • Interim dividend of 59 cents per share , up 7 % • EPS of 130.7 cents , up 13 % REA Group Ltd ( ASX : REA ) today announced its results for the half - year ended 31 December 2020. Group financial highlights from core operations¹ include revenue³ of $ 430.4m and EBITDA4 of $ 290.2m . The results reflect the diverse effects of the COVID 19 pandemic across the Group's Australian and international businesses . In Australia the residential property market showed continued signs of recovery with National residential listings increasing 4 % for the half including an increase in Sydney listings of 19 % . In contrast , the COVID - 19 lockdown measures in Melbourne caused significant short - term weakness , with listings declining 44 % in the first quarter . Following the removal of these restrictions , the Melbourne market rebounded , resulting in an overall 11 % decrease in listings for the half . A continued focus on strong cost management resulted in a 13 % reduction in operating expenditure for the half . All cost categories decreased due to a combination of ongoing cost management initiatives , COVID - 19 related savings and the deferral of some marketing spend into the second half . REA Group Chief Executive Officer , Owen Wilson commented : " We have delivered a remarkable first half result , particularly given the Melbourne market came to a virtual standstill during the lockdown . I am proud of the way our teams focused on the things we could control to deliver outstanding customer support and product enhancements to help consumers navigate the disruptions . " Australia's property market appears to be on the march again , showing signs of a strong recovery in November and December . This was fuelled by the easing of COVID 19 restrictions , combined with increasing consumer confidence , record low interest rates and healthy bank liquidity . " Our flagship site realestate.com.au delivered a stand - out performance for the half . In November we set a new record of 13 million people , or 65 % of Australia's adult population on our site . Buyer activity also continued to soar with enquiry volumes up 44 % 5 , delivering significantly more high - quality leads to our customers , " said Mr Wilson . ¹ Financial results / highlights from core operations exclude significant non - recurring items such as gain / loss on acquisitions and disposals and transaction costs and historic tax provision ( historic indirect tax provision reflects potential retrospective changes to interpretation of tax law ) . In the prior comparative period , they excluded items such as restructure costs and gain / loss on acquisitions and disposals and transaction costs . 2 All financial growth rates refer to YoY comparisons unless otherwise stated . 3 Revenue is defined as re hue from property and online 4 EBITDA includes share of associates and joint ventures . and revenue from Financial Services less expenses from franchisee commissions .