The REA today released a massive increase in revenue (50%) and 68% EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) for the 6 months ending 31st December 2007.
Today REA operates in 12 countries and controls 18 real estate websites, 8 print publications and a variety of other software tools. Here is a snapshot of their Australian results.
- Australian revenues were up 39% to $54.9 million.
- Subscribing Australian agents increased to 8,824 as at 31 December 2007,representing about 95% of Australian agents.
- Average revenue per agent increased to $758 in December.
What does all of this mean? Well, they are doing very nicely indeed, and they do not seem to be slowing in growth, there are still quite a few international markets they can jump into (outside US) and they can also do better (coming in second in a few) in some of the current markets they are in.
I think Australian revenues will slow and this year will be the start of some other players entering into the Australian market. Domain and MyHome can only be envious of their position but Domain is making reasonable growth and this should increase this year as their acquisitions settle down.
I really don’t know how much more they can charge real estate agents, but they can certainly go further as it seems by these figures agents are willing to keep paying increases in fees without any real revolt.
Maybe it is time for some of the other players to merge, I have heard some whispers about Myhome and Homehound (homehound is worth a second look) coming together and also heard of some major international players eyeing off Australia.
Anyway, tell us what you think. You can download the media release here ( released today to ASX)