REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 21. Investment in associates and joint ventures (continued) (v) Realtair Pty Limited On 1 December 2020, the Group acquired a 17.9% share in Realtair Pty Limited (“Realtair”). The purchase price of the investment was $6.4 million cash consideration, of which $1.0 million is deferred until 1 December 2022. The Group subsequently increased its holding on 27 January 2021 and 11 March 2021 to 22.33% for an aggregated cash consideration of $2.1 million. Realtair is a proptech platform that provides an end-to-end real estate sales solution. This allows agents to pitch, sign, automate and streamline the steps from property appraisal to settlement through mobile, easy to use technology. The investment is equity accounted as the Group is deemed to have significant influence holding 1 out of 5 board seats with equal voting rights. (vi) Campaign Agent Pty Ltd In February 2021, the Group acquired a 27.0% share in Campaign Agent Pty Ltd (“Campaign Agent”). The purchase price of the investment was $13.3 million. Campaign Agent is a financing company that provides financing of the vendor marketing schedule and agent commissions with the residential property market. The investment is equity accounted as the Group is deemed to have significant influence holding 1 out of 5 board seats with equal voting rights. (vii) Simpology Pty Limited In June 2021, the Group acquired a 34.37% share in Simpology Pty Limited (“Simpology”). The purchase price of the investment was $15.2 million cash consideration. Simpology is an end-to-end digital platform solution for electronic loan lodgements designed to improve the mortgage application process. The investment is equity accounted as the Group is deemed to have significant influence holding 2 out of 7 board seats with equal voting rights. A reconciliation of the carrying amounts of investments in associates and joint ventures is provided below: Move Elara Other 2021 $’000 2020 $’000 2021 $’000 2020 $’000 2021 $’000 2020 $’000 Carrying amount of the investment 271,748 279,425 – 10,095 37,447 15,390 The following illustrates the summarised financial information of the Group’s material investments in associates: Move 2021 (adjusted) $’000 2020 (adjusted) $’000 Current assets 270,793 139,226 Non-current assets 1,425,527 1 1,577,149 1 Current liabilities (268,359) (242,826) Non-current liabilities (69,221) (76,426) Equity 1,358,740 1,397,123 Proportion of the Group’s ownership 20.0% 20.0% Carrying amount of the investment 271,748 279,425 Revenue 857,081 717,520 Other operating costs (688,539) (677,920) Interest/dividend income 174 868 Interest expense (17) (627) Depreciation and amortisation 2 (62,110) (70,216) Other 22,712 (10,914) Income tax (expense)/benefit (32,526) 10,467 Profit/(loss) for the year from continuing operations 96,775 (30,822) Total comprehensive profit/(loss) 96,775 (30,822) Share of gain/(loss) of associates 19,355 (6,164) 1 Amount includes fair value uplift of intangible assets acquired and other adjustments. 2 Inclusive of amortisation of fair value uplift on acquisition of associates. 112 Financial Statements