REA Group Ltd Annual Report 2021

Directors’ Report continued REA Group Ltd | Annual Report 2021 Operating and financial review (continued) The Group moved to a controlling position in Elara on 17 December 2020, with consolidated results in the second half contributing $17.3 million of revenue, and an $18.0 million EBITDA loss. The Group’s EBITDA from core operations increased 19% to $564.8 million and net profit from core operations increased 18% to $318.0 million. Strong cost management across the year resulted in core operating cost growth (excluding acquisitions) being contained to 3%. Cost growth was driven primarily by increased headcount and volume-related costs and incentives linked to stronger revenue growth, partly offset by lower costs in Asia. Australia remained the primary revenue driver for the business. The Group’s result reflects an ongoing focus on continued innovation and the release of new products and features to deliver excellent customer value and highly personalised consumer experiences. realestate.com.au continued to accelerate audience metrics, reaching new all-time highs during the year. Average monthly visits to realestate.com.au topped 121.9 million 1 , outperforming the closest competitor by 3.3 times on average 2 . Strong operating cashflows in the year were partly reduced by higher income tax payments following temporary deferral of FY20 instalments as a result of COVID-19. The Group continued to invest through innovation and acquisitions as well as continuing to provide shareholder returns in the form of dividends, resulting in a cash balance of $168.9 million at 30 June 2021. The Group had net current assets of $335.4 million as at 30 June 2021. The Group generated positive operating cashflows and traded profitably for the period. The Directors expect this to continue for the foreseeable future. In June 2021, the Group refinanced the syndicated debt facility and funded the Mortgage Choice acquisition through a bridge facility with NAB for $520 million. As at 30 June 2021, the total debt drawn on the NAB bridge facility was $414 million. The bridge facility matures in July 2022, however the Group is expected to replace this with a new syndicated facility in Q1 FY22. Refer to Note 9 for further details. Dividends Dividends paid or determined to be paid by the Company during, and since, the end of the financial year are set out in Note 12 to the Financial Statements and below: Final 2021 Interim 2021 Final 2020 Per share (cents) 72.0 59.0 55.0 Total amount ($’000) 95,124 77,949 72,443 Franked* 100% 100% 100% Payment date 16 Sept 2021 23 Mar 2021 17 Sept 2020 * All dividends are fully franked based on tax paid at 30%. 1 Nielsen Digital Media Ratings (Monthly Tagged), Jul 20 - Jun 21 (average), P2+, Digital (C/M), text, realestate.com.au , Total Sessions. 2 Nielsen Digital Media Ratings (Monthly Tagged), Jul 20 - Jun 21 (average), P2+, Digital (C/M), text, realestate.com.au vs Domain, Total Sessions. 32 Directors’ Report