REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd Australia The Group operates Australia’s leading residential and commercial sites, realestate.com.au 3 and realcommercial.com.au 4 , and the leading website dedicated to share property, Flatmates .com.au 5 . Australian operating income increased by 13% to $870.3 million during the year due to improvements in residential listings, with increases in new listing volume of 15%, while new project commencement increased by 17%. The result also benefited from improved depth and Premiere penetration, increased subscription revenues and continued growth in add-on products. realestate.com.au continues to be the number one property portal in Australia 3 , attracting 121.9 million visits each month on all platforms, increasing 35% YoY 6 . 12.6 million people visited the site each month on average 7 , with a new record of 13.2 million in March 8 . This unrivalled audience of people looking to buy, sell, rent or share property provides valuable insights to the Group on how people search and view property. In addition, our audience comprises high intent property seekers, making it possible for REA to deliver more leads to our customers. More consumers are using the realestate.com.au app than ever before. Average monthly launches of the realestate.com.au app increased 49% YoY to 55 million 9 , while consumers are spending almost four times longer on the realestate.com.au app 10 than the nearest competitor. When compared to other leading digital brands, realestate.com.au was Australia’s eighth largest in terms of audience 11 , reaching over 60% of Australia’s adult population 12 . As we continue to grow our audience, we are also placing emphasis on growing our membership base and active monthly users in order to deliver the best leads and most leads to our customers. The strength of our relationship with consumers is demonstrated by a 52% increase in properties being tracked by owners 13 . The total number of properties being tracked also increased 62% YoY 13 . Supporting the ongoing strength of our relationship with property owners, was the launch of our Property Owner Dashboard in December. This experience is empowering homeowners to monitor their market and make confident property choices about the key milestones of selling, renting, renovating and financing a property. This demonstrates a highly engaged audience who remain passionate and invested in the property market. Property and online advertising Property and Online Advertising operating income increased by 13% to $846.3 million. Australian residential revenue increased 18% to $627.5 million, reflecting the increase in buy listings, stronger Premiere penetration and continued growth in add-on products, including Audience Maximiser. This was partially offset by the impact of COVID-19 support measures and the effect of the prolonged Melbourne lockdown on yield. Rental revenue benefited from increased depth penetration and product mix, however this was partially offset by a decline in rental listings, which were negatively impacted by lack of migration and restrictions on tenant evictions during the year. Commercial and Developer revenue increased 5% with Developer benefiting from a 17% increase in new project commencements, driven in part by Government stimulus, an increase in project profile duration and higher subscriptions. This was partially offset by a decline in Commercial revenues due to the negative impact of COVID-19. realcommercial.com.au continues to be the leading commercial property app in Australia, with 12.7 times more app launches 14 than the nearest competitor. Media, Data and Other revenue were broadly flat YoY, with growth in Data and Media revenues offset by a reduction in Other revenue. The Group continues to strengthen its existing leadership positions through investment in new technology, aimed at improving the digital offering for customers and consumers alike and through strategic acquisitions that complement our existing business and accelerate our strategic initiatives. 3 Nielsen Digital Media Ratings (Monthly Tagged), Jan 21 – Jun 21, P2+, Digital (C/M), text, Real Estate/Apartments subcategory, Unique Audience. 4 Nielsen Digital Media Ratings (Monthly Tagged), Jan 21 – Jun 21, P2+, Digital (C/M), text, realcommercial.com.au vs commercialrealestate.com.au , Unique Audience. 5 Similarweb, visits to flatmates.com.au vs flatmatefinders.com.au, Jul 20 – Jun 21. 6 Nielsen Digital Media Ratings (Monthly Tagged), Jul 20 - Jun 21 vs Jul 19 - Jun 20 (average), P2+, Digital (C/M), text, realestate.com.au , Total Sessions. 7 Nielsen Digital Media Ratings (Monthly Tagged), Jan 21 - Jun 21 (average), P2+, Digital (C/M), text, realestate.com.au , Unique Audience. 8 Nielsen Digital Media Ratings (Monthly Tagged), Mar 21, P2+, Digital (C/M), text, realestate.com.au , Unique Audience. 9 Nielsen Digital Media Ratings (Monthly Tagged), Jul 20 - Jun 21 vs Jul 19 - Jun 20 (average), P2+, Digital (C/M), text, realestate.com.au , App Launches. 10 Nielsen Digital Media Ratings, (Monthly Tagged), Jul 20 - Jun 21, P2+, Mobile (App), text, realestate.com.au vs Domain, Time spent (App). 11 Nielsen Digital Media Ratings (Monthly Total), Jun 21, P2+, Digital (C/M) Text, All Categories, Unique Audience. 12 Nielsen Digital Media Ratings (Monthly Tagged), Jun 21, P18+, Digital (C/M), text, realestate.com.au , Active Reach %.. 13 REA internal data as at 30 Jun 21 and compared to 30 Jun 20. 14 Nielsen Digital Media Ratings (Monthly Tagged), Jul 20 - Jun 21 (average), P2+, Digital (C/M), text, realcommercial.com.au vs commercialrealestate.com.au, App Launches. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 35