REA Group: Resilient FY23 result despite volume headwinds

About the author:

Author name:

By Steven Sassine

Job title:

Associate Analyst

Date posted:

14 August 2023, 8:30 AM

Sectors Covered:

Diversified Financials

• REA Group (ASX:REA) released its FY23 result, which was small beat vs Visible Alpha consensus. Total revenue of A$1,183m, +1% on pcp was ~0.3% ahead of consensus, core EBITDA (post associates) was A$635m down 6% on pcp. NPAT of A$372m was down ~9% on pcp (1% above consensus). Broadly, a resilient result overall in our view, despite the volume headwinds faced by REA, particularly in the 2H.
• We lower our FY24F EPS by 4% factoring in the FY result and larger associate losses in FY24 than previously forecast. Our FY25-FY26F EPS is upgraded by ~0- 3% on marginally higher topline growth. PT unchanged at (login to view). Maintain Hold.

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