REA CEO says failed Rightmove bid not a factor in decision to leave
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More news: Departing REA Group chief executive Owen Wilson told analysts on the company’s first-half earnings call that the company's failed bid for UK digital real estate platform Rightmove last year was not a factor in his decision to step down.
Wilson was asked by an analyst during the the call Thursday morning whether he still would have made the decision to depart in the second half if REA would have been successful with its bid for Rightmove.
REA shares were down 0.73% to $250 by 11:00am, clawing back some losses from earlier in the session.
What they said: "I wouldn't read anything into it in relation to Rightmove. It's, you know — there's a whole bunch of factors that have gone into the decision. One of the things I will say — if you know me, you know how I'm wired — if we weren't firing, I wouldn't have been able to make this decision. That's how I'm wired," Wilson said.
"Rightmove has had no impact on that whatsoever. This is a personal decision. There are things, other things that have been put in front of me over the last year that I haven't had a chance to look at; now I get a chance to look at them. So more personal — and the fact that REA is firing. It's a good time to step away."
REA Group shares sink on CEO exit, cost outlook
More news: REA Group shares lowered in early trading on the ASX after the property listing company downgraded its full-year cost guidance and announced the retirement of chief executive Owen Wilson.
REA shares were down 3.7% to $242.44 by 10:30am AEDT, having advanced more than 30% over the last 12 months.
UBS said that it was an "overall positive" result for REA, with first-half EBITDA 2% ahead of consensus estimates. However, the company's outlook is a "touch softer" compared to previous forecasts, the analysts said, which combined with Wilson's departure will "likely weigh on the stock" today.
Jarden called it a "very strong operating result", but expects the market to focus on REA's downgrade to its full-year cost guidance, and the "surprise" exit of Wilson.
E&P Capital analyst Entcho Raykovski flagged that the result marks a "solid start" to the second half of the year for REA. While Wilson is "incredibly well-regarded, the strength of the business model will in our view sustain a CEO departure," he said.
What they said: "This is a good result, with a solid start to 2H25 somewhat offset by higher opex guidance — given the strong performance heading into the result, we’d expect the stock to perform broadly in line with the market today," Raykovski said.
REA Group lifts HY profit and dividend, CEO Owen Wilson to retire
The news: Property listing firm REA Group has lifted its half-year profit and dividends, and announced chief executive Owen Wilson will retire from his full time executive role.
The numbers: The group said Wilson will retire in the second half of 2025. He joined REA Group 10 years ago as chief financial officer, and was elevated to the CEO role six years ago.
Meanwhile, the company reported that revenue rose 20% to $872.9 million for the six months to December 2024, while EBITDA increased 22% to $535 million.
Net profit for the half year was up 26% to $314 million. It will pay an interim dividend of 110 cents a share, up from 87 cents a year ago.
The context: REA’s results were boosted by a gain on sale of the group’s investment in PropertyGuru and other one-off impacts. It expects strong employment, high immigration levels and likely interest rate cuts in the first half of 2025 to continue to support buyer demand and vendor confidence to list.
Year-on-year growth rates for the second half of the financial year will reflect very strong prior period listings volumes, particularly for Melbourne and Sydney, the company said.
Separately, REA Group said its board has initiated a comprehensive process to select a new CEO, evaluating both internal and external candidates. Wilson will remain with the business to ensure a smooth and orderly transition.
What they said: “After more than ten glorious years at REA Group, Owen has decided to retire. His stellar leadership leaves the company exceptionally well positioned and REA is one of the best home-grown technology companies which has flourished into being a global leader,” REA Group chair, Hamish McLennan said.
The sources: ASX announcement, ASX announcement, Jarden research, UBS research, E&P Capital research
