The REA Group Ltd (ASX: REA) share price is avoiding the market selloff on Thursday.
In afternoon trade, the ASX 200 stock is up over 1% to $187.09.
This compares favourably to a 0.8% decline by the benchmark ASX 200 index today.
Why is this ASX 200 stock avoiding the market selloff?
Investors have been fighting to get hold of the property listings company's shares on Thursday after it release its third quarter update.
For the three months ended 31 March, the ASX 200 stock reported a 24% increase in revenue to $334 million and a 30% lift in operating EBITDA to $177 million.
This is a quicker rate of growth than the company delivered in the first half. As a result, financial year to date, revenue is now up 20% to $1,060 million and operating EBITDA is up 24% to $616 million.
Commenting on the quarter, REA Group's CEO, Owen Wilson, said:
The Australian property market maintained its strong momentum during the quarter with seller confidence and healthy buyer demand driving activity. Australian consumers' preference for our premium products and our focus on customer value delivered an exceptional result in this strong market.
The ASX 200 stock advised that national listings were up 6% year on year in the third quarter thanks largely to the key Sydney and Melbourne markets. Listings in these markets were up 20% and 18%, respectively, compared to the prior corresponding period.
Market leadership continues
REA Group continues to be the market leader by some distance. It notes that its network of brands holds three of the top four rankings across all Australian property websites.
In addition, 11.2 million people visited realestate.com.au each month on average during the quarter, with 52% exclusively using realestate.com.au.
There were also 130 million average realestate.com.au monthly visits, which is 4.1 times more visits than its nearest competitor each month on average.
Outlook
The ASX 200 stock's CEO remains positive on the future and has reiterated its target of positive jaws (revenue growing quicker than costs) in FY 2024. Wilson concludes:
REA is well positioned for a strong finish to the financial year. The property market should continue to benefit from the belief that interest rates have reached, or are near the peak, providing buyers and sellers with confidence. We're excited by our development pipeline and look forward to delivering new products and experiences that will continue to drive growth and further enhance the value of our audience.
Broker reaction
Goldman Sachs was impressed with the update, noting that it came in ahead of expectations. The broker said:
REA delivered a strong 3Q24 update, with Sales/EBITDA +24%/+24% vs. pcp and +3%/+5% vs. GSe.
