Real Estate Investar Group’s (ASX: REV) Q1 Results Indicate Strong Growth

KEY TAKEAWAYS:

• Real Estate Investar Group Limited (ASX: REV) experienced an 8% increase in revenue as compared to the previous year.
• Growth in membership increased by 24% as a result of aggressive marketing.
• Strong performance in the first quarter is attributed to its strategy of leveraging its membership to dispose of property that qualifies for the investment grade.

Leading service provider of data in the investment sector, Real Estate Investar Group Limited (ASX: REV) released its first-quarter numbers wherein there was an 8% increase in revenue as compared to the previous year. Of the 1.4-million figure that the revenue stood at, 0.7 million had been acquired from direct sales of properties and completion of entitlement offer of 0.8 million in the month of October. In addition, the group experienced an increase in membership by 24% while on the other hand, its EBIDTA loss reduced by half as compared to the previous year courtesy of expected cash-flow in December.

Also known as REV Group, this company takes pride in being the leading source of data and analysis to property investors not just in Australia but also in New Zealand. Much of the information pertains to properties that are worthy of investment, their tracking and transaction details and can be accessed online. While initially the services are offered free of charge, customers are offered a paid membership plan wherein they can avail advanced tools in lieu of a subscription fee.

The reason underlying the company’s strong performance in the first quarter is attributed to its strategy of leveraging its membership to dispose of property that qualifies for the investment grade. Due to this factor, revenue earned from sales of property alone accounted for 48% of the total amount, which is a huge jump from last year’s figures. This is also believed to have laid the foundation for a strong growth in December’s earnings as commissions that are yet to be received are expected to come in during this month.

One of the key indicators of performance is the growth in membership and to this effect, the company recorded a robust increase of 24% as a result of aggressive marketing. In light of the spectacular performance, CEO of REV Group, Clint Greaves summed up the quarter on a positive note and also gave an indication of what to expect in the days to come.

About Real Estate Investar Group Limited (ASX: REV)

Real Estate Investar (ASX: REV) is a leading provider of integrated services to property investors to assist in the identification, analysis, acquisition, tracking and accounting of investment property.

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