REA Group Prepares for CoStar's Australian Entry, Maintains Cost Guidance

REA Group is preparing to respond to CoStar's expected significant increase in marketing after CoStar completes its takeover of Domain. REA has guided for high single-digit growth in core operating costs for the 12 months through June 2026, below its targeted revenue growth rate. REA's CEO Owen Wilson stated that the company's cost guidance has factored in CoStar's entry to the market and any potential impact on audience. Wilson is set to step down by the end of the year.

Australian real-estate advertiser REA Group is gearing up to respond to the expected surge in marketing from its largest rival, CoStar, following the latter's imminent takeover of classifieds group Domain. REA Group has been preparing for this event since mid-2024 and is confident in its ability to maintain its audience share despite the anticipated increase in marketing outlay by CoStar.

REA Group's Chief Executive, Owen Wilson, stated that the company's cost guidance has already factored in CoStar's entry into the market and any potential impact on audience. Wilson expects CoStar's marketing efforts to be significant but believes REA Group is well-positioned to counter them. He noted that REA Group's cost guidance for the 12 months through June 2026 is for high single-digit growth in core operating costs, which is below the company's targeted revenue growth rate.

Wilson, who is scheduled to step down by the end of the year, has joined privately owned used-car marketplace Carma as board chair. This move is seen as a strategic shift for Wilson, who brings extensive experience in the listed market to the new role.

REA Group's parent company, News Corp, is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires. The company's stock is listed on the Australian Securities Exchange (ASX).

References:
[1] https://www.marketwatch.com/story/rea-group-ready-to-respond-to-costar-s-arrival-in-australia-69bd64d7
[2] https://www.afr.com/street-talk/outgoing-rea-chief-to-chair-vc-backed-carma-as-ipo-momentum-builds-20250805-p5mkj8