Australia’s Top 1000 companies clocked in a total of $1.98 trillion in revenue last year with real estate services and property operators featured prominently on the list.
Business analysts at IBISWorld crunched the numbers and compiled the findings in a report revealed that approximately two-thirds of companies reported an increase in revenue for the year, with total revenue for the list growing by 1.9 percent in comparison with the last year’s list.
However, net profit after tax declined significantly on the list due to some poor performances among the top 10 companies, which account for just less than 20 percent of all revenue on the list.
The bulk of growth came in real estate from rising residential property prices.
Residential housing prices increased in 2015-16, with IBISWorld’s residential housing price index increasing 7.3 percent over the year.
Real estate agents work on commissions which meant revenue rises as property prices increases. However, many agents have not increased their fees due to competition in the industry.
Brookfield Global Integrated Solutions was a newcomer on the list, coming in at 735 after it acquired the remaining share in Brookfield Johnson Controls Australia, previously a joint venture with Johnson Controls Incorporated.
Meanwhile, sluggish growth seen in traditional investment streams had caused many investors to turn to other assets, such as commercial property.
This has increased interest in commercial property investments, which are typically managed by non-residential property operators.
Australia’s growing professional workforce and transition to a service-based economy have boosted demand for office property managers, as many businesses rent office space through property players.
Online shopping has created high demand for warehouses and other supply chain-related property, increasing demand for industrial property and boosting revenue for related operators.
Rising rent costs for the retail property have helped lift income for retail property operators. Cromwell Property Group entered the list at rank 600, following significant fair value gains from its investment properties.
Other sectors mentioned in the report were internet publishing, mineral and petroleum exploration, mining support services, petroleum product wholesaling and heavy industry and other non-building construction.
Melbourne-headquartered IBISWorld is a global business intelligence leader specialising in industry market research and procurement and purchasing research reports.
| Current Rank | Previous Rank | Company (Balance Date) | Total Revenue ($m) |
|---|---|---|---|
| 1 | 1 | Wesfarmers (6/16) | 66,216.00 |
| 2 | 2 | Woolworths (6/16) | 58,563.30 |
| 3 | 5 | Commonwealth Bank of Australia (6/16) | 44,379.00 |
| 4 | 7 | Westpac Banking Corporation (9/16) | 37,659.00 |
| 5 | 6 | NAB (9/16) | 36,697.00 |
| 6 | 3 | Rio Tinto (12/15) | 36,278.00 |
| 7 | 8 | ANZ Banking Group (9/16) | 34,844.00 |
| 8 | 4 | BHP Billiton (6/16) | 31,646.00 |
| 9 | 9 | Telstra (6/16) | 26,686.00 |
| 10 | 14 | NSW Health (6/16) | 20,330.06 |
The Top 10 Companies for IBISWorld’s 2016 Top 1000 list
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