REA homes in on listings
Online listing company REA Group has called out improving home listings in Sydney and Melbourne as it delivered a 22 per cent lift in first half net profit to $250m.
The group declared that Australia’s residential property market remains healthy, with national listings growth driven by the two capitals, while other markets are more subdued.
Higher market activity is being driven by strong demand, backed by near record employment, higher immigration and greater confidence that interest rates have stabilised.
The supply of homes hitting the market is also improving as sellers become more confident about the level of demand, which has led to homes selling faster.
Core operations grew revenue by 18 per cent to $726m, and it boosted earnings before interest, taxes, depreciation, and amortisation, excluding associates, by 22 per cent to $439m. The reported net profit dropped 37 per cent to $127m, reflecting one-off impacts in both periods, with the lift to the $250m profit reflecting its core operations.
REA chief executive Owen Wilson said the company delivered an “outstanding result” driven by strong yield growth and the benefit of a more normalised listings environment.
“This resulted in a strong uptake of our premium products as customers sought to leverage our leading audience to maximise their campaigns in the strengthening market,” he said. “The confidence that interest rates are at or very near the peak should see the healthy market conditions we are enjoying today continue throughout 2024.”
REA will pay an interim dividend of 87c per share fully franked, up 16 per cent.