REA half-year profit up 21pc
REA Group’s Australian arm has driven a 21 per cent lift in half-year underlying profit despite a slowdown in the housing market, but the company has warned it expects conditions to decline further in the second half of the year.
The News Corp-controlled online real-estate advertiser reported an underlying profit of $147.3 million in the six months to December 31 and a 21 per cent jump in revenue to $406.8 million.
Net profit sank 55 per cent to $132.4 million, down from $292.1 million a year ago when the company made $161.6 million from the sale of its European operations atHome Group and REA Italia.
REA, which advertises property and property-related services on websites and mobile apps across Australia and Asia, said revenue was boosted by a strong performance in its core Australian business which was achieved despite lower new dwelling commencements.
Total residential listings were marginally down during the half, but listings grew in Melbourne and Sydney, chief executive Tracey Fellows said. “This is an exceptional result,” Ms Fellows said yesterday.
“While there has been an impact because of fewer project launches, our growth has been boosted by a more positive residential listings mix.” Despite the positive result, Ms Fellows said the decline in new project commencements seen during the first half is expected to continue in the second half of the financial year and to impact revenue growth in the Developer business.
REA shares closed 2 per cent higher at $72.97.