REA SHARES IN SALES BOOM
REA Group is riding the surging residential property market, turning in a 31 per cent lift in first half net profit to $226m.
The digital real estate company was buoyed by strong buyer demand underpinned by increased supply of homes on the market in late 2021 following the end of lockdowns. That is flowing into this year with January residential listings up 14 per cent year-on-year.
“REA Group has emerged from another disruptive year in excellent shape, and we expect the favourable market conditions to continue into 2022. While Covid and the federal election may throw some curveballs, the effect on our market should be temporary,” REA chief executive Owen Wilson said.
He flagged the group would launch new products, including in financial services, and continue its offshore push into India and Asian markets. REA’S core operations lifted year-on-year revenue growth by 37 per cent to $590.4m for the six months to December 31 and it had a 27 per cent jump in earnings before interest, taxes, depreciation, and amortisation to $368m.
Revenue growth was underpinned by increases in all major lines of business, including a 31 per cent rise in the Australian residential business on the back of the strong market recovery despite the impact of lockdowns in the first quarter.
REA noted the surge in January listings although growth rates are expected to slow in the second half.
The company cautioned the federal election and potential regulatory measures to slow house price inflation could also negatively impact listing volumes.
The company, majority owned by News Corp, publisher of this masthead, will pay an interim dividend of 75c a share fully franked, a 27 per cent jump on last year.
REA shares fell 0.4 per cent to $143.45.