|RESULTS||1H17||1H18||CHANGE||CONSENSUS||BELL POTTER ESTIMATES||COMMENTS|
|Revenue ($m)||337.3||406.8||21%||408||Australia rev up 21% to $384m- a key earnings driver;
and Asia up 19% to $22.8m
|Net Profit ($m)||121.8||147.3||21%||151||157|
|Dividend (cents)||40.0||47.0||18%||Fully franked. Ex 1 Mar, Pay 16 Mar|
- Australia revenue: Listing up 16%, Subscription up 3%, Media display up 2%.
- EBITDA up 21% to $242.8m and EBITDA margin up 1% points to 60%
Outlook: “We expect to see normal seasonality of revenue in Australia, which traditionally results in higher first-half revenue than second half revenue. The decline in new project commencements seen during the first half is expected to continue, which will impact revenue growth in the Developer business. For the full year, excluding the impact of Financial Services, it is expected that the rate of revenue growth will exceed the rate of cost growth. This will not be the case in Q3. This reflects different expense timing compared to the prior corresponding period and the impact of an earlier Easter. The EBITDA growth rate for this quarter will be lower as a result.
Today’s share price reaction: Down 1.8% to $70.22 (10.05 am).
Recommendation: Analyst currently has a Neutral recommendation with full-year forecast NPAT of $293m and a forecast 27% EPS growth in FY18.
For REA Group’s Interim Financial Report for the half-year ended 31 December 2017 – Click here.
Join us in Bangkok from the 28th of February to the 1st of March for the 22nd Property Portal Watch Conference. The theme for this year is The Future of Online Real Estate Marketing – Getting Closer to the Transaction.