REA Group, parent company of portal realestate.com.au has announced its results for the half-year period ended 31 December, with a net profit of $121.8 million, up 6% on the year earlier period.
Financial highlights from core operations include revenue growth of 16% on the prior half year to AUD 337.3 million, an increase in EBITDA of 13% to AUD 200.1 million while a gain on the sale of the Europe business of $161.6 million resulted in a reported Net profit of $292.1 million.
• Revenue of $337.3 million, up 16%
• EBITDA of $200.1 million, up 13%
• Net Profit of $121.8 million, up 6%
• Interim dividend of 40.0 cents per share, up 11%
The revenue growth is attributed to a 13% increase in the Australian residential business, and the inclusion of iProperty revenue, which was not included in the prior comparative period.
The company’s strong result in Australia was achieved in a market of lower listing volumes, with the largest decreases occurring in Sydney and Melbourne.
Operating expenses increased due to the consolidation of iProperty and change in the timing of
some expenses, in particular marketing. Excluding the impact of iProperty, it is expected that
the rate of full year revenue growth will exceed the rate of cost growth.
REA Group Chief Executive Officer, Tracey Fellows, said:
“We’ve been able to deliver strong revenue growth in spite of lower listing volumes. We’ve done this through the success of our premium listing products and through innovations across our business.”Read the full press release here