REPORTING SEASON: REA Group Limited (REA)
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Figure 1: REA Group Limited 12 month chart
REA Group (REA) making cash while the global housing market shines
Digital advertising firm, REA Group (REA) reported a stronger than expected 2015 half-year result.
REA owns Australia’s leading residential property website realestate.com.au. REA’s Australian revenue increased by 26% to $236.4million over the period. The revenue increase was boosted by high demand for both residential and commercial property internet ad by agents even with a fall in total listings, listing depth increased by 60% and REA also signed up more 5% more agents.
REA is putting more money into other international web portals, with strong earnings growth in Europe and Asia. REA’s European operations listed revenue growth of 10%.
Its Chinese site, myfun.com, showcases Australian property listings to Chinese buyers and the site attracted average monthly visits of 76,000 over the half.
REA saw its marketing and tax costs increasing over the period. REA’s cash holding fell to $41.9million a large fall but this was expected by the market due to new acquisitions and associate costs.
REA will pay a $0.295 interim dividend to shareholders on the 12th of March 2015.