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REA Group Limited posts 28% profit lift

Credit: Diliff

REA Group Limited (ASX: REA), the owner of realestate.com.au, today released its half-year report to the market.

In an ASX announcement, REA Group reported 8% growth in revenue to $314.8 million and a net profit of $114.9 million, down 9% on the prior corresponding period. If we exclude other income, gains on the sale of securities or businesses and losses from associates, we arrive at the figure REA Group reports as ‘Core Operations’. REA Group’s core net profit result was up 28%.

“Our results show strong revenue performance with 20% growth in the first half,” REA Group CEO, Tracey Fellows, said. “Our audience continues to grow as we innovate and deliver even better experiences for consumers.”

Average monthly visits to realestate.com.au rose 27% to 42 million. Indeed, REA Group’s Australian business was again the standout, however, the European business also reported robust revenue growth.

Our International growth has accelerated as we prepare to acquire iProperty Group in Asia,” Ms Fellows added. “We now have all approvals in place and look forward to completing the acquisition in the coming weeks.”

Pleasingly, the company’s board resolved to declare an interim dividend of 36 cents per share, fully franked. The ex-dividend and payment dates of the interim dividend are 2 March 2016 and 11 March 2016, respectively.

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Motley Fool writer/analyst Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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