Online real estate portal REA Group Limited (ASX: REA) has unveiled its full-year earnings results today.
The company's top line grew 20% over the year to $629.8 million, which is in line with the $314.8 million of revenue it reported for the first-half of the year. Net profit after tax (from continuing operations) also grew 16% to $214.5 million, with $121 million of that coming in the first half.
Earnings per share (EPS) was 162.6 cents, also up 16% for the year, while it announced a final dividend of 45.5 cents per share, taking the total for the year to 81.5 cents. The dividend will be paid on 15 September 2016, with a record date of 24 August.
Indeed, REA Group's Australian division remained its primary source of growth. The company reported a 17% increase in local revenues to $555.2 million with a 7% increase in the number of agent customers. It also said realestate.com.au's market share of all residential property listings nationwide is 94%, which is 17% higher than its nearest competitor.
What's more, the Australian division's EBITDA margin rallied to 62.3% for the year, compared to 60.9% in FY15. The group's EBITDA margin remained steady at 55% (note that EBITDA is earnings before interest, tax, depreciation and amortisation).
With Australia accounting for more than 88% of group revenue, REA Group will continue to invest in growth outside of that market. Revenue also grew in Europe, North America and Asia, with REA Group also celebrating its acquisition of iProperty Group during the period.
However, investors will be disappointed with the outlook provided by management regarding local growth so far in financial year 2017. REA Group blamed uncertainty surrounding the recent Federal election for an 11% dip in July listings (compared to July 2015), with first half revenue expected to skew more towards the second quarter.
As a result, shares of REA Group fell 7% to $55.99, although they did trade as low as $55.62 shortly after the market opened.
Unfortunately for investors in the space, it isn't the first time the market has been disappointed with results from the online classifieds industry this August. Carsales.Com Ltd (ASX: CAR) shares have also fallen 6.5% today, while iCar Asia Ltd (ASX: ICQ) shares crashed almost 17% on Monday.
