This ASX 200 stock is charging higher today following a 23% dividend boost

The ASX 200 stock will be paying out more passive income to shareholders.

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S&P/ASX 200 Index (ASX: XJO) stock REA Group Ltd (ASX: REA) is off to the races today.

Shares in the online property listings company closed yesterday trading for $189.52. In morning trade on Friday, shares are changing hands for $194.77 apiece, up 2.7%.

For some context, the ASX 200 is up 0.74% at this same time.

This outperformance comes following the release of REA Group's 12-month results for the year ended 30 June (FY 2024).

Read on for the highlights.

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Image source: Getty Images

ASX 200 stock leaps higher on profit boost

  • Revenue of $1.45 billion, up 23% from FY 2023
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding associates, of $825 million, up 27% year on year
  • Operating expenses increased by 18% to $628 million
  • Net profit of $461 million, up 24% year on year
  • Full-year dividend of $1.89 per share fully franked, up 20% from FY 2023

What else happened with REA Group in FY 2024?

The ASX 200 stock looks to be catching some extra tailwinds after management declared a final, fully franked dividend of $1.02 per share. That's up 23% from last year's final dividend.

And earnings per share (EPS) are up 24% year on year as well.

On the profit front, REA Group noted that reported net profit actually fell by 15% from FY 2023 to $303 million. The company said this decline reflected the impairment of PropertyGuru in December along with other one-off impacts.

In the domestic market, the ASX 200 stock's core Australian revenue was $1.35 billion, up 22% year over year or 20% if you exclude its acquisition of CampaignAgent.

REA India revenue was up 31% to $103 million.

In other significant action over the financial year, REA Group acquired the remaining shares of Realtair for cash consideration of $34 million in cash on 8 June.

The year-on-year cost increases were said to be largely driven by employee costs due to increased incentives, salary inflation, and accelerated investment.

What did management say?

Commenting on the results lifting the ASX 200 stock today, CEO Owen Wilson said, "REA's exceptional result reflects the value we deliver at every stage of the property journey."

Wilson continued:

In a strong market, particularly in Melbourne and Sydney, customers increasingly preferenced our premium products to leverage the strength of our audience and maximise their campaigns.

REA India maintained its strong momentum with excellent revenue growth as customers increased usage of our products, and we continued to benefit from investment in our app experience with significant app audience growth.

What's next for the ASX 200 stock?

Looking at what might impact the ASX 200 stock in the year ahead, Wilson said, "REA enters FY 2025 in a strong position and with a clear strategy to drive growth. This will see continued investment and innovation across our products and platforms."

The company noted that while it expects interest rates to remain elevated for longer, "strong demand drivers remain in place". Those include the new Aussie income tax cuts, which REA Group said should help support the confidence of buyers and sellers.

REA Group share price snapshot

With today's intraday boost factored in, the ASX 200 stock is up 23% in 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended REA Group. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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