REA Group Ltd (ASX: REA) shares are on the slide on Friday morning.
At the time of writing, the ASX 200 stock is down 18% to 18% to $150.01.
This follows the release of the realestate.com.au operator's half-year results before the market open.
ASX 200 stock crash on results day
For the six months ended 31 December, REA Group reported a 5% increase in revenue to $916 million. This reflects an 8% increase in Australian revenue and a 31% decline in international revenue.
On a like-for-like basis, which removes acquisitions and divestments from the equation, revenue was up 8% on the prior corresponding period, with Australian revenue up 8% and flat international revenue.
Management notes that Australian Residential revenue increased 7% to $658 million during the first half. This reflects a 14% increase in yield, partially offset by a 6% decline in national listings.
Commercial and New Homes revenue increased 10% to $121 million, Financial Services revenue increased 11% to $58 million, and other revenue was up 8% to $35 million.
Group operating expenses increased 3% over the prior corresponding period to $347 million.
This underpinned a 9% lift in net profit after tax to $341 million for the half. Earnings per share also came in 9% higher at $2.58. Unfortunately, this was short of the market's expectations.
Performance metrics
REA Group's first-half performance was driven by its domination of the Australian market.
It revealed that 12.7 million people visited each month on average during the first half, including a record 13.2 million in November. From these, it estimates that 6.4 million people exclusively used realestate.com.au.
It also boasts 146.1 million average monthly visits, which is a staggering 105.9 million more monthly visits than the nearest competitor on average.
Other metrics of note include a 20% increase in average monthly realestate.com.au buyer enquiries, a 38% increase in realestate.com.au seller leads, and a 10% increase in active members.
Commenting on the half, the ASX 200 stock's CEO, Cameron McIntyre, said:
REA Group's first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement. Our customers continued to recognise the value of our premium products and their ability to maximise campaigns and support stronger sales results.
Into the second half we will continue to drive innovation with new product features and capabilities to enhance the value and experiences we deliver. These, coupled with ongoing strength in property market fundamentals, position REA well for further growth in the remainder of FY26.
Outlook
The ASX 200 stock is anticipating 12% to 14% residential Buy yield growth in FY 2026, with the magnitude of growth potentially impacted by geo mix movements across the remainder of the year.
The company expects positive operating jaws (costs growth lower than revenue growth), with Australian jaws anticipated to be open modestly.
