Real estate booms, OK! – well the latest half year figures from REA Group, the 61% owned digital house listings arm of News Corp, has confirmed that it’s the enablers of the transactions that make a lot of money – and not just the banks or your neighbourhood or chain agency.
REA Group Friday reported a 31% jump in net profit to $226 million for the six months to the end of December.
The results included the consolidation of REA India and Mortgage Choice. Excluding the acquisitions, EBITDA grew 27%and net profit climbed 33 per cent.
Revenue grew 37% to $590 million and on track for the billion-dollar mark if volumes and prices hold up in the face of slowly rising home loan rates – especially for fixed rate mortgage.
And of course we can’t forget shareholders as beneficiaries of the housing boom either – in the case News Corp, the majority shareholder.
REA lifted payout for the half by 27% to a record 75 cents a share for any period (topping the 2020-21 final of 72 cents a share paid last August).
REA CEO Owen Wilson said the removal of COVID restrictions led to a new wave of listings.
“Combined with record take up of our premium listing products in Residential and Commercial, we delivered very pleasing revenue growth,” Mr Wilson said.
“Our flagship site realestate.com.au continued its position as the number one address in property.
“In October, a record of 145.5 million visits to realestate.com.au were achieved and the site has grown to be Australia’s seventh largest online brand.”
Rival Domain releases its figures on February 17.
