Home Agents & Agencies Industry watch: REA Group revenue up 21% in H1

Industry watch: REA Group revenue up 21% in H1

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REA Group Limited (ASX:REA) has had a good week on the stock market, despite rocky news from Wall Street and turbulence for other ASX-listed companies.

The share price has risen over 10% from 69 cents to 78 cents in the past five days, after posting positive H1 results.

On February 9th REA Group announced its results for the half-year ending 31 December 2017.

REA Group, best known for its site realestate.com.au, reported strong revenue growth of 21% on the prior year to $406.8 million, with an increase of earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 21% to $242.8 million.

REA Group also has investments in Asia and North America, but the increase in revenue was driven by a 21% growth the company’s Australian business.

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“This is an exceptional result,” said REA Group CEO, Tracey Fellows. “Our growth is underpinned by the strength in our core Australian business. While there has been an impact because of fewer project launches, our growth has been boosted by a more positive residential listing mix.”

During the half year period, REA Group also launched realestate.com.au Home Loans, a financial services business.

“We are especially pleased by the strong start to our financial services line of business, with more than 5.3 million calculator engagements since its launch and the first settlements of realestate.com.au home loans,” Fellows added.

Source: ASX