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REA Posts 2015/2016 Financial Year Results – Posts After Tax Profits of $253,280,000

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Highlights:

  • REA Group posts revenue of $629,803,000 from primary trading activities, and $253,280,000 profit after tax.
  • “Premiere Property” sales increased dramatically since launch of new pricing model
  • John McGrath given 17% pay-rise for position on the board of directors, shares owned now worth approximately $8,500,000

REA Group released their 2015/2016 FY statement this week, reporting a “20% increase in revenue” over the reporting period.

CEO Ms Tracey Fellows take home pay was reported as $1,765,384 (not including shares or benefits), chairman of the board Mr Hamish McLennan was compensated $1,168,688, meanwhile the well-known owner of McGrath Real Estate, John McGrath, was renumerated $156,860 for his position on the board after a 17% pay-rise from the previous financial year.

Investor pres.
Source: REA Group Limited Investor Analyst Presentation

Mr McGrath also owns 146,080 shares in REA Group, which at the time of printing were worth $59.52 each on the ASX, worth a total of $8,694,681.

The REA Group’s revenue also rose 20% over the period, totalling $629,803,000 income from it’s primary trading activities. Profit after tax was a whopping $253,280,000.

Cash and cash equivalents was reported to be $126,834,000, with total assets amounting to $1,483,284,000.

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In a second report to investors, REA Group publicised a breakdown of it’s revenue sources, with Australian operations making up 88% of total income. Listings revenue (the fees agents pay per property listed) totalled $406,800,000 (up 26% on last year), subscriptions revenue (agent’s account fees) was $55,000,000 (down 20%) and media revenue (site advertising) was $91,500,000 (up 15%).

 

REA Graph
A breakdown of REA’s revenue from Listings Revenue. Premiere properties have become the number one source of revenue since the new pricing structure released last year. Source: REA Group Limited Investor Analyst Presentation

However investors were not impressed by the report, pushing the share price down as much as 6% over the course of the day, or in “John McGrath dollars”, $4 X 146,080 = $584,320.

CommSec reporter Steven Daghlian stated; “It’s taking (REA Group) a lot now perhaps to impress investors,”. This was despite REA Group’s 8th consecutive year of share price growth, and up 20% year to date.

 

Sources:
REA Group Financial Statements https://www.rea-group.com/irm/PDF/1910/FinancialStatementsfortheyearended30June2016
REA Group Investor Analyst Presentation https://www.rea-group.com/irm/PDF/1907/REAGroupInvestorAnalystPresentation
CommSec Report https://www.youtube.com/watch?v=1cnr6LWnPDA&feature=youtu.be


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