Property recovery lifts REA Group half year profit, revenue

The news: Real estate listings platform REA Group posted a solid lift in first-half earnings and revenue on the back of rising real estate demand and prices.

The numbers: Net profit for the six months to 31 December was up 22% to $249.7 million, while revenue rose 18% to $725.5 million. Listings rose 4% nationally, but were up 19% in Sydney and 18% in Melbourne in the first half. It will pay a fully-franked interim dividend of 87 cents a share, up from 75 cents a year ago.

The context: Group CEO Owen Wilson said the result reflected the benefit of a more normalised listings environment. The company also recorded price and customer growth in its India business. Owen said the outlook remained healthy though markets outside largest residential property markets of Sydney and Melbourne were subdued.