REA Group shares rise on Q3 revenue boost
Make us a preferred source
Make us a preferred source on Google
More news: REA Group shares lifted on the ASX in early trading after the property sales platform reported 24% revenue growth year on year for the March quarter.
Shares were trading 2.2% higher at $188.98 by 11:30am AEST.
Jarden analysts called it as "solid" operating performance from REA. EBITDA marginally beat their estimates due to better-than-forecast cost performance. They noted that trading conditions remained strong, and REA's full-year listings guidance of 5% to 7% growth was "arguably conservative".
REA Group posts 24% earnings growth in March quarter
The news: REA Group posted increased revenue for the March quarter, driven by higher Australian residential revenues and listings growth.
The numbers: REA's revenue grew 24% year on year to $334 million. EBITDA was also up 24% to $168 million compared to the prior corresponding period.
The result was supported by continued growth in the company's residential business, which saw revenue grow 27% year on year.
New listings were up 6% nationally during the quarter, with Sydney (20%) and Melbourne (18%) both experiencing double-digit growth year on year.
The company noted that it had also seen a strong start to the fourth quarter, with new residential listings increasing 32% nationally, with Sydney 45% higher and Melbourne up 53%. Based on current market conditions, it anticipates a full-year listings growth of 5% to 7%.
The context: REA said that Australia's property market remains strong, while supply is benefiting from property prices rising to record levels and increased investor selling in some markets. It said demand continues to be supported by strong fundamentals including low unemployment and high levels of immigration.
What they said: REA's CEO Owen Wilson said: "REA is well positioned for a strong finish to the financial year. The property market should continue to benefit from the belief that interest rates have reached, or are near the peak, providing buyers and sellers with confidence".
The source: ASX announcement
