REA Group posts full-year profit drop, cuts dividend

The news: Real estate advertiser REA Group has reported lower full-year profit as listings slowed amid rising interest rates.

The numbers: Net profit for the year to 30 June fell 9% to $372.2 million, while revenue was up 2% to $1.18 billion. Property listings jumped 46% in the Indian market but were down 12% over the year in the key Australian market. The company will pay a final dividend of 83 cents a share, down from 89 cents a year ago.

The context: Property listings dropped over the year to 30 June as the RBA lifted rates 11 times over that period, hurting REA Group’s business. The company has flagged higher losses ahead due to challenging conditions and spending plans.

What they said: "We are continuing to see strong demand and a return to price growth, and this is converting to a more attractive market for sellers. We believe stabilization of interest rates is within sight and expect this will lead to an increase in market activity," said chief executive officer, Owen Wilson.