- Aussie real estate king REA Group has weathered through what it called a period of ‘challenging market conditions’ to garner growth across revenue, company earnings and share pricings during the 2019 financial year
- The company’s revenue grew eight per cent for $874.9 million, earnings grew eight per cent as well for $501.2 million and net profits increased six per cent to hit $295.5 million
- During the financial year, new listings and developments in Melbourne’s residential market dropped 11 per cent and Sydney’s fell 18 per cent
- Despite the market’s shortcomings, REA battled through for an all-round positive financial year which will see shareholders receive 118 cents per share in dividends
ASX 200 company REA Group announced its results for the 2019 financial year today, a strong performance amid a period of ‘challenging market conditions’.
Total revenue for the company increased eight per cent during the financial period, making up for $874.9 million.
The company’s earnings before taxation reflected the same premium in growth, reaching $501.2 million.
“REA has delivered a strong result in a year of unprecedented market conditions,” CEO Owen Wilson said.
“Our continued revenue growth was achieved despite significant declines in listings and new developments, a clear illustration of the value we deliver to customers and consumers,”
According to REA, the Aussie residential market saw listings and new projects dip during 2019. Across the country, residential listings dipped an average of eight per cent.
Sydney residential listings dropped the most by 18 per cent, with Melbourne following behind with a decrease by 11 per cent.
These numbers are alarming, however in July 2018 Melbourne’s market dropped 29 per cent and Sydney declined 31 per cent.
Net profit for REA was not far behind its other sectors during the 2019 financial year despite these difficulties, showing a yearly increase of six per cent for $295.5 million.
Earnings per share for the company increased six per cent as well, for 224.3 cents.
“We increased our audience lead during the year and property seekers are now spending more time on our app than ever before,” Owen continued.
“Australians remain passionate about property and they recognise that realestate.com.au is their go to destination for the best content, deepest insights, and richest market data,”
REA continues to dominate the online Australian housing market, hosting popular websites realestate.com.au, realcommercial.com.au, flatmates.com.au, and spacely.com.au.
For happy shareholders in REA, final dividends have been chalked up to 118 cents per share. This dividend is an eight per cent increase from last year.
“A number of factors are now in place to support a market recovery, including lower interest rates and an improved lending environment,” Owen added.
“Coupled with a very healthy increase in buyer activity, it signals an eventual recovery of listing volumes,”
“The strength of REA’s strategy positions the Group well to continue to deliver superior value to our customers and consumers,”
Share prices in REA are trading for $96.39 apiece today, representing a 5.29 per cent premium.
The company lies strongly in the ASX 200 list of companies with a market cap of $12.05 billion.