The REA Group Limited (ASX: REA) share price has jumped 2.58%, up $2.12 to $84.43 after announcing positive full-year results on Friday morning.
The real estate giant full-year net profit has jumped 23% to $279.9 million, with a strong increase in its Australian residential business even as the housing market slowed.
The company’s revenue in the year ending June 30, shot up 20% to $807.7 million, with the Australian operations lifting revenue 21% to $763.4 million.
REA’s realestate.com.au residential listings website achieved a 23% increase in revenue, despite nationwide listings falling 2% over the year and a reduction in new development projects coming to market.
The group recorded increases in listings in the Sydney and Melbourne markets and benefited from the addition of its new home loans business.
REA Group will pay a final dividend of 62 cents per share, fully franked.
REA Group CEO, Tracey Fellows, said: “We have had an excellent year, delivering
double-digit growth. We’re giving consumers and customers even more reasons to come back to us by creating better and more personalised property experiences.”
Results boosted by new products
REA Group’s chief Tracey Fellows said the results were helped by new products launched during the year, including the Agent Edge service which gives real estate agents higher visibility and greater communication with the market.
“In Australia, realestate.com.au continues to be the number one place for property with 2.6 times the monthly visits of our nearest competitor,” she said.
“We have the largest, most engaged audience across every device, on every screen size.”
Looking ahead, REA says the lower listing rate is expected to continue in 2018/19, with volumes down four per cent in July and the upcoming Victorian and NSW state elections also set to disrupt the nation’s two biggest markets.
Over the last 12 months, REA Group’s share price has gained 23.4%, compared to the S&P/ASX 200 Index which has seen gains of 9.19% in the period.