Concierge gives you timely BUY and SELL alerts on ASX-listed stocks
REA Group’s profit fell in 1HY23, but it wasn’t all the wrath of the property market?
Nick Sundich, February 10, 2023
Not even $16bn REA Group (ASX:REA) can escape the slump in the property market. The company reported its 1HY23 results this morning and saw a 9% drop in residential listings. But was it all the property market?
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
REA records 5% higher revenues
REA recorded $617m in revenue, a figure that was actually 5% higher than the prior corresponding period. This was underpinned by yield growth in the company’s advertising products in Australia and India.
Residential listings were down 9% nationwide and down 17% in Sydney. But the company claimed that customers were relying on its premium products to maximise the impact of their campaign.
But a 9% decline in NPAT
On the flip side, a sharp rise in operating costs led to a 9% decline in NPAT to $205m. EBITDA fell as well – by 2% to $359m.
REA blamed higher marketing, employee and travel costs, but also noted that cost growth reflected reduced costs from the prior corresponding period due to lockdowns.
When will things recover?
REA CEO Owen Wilson said that activity in the property market would pick up when interest rates stabilised. He wouldn’t put a specific timeframe on this, noting that the uncertainty caused by rising interest rates would likely continue in the coming months.
All things considered, it could have been a lot worse for REA shareholders. The stock is only slightly down this morning.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Recent Posts
As Chinese students return to Australia in 2023, which companies will derive the greatest benefit?
As Chinese students return to Australia, there are several companies that have been struggling in their absence and are set…
Underlying v Statutory results? There’s a big difference between the 2 – here’s how to tell
When companies report results, you’ll hear underlying and statutory results. What is the difference between the two and how big…
If Macquarie Group is the ‘millionaires factory’ why has it retreated 15% in 12 months?
Macquarie Group (ASX:MQG) isn’t known as the ‘millionaire’s factory’ for nothing. Despite it being a relatively young bank compared to…