REA Group’s first-half FY26 results have fallen below market expectations, according to RBC Capital Markets analyst Garry Sherriff. The analyst noted that Australian operating costs increased at a faster rate than revenue during the period. REA Group operates real estate websites. The company connects a national audience of property seekers with agents, developers, and financial service providers.
National residential new listings are now projected to decline by 1-3 per cent for the full year, a more pessimistic outlook compared to the market’s previous expectation of a 0.7 per cent decrease. This revision follows an 8 per cent year-on-year drop in January, driven primarily by declines in Perth and Brisbane. In contrast, Sydney and Melbourne experienced growth, and buyer enquiries saw a 20 per cent increase.
REA Group reported revenue of $915.8 million for the first half, which is 1 per cent below consensus forecasts. The company’s dividend of $1.24 also missed expectations, falling 16 per cent short. Profit figures also disappointed.
Sherriff identified several ongoing factors influencing REA’s performance, including higher interest rates, competition from CoStar, and developments in artificial intelligence. He anticipates core operating costs to grow in the mid-single digits, with associate contributions expected to improve slightly in FY26.
