REA Group to see $180m impairment in FY17

Company News

by Jessica Amir

REA Group Limited (ASX:REA) is expecting to see a non-cash impairment charge of about $180 million (pre and post tax) for the financial year ending 30 June 2017.

The online real estate marketer says, the impairment relates to carrying goodwill for its Asian segment and reflects the downturn in Asian property markets, on the back of government and banking regulations.

Despite the impairment, REA says it will not impact its current trading or compliance with its banking covenants.

The company’s final dividend for FY2017 will be based on the groups NPAT, excluding the $180 million impairment charge and the $161.6 million profit from the sale of European operations.

Shares in REA Group Limited (ASX:REA) are trading 1.79 per cent lower to $66.75

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.