REA Group (ASX:REA) reports 5% drop in earnings

Company News

by Katrina Bullock

Online real estate classifieds company REA Group (ASX:REA) reported a 5 per cent drop in earnings (EBITDA) year on year to $492.1 million for the year ended 30 June 2020.

Revenue was down 6 per cent to $820.3 million and net profit after tax fell 9 per cent to $268.9 million.
The board declared a final dividend of 55 cents, bring the total dividend for the 2020 financial year to 110 cents per share - down 7 per cent from last year.

The company says the result was impacted by Covid 19 and by significant declines in residential listings and new project commencements as a result of the restrictive lending environment following the 2019 Financial Services Royal Commission.

Despite all this, the group’s flagship site realestate.com.au extended its leadership position with around 60 per cent of Australia’s adult population visiting the site each month.

Shares in REA Group (ASX:REA) are trading 2.67 per cent higher at $114.31