REA (ASX:REA) declares higher dividend as revenue rises

Company News

by Lauren Evans

REA Group (ASX:REA) declared a higher dividend after reporting a strong increase in revenue for the first six months of the financial year despite Covid lockdowns. 

The online real estate advertiser said its revenue rose 37 per cent to $590 million, while earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 27 per cent to $368 million and net profit rose 31 per cent to $226 million.

Revenue growth was underpinned by increases in all major lines of business. The company said this reflected a strong market recovery despite the impact of Melbourne and Sydney lockdowns in the first quarter.

The board has determined to pay an interim dividend of 75 cents per share fully franked, which reflects a 27 per cent increase on the prior year.

“REA Group delivered an exceptional first half result as the business continued to successfully navigate the impacts of the global pandemic,” said chief executive officer Owen Wilson.

“As anticipated, the removal of Covid restrictions saw a wave of new listings on, with sellers making up for the time lost in lockdown and taking advantage of the significant buyer demand. Combined with record take up of our premium listing products in Residential and Commercial, we delivered very pleasing revenue growth.”

Shares in REA Group (ASX:REA) are trading 1.8 per cent higher at $146.67. 

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