Stocks of the Hour: Macquarie Group, REA Group & News Corporation

Company News

by Lauren Evans

Macquarie Group (ASX:MQG) has posted a 56 per cent jump to $4.7 billion annual profit with almost all the divisions posting a jump in earnings. Macquarie Capital is an outperformer with profit soaring 269 per cent from $651 million in 2021 to $2.4 billion, reflecting significantly higher fee and commission income due to mergers and acquisitions and debt capital markets activities. A final dividend of $3.50 a share will be paid on July 4, an increase of 15 cents from the prior year. The bank did not provide specific guidance but said it continues to maintain a cautious stance with a conservative approach to capital, funding and liquidity that positions them well to respond to the current environment. Shares are trading 6.4 per cent lower at $189.80.

REA Group (ASX:REA) reported a rise in revenue during the March quarter after continued high demand gave sellers the confidence to bring their properties to the market. The property advertiser’s revenue of $278 million rose 23 per cent from the prior year period, while its EBITDA lifted 27 per cent to $155 million. REA said while further interest rate rises are expected, strong bank liquidity, record low unemployment and increased immigration should underpin the Australian property market. Shares are trading 5.5 per cent lower at $115.24.

News Corp (ASX:NWS) reported a 7 per cent rise in revenue during the March quarter to US$2.49 billion despite significant currency volatility. The news giant’s profit improved by 20 per cent, while net income of $104 million increased by 8 per cent thanks to a rebound in advertising, new content, licensing revenues and strong digital subscriber gains. News Corp said the increase reflects growth in all revenue lines, including recent acquisitions, offsetting the negative impact of foreign currency fluctuations. Shares are trading 7.9 per cent lower at $26.55.

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