BENGALURU: REA Group, majority-owned by News Corp, posted a rise in annual profit and raised its dividend, buoyed by price hikes and higher national home listings in Australia, sending its shares on track for their best session in six months.
Shares of the Melbourne-headquartered real estate firm, in which the Murdoch family owns over 61 per cent, rose as much as 4.7 per cent to A$198.48 (RM585.44) on Friday and were set for their biggest intraday gain since early February.
Net profit after tax from core operations rose 24 per cent to A$460.5 million (US$303.38 million) for the year ended June 30. REA declared final dividend of A$1.02 apiece, up from 83 cents a year ago.
REA said residential demand remains strong nationally and with decade-high interest rates being put on hold, positive market fundamentals and robust supply should support consumer confidence.
Its revenue from India operations rose 31 per cent to A$103 million. Its real estate search portal, Housing.com, benefitted from strong customer events, including improved monetisation in Tier 2 Indian cities.
Growth in India will be driven by higher marketing spends, it said, and expects smaller losses for the next fiscal.
Revenue from Move, which operates the property portal realtor.com in North America, declined 10 per cent, on poor macroeconomic conditions in the US. REA owns a 20 per cent stake in Move.
REA has a 17.2 per cent stake in PropertyGuru, which operates property sites in Singapore, Vietnam, Malaysia and Thailand. Its core equity-accounted contribution was A$1 million loss in 2024.
REA's annual losses from equity investments in other firms increased to A$26 million, from A$16 million last year.
However, it expects losses for its contributions from firms it owns to be marginally lower next fiscal, amid stabilising US market conditions.
Analysts at Citi expect the market to prioritise next year's revenue growth prospects, influenced by REA's effective cost management driving operating leverage.