Australian REA Group eyes boost in revenues on higher H2 property listings

Source: Picture of Adelaide city, South Australia (Australian Broadcasting Corporation (ABC))

Online real estate classifieds portal REA Group said the recovering Australian residential market would boost revenue in the second-half as its first-quarter profit fell 14%, sending its shares to almost three-month lows on Friday.

The Australia property market is emerging from a two-year downturn that hurt consumption and corporate earnings. Home prices rose for a fourth straight month in October amid record-low interest rates and looser lending standards.

However, the improvements have yet to fully translate into stronger profits. This week saw two Australian-listed construction material providers, James Hardie and Boral, warn of ongoing softness in the housing market.

REA said property listings would continue to decline in the first half before picking up in the second half, lifting revenue growth later in the year.

“We know the buyers are back and it’s only a matter of time before the sellers follow,” REA Chief Executive Officer Owen Wilson said in a statement.

Residential property listings in Australia were down 15% in October, with Sydney and Melbourne posting sizable declines, the company said.

“Generally there’s always been a bit of a lag there,” CommSec market analyst James Tao said, referring to the way listing volumes follow rising prices.

REA, which is majority-owned by News Corp, reported earnings before interest, tax, depreciation and amortisation (EBITDA) of A$114.9 million ($79.26 million) for the first quarter ended Sept. 30, compared with A$133.1 million in the previous corresponding period.

Its shares were down as much as 5.4% at A$100.99 by early afternoon trade, while the broader market was marginally lower.

Reuters

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.