REA Group Limited (ASX:REA) has reported a 15% increase in net profit from core operations to $650 million, supported by double-digit yield growth across its Australian business.
Revenue from core operations increased 7% to $1.79 billion, with revenue from Australian operations rising 11%.
Core earnings before interest, tax, depreciation and amortisation, excluding associates, climbed 12% to $1.09 billion.
REA Group chief executive Cameron McIntyre said the company’s audience reach and proprietary data positioned it to benefit from the growing adoption of artificial intelligence.
“REA’s unparalleled audience and proprietary data firmly position the business as a leading beneficiary of AI,” McIntyre said.
He said conditions in the Australian property market had shifted in favour of buyers during the final quarter as national house price growth began to moderate.
Despite proposed federal taxation changes, global developments and interest rate increases weighing on sentiment, national property listing volumes remained broadly in line with the previous year.
“After an extended period of strong demand, the Australian property market became more favourable for buyers in the last quarter as national house price growth started to moderate,” McIntyre said.
“Despite proposed federal taxation changes, global events and interest rate increases affecting overall sentiment, vendors continued to bring their properties to market, and national listing volumes remained in line with the prior year.”
Statutory net profit fell 19% to $552 million, largely due to a $111 million impairment against REA India and the reversal of a previous $117 million impairment following the sale of Asian property portal PropertyGuru.
REA Group declared a fully franked final dividend of $1.73 per share, representing a 25% increase.
The final payment takes full-year dividends to $2.97 per share, up 20% from the previous year.
The company also completed a $200 million on-market share buyback, acquiring more than 1.25 million shares.