REA Group Shares Decline 18% Following Half-Year Financial Results

REA Group Shares Decline 18% Following Half-Year Results Release

REA Group Ltd (ASX: REA) shares experienced an 18% decline, reaching $150.01 on Friday. This movement occurred after the company released its half-year results for the six months ending December 31.

Half-Year Financial Performance

For the period, REA Group reported a 5% increase in total revenue, amounting to $916 million. This growth was primarily driven by an 8% rise in Australian revenue, while international revenue decreased by 31%. On a like-for-like basis, which accounts for acquisitions and divestments, overall revenue increased by 8%, with Australian revenue up 8% and international revenue remaining flat.

Australian Residential revenue grew 7% to $658 million. This was largely due to a 14% increase in yield, which partially offset a 6% decline in national listings. Commercial and New Homes revenue rose 10% to $121 million, and Financial Services revenue increased 11% to $58 million. Other revenue also saw an 8% uplift to $35 million.

Group operating expenses increased 3% to $347 million.

Net profit after tax for the half-year saw a 9% uplift to $341 million, and earnings per share also increased 9% to $2.58. These financial outcomes were reportedly below market expectations.

Operational Performance & Engagement

The company reported strong audience engagement across its platforms.

An average of 12.7 million monthly visits was recorded during the first half, peaking at 13.2 million in November. An estimated 6.4 million users exclusively utilized realestate.com.au.

The platform also recorded 146.1 million average monthly visits, which represents a significant difference compared to its nearest competitor.

Additional key metrics included:

• A 20% increase in average monthly realestate.com.au buyer enquiries.
• A 38% increase in realestate.com.au seller leads.
• A 10% increase in active members.

Management Commentary and Outlook

REA Group CEO Cameron McIntyre stated that the first-half performance was supported by robust double-digit yield growth in the core residential business and enhanced consumer experiences. The company plans to continue its innovation efforts with new product features and capabilities.

For FY 2026, REA Group anticipates residential Buy yield growth of 12% to 14%. The company expects positive operating jaws, indicating that cost growth will be lower than revenue growth, with Australian jaws projected to be modestly open.