REA’s Share Price Up by 5.26% Today
REA Group Ltd [ASX:REA] is a multinational digital advertising business specialising in property.
Founded in 1995, REA operates the residential and commercial property websites, realestate.com.au and realcommercial.com.au.
REA’s share price is up 5.26% for the day.
What caused this rise?
REA released their financial results for the period ending 31 March 2018 yesterday.
It’s fair to say that the results were positive.
REA stated that minus broker commissions, their March quarter revenue grew by 19% to $186 million.
Their operating expenses only grew by 18%.
REA was expecting this result, as their figures for the nine months leading up to March 2018 showed a revenue increase of 20%.
While REA attributed these results to the company’s residential and commercial businesses, the inclusion of the financial services business also made a significant impact on revenue.
What’s even more impressive, is that they were able to achieve these results with lower listing volumes due to the timing of Easter.
What’s next for REA?
REA is involved in the booming Asia segment, which is vastly helping the business.
They have also grown their market position in both Indonesia and Malaysia. So things are looking very positive for REA.
REA are also going through the acquisition of a property data services business, Hometrack, which they are purchasing for $130 million.
EA Group CEO, Tracey Fellows said:
‘We continue to extend our audience lead, with app launches reaching a record high of three times more than the nearest competitor. The combination of consumer innovation and creating the best and most personalised property experiences is what makes us the number one place for property.’
With all that is happening for REA both financially and with future endeavours, they look like a company that will continue to grow into the future.
Editor, Money Morning
PS: REA has been a consistent performer on the ASX, however, our Money Morning editor Sam Volkering argues that the biggest potential gains can be found in the sector with the biggest potential risk — small-cap stocks. If you’re interested in learning more, check out his free report ‘Top Three Aussie Small-cap Stocks to Own in 2018’, downloadable here.