REA GROUP (REA): Solid performance with revenue up 25% and improved EBITDA margins; Dividend up 34%

Bell Potter

Stockbroker

REA GROUP (REA): Solid performance with revenue up 25% and improved EBITDA margins; Dividend up 34%. Reported NPAT up 79% to $126.4m (Including profit from the sale of marketable securities and the Squarefoot business-Hong Kong). EBITDA growth across all segments: Australia up 30% to $144.9m, Europe up 92% to $5.1m, Asia $0.4m as compared to negative $0.4m in 1H2014 and Corporate ($5.9m) as compared to ($7.3m). Net operating cash flow up 16% to $88.8m. Monthly site traffic in Australia up 12% to 44.6m and Australian agent numbers up 5%. Outlook: No quantitative guidance provided. Share price reaction: up 1.6% at $50.08 (1.10 pm) Recommendation: Buy rating likely to be retained. See our first impressions here (VIEW LINK)


Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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