REA +0.04%: FY23 result out this morning was broadly in line with expectations, with a small fall in earnings despite a slight uptick in revenue. Net profit of $372m was slightly above consensus of $366m with cost control being the key driver. Listing volumes were weak during the year as property prices came off the boil, however, REA managed to increase its footprint in the Aussie market to hold revenue steady. International markets continue to show promise, however, their main overseas position in India was slightly disappointing despite seeing 46% revenue growth. CAPEX numbers were slightly higher than expected which weighed on the dividend. Outlook comments from the company were mixed, expecting to see weak YoY listing volumes early in FY24 as they cycle strong numbers, but then expect to see “positive jaws” with margins continuing to improve with scale.
- An ok result, however, the market was positioned for it. We would need to see more before being interested again in REA – we sold recently.
MM is neutral REA
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