REA boss expects rate of interest rises may peak mid-year, property market to stabilise

The outcomes beat expectations of analysts, who forecast $611.2 million in income, however fell brief in revenue. Information Corp chief government Robert Thomson reassured analysts on Friday that REA Group was a “core half” of the corporate’s portfolio. The Murdoch-controlled media firm is in talks to promote its 80 per cent stake in US actual property listings firm Transfer, elevating issues amongst business observers that it could be contemplating a sale of its 61 per cent stake in REA Group.

“[REA Group] is a special firm to Transfer, and you are able to do the maths of what REA is value to us. Its market cap is $16.6 billion Australian,” Thomson stated on Friday. “All of us owe Lachlan Murdoch a debt of gratitude for his digital property prescience.”

REA Group owns 20 per cent of Transfer and would profit from a profitable transaction, which could possibly be value as a lot as US$3 billion ($4.3 billion). Wilson declined to touch upon the transaction.


Information Corp additionally used its announcement to flag a 5 per cent discount in headcount throughout the enterprise. That call doesn’t influence REA Group, however Wilson confirmed the corporate was additionally implementing its personal measures to handle prices, and in addition anticipated a discount in employees numbers by the tip of this calendar 12 months. He stated most of that will happen organically, by slowing hiring processes when an individual leaves.

Shares in REA Group had been down 2.6 per cent to $121.2 in early morning buying and selling, however analysts are upbeat. UBS media analyst Lucy Huang stated it was a powerful outcome.

“Outlook commentary is comparatively constructive for now,” Huang stated. “We stay watchful on second half volumes… it’s doubtless too early to see the complete influence of latest price rises on shopper vendor sentiment.”

It was “a powerful outcome for REA, particularly Aus (residential) depth penetration,” she stated, noting the group had “considerably outperformed our expectations, suggesting REA is probably taking extra share within the present unsure surroundings”.

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