REA Group Ltd (REA)

By Jason Fittler

REA is a digital advertising business focused in real estate.

REA's services include: online advertising of residential and commercial properties; online display advertising; website development services; and provision of property market related information to customers and consumers.

REA also aims to deliver online advertising solutions through the sites to help real estate agents sell or rent properties.

REA operates 13 websites around the world.

REA Group reported Net Profit After Tax was up 37% to $70.67m for the half-year ended 31 December 2013.

Revenues from ordinary activities were $209.42m, up 30% from the same period last year.

The group's property websites in Australia, Europe and Asia all recorded traffic growth in the half year.

Australia remained the primary revenue driver for the business, delivering 90% of the group's revenue.

Diluted Earnings Per Share was 53.7 cents compared to 39.2 cents last year.

Net operating cash flow was $76.68m compared to $62.06m last year.

The interim dividend declared was 22 cents compared with 16 cents last year.

REA rose $2.08 (4.99%) to $43.78.

The yield is a mere 1.5% grossed up.

This is a growth company, which means to make money you will need to lock in the gain when available and look to buy back in on the pullbacks. 

With the company valuation now looking stretched it is a good time to sell some shares and lock in a profit.

For more information on REA Group Ltd (REA) please contact us on 07 4771 4577.