A closer look at REA Group’s half year results
At $135.00 on 27 January, REA Group’s (ASX:REA) share price had fallen almost a quarter from its high of $176.81 in November 2021. The move demonstrates even high-quality company shares can succumb to the vagaries of sentiment, especially when investors abandon long-term investing plans in favour of short-term fears about where share prices might land tomorrow or next week.
And amid the share price weakness, REA Group has just announced “exceptional” H1 FY22 financial results. In a beat of market expectations REA reported headline revenue up 37 per cent to A$590 million, and up 25 per cent excluding acquisitions. The company’s EBITDA margin was 62 per cent, reporting $368 million of EBITDA, which was 27 per cent higher than the previous corresponding period.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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