REA Cuts Dividend After Annual Profit Falls 7.5%

By Stuart Condie

SYDNEY--REA Group cut its dividend after higher interest rates and stalling property values contributed to a 7.5% drop in the Australian real-estate advertiser's annual profit.

The ASX-listed firm on Friday reported a net profit for the 12 months through June of 356.1 million Australian dollars (US$232.0 million), compared with A$384.8 million a year earlier. Revenue rose by 2.0% to A$1.18 billion.

REA cut its final dividend to A$0.83 a share, from A$0.89, for a full-year payout of A$1.58 a share.

The average analyst forecast was for a net profit of A$250.6 million from revenue of A$799.3 million, according to data compiled by FactSet.

REA is 61% owned by News Corp., the owner of Dow Jones & Co., publisher of this newswire and The Wall Street Journal.

Write to Stuart Condie at [e-mail]

(END) Dow Jones Newswires

08-10-23 1837ET