By Stuart Condie

SYDNEY--REA Group Ltd. raised its dividend by 30% after a jump in Australian property listings helped the real-estate advertiser to lift its first-half profit by 28%.

REA reported a net profit for the six months through December of 221.3 million Australian dollars (US$157.9 million), compared with A$173.4 million a year earlier. It said Australian residential listings rose by 31% on-year despite the impact of Covid-related lockdowns in its fiscal first quarter.

Data by property analytics firm CoreLogic showed the average Australian residential property value rising by 22% over the 12 months through December. REA said buyer demand remained strong, while supply had improved as more homes came on to the market following the end of lockdowns.

The board declared an interim dividend of 75 Australian cents per share, up from 59 Australian cents a year ago.

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

REA said core operating costs had risen by 17% over the quarter, partly due to higher salaries in a tight labor market, and that it now anticipated them increasing in the low double digits over the full year. It previously expects costs growth in the high single digits.

Yet REA said it is aiming to grow revenue at a higher rate even as listings growth moderates over a second half that will include an Australian federal election, which typically acts as a brake on the country's property market. First-half revenue rose by 36% on year to A$586.9 million.

"While Covid and the federal election may throw some curveballs, the effect on our market should be temporary," Chief Executive Owen Wilson said.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

02-03-22 1750ET