By Stuart Condie


SYDNEY--Australian real-estate advertiser REA Group Ltd. raised its dividend and targeted further revenue growth in the year ahead after lifting its annual profit by 19%.

The ASX-listed firm on Tuesday reported a net profit for the 12 months through June of 384.8 million Australian dollars (US$268.8 million), compared with A$322.6 million a year earlier. Revenue rose by 25% to A$1.16 billion, and by 18% once the impact of acquisitions was stripped out.

REA lifted its final dividend to A$0.89 from A$0.72 for a full-year payout of A$1.64.

Operating costs rose by 34%, largely on the acquisition and consolidation of the REA India and Mortgage Choice businesses. REA expects operating expenses growth in the mid- to high-single digits across its 2023 fiscal year, which began on July 1, and aims to grow income more quickly than that.

Higher labor costs in Australia, where the unemployment rate is at a 48-year low of 3.5%, also contributed to operating costs, which rose by 11% once the impact of acquisitions was stripped out.

New Australian residential listings were up by 7% on-year in July, although REA cautioned that on-year growth through the first quarter of fiscale 2023 will reflect Covid-related lockdowns in Sydney and Melbourne in the prior corresponding period.

Growth rates through subsequent quarters will then reflect the release of pent-up demand through the remainder of fiscal 2022, it said. Australian property prices have also begun falling amid rising interest rates after a period of supercharged growth, which may affect market activity.

"While we're mindful of changing economic conditions, with further interest-rate rises expected, Australia's property market is healthy and supported by strong underlying fundamentals," Chief Executive Owen Wilson said.

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 stuart.condie@wsj.com


(END) Dow Jones Newswires

08-08-22 1851ET