Online real-estate advertiser REA Group has posted a 24 per cent jump in September quarter earnings from core operations to $107 million.
The company, majority owned by News Corp, said there had been excellent revenue growth in the three months to September 30, driven by the Australian residential business, and inclusion of revenue from its new financial services business from August 1.
Revenue for the quarter rose 21 per cent to $190 million.
Listings in the key markets of Melbourne and Sydney had risen, but this was offset by lower listings in other states, REA said.
Revenue growth in the commercial business segment was strong despite flat listings, growth in the developer business was subdued due to lower project starts, while the media business achieved modest growth.
The realestate.com.au owner said a 17 per cent increase in operating expenses during the quarter reflected the addition of the new financial services business, which includes a majority stake in mortgage broker Smartline and a broking partnership with National Australia Bank.
The new segment was on track to deliver full-year guidance for revenue between $26-$30 million and earnings between $7-$11 million, but there would be minimal revenue growth in the developer and media segments due to market conditions, it said.
The revenue growth rate in the Australian residential business would be dependent on whether there is any change in the "favourable listing environment" in the two big capitals after spring, REA said.
REA shares were $1.89, or 2.53 per cent, at $76.775 at 1016 AEDT.
