REA Group Ltd

REA: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$832.00	Pvdn	Hcmfzmkk

REA Group’s Earnings Rebounding as Expected Following Reduced COVID-19 Restrictions

Feb 5, 2021

We have maintained our earnings estimates and AUD 80 fair value estimate for REA Group following its strong first-half result. As we expected, REA’s earnings are rebounding strongly following the very weak second half of fiscal 2020 and subsequent easing of COVID-19 movement restrictions. Although the lockdown in the state of Victoria impacted the first quarter of fiscal 2021, the rebound in the second quarter was strong. Despite the strong first-half result, we’ve maintained our forecast for a 12% increase in underlying NPAT in fiscal 2021.

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How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

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Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

United States