REA Group has received a triple shot of good news: a surging share price, investor approval and improved customer satisfaction ratings.
The group’s share price ended yesterday at 50 cents – a gain of 10.3 per cent since the start of the year.
Investment analyst Morningstar last week issued a positive ‘hold’ recommendation for REA Group, which it said commands listings from 90 per cent of Australian agents.
“So many people use realestate.com.au that it is more popular than the next 15 competitors combined,” Morningstar said.
“If international growth is successful, this business could grow significantly.”
REA Group last week posted very strong financial results for the six months to 31 December 2014.
Underlying revenue grew 25 per cent year-on-year to $261.5 million, while underlying profit jumped 34 per cent to $94.7 million.
Chief executive Tracey Fellows said the strong results are a reflection of the value REA Group delivers to agents and vendors.
“Customer satisfaction ratings have improved. I want them to keep going up and I want to make sure I have delighted customers,” she said.
Ms Fellows confirmed that REA Group would freeze residential prices until at least 2016, and also said it had no plans to change its policy of only accepting listings from agents.
“I think that’s a really important, strong statement that we make, and we do that because we think that’s the best way for consumers to sell their property,” she said.
[Related: REA Group posts rising revenue]