REA Group (ASX:REA) reported "very strong" fiscal first-half results, and downgraded its fiscal year cost guidance, now expecting low double-digit core operating cost growth, from the previous high single-digit forecast, according to a Thursday note by Jarden Research,

The digital advertising company reported Thursday that group revenue for the six months to Dec. 31, 2024, was AU$872.9 million, up 20% from AU$725.5 million a year earlier, beating Jarden's AU$869 million guidance.

Group earnings before interest, taxes, depreciation, and amortization before associates was AU$535 million, up 22% from last year, and 1.7% above the market's expectations of AU$527 million, Jarden noted.

Jarden estimates a AU$12 million to AU$20 million increase to REA's fiscal 2025 cost outlook, with first-half costs already AU$10m above consensus, implying an AU$2 million to AU$10m rise in costs for the fiscal second half.

Further clarification is needed on whether the cost downgrade is due to higher revenue expectations or a changed revenue mix, Jarden said.

Jarden Research has an underweight rating on REA Group with an AU$198 price target.