By Stuart Condie

SYDNEY--Shares in REA Group hit their lowest level in more than two years after the News Corp-controlled real-estate advertiser's first-half profit fell short of expectations.

The stock dropped as much as 18% early in Friday's session after REA's first-half core net profit fell 2.4% short of the average analyst forecast, as calculated by Visible Alpha.

Shares rallied but were still down by 7.1% after about an hour of trade at 169.50 Australian dollars, equivalent to US$117.21. That would be its lowest close since December 2023.

REA raised its dividend payout ratio and announced a A$200 million on-market share buyback, but notes from analysts flagged negatives including the softer-than-expected profit.

Cost growth in Australia outstripped revenue growth in the six months through December, although REA said it expected that to reverse over the full fiscal year.

Citi analyst Siraj Ahmed highlighted REA's expectation for full-year buy-yield growth of 12%-14%, compared with its prior guidance for 13%. The latest outlook implies that yield growth will slow in the fiscal second half compared with the second quarter, Ahmed said.

News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

February 05, 2026 19:01 ET (00:01 GMT)

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