REA Group Limited (ASX:REA) has announced that it expects to recognize a non-cash impairment charge of approximately $180.0 million (pre-and post-tax) in its results for the year ended 30 June 2017. The impairment relates to the carrying value of goodwill for the Group’s Asian reporting segment and reflects a downturn in market conditions in Asia. The impairment has no effect on current trading and will not impact REA Group’s compliance with its banking covenants. It is intended that REA Group’s final dividend for FY2017 will be determined based on the Group’s Net Profit after Tax (NPAT) excluding the above impairment charge and the $161.6 million profit from the sale of the European operations. In determining the carrying value of its assets, REA Group considers a range of macro assumptions including market conditions, volume of property transactions and new development projects. There has been a decline in several Asian property markets, as a result of changes to government and banking regulations. In Malaysia, there has been a 33% reduction in the number of properties sold. In Hong Kong, the Government has introduced several cooling measures to soften a highly competitive market over the past few years, including the increase of stamp duty for residential property transactions to 15% introduced in November 2016.

To read the complete report CLICK HERE. To get your free report CLICK HERE


 

 

CLICK HERE

 

 

 

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s