News: REA UPDATE 1-Australia's REA Group sees tough 2nd half; half-year profit tumbles

(Adds outlook, background)

Feb 8 (Reuters) - Australian real estate classified company REA Group (REA) said on Friday it expected a lower rate of revenue growth in the second half, citing tough near-term market conditions resulting in a slip in listings.

The company, which is majority-owned by News Corp NWSA.O , said market conditions were not expected to improve in its main Australia market in the short term, while adding that listings may slip in the lead-up to the New South Wales and federal elections.

Tighter lending conditions and higher taxes on foreign buyers amid greater pressure from regulators ended the seemingly inexorable rise in property sale prices, which analysts believe is set to weigh on company earnings across the board.

REA Group's first-half net profit plummeted 98 percent because of a non-cash impairment charge of A$173.2 million ($123.02 million) in relation to its Asia business.

Macroeconomic changes resulted in tougher market conditions for its Asia business, prompting the company to step up investment in the region and resulting in the heavy impairment charge.

Net profit came in at A$2.3 million for the six months ended Dec. 31, compared with A$132.4 million reported a year ago.

REA Group's revenue rose 15 percent, however, to A$469.2 million.

The Melbourne-based firm added that tighter lending conditions and uncertainty from the Royal Commission inquiry on broker recruitment resulted in flat underlying revenue growth during the period in its financial services business.

($1 = 1.4079 Australian dollars)