REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 5. Earnings per share (EPS) Accounting policies The Group presents basic and diluted EPS in the Consolidated Income Statement. Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares by the weighted average number of ordinary shares outstanding during the financial year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. (a) Earnings per share 2021 Cents 2020 Cents Basic and diluted earnings per share attributable to the ordinary equity holders of the company 244.6 85.3 (b) Reconciliation of earnings used in calculating earnings per share 2021 $’000 2020 $’000 Profit attributable to the ordinary equity holders of the company used in calculating basic and diluted earnings per share 322,677 112,373 (c) Weighted average number of shares 2021 Shares 2020 Shares Weighted average number of ordinary shares used as the denominator in calculating basic and diluted earnings per share 1 131,927,327 131,714,699 1 The Group does not have any dilutive potential ordinary shares. There is no effect of the share rights granted under the share-based payment plans on the weighted average number of ordinary shares, as shares are purchased on-market. 76 Financial Statements