Domain shares lower on mixed Q3 results
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More news: Shares in Domain fell despite the real estate listings business reporting improved revenue for the March quarter and forecasting an expanded EBITDA margin for the 2024 financial year.
Domain shares were down 1.4% to $3.23 by 2:30pm AEST.
E&P Capital analysts noted that Domain's third-quarter revenue result tracked ahead of their estimates and consensus, despite a 5% hit due to revenue deferral from Q3 into Q4. However, they said that the solid revenue result was partly offset by expectations that FY24 costs will be at the top end of guidance.
Domain boosts revenue through March quarter
The news: Digital real estate listings business Domain reported a revenue boost through the March quarter and expects to expand its EBITDA margin in the 2024 financial year.
The numbers: The company on Wednesday reported 22% residential revenue growth through the third quarter, and a 17% boost to digital revenue.
The context: Domain chief executive Jason Pellegrino is due to address investors at the Macquarie Australia Conference in Sydney later today.
In introductory remarks released to the market early Wednesday, Pellegrino said the company saw average revenue per sale grow 20% year on year.
What they said: “In the face of listings volatility, we provided guidance of FY24 listings growth in a range of 1% to 3%,” Pellegrino said.
“Based on our Q3 performance and early trends in Q4, we expect to deliver the upper end of that range at 2% to 3%. We continue to see strong momentum in Sydney and Melbourne markets, with improving trends in Queensland and WA, which experienced significant year-on-year declines in the first half.”
The source: ASX announcement
