Domain boss highlights listings growth
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More news: Domain chief executive and managing director Jason Pellegrino said he was pleased with the result and said the numbers speak for themselves.
Shares in Domain were down 2.6% by late trade on the ASX.
What they said: “With listing volumes, we’ve had a really strong lift in — if you go through, we’re actually now at levels that are higher than where we were a year ago,” Pellegrino told Capital Brief.
“In June, July, we outperformed our competitor in terms of total listings coming into the platform and August looks like it’s going to be the same. So, you know, we’re really in a great position.
“We spoke a lot about what sort of drove some of that relative listings coverage drop early in [the] last financial year, and it was really a combination of very strong yield growth [and] a tough set of market conditions in places like Queensland, where there was cost of living pressures.
“And we’ve been able to re-gather and regain all of that listing share in the course of within 12 months, without sacrificing any yield growth at all.”
Domain shares rise despite earnings miss
More news: Domain shares advanced on the ASX despite the real estate platform's full-year earnings falling short of analysts' forecasts.
Shares were up 2.9% to $3.18 by 11am AEST.
E&P Capital analyst Entcho Raykovski said that Domain's earnings in FY24 were "slightly below" market expectations, with EBITDA of $137.1 million below consensus estimates of $138.8 million and net profit (pre-tax) of $49.4 million behind average analysts' forecasts of $52 million.
What they said: "Taking the combined factors into account, we wouldn't expect the stock to move materially today (and noting any listings growth guidance will be taken with scepticism, given lack of visibility)," Raykovski said.
Domain flags profit lift on growing depth penetration
The news: Digital real estate platform Domain has booked a 62.5% full-year profit lift on the back of “record” depth penetration and listings growth in Sydney and Melbourne.
The numbers: Net profit was at $42.4 million, up from $26.1 million from a year prior while earnings per share was at 6.7 cents, up from 4.14 cents.
The Nine-controlled real estate classifieds business posted revenue of $391.1 million for fiscal 2024, up $13.1% on the $345.7 million booked last year. Earnings before interest, taxes, depreciation and amortisation rose 26.2% to $137.1 million.
The company declared a dividend of 4 cents bringing the full-year dividend to 6 cents per share, above analyst expectations and roughly flat on last year.
The context: Residential revenue rose some 19%, the company said. National “for sale” listings rose 3% for the year, driven by growth in Sydney and Melbourne. Average revenue per user rose 18% year-on-year, while national depth penetration reached “a new high” in each state except Western Australia.
What they said: “Most pleasingly, our key assets of unique data, quality audiences and product innovation have delivered ‘Only on Domain’ experiences that provide real benefits to consumers, agents and enterprise customers,” Domain chief executive and managing director Jason Pellegrino said in a statement.
“This has underpinned strong growth in depth revenue, audience and listings, with the property market returning to a more normal environment. New listings growth improved each quarter of the year, led by the Sydney and Melbourne market,” he said.
“Looking forward, this success has strengthened our resolve to vigorously compete and accelerate the benefits we deliver to customers. We are increasing investment into our technology platforms, while retaining our track record of disciplined productivity improvement across the business.”
The sources: ASX announcement, E&P Capital research
