Domain profit slides along with listings in difficult market

The news: Profits for Australia's second largest real estate advertiser Domain fell 28.2% to $38.6 million as listings sank in key markets.

The numbers: Domain's revenue was relatively steady, only falling 0.5% to $345.7 million, while earnings per share fell by almost a third to $6.12. Residential revenue fell 7% to $223.1 million, as new 'for sale' listings dropped 13.8% year on year, and by more than 21% and 16% in key markets Sydney and Melbourne respectively. Domain declared a dividend of 4 cents per share, bringing its full-year dividend in line with last year's 6 cents.

The context: A high cost, high interest rate environment is limiting both property construction and the lending capacity of potential homebuyers. Domain said early FY24 trading indicated an early recovery for listings in south-eastern capitals, although Queensland and WA markets remained sluggish.