- Wednesday, October 16, 2024
By Stuart Condie
Domain Holdings Australia, an ASX-listed real-estate advertiser, announced impressive financial results for the first half of the fiscal year. The company reported a net profit of AUD 24.4 million, a significant increase of over 70% compared to the previous year. Revenue also witnessed substantial growth, rising by 11% to reach AUD 203.5 million.
Analysts had forecasted a net profit of AUD 28.3 million from revenue of AUD 205.5 million. Although Domain did not meet these expectations, the company still delivered strong financial performance amidst challenging market conditions.
Expenses rose by 3.9% to AUD 136.2 million, and Domain maintained its guidance for a mid-to-high single-digit increase in expenses over the full fiscal year.
Chief Executive Jason Pellegrino highlighted the ongoing recovery in the Sydney and Melbourne markets, which contributed to the rise in residential revenue. Pellegrino also mentioned the success of Domain's top-tier package, which was well-received among customers.
Controllable yield saw a significant increase of 15% compared to the previous year, with average revenue per sale listing rising by 20% on a continuing operations basis.
The company reported early signs of improvement and further growth in Sydney and Melbourne listings at the start of the second half of the fiscal year.
Domain's exposure to these two major Australian markets has drawn attention from analysts, who view it favorably compared to its rival, REA Group. REA's shares have been trading at near-record highs and premium valuation multiples, potentially limiting short-term upside.
Domain Holdings Australia's strong financial performance reflects its ability to navigate challenging market conditions and capitalize on opportunities for growth. With early signs of improvement in its key markets, the company is well-positioned for continued success.
All Rights Reserved © 2024
Post a comment