Exec chairman Nick Falloon delivers Domain financials, reports on CEO search

‘Domain has today reported a pleasing first stand-alone result’

Commenting on Domain’s 2018 half-year financial results, Domain executive chairman Nick Falloon said: “Domain has today reported a pleasing first stand-alone result, with pro forma EBITDA growth of 8.7% and a strong underlying performance. It demonstrates the strength of Domain as a separately listed company and the ongoing success of its strategy.”

The company reported revenue of $112.7 million and a net loss after tax of $3.4 million (including significant items).

Pro forma results (excluding significant items) were revenue of $183.3 million up 12.5%, EBITDA of $56.8 million up 8.7% and net profit after tax of $24.7 million down 8.1%.

“Having stepped in as executive chairman [after the sudden departure of Antony Catalano], I can attest to the bench strength of the entire Domain team and their passion, skill and commitment. The business is in great shape with strong underlying momentum,” said Falloon.

“I’m pleased to say the global search is under way for a new CEO. We are searching for an individual who will take Domain through its next stage of growth. We expect the new leader to have execution discipline and relevant experience in driving a growth business and building a great culture. The calibre of the candidates that we are attracting is truly impressive, befitting Domain’s position as a leading real estate media and technology business.”

Falloon added: “Domain continues to make excellent progress in delivering on its strategy through its intense customer focus and cutting-edge product development. During the first half, achievements included:

• Continued expansion in relative market share to more than 95% of listings and more than 90% of agents
• Continued strong growth in Domain app downloads to 6.1 million with an 18% uplift in app launches
• 21% growth in residential mobile enquiries and 82% growth in CRE enquiries from our large premium audiences
• 19% growth in core digital revenue underpinned by 24% growth in residential depth, and strong Commercial and Developer revenue
• The launch of Domain Loan Finder and Domain Insure, with a 91% increase in transactions revenue from existing and new businesses.

“Print revenue declined 11.6% and Print EBITDA declined 25.4%. This performance reflects ongoing structural decline, with some offset from cost initiatives,” Falloon said.

“Cost initiatives delivered a 6% reduction in expenses year-on-year. There are further cost opportunities in printing and distribution efficiencies.”

Meanwhile, Domain shares jumped 13¢ or 4.5% to $3.00 after a conference call with analysts and executives presented an upbeat picture about Domain’s opportunity to expand in Queensland, where it lags competitors, reports The AFR’s Aaron Patrick.

 

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