This article is from the Australian Property Journal archive
NINE’s real estate portal Domain recorded strong revenue growth in FY24 as more vendors put their homes up for sale, although momentum is slowing in the major markets of Sydney and Melbourne.
Revenue across the entire company increased 13.1% to $391.1 million over the year, and Domain recorded a net profit after tac of $42.4 million.
The full-year dividend of 6.0c per share was in line with FY23.
Domain expects stable EBITDA margins in FY25.
Residential revenue increased 19%, underpinned by strong growth in depth revenue, as “for sale” listings increased 3%, with a significant improvement experienced over the four quarters.
“Sydney and Melbourne led the market up as is typically the case. Other markets remained challenged from a volume perspective, although revenue per listing saw strong outperformance due to higher price increases,” said Domain CEO and managing director Jason Pellegrino.
“Trading in July has experienced ongoing growth, with new ‘for sale’ listings up 4% year-on-year, on a like-for-like basis. Growth rates in Sydney and Melbourne have moderated from the very strong FY24 performance, with improving momentum in other states.”
Average revenue per listing in FY24 increased 18%, which was supported by new products including its Platinum Edge add-on to depth contracts.
“The controllable elements of price and depth were 14% higher, benefiting from double digit price increases and another strong year of upgrades and new depth contracts,” it said.
FY25 costs are expected to increase in the high single- to low double-digit percentage range from FY24’s $254.1 million, reflecting “ongoing investment to drive growth opportunities from Domain’s Marketplace”
Looking to speed up Core Listings and Marketplace growth, as part of its FY25 price change, Domain launched Audience Boost, a social media amplification product that automatically extends depth sale listings across a variety of digital channels.
“We’re excited by the early results from Audience Boost, with results which are consistent with our tests in FY24. We are delivering an average uplift of around 30% in views per listing across all depth products in July,” Domain said.
Core digital revenue increased 14% to $374.2 million, and core digital EBITDA increased 27% to $171.2 million.
Domain’s print revenues increased 1%, driven by an improved listings environment in the high value inner Sydney and Melbourne suburbs where many of Domain’s flagship print publications circulate.
Revenue in media, developers and commercial increased 8%.
Media revenue increased 52% year-on-year, which it said significantly outperformed the broader display advertising market.
Commercial real estate delivered revenue growth of 18% year-on-year, benefiting from listings growth across sale and lease, and new depth contract adoption. Second-half growth slowed against the first half, reflecting the price increase which took effect from the second half of FY23.
The developers business continued to experience a “challenging” market backdrop of high construction and funding costs, with revenue declining year-on-year.
“New project approvals have reduced significantly, although there has been some offset from an increase in project duration,” Domain said.
