This article is from the Australian Property Journal archive
NINE’S property listings portal and news company Domain said it outpaced the growth of bigger rival REA Group for site visits in the first half of FY25, and that its audience is “meaningfully more likely to buy”.
Domain reported a 7.4% uplift in first half revenue to $217.2 million and 13.8% increase in EBITDA to $77.8 million. Earnings per share was up 28.3% to 5.2c.
Continued listings growth in the residential market pushed its new for sale listings up by 7% in FY25 and a further 3% in January, and the residential segment’s revenue increased 12%.
SQM Research data shows total listings grew by 4.5% in January, hitting 243,642 properties – 10.3% higher than a year earlier. Along with stretched affordability, that has translated into the slowdown in house price growth, and in some cities, price falls.
Domain reported strong growth in site visits, up 23% on the prior corresponding period, which it said was supported by innovation around its Audience Boost product, which delivered incremental views to residential listings of 24% on average during Audience Boost campaigns.
“Domain delivered 10% year-on-year growth in unique audience, with an audience profile that is high intent, and meaningfully more likely to buy than the national average and our major competitor,” Domain said.
Domain is pushing investment in its technological capabilities.
“Domain’s investment in our technology transformation is being undertaken within the envelope of our cost base, allowing us to maintain margins and cash flow conversion. We believe this investment will transform the opportunities available to Domain in important ways in the future,” said Domain CEO and managing director Jason Pellegrino.
“It will allow us to grow revenue through faster product launches, efficient and effective pricing changes, new features and greater flexibility in promotions and bundling. It will deliver cost savings through improved productivity from automation and integration, increased sales and service efficiency, and elimination of manual processes.
“By working more efficiently and reducing time spent on maintenance, we will free up the capacity of our engineers and product teams to focus on value-add work that drives innovation.
“The key benefit will be the ways in which we can enhance the user experience through accelerating product innovation with improved product design and data quality.”
Media revenue increased 14% despite a challenging market backdrop, outperforming the broader display advertising market which declined around 5%. Commercial Real Estate delivered stable revenue “in a softening environment for office and retail verticals”, as stronger sale listings were offset by lower lease listings. A price increase took effect during November, which Domain expects to contribute in H2.
Print revenues declined 6.8%, with stable residential performance offset by Developers and Commercial. Print’s readership increased 2% year-on-year to 1.2 million.
“We have leveraged the power of Nine’s distribution network with the relaunch of Prestige magazine, and the addition of a dedicated Victorian offering following the sunsetting of Domain Review. Prestige Victoria will be distributed in The Age as well as the Australian Financial Review.
Domain’s agent solutions business recorded a 2% increase in revenue, while its Domain Insight segment saw an 8% decline in revenue.
Pellegrino said the data Domain Insight provides is a “critical resource” for the broader Domain Group.
“During the first half, our ongoing efforts to improve our price estimates and make this available for consumers on our Home Price Guide pages resulted in more than four million additional properties with a price estimate, taking us to coverage of more than nine out of 10 Australian residential addresses,” he said.
