Domain HY25 Results Announcement

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Stock Domain Holdings Australia Ltd (DHG.ASX)
Release Time 13 Feb 2025, 8:38 a.m.
Price Sensitive Yes
 Domain Holdings Australia reports H1 FY25 results
Key Points
  • Continued listings growth, with new 'for sale' listings up 7% in FY25 H1
  • Strong growth in site visits up 23% YoY, outperforming major competitor
  • 10% YoY increase in Unique Audience, and sustained QoQ growth
Full Summary

Domain Holdings Australia Limited [ASX:DHG] ('Domain' or 'Company') today announced its 2025 half-year financial results. Domain reported statutory (Reported 4D) revenue of $223.8 million, and a net profit after tax attributable to members of the Company of $35.7 million, including a significant items gain of $2.6 million. A fully franked dividend of 2.0 cents per share has been declared, in line with FY24 H1. The company saw continued listings growth, with new 'for sale' listings up 7% in FY25 H1 and 3% in January 2025. There was strong growth in site visits, up 23% year-on-year, outperforming the growth rate of the major competitor. Domain also reported a 10% year-on-year increase in Unique Audience, and sustained quarter-on-quarter growth. The company had success with new product launches, including Platinum Edge and Audience Boost. Platinum Edge penetration increased close to 50% year-on-year, supporting strong growth in pricing. Audience Boost delivered incremental views to residential listings of 24% on average during the campaigns.Domain's investment in technology transformation is being undertaken within the envelope of its cost base, allowing it to maintain margins and cash flow conversion. This investment is expected to drive revenue growth through faster product launches, efficient pricing changes, and new features, as well as cost savings through improved productivity.The company saw growth across its business segments, with Core Digital revenue increasing 8% and Core Digital EBITDA up 8%. Residential revenue was up 12%, with depth revenue 14% higher year-on-year. Media revenue increased 14%, outperforming the broader display advertising market. Agent Solutions revenue increased 2% year-on-year, with solid performance from subscriptions and strong contracts growth.For FY25, Domain expects stable EBITDA margins, balancing confidence to invest in growth opportunities with continuing efforts to drive productivity.

Guidance

For FY25, Domain expects costs to increase in the high single digit percentage range from the FY24 expense base (excluding discontinued operations) of $254.1 million, reflecting ongoing investment to drive growth opportunities from Domain's Marketplace. Domain expects stable EBITDA margins in FY25.

Outlook

Trading for the month of January has seen new 'for sale' listings increase 3% year-on-year in a seasonally lower period for the business. Domain is progressing its investment into technology platforms to accelerate the Marketplace journey and broaden the range of 'Only on Domain' experiences available to users.