domain-group-dhg-asx-ticker-feature
Image: Canva, Domain.
  • Revenue was $356.7 million, up 23.2%
  • EBITDA was $122.2 million, up 21.4%
  • Net profit after tax of $35.1 million

Domain Holdings (ASX: DHG) recently announced its full-year results, with the company reporting a statutory revenue of $357 million, and a net profit after tax of $35.1 million including a significant expense of $20.2 million.

The company recorded EBITDA of $122.1 million, a 21.4% increase from FY21, with earnings per share also increasing – up 43.4% to 9.30 cents.

Domain Chief Executive Officer and Managing Director, Jason Pellegrino, said: “Over the past four years our team has remained laser focused on the elements of our business that we can control, against a backdrop of considerable trading volatility. This mindset has positioned Domain to leverage property market strength, while providing downside protection when the cycle has been less supportive. The creativity and hard work of our team are building Domain into a fundamentally stronger business, and this is reflected in the outstanding set of results we are delivering today.”

Domain’s trading results (excluding significant items and disposals)

FY22

FY21

% change

Revenue

$356.7 million $289.6 million 23.2%
Expenses ($234.6 million) ($189.0 million)

(24.1%)

EBITDA

$122.1 million $100.6 million 21.4%
EBIT $91.9 million $64.5 million

42.4%

Net profit attributable to members of the company

$55.3 million $37.9 million 46.0%
Earnings per share 9.30 cents 6.48 cents

43.4%

Source: Domain.

Mr Pellegrino said: “Domain’s FY22 trading results on a reported basis are significantly impacted by the timing of the JobKeeper grant and repayment, and the benefits and costs of Zipline, our voluntary employee program undertaken during the early stages of the COVID pandemic. In FY21 we received a net $6.5 million EBITDA benefit from JobKeeper and Zipline. In FY22 this reversed to an additional expense of $8.0 million. Domain’s ongoing results exclude the impact of JobKeeper and Zipline from both periods. On this basis, ongoing expenses of $226.7million increased 13.2% excluding the Realbaseacquisition, in line with guidance, and 15.9% including Realbase. EBITDA of $130.1 million increased 38%, delivering margin expansion across every segment, with the ongoing core digital margin of 48.8% a stand-out.”

Domain’s ongoing results (adjusted for JobKeeper/Zipline)

Revenue

$356.7 million $289.6 million 23.2%
Expenses excluding Realbase acquisition ($221.2 million) ($195.5 million)

(13.2%)

Expenses Including Realbase acquisition

($226.7 million) ($195.5 million) (15.9%)
EBITDA $130.1 million 94.0 million

38.2%

EBITDA margin

36.50% 32.50%

Source: Domain.

Core Digital Revenue increased 22.6%. Core digital EBITDA increased 18.4% on a reported basis and 31.0% on an ongoing basis, Mr Pellegrino said.

Residential

Domain’s residential revenue increased 23%, the segment contributing $239.2 million in revenue to the business.

“Overall depth penetration and Platinum penetration continued to grow strongly in every state despite the continued COVID disruptions during the first half,” said Mr Pellegrino.

“Our price increases implemented in July 2022 are targeted to drive higher levels of depth penetration, and were implemented with a record number of new Q4 depth contracts which increased 70% YoY.”

Revenue

$239.2 million
Depth revenue growth

Up 26%

New ‘for sale’ listings

Up 9%
Controllable yield

Up 14%

Media, Developers & Commercial

The segment saw increased revenues, up 7%, with stronger H1 growth across all three verticals.

Mr Pellegrino said the commercial real estate business was the best performer, delivering solid revenue growth for the year, and benefiting from the flexible value-based pricing model.

“Developers delivered a solid depth performance in a challenging market for ulti-storey developments. Weakness in ACT reflected the Covid-related H1 shutdowns.

“Media continued to leverage quality audiences and content, although an elevated base of comparison from the prior year constrained H2 growth rates.”

Agent Solutions

The segment delivered a 67% increase in revenue including the contribution from Realbase from May. On an underlying basis, revenue increased 17%.

“Our acquisition of Realbase contributed from May 2022 and we’re excited by the opportunity to strengthen our end-to-end agent workflow solutions. Realbase’s high growth businesses Engage and AIM are delivering significant momentum in pre-list and proposals products, and social and digital media marketing,” said Mr Pellegrino.

Property Data Solutions

Mr Pellegrino said: “Property Data Solutions revenue increased by 35% with solid underlying growth of 13% from Pricefinder and APM, and the contribution of Insight Data Solutions following the completion of our  acquisition in mid-October. Pricefinder  non-agent performance accelerated into H2,  benefiting from the sales team relaunch and refocus, and  large  enterprise account wins. APM  delivered stable valuations contribution and strong growth in revenue from its expanding API customer base.

“IDS is  demonstrating  strong  progress  in  both  the financial  institutions  and government  sectors. The business achieved a new contract with NAB so that the Domain Group now services all four of the major banks, and has been selected as a preferred supplier to the number 5 bank. In the government sector IDS is close to securing the next Valuer General contract, and the NSW Government tender is underway sooner than expected.”

~~

For full details, please see the company’s original ASX announcements and related documents.



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