- Digital revenue increased 8% over the past quarter, total revenue rose 2%
- Domain's strategy has shifted to what they call a ‘Marketplace Strategy’
- Share price is $4.70, capitalising the business around A$2.7 billion
ASX-listed national property listings site Domain (ASX: DHG) has seen its digital revenue increase 8% over the past quarter, with total revenue rising 2%.
In a presentation earlier this week, they reported a rebounding of new listings appearing in on their portal, with record property searching activity, home open attendances, auction clearance rates and new Domain home loan accounts being created.
The Domain business now encompasses far more than a site to search for property. In fact, they have three sites: the Domain.com.au as well as AllHomes.com.au (in Canberra) and CommercialRealEstate.com.au.
In addition, they offer PriceFinder and Australian Property Monitors so agents and others can keep tabs on the market, and all the latest sales evidence. They have various print offerings, which are supported by advertising.
On the agency side, they offer the HomePass open for inspection tool, RealTime agent point of sale platform and the payment solution MarketNow. For property buyers, they can provide Domain home loans, insurance and utilities connections.
Domain’s strategy has shifted to what they call a ‘Marketplace Strategy’, moving away from the online classifieds publisher model a more holistic ‘property ecosystem’.
In this way, they plan to capture more of the value embedded in the property transaction, rather than just in the initial search bit.
In his presentation, CEO and Managing Director of Domain Jason Pellegrino gave an update on how this new strategy – first outlined a year ago – was progressing.
“Our evolution to a Marketplace model is designed to make our solutions work better together, and to expand the addressable markets for our services.
Creating valuable new solutions for agents, consumers and corporates supports additional growth opportunities, while at the same time strengthening the value of our core listings business.”
Jason Pellegrino, CEO & MD, Domain
It also means that the business can earn more revenue per listing, an important economic driver. Key to this is increasing the so-called ‘depth revenues’ where agents buy higher-priced subscription packages, and pay for additional features and advertising.
Domain Share Price, past year (‘DHG’)
Domain’s share price is $4.70 at the time of writing, which capitalises the business around A$2.7 billion. A year ago, the share price dipped below $2, but has been on a strong rally ever since, much like the broader property market itself.