Domain Holdings Australia (ASX:DHG) provided a positive trading update during its 2024 Annual General Meeting, held today, reporting steady revenue growth driven by demand in its digital and premium listing segments.
For the first quarter of FY25, Domain’s residential revenue grew by 12% year-on-year, with depth revenue rising by 15% and digital revenue up by around 9%.
("Depth revenue" refers to premium listing services that enhance a property's visibility on the platform, while "digital revenue" includes revenue from digital advertising and data services, etc, reflecting Domain’s broader digital ecosystem, beyond just residential property market listings.)
October listings also saw continued growth, supporting year-on-year depth revenue gains of 19% on a like-for-like basis.
CEO Jason Pellegrino highlighted Domain’s Marketplace strategy, which combines the company's core listings business with ancillary offerings to enhance customer engagement and differentiate its services. “We’re committed to leveraging unique insights and ‘Only on Domain’ experiences to deliver unmatched value to agents, buyers, and sellers across Australia,” Pellegrino stated.
The company also maintained its guidance for cost and EBITDA margin for FY25, with cost increases projected in the high single to low double digits and EBITDA margin stability expected through FY26. This stability aligns with Domain’s focus on growth and margin expansion as it scales its digital offerings and data-driven solutions.
Shares are trading down 0.33% at $3.03.
