Domain FY18 results show $6.2 million loss after Fairfax separation

Domain have shown a revenue of $286.6 million with a net loss after tax of $6.2 million in the company’s FY18 results.

The loss comes after the company split from Fairfax and listed on the ASX in November.

The company is no doubt hoping incoming CEO Jason Pellegrino, who begins his role at the end of the month, will boost their fortunes, as should the impending Fairfax and Nine merger.

Domain didn’t break down their marketing spend, although it’s understood they have recently ramped up their intentions to tackle the market share held by main competitor REA Group.

Domain Executive Chairman Nick Falloon said, “Domain has reported a good result for the 2018 financial year in line with market expectations. The business is strongly positioned as an Australian real estate media and services platform with excellent growth prospects.

“Pro forma EBITDA growth of 12.5% demonstrates the strength of Domain as a separately listed company. This performance is testament to the strength and unrelenting focus of the entire Domain team and their continued delivery of our strategy. Pleasingly, full-year EBITDA margins for the Group increased from 32.1 per cent to 32.4 per cent.

“We are thrilled to welcome Jason Pellegrino as our new Managing Director and CEO. The Domain Board ran a comprehensive global search for the role, attracting a strong field of international and local candidates. After Jason joins in late August 2018, I will resume my role as Non-Executive Chairman,” said Mr Falloon.

The results listed by Mr Falloon show a focus on the company’s pro-forma results had they been separately listed for a full financial year.

Domain said its key investments during the year were marketing sponsorships including The Block (which airs on Nine) and their Platinum Partnership with Cricket Australia.

“We welcome the proposed merger of Fairfax Media with Nine Entertainment Co, announced in July, which is subject to approvals. We only see considerable upside for Domain through the additional marketing and audience reach of the combined businesses,” said Mr Falloon.

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Hannah Blackiston

Hannah Blackiston was an in-house journalist with Elite Agent. She worked with the company from January 2018 to January 2019.