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Wednesday 24

October, 2018 4:07 PM



Domain, Nine set to tap property obsession

Domain, Nine set to tap property obsession

Real estate advertiser Domain has reported a net loss of $6.2 million, mainly due to expenses related to its spin-off from Fairfax Media in November 2017.

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By AAP 13.08.2018 09:33 AM

Domain executive chairman Nick Falloon is excited about the potential for the property listings group and new majority owner, Nine Entertainment, to capitalise on the Australian public's property obsession.

Discussing the acquisition of Fairfax Media - which holds a 60 per cent stake in Domain - by Nine, Mr Falloon said there was upside Domain and Nine in the deal.

"Nine has the ability to reach across the country," he said in an analyst briefing to discuss Domain's full-year results.

"I can see Domain becoming a very big contributor to Nine's property content.

"As we know, Australians love to hear and talk about property."

The real estate advertiser, which was spun off from Fairfax Media last November, has swung to a net loss of $6.2 million for 2017/18, hurt in part by restructuring charges and the rebranding of some print titles

Excluding significant items totalling $29.6 million, profit after tax for the year to June 25 was up 7.7 per cent at $52.9 million, with revenue up 11.5 per cent to $357.3 million.

Domain's revenue from its online listings business - including residential, developers and commercial - increased 17 per cent in the year while its print business suffered a 13 per cent decline in revenue.

The group's shares were up 12 cents, or 3.8 per cent, to $3.31 at 1402 AEST despite the company flagging a "subdued" listings environment for its key Sydney market for the first six weeks of the new financial year.

DOMAIN'S FIRST FULL YEAR ALONE

* Net profit of $6.2m for year ended June 24

* Pre-significant items profit $52.9m, up 7.7 pct

* Revenue of $286.6m

* Pre-significant items revenue $357.3m, up 11.5 pct

* Final dividend 4 cents, 70 per cent franked

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