Australian domain ownership (ASX:DHG) provided a positive trading update at its 2024 Annual General Meeting, held today, reporting continued demand-led revenue growth in the digital and premium listing segments.
For Q1FY25, Domain’s residential revenues grew 12% year-over-year, with depth revenues increasing 15% and digital revenues increasing approximately 9%.
(“In-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 simple market listings of residential properties.)
October listings also saw continued growth, supporting a 19% year-over-year revenue increase 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 improve customer engagement and differentiate its services. “We are committed to leveraging unique insights and ‘Only on Domain’ experiences to deliver unparalleled value to agents, buyers and sellers across Australia,” Pellegrino said.
The company also maintained its cost and EBITDA margin guidance for FY25, with cost increases expected in the range of high single digits to low double digits and EBITDA margin stability expected for FY26 This stability aligns with Domain’s focus on growth and margin expansion as it expands its digital offerings and data-driven solutions.
Shares are trading 0.33% lower at $3.03.