Domain's loss 'expected' post-IPO
Written on the 13 August 2018 by Business News Australia
Domain (ASX: DHG) has posted a $6.2 million full-year net loss for FY18 following a significant year of transition and restructuring.
The online real estate advertiser reported statutory revenue of $286.6 million and a statutory net loss of $6.2 million during its first period as a standalone ASX listed company, which has not yet been a full calendar year.
The business broke away from Fairfax in November last year before the architect of the spin-off and former Domain CEO Anthony Catalano stepped aside from the company just two months after its IPO.
Domain's pro-forma earnings, which provide a view of the financials as if the company had been a separately listed entity for the full financial year, rose by 12.5 per cent to hit $115.7 million.
Domain executive chairman Nick Falloon says the results were in line with market expectations.
"This performance is testament to the strength and unrelenting focus of the entire Domain team and their continued delivery of our strategy," says Falloon.
Falloon adds the company welcomes the recent announcement from Fairfax about the media company's merger with Nine Entertainment.
"We welcome the proposed merger of Fairfax Media with Nine Entertainment Co, announced in July, which is subject to approvals," says Falloon.
"We only see considerable upside for Domain through the additional marketing and audience reach of the combined business."
During the year, Domain's market share continued to expand, and the group's app grew to more than 6.5 million downloads.
A dividend of 4 cents per share (70 per cent franked) will be paid of 4 September 2018 to shareholders.
Looking to the future, a subdued listings environment in Sydney in July may impact the company, but the company's operations in Victoria look like they might offset the impact.
Shares in Domain are up 4.7 per cent to $3.34 per share at 11.09am AEST.
Business News Australia
Author: Business News Australia