Domain Holdings Posts 46% Profit Surge on 10% Revenue Growth in H1 2024
Domain Holdings Australia Limited has reported a robust half-year performance with a 10% increase in revenue and a 46.4% jump in net profit after tax for the period ending December 31, 2024. The company also announced a fully franked interim dividend, signaling confidence in its ongoing growth trajectory.
- Total revenue rose 10% to $223.8 million
- Net profit after tax surged 46.4% to $35.7 million
- Earnings per share increased to 5.65 cents
- Interim dividend of 2.0 cents per share declared, fully franked
- Net debt slightly reduced to $147.3 million following debt refinancing
Strong Financial Performance Amid Market Challenges
Domain Holdings Australia Limited has delivered a compelling half-year financial report for the six months ended 31 December 2024, showcasing significant growth in both revenue and profitability. The company’s total revenue from continuing operations climbed 10% year-on-year to $223.8 million, reflecting solid demand across its core digital real estate services.
Net profit after tax attributable to members rose sharply by 46.4% to $35.7 million, a notable acceleration compared to the prior corresponding period. Earnings per share (EPS) also improved markedly to 5.65 cents, up from 3.86 cents, underscoring enhanced operational efficiency and margin expansion.
Segment Highlights and Operational Insights
The Core Digital segment, which encompasses Domain’s digitally focused real estate media and services, remained the primary growth driver, generating $209.1 million in revenue and delivering an operating EBITDA of $92.8 million. This segment’s performance was complemented by steady contributions from the Print segment, despite ongoing industry headwinds.
Domain’s strategic initiatives, including platform improvements and technology transformation, have begun to bear fruit, although the company incurred $1.2 million in restructuring costs related to these efforts. Additionally, a $1.1 million impairment charge was recorded, primarily linked to convertible notes conversion losses.
Balance Sheet and Capital Management
On the balance sheet front, Domain maintained a disciplined approach to leverage, with net debt slightly reduced to $147.3 million from $150.8 million at the previous half-year. This was achieved following a refinancing of its syndicated bank facility, which reduced the total facility size to $290 million and extended maturity dates by three years, providing greater financial flexibility.
The company’s net tangible asset backing per share remains negative at 40.3 cents, reflecting the intangible-heavy nature of its asset base, including goodwill and software investments totaling over $1.37 billion. Nevertheless, net asset backing per share improved marginally to 177.9 cents.
Dividend and Outlook
Reflecting confidence in its financial position and future prospects, Domain declared a fully franked interim dividend of 2.0 cents per share, payable on 11 March 2025. This follows a 4.0 cents per share dividend paid in September 2024, maintaining a consistent shareholder return policy.
While the company’s half-year results are encouraging, the broader real estate services market remains dynamic and competitive. Domain’s ability to sustain revenue growth and profitability will depend on continued innovation, market conditions, and execution of its strategic initiatives.
Bottom Line?
Domain’s strong half-year results set a positive tone, but sustaining momentum amid evolving market dynamics will be key.
Questions in the middle?
- Can Domain sustain its accelerated profit growth in the second half of FY25?
- What impact will ongoing technology investments have on future margins?
- How will the reduced debt facility size affect Domain’s strategic flexibility?
