Domain Holdings Australia Limited posted a robust first half of FY25, with revenue climbing 7.4% and net profit after tax soaring 28.3%, driven by innovation and audience growth. The company’s marketplace strategy and technology investments underpin a confident outlook for continued expansion.
- Revenue increased 7.4% to $217.2 million in FY25 H1
- Net profit after tax rose 28.3% to $33.1 million
- Unique audience grew 10% year-on-year, with site visits up 23%
- Strong uptake of Platinum Edge and Audience Boost products driving pricing power
- FY25 outlook anticipates stable EBITDA margins amid ongoing growth investments
Robust Financial Performance Amid Market Challenges
Domain Holdings Australia Limited (ASX: DHG) delivered a strong first half for FY25, reporting a 7.4% increase in revenue to $217.2 million and a notable 28.3% jump in net profit after tax to $33.1 million. This performance reflects the company’s successful execution of its marketplace strategy, even as broader economic conditions remain mixed.
Underlying the financial results is a 13.8% rise in EBITDA to $77.8 million and a 24.7% increase in EBIT to $59.2 million, supported by lower amortisation costs following adjustments to software asset lifecycles. These gains underscore Domain’s operational efficiency and disciplined cost management despite increased investments in growth initiatives.
Audience Growth and Product Innovation Drive Momentum
Domain’s unique audience expanded by 10% year-on-year, with site visits surging 23%, outpacing major competitors. This growth is attributed to the strong adoption of innovative products such as Platinum Edge, which saw penetration approach 50% year-on-year, and Audience Boost, which delivered an average 24% increase in listing views during campaigns.
The company’s focus on enhancing user experience through technology investments, including a new API management platform and AI-powered tools like LeadScope, is enabling personalised property journeys and more effective marketing. These innovations are central to Domain’s strategy to deepen engagement and accelerate marketplace growth.
Segment Performance and Strategic Diversification
The residential segment remains the core revenue driver, growing 12.1% to $154.9 million, buoyed by increased listings and pricing power. Media revenues held steady despite a challenging advertising market, while the developers vertical faced headwinds from higher construction costs and funding challenges. Agent Solutions showed modest growth, supported by platform enhancements and subscriber momentum.
Domain Insight experienced a slight revenue decline due to strategic exits and contract phasing but is expected to rebound in H2 with renewed government contracts. Print revenues declined modestly but continue to deliver exclusive, high-intent audiences, supported by the relaunch of the Prestige magazine Victorian edition in partnership with Nine.
Outlook Balances Growth Investment with Margin Stability
Looking ahead, Domain anticipates a modest increase in new 'for sale' listings and expects FY25 costs to rise in the high single-digit percentage range, reflecting continued investment in marketplace growth. The company projects stable EBITDA margins, balancing confidence in growth opportunities with ongoing productivity improvements.
Domain’s strategic priorities remain focused on growing core listings, diversifying revenue streams through data and asset expansion, and delivering differentiated 'Only on Domain' experiences. The integration with Nine’s distribution platform and ongoing AI enhancements position Domain well to capture evolving market opportunities.
Bottom Line?
Domain’s FY25 H1 results highlight a company confidently scaling its digital marketplace while navigating market complexities, setting the stage for a pivotal second half.
Questions in the middle?
- How will Domain sustain audience growth amid intensifying competition from digital rivals?
- What impact will rising costs and investments have on Domain’s margin trajectory beyond FY25?
- How effectively can Domain convert its data and AI capabilities into new revenue streams?