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Domain's H1 underlying profit slides 8pc

Simone Ziaziaris  |  19 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Domain Holdings' (ASX: DHG) first-half underlying profit has slipped 8.1 per cent to $24.7 million, on a pro forma basis, dragged down by a spike in company costs.

The real estate business has reported a statutory loss of $3.4 million for the six months to December 24 due to costs relating to its spin-off from Fairfax Media, and significant items after tax totalling $2.8 million.

But Domain says revenue in the six months had risen 62.3 per cent to $112.7 million, from $69.4 million a year ago.

Executive chairman Nick Falloon said the company had reported a "pleasing" first result since its separation from Fairfax in November after shareholders overwhelmingly voted in favour of the spin-off.

Under the deal, Fairfax has retained a 60 per cent interest in Domain and shareholders hold the remaining 40 per cent.

"It demonstrates the strength of Domain as a separately listed company and the ongoing success of its strategy," Mr Falloon said in a statement on Monday.

"The business is in great shape with strong underlying momentum."

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Pro forma underlying revenue rose 12.5 per cent to $183.3 million and earnings before interest, tax, depreciation, and amortisation grew 8.7 per cent to $56.8 million.

Mr Falloon also said the search for a new chief executive is continuing after Antony Catalano left the role in January--only two months after the real estate classifieds business listed on the Australian Securities Exchange.

"We expect the new leader to have execution discipline and relevant experience in driving a growth business and building a great culture," Mr Falloon said.

"The calibre of the candidates that we are attracting is truly impressive, befitting Domain's position as a leading real estate media and technology business."

Domain expects 2018 full-year pro forma costs to increase around 12 to 13 per cent from 2017's pro forma $216 million.

COMPANY COSTS WEIGH ON DOMAIN:

* Underlying pro forma profit down 8.1pc to $24.7m

* Statutory loss of $3.4m

* Revenue up 62.3pc to $112.7m

* Partially franked interim dividend of four cents

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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