Domain Australia (DHG) H1 2025 earnings summary

Executive summary

• Revenue grew 7.4% year-over-year to $217.2 million in FY25 H1, with EBITDA up 13.8% and NPAT up 28.3% to $33.1 million; adjusted net profit rose 24.9% to $36.5 million, and EPS increased 28.3% to 5.2 cents.

• Strong digital performance, with digital revenue up 8% and print revenue down 7%; unique audience increased 10% and site visits up 23%, outperforming the main competitor.

• Continued transformation to a property marketplace, emphasizing technology, product innovation, and ISO 27001 certification.

• ESG initiatives advanced, including improved S&P CSA score and new diversity and inclusion strategies.

• CEO transition announced, with Greg stepping in as interim CEO.

Financial highlights

• Residential revenue increased 12% to $154.9 million, driven by 14% growth in Depth revenue and 7% growth in new-for-sale listings.

• Media, developers, and commercial revenue up 2% to $26.2 million; agent solutions up 2% to $19.4 million; Domain Insight down 8%.

• Print revenue down 7% to $8.1 million, with readership up 2% to 1.2 million.

• EBITDA margin improved to 35.8% as EBITDA growth outpaced revenue growth.

• Fully franked dividend of 2.0 cents per share declared, unchanged from last year.

Outlook and guidance

• FY25 costs expected to rise in the high single-digit percentage range, with stable EBITDA margins anticipated.

• Full-year listings growth expected in the low single digits, with improving yield momentum into H2.

• Price increases in home and commercial real estate expected to support H2 growth.

• No change in long-term margin expansion expectations for FY26.

• January 2025 new 'for sale' listings up 3% year-over-year in a seasonally low period.