Home search engine Domain has reported a jump in its half year revenue and net operating income after implementing a successful marketplace strategy.
Its revenue grew 27 percent coming in at $176.2 million and a net profit after tax of $19.5 million including a significant loss of $6.6 million. A dividend of 2.0 cents per share was declared.
The group’s net operating income came in at $61 million a 14 percent growth.
Domain Chief Executive Officer and Managing Director, Jason Pellegrino, said through the volatile trading environment of the past three years, Domain has maintained the pace of its business strategy evolution.
“We have responded to the changing environment, while continuing to innovate for the future. I am incredibly proud of the hard work of our team in progressing Domain into a fundamentally better business. We have positioned Domain to take full advantage of the rebounding property environment,” he said.
“The outcome of our strategic focus, and the increasing value we bring to our customers and consumers, is reflected in the outstanding set of results we are announcing today. We have achieved growth across every revenue line, and 53 percent EBITDA growth on an ongoing basis, and delivered on our commitment to deliver expanding EBITDA margins on an ongoing basis. The entire Domain team is delivering on the promise of our Marketplace strategy.”
Pellegrino said the half year trading results on a reported basis are significantly impacted by the timing of the JobKeeper grant and repayment, and the benefits and costs of Zipline, the company’s voluntary employee program undertaken during the early stages of the COVID pandemic.
“In FY21 H1 we received a net $8.7 million EBITDA benefit from JobKeeper and Zipline, while in the first half of FY22 this reversed to an additional expense of $7.5 million Domain’s ongoing results exclude the impact of JobKeeper and Zipline from both periods,” he said.
“On this basis, expenses of $106.7 million increased 15.7 percent and EBITDA of $68.5 million increased 53 percent. Pleasingly we delivered margin expansion across every segment, with the ongoing core digital margin of 50.9 percent a stand-out, and all-time record.”
At December 2021, net debt was $166.4 million representing a leverage ratio of 1.4x ongoing EBITDA.
According to Domain, the results of its transformation to date underpin its confidence to continue to invest in its Marketplace strategy, while retaining its disciplined investment approach, and commitment to ongoing margin expansion.
