Domain Holdings Australia Limited

Appointed New CEO: Real estate media and services business, Domain Holdings Australia Limited (ASX: DHG) has recently announced the appointment of Jason Pellegrino to the role of Managing Director and Chief Executive Officer (CEO), effective from 27 August 2018. With his appointment, the group is confident on Jason that he will help to realize the full potential of the business in the upcoming period. On the financial front, the company reported 12.5% growth in the revenue to $183.3 million for 1H 2018. However, net profit declined 8.1% to $24.7 million for the period. Additionally, for FY18, DHG’s pro forma costs are expected to increase around 12% to 13% from FY17’s pro forma costs of $216 million. 


1HFY18 Financial Highlights (Source: Company Reports)

If one looks at the trading update for the first 17 weeks of 2H FY18 (i.e., 25 December 2017 to 22 April 2018), group’s digital revenue has grown by 21% while a 13% rise was seen for total revenue. At the moment, Domain delivers reach through large and highly-engaged audiences including digital audience of about 4 million, a print audience of 2.1 million and social audience of 1.5 million. It is noteworthy that its marketing platform is healthy and offers amplification via platinum products to build agent profiles and brands. Its exemplary products include listings cards, agent and agency profiles, and find-an-agent search feature.

Meanwhile, the stock price was up by 9.49% in the past six months as at August 09, 2018 and traded close to an average of the 52-week low and high levels. We look for some key positives from the group and maintain our “Expensive” recommendation on the stock at the current market price of $3.190. It may be better if one can wait and watch for Full year result which will be released on August 13, 2018.

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