The share price of Domain Holdings Australia Ltd (ASX: DHG) has experienced a notable increase on Friday, trading at $3.23 per share, nearly 5% higher from the opening price. This uptick comes in response to the company’s impressive financial results for the fiscal year 2024 (FY24).
Key Highlights from FY24 Results
For FY24, Domain Holdings Australia Ltd, an ASX communication stock, reported notable growth across key financial metrics. Revenue surged by 13.1% year-over-year, reaching $391.1 million, while EBITDA experienced a substantial increase of 26.2%, amounting to $137.1 million. The company also saw a 27.9% rise in Net Profit After Tax (NPAT), totaling $49.4 million. Earnings Per Share (EPS) grew by 27.8%, reaching 7.8 cents per share. Additionally, Domain declared a final dividend of 4 cents per share, culminating in a total full-year dividend of 6 cents per share.
Business Performance and Innovations
During FY24, Domain Holdings demonstrated strong business performance. The company achieved a 16% increase in average revenue per listing and saw a "record depth penetration" within its target market. The expansion of its digital offerings, particularly with the launch of Audience Boost, contributed to a 30% increase in views per listing as of July 2024.
The company also experienced a 10% growth in its residential unique audience, outperforming its major competitor. Sales within the Media business were up 52% year-over-year, exceeding broader advertising market trends.
Despite this financial success, the company finished the year with $150.8 million in net debt. Nonetheless, the growth in profits by 28% year-over-year reflects the company's solid performance, although it did not prevent fluctuations in the Domain share price.
Management's Perspective
Jason Pellegrino, CEO of Domain Holdings, expressed satisfaction with the company’s performance:
“Domain’s strong FY24 results are a testament to the efforts of our dedicated team of over 1,000 individuals. We are committed to our Marketplace strategy by continually building and releasing innovative solutions. Our key assets, including unique data, quality audiences, and product innovation, have contributed to creating 'Only on Domain' experiences that benefit consumers, agents, and enterprise customers.”
“Throughout FY24, we introduced several differentiated user experiences to support Core Listings and accelerate Marketplace growth. Our launch of Audience Boost, a social media amplification product, has extended depth sale listings across various digital channels efficiently. This market-first proposition combines AIM’s proprietary technology with Domain’s listing marketing solutions, offering significant value to agents and vendors.”
Looking Ahead
As Domain Holdings looks towards FY25, the company plans to continue investing in its technology platforms while focusing on productivity improvements. Financial projections for the next year indicate expectations of stable EBITDA margins, with confidence in ongoing business growth and productivity initiatives.
Share Price Performance
Following the release of its strong FY24 results, Domain Holdings’ share price has shown a positive boost. Despite this recent increase, the share price has decreased by nearly 18% over the past 12 months.
Domain Holdings Australia Ltd has delivered a strong performance for FY24, marked by significant revenue and profit growth. The company's strategic innovations and financial success have positively impacted its share price, reflecting the market’s response to its robust results.