Domain spin-off costs hit profit

Lindsay Bennett
By Lindsay Bennett | 19 February 2018

Domain has posted a profit loss of $3.4 million for the half year for the six months to 24 December, impacted by the costs relating to its spin-off from Fairfax Media in November 2017.

Its significant items after tax totalled $2.8 million and caused the business to slip 8.1% to an net profit of $24.7 million.

Revenue increased 12.5% to $183.3 million.

Domain executive chairman Nick Falloon maintained the company is in "great shape", despite a fall in profit and an ongoing search for a chief executive after the departure of Antony Catalano, who is being investigated for claims of questionable behaviour in the workplace.

“Domain has reported a pleasing first standalone result, with a pro forma EBITDA growth of 8.7% and a strong underlying performance,” he said in a statement on the ASX.

“It demonstrates the strength of Domain as a separately listed company and the ongoing success of its strategy.”

He added the search for a new CEO is underway and the new boss will have experience in “building great culture”.

In the first seven weeks of the second half, Domain says the company had digital revenue growth of 21% and total revenue growth of 11%.

Print revenue fell 11%, after a 6% reduction in costs year-on-year and more cost cutting around the corner for printing and distribution.

Domain's share price remains steady at around $2.87 a share following its earnings report, recovering slightly from the significant drop it experienced after Catalano announced his exit, but still at a low.

Interim dividend hit 4 cents per share (30% franked), a payout ratio of 93%.

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