Domain Group chief executive Jason Pellegrino has warned shareholders that any surge in home sellers after the election is unlikely to make up for the slump in listings.
A weak trading update posted to the Australian Stock Exchange on Tuesday surprised investors who sent the share price falling 7.53 per cent to $2.70. Nine Entertainment Co (owner of this masthead) has a 59.4 per cent stake in Domain.
For the three months to March 2019, digital revenue was in line with the same period in 2018 but overall revenue was down 6 per cent due to a weak national property market. Rival News Corp-owned REA Group‘s share price dropped 0.77 per cent, while Nine’s share price increased 0.57 per cent.
In Sydney and Melbourne, where most of Domain’s business is concentrated, the number of houses going to auction declined 30 per cent and 36 per cent respectively over the quarter. There was a 13 per cent drop in residential sale listings, though there was 1 per cent revenue growth on «depth listings» where home sellers pay more for additional advertising products and better placement.