Domain has warned of a sharp fall in property listings in the second quarter of this year.
👉 Background: Domain Group is the digital property listings business founded by Fairfax Media back in 1999. It’s the place you go to look at houses that are WAY out of your price range. While Domain is big, it’s still the much smaller sibling of big behemoth Realestate.com.au.
👉 What happened: Now, Domain has warned of a sharp fall in property listings in the second quarter of this year (October - December). And as a result, it expects to see its profit drop 21% below the $61m it booked the same time last year.
👉 What else: In particular, property listings in inner city Sydney and Melbourne were down 38 per cent and 32 per cent respectively. And while Domain copped a 10.8% slide in share price, it’s trying to reposition its business away from property listings only.
💡When it comes to revenue streams in a tough economy, the more the merrier. Having access to more than one revenue stream can protect your business against changes in the market.
💡Domain is evolving its business model from a publisher model (i.e. a model that supports a one-off transactions) to a property ecosystem (i.e. a model that is involved in the entire property journey).
💡There’s the core listings business, agent solutions, consumer solutions, and property data solutions. But ultimately, all these divisions still centre around property - so when there is a housing market slowdown, it becomes hard for Domain to outperform.
Sign up for Flux and join 100,000 members of the Flux family
