A red-hot property market spells good news for the guys at Domain.
Domain is the real estate platform majority-owned by Nine Entertainment. These guys have more than 6 million app downloads, and around 5 million active users per month across their site and their app.
Like many businesses, 2020 wasn’t a great year for Domain. But they’ve managed to turn that around, reporting a revenue of $289.6 million and net profits of $37.9 million.
They might have a pretty good biz strategy, but they can mostly hang their coats on a killer property market. Now, they can return a dividend to shareholders for the first time since 2019.
Property listing sites can do whatever they want, but LBH, their performance is directly linked to the performance of the actual property market.
In 2020, COVID hits. We've got no sellers...No buyers...No open inspections = no listings. REA Group (aka realestate.com.au) hit a low of $72 per share, and Domain bottomed out at $1.89 per share (ouch).
Fast-forward to today, the property market is piping hot (no, not the teen clothing brand). And that's meant share price highs for REA and Domain. Me thinks the link is clear.
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