Jason Pellegrino, the Chief Executive Officer of digital property portal Domain Group, has told shareholders of the company that any boost in home sellers after the election isn't necessarily going to make up for the dip in listings the market has seen.
A weak trading update posted to the Australian Stock Exchange surprised investors who sent the share price falling 7.53 percent to $2.70. Nine Entertainment Co (owner of this masthead) has a 59.4 percent 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 percent due to a weak national property market. Rival News Corp-owned REA Group's share price dropped 0.77 percent to $79.90, while Nine's share price increased 0.57 per cent to $1.75.
In Sydney and Melbourne, where most of Domain's business is concentrated, the number of houses going to auction declined 30 percent and 36 percent respectively over the quarter. There was a 13 percent drop in residential sale listings, though there was 1 percent revenue growth on "depth listings" where home sellers pay more for additional advertising products and better placement.
Pellegrino, speaking at a Macquarie Conference in Sydney, said the May and June property volumes tend to be lower and any year-on-year rebound was "unlikely to make up for the weakness across March".
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