Domain's CEO Jason Pellegrino is optimistic that Australians will capitalize on the rising value of property in Australia, and list their homes online, as investors punished the property portal's half-year results.
Pellegrino has said that although the listings volumes in Sydney and Melbourne's real estate markets have been at their lowest since the 1990s, Doman has still been able to deliver a "solid performance" and that improvements are expected in the upcoming months.
In spite of the optimistic outlook by Pellegrino, investors were less impressed by Domain's result, with shares dropping over 6 per cent to close at $3.55. Eric Pan, an analyst for JPMorgan indicated that the results were weaker than expected, because of a slower rebound in listings. Pan stated that the numbers are looking better in comparison to the first half, but fall short of expectations, "We were hoping for at least a positive year over year rebound in listings, and…we haven't seen that," Pan told the Sydney Morning Herald.
Domain's results come just two weeks after REA Group, declared its at AUD 440.3 M for the six months to December 2019, indicating a 6 per cent fall from the previous corresponding period. REA's net profit dropped by 13 per cent to AUD 152.9 M. Owen Wilson, CEO of REA Group stated that the results are indicative of the strength of the business in "unprecedented market conditions".
The above article was sourced from the Sydney Morning Herald.