Domain Group, a real estate advertisingt company based out of Australia, has dropped in value by an incredible $178 million, due part to the housing market downturn and scarcer property listings.
In its first-half results announcement, Domain said lower-than-expected listings in the Sydney and Melbourne markets required a re-assessment of carrying value in company.
The write-down comes a little over a year since Domain's ASX listing in the wake of its separation from the old Fairfax media group, which is still its majority shareholder in its new form as a merged company with Nine Entertainment.
The big hit to goodwill saw Domain's first-half result tumble to a $156.4 million loss, down from a $3.3 million loss in the previous corresponding period.
It is the second significant write-down the company has been forced to take in its short life, following a $30 million blow in August last year on costs associated with rebranding.
The underlying first-half result — stripping out one-off items, such as the goodwill write-down — was a $21.1 million profit, down 14 per cent on last year.
Sales revenues were effectively flat — up just 0.3 per cent — to $184 million for the half.
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