Sures up Financial Position

April 26, 2020
Share this Post: 

It is being reported that Australian property portal Domain has secured waivers on its financial covenants which will give it the opportunity to operate flexibly and with a degree of certainty as parts of Australia look to ease lockdown restrictions.

The financial alleviation is reported to be an $80 million debt facility that comes on the back of a $225 million facility from November 2019. Domain has also cut back on staffing, with employees on reduced hours and being offered compensation packages including share rights.

Staffing and adjacent costs make up 45% of its cost base, and along with the announcement of the debt relief, this news constitutes a real fillip for Domain. The market responded very positively to the announcement with shares shooting up to $2.55 (up from a low of $1.72 on the 23rd of March).

Company CEO, Jason Pellegrino, was quoted as saying: 

"I am very proud that we have come up with a range of initiatives that help deliver immediate and material cash flow savings, while also allowing us to retain Domain's most important asset - our people and their ability to deliver innovative products,"

Domain, which recently launched its Insights Series to help agents succeed, looks to be on solid ground and is even seeing a pick up in enquiries on the portal with Pellegrino saying: 

"We’re seeing growth year on year in terms of that consumer activity which is a positive signal of what lies ahead.”

April 26, 2020
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Zillow Housing Data
Zillow Rolls Out AI-Assisted Home Tours Nationwide

Home shoppers across the U.S. can now tour homes virtually using Zillow's free, AI-generated floor-plan tool. Zillow's AI-generated floor plan is...

Read More
Scout24 Boardroom
Scout24 Revenues Grow 15% in Q2 as User Subscriptions Grow to Nearly 300,000

Scout24, Germany's dominant portal, has released its half-year results, with strong performance across the board. Highlights include: Revenue growth of...

Read More
Shutterstock 1356000662
REA Group Smashes A$1 Billion Revenue Barrier as it Capitalizes on 'Buoyant Listings Environment' in FY22

The Australian real estate portal operator REA Group has released its report for the 2022 Australian financial year. Highlights from...

Read More
Shutterstock 502750987
Opendoor Gets Fined $62m, Partners up with Zillow

Opendoor—an iBuying specialist based in the US—has been fined by $62 million by the FTC for misleading customers and posted...

Read More

Editor's Pick