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.”