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Domain Group and REA Group have reported big increases in revenue amid significant investments in the two businesses.
Domain’s revenue for the current financial year is 68 per cent higher than the corresponding period in 2014-15, according to a trading update from parent company Fairfax Media.
That includes a 45 per cent revenue gain for domain.com.au and a 43 per cent jump for Domain’s total digital business, which includes other portals such as Allhomes.
Fairfax identified Domain as one of its “growth engines”, along with its events division and its co-owned streaming service, Stan.
“We are continuing transformation and strengthening our growth businesses through disciplined investment, which includes increasing operating expenses in Domain to maintain the business’ growth trajectory,” Fairfax said.
“Consistent with our comments made at the FY15 result, we expect domain.com.au costs to increase at a similar rate to FY15, which was about 30 per cent.”
Fairfax said Domain would continue to prioritise mobile technology, with 67 per cent of agent leads now coming via its mobile platforms.
“Domain now has the leading app, with the highest consumer ratings, the most number of industry awards and the highest consumer traffic,” it said.
Meanwhile, REA Group’s latest trading update confirmed that the company has continued to strengthen its financial position even before its planned acquisition of iProperty Group.
Revenue reached $146 million for the three months to 30 September 2015 – up 21 per cent on the previous year. At the same time, expenses grew by only 10 per cent, to $64 million.
Earnings before interest, taxes, depreciation and amortisation from core operations rose 30 per cent to $82 million.
Average monthly visits jumped 33 per cent to 42.7 million, according to Nielsen research quoted by REA Group.
“The strong first quarter result has been driven by the growth in our Australian top-tier listing products,” REA Group said.
“This, combined with higher listing volumes in the Australian market, delivered an improvement in the revenue growth rate this quarter.”
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