Domain set to be floated in November by Fairfax

Domain set to be floated in November by Fairfax
Domain set to be floated in November by Fairfax

Domain is expected to be spun out of Fairfax in November, pending a shareholder vote at an extraordinary general meeting.

Fairfax updated the stock market on progress of its plans for the Domain group today.

Fairfax plans to retain a 60 percent stake in Domain, with the remaining 40 percent distributed to Fairfax shareholders.

Nick Falloon will be chairman of Domain. 

Click to enlarge

Domain set to be floated in November by Fairfax

Domain delivered 19% growth in digital revenue but a 12% fall in print ad revenue over the past financial year.

Domain’s operating expenses increased 17%, but its print costs fell 6%, largely as a result of a new magazine format.

EBITDA also fell 6% in the first half as a result of investment, but improved in the second half.

The publishing giant’s biggest area of growth was Domain Group, which climbed 8.1% to $320.3 million revenue from $296.3 million for FY16.

Fairfax expects a scheme booklet to be available in late September, then a roadshow in November along with a shareholder vote to approve the listing in early November.

Last week the REA Group announced a 19 percent fall in full year profit to $206 million, mainly due to a write-down in the value of the company’s Asia business.

Click to enlarge

Domain set to be floated in November by Fairfax

Revenue was up 16% to $671.2 million.

Net ­profit amounted to $206.3 million in the year ended June 30, down from $253 million in the prior year.

Tags: 
Domain Fairfax

Comments

Be the first one to comment on this article
What would you like to say about this project?