Australia’s number two portal has enjoyed big gains in agent numbers and revenues as it continues building towards full market penetration.
Domain Group revenue increased 45 per cent year-on-year in the 12 months to 30 June 2015, although parent company Fairfax Media did not provide a revenue figure.
The group, which includes domain.com.au, allhomes.com.au and commercialrealestate.com.au, also enjoyed a 47 per cent increase in premium depth product revenue.
This now represents 69 per cent of the group’s revenue base compared to 31 per cent for subscriber revenue.
Domain Group also experienced a big jump in unique monthly audience, which was up 45 per cent to 2.5 million.
As a result, it said it has now closed the audience gap with REA Group from 46 per cent to 33 per cent.
Total average monthly traffic rose 30 per cent to 25.1 million, listings rose 16 per cent to more than 350,000 and mobile app downloads rose 34 per cent to 3.8 million.
Domain Group added almost 2,000 agents during the financial year, with subscriptions up 20 per cent to 10,400.
Market penetration increased from 68 per cent to 85 per cent, and is “approaching 100 per cent online listings penetration in key metro markets”, according to the group.
Domain Group said that full market penetration is a key strategic goal and that it has initiated sales campaigns in regional Victoria and regional Queensland to make it happen.
Full agent and listings market presentation will provide “greater opportunity for upsell to depth products” and will shift the portal competition “from volume of listings to quality of user experience”.
Fairfax chief executive Greg Hywood said Domain Group is “fast-tracking its national expansion” and is well-positioned to achieve its aggressive growth plans.
“Domain has leadership in several key markets – it is number one in Sydney and Canberra – and is a serious challenger in other key markets,” he said.
“In the last two years we have implemented a strategy to realise Domain’s full potential – providing the business with the autonomy and the resources necessary to make it the real estate media and services powerhouse it is fast becoming.”
Domain.com.au revenue increased 30 per cent in 2014-15 – and that growth rate then accelerated to 53 per cent in the first five weeks of 2015-16, according to Mr Hywood.
“In the 2016-17 financial year, we expect domain.com.au costs to increase at a similar rate to the 2015-16 financial year, which was about 30 per cent, as we continue investment in growing Domain’s digital footprint,” he said.