Domain Boss Admits Challenge Ahead Of Nine-Fairfax Merger
Ten weeks after taking the top job at Australia’s second largest online property Web site, former Google Australia chief and now Domain Group boss Jason Pellegrino, pictured, admitted the outlook for Domain is challenging, given falling house prices in Sydney and Melbourne.
Currently 59 percent owned by Fairfax Media, the Sydney-based Domain will be controlled by Nine Entertainment next month if shareholders – as expected – vote in favour of the broadcaster’s merger with Fairfax on November 19.
Pellegrino announced last month that Domain’s revenue was down one per cent for the first 15 weeks of the financial year. The trading update resulted in a 13.4 per cent fall in its share price, as investors bet that Domain would not meet analyst consensus forecasts of 11 per cent revenue growth for fiscal 2019.
The real estate portal’s share price has failed to recover since then. The stock last traded at $2.51, 32 per cent down from its highest closing share price of $3.69 (when the company listed).