REA Group Ltd (ASX: REA) released its FY19 results this morning sending the share price down, but the Domain Holdings Australia Ltd (ASX: DHG) share price has been hit harder.
About Domain
Domain is the business behind one of Australia’s largest property portals, Domain.com.au, which allows property sellers to try to advertise to as many potential buyers as possible. Some of the other real estate websites it operates include Allhomes.com.au and Commercialrealestate.com.au.
REA Report
REA Group, one of Domain’s largest competitors, released its FY19 results this morning, revealing that the Australian housing market experienced “significantly” lower residential listings and new development project commencements in FY19.
There are no prizes for guessing that Sydney’s and Melbourne’s listings experienced some of the largest declines.
Despite the lower listings, REA still reported an increase in revenue and said that realestate.com.au still receives 2.9 times more views than the nearest competitor and people spent 4.7 times longer on its app than that competitor’s app.
It’s fairly safe to assume that this “nearest competitor” is Domain Holdings. With news of lower listings and REA looking dominant in terms of traffic, the Domain share price has dropped as much as 4% in early trade.
Is It Time To Sell?
REA’s report definitely serves as an indicator of what Domain’s results may look like, but I wouldn’t be making any final decisions to buy or sell until I’ve seen Domain’s results on 16th August.
The main points to look for will be the increase or decrease in listings on their sites and how earnings are impacted.
Until Domain reports, I’d be holding off and considering one of the businesses mentioned in the free report below instead.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
