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.
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.
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.
