What happened to Domain share price?
Domain Holdings Aus [ASX:DHG] shares tumbled 13.86% today. Shares were trading at $2.86 at time of writing, down from $3.32 yesterday.
Why the share price fall?
Antony Catalano, Domain’s Chief Executive Officer, shocked investors by resigning unexpectedly.
The company has been listed on the ASX for just two months, after separating from Fairfax Media Ltd [ASX:FXJ] last year.
Fairfax, who still owns 60% of Domain’ shares, was also down over 10% at time of writing.
Catalano cited personal reasons for his decision. As he said in the press release:
‘It has become clear to me that doing the job of a listed company CEO the way it needs to be done means that I am not meeting that family commitment. It was also becoming apparent that I needed to relocate to Sydney and that was something I wouldn’t ask my family to do…
‘I understand and regret that the timing of this decision is unusually short from Domain’s listing. But having been in the role for four years, I resign knowing that Domain has a great management team in place and I have every confidence in them and the business continuing on its current stunning trajectory.’
Catalano became Domain’s chief executive back in 2013, and has been with Fairfax since 1990. According to analyst David Kaynes from Citi, Catalano was ‘a significant factor in the success of the [Fairfax] spin-out’.
What now for Domain?
The company is launching a domestic and international search for a new CEO. Meanwhile, Chairman Nick Falloon will act as Executive chairman.
Domain will be reporting FY18 first half preliminary unaudited financial results on 19 February 2018. The company expects a 22% digital revenue growth from this time last year and a 13% total revenue growth.
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Analyst, For Markets & Money