At time of writing, shares in Domain Holdings Australia Limited [ASX:DHG] are down a further 7.4% today.
Trading at $2.58, this represents its lowest share price since it first came on the market in November 2017.
Take a look at its steep plunge below:
Last week we covered Domain’s crushing 12.8% loss.
This week seems to be going much the same.
Continuing negative sentiment from last week
Last week brought a negative reaction due to softening revenue numbers coming out of the company.
This week brings a continuation of that sentiment, perhaps increased by further downward movements of Fairfax Media Limited [ASX:FXJ].
It is important to know that both these companies’ futures are linked, as Fairfax owns 51% of Domain.
Today, Fairfax’s share price is down 1.9% and the company buying Fairfax, Nine Entertainment is also down 3.8%.
Difficult media environment hurting Domain
Domain is struggling to monetise its digital product quick enough to cope with a drop in its print products — losing 1% in revenue this year.
Digital transformation has been hard on traditional media outlets, and has affected a range of media stocks.
For instance, Seven West Media is down to 82 cents from a high of $7.31 in December 2009.
Adding to their difficulty in doing this is the fact that REA, owner of realestate.com.au, is dominating Domain in revenue.
Domain’s revenue is 26.6% of REA’s and as a result it is trying to diversify its revenue streams.
For instance, Domain is currently investing in its transaction services which include utility switching, loan and insurance products — but this sector is yet to become profitable.
Only time will tell if this strategy will pay off, but for now it looks like tough times for Domain.
For Market & Money