Domain reports net loss of $227.7m as earnings and revenue fall 10%
Real estate business Domain was forced to report a net loss after tax of $227.7m yesterday following a $256.1m impairment charge against its digital business.
The non-cash impairment charge will have no impact on banking covenants and Domain says it won’t impact the longterm growth prospects for the business. The charge was related to the outbreak of COVID-19 and the temporary restrictions implemented which impacted revenue through listing and auction volumes in the final quarter of FY20. The uncertainty around the near term impacts on the industry and the economy resulted in the charge.
Domain’s underlying results [click to enlarge]
There should be some seriously good tax carry-overs resulting from the impairment charges available in upcoming financial years.
Impairments are not an allowable deduction for tax purposes in Australia. So no tax losses arise, or can be carried forward.
Not surprising. Unfortunately they cannot keep up with the beast in Realestate.com.au