Wipeout: Nine share price drops after Domain exit

Nine’s share price went through a record 35.9% wipeout on Thursday, taking almost $1bn off its market capitalisation.

However the change was expected, as the market revalued the stock after the sale of Domain to US real estate giant Costar. Yesterday was the date for Nine’s shares to go ex-dividend, which means that anybody who buys Nine shares from now on are not entitled to the special dividend from the Domain sale when it is paid out at the end of the month.

Nine’s new market cap is $1.7bn.

It was also a generally down day elsewhere on the Unmade Index, which monitors the performance of Australia’s listed media and marketing companies.

Seven West Media lost 3.5%, Ooh Media lost 2.6% and Ive group lost 2.2%.

In the lower reaches of the index, Sports Entertainment Group – owner of SEN Radio – lost 7.3% while research house Pureprofile lost 6.7%. Vinyl Group gained 15%.

Thanks to Nine’s big drop, the Unmade Index also saw the biggest one-day fall in its history, losing 20.3% to land on 464.2 points.