In morning trade the Domain Holdings Australia Ltd (ASX: DHG) share price is pushing higher following the release of a coronavirus update.
At the time of writing the property listings company's shares are up 3.5% to $1.98.
What did Domain announce?
This morning the REA Group Limited (ASX: REA) rival revealed that the company has been performing very strongly this month despite the coronavirus pandemic.
According to the release, month to date Domain has seen a material improvement in its residential business following a soft start to the second half.
It notes that "For sale" listings volumes in New South Wales and Victoria are both higher year-on-year.
Management believes its Residential revenue growth reflects improving property market conditions, and the adoption and positive impact of its new commercial pricing model.
This flexible model, which was introduced in January 2020, is delivering value to agents and consumers, and is supporting yield growth.
The company's CEO, Jason Pellegrino, said "We continue to make progress towards our goal of quality audience growth. In February 2020, Domain's property views increased more than 20% YoY, and enquiries to agents increased close to 40% YoY."
Outlook.
While trading conditions in March show improving listings volumes, and yield growth driven by its new commercial pricing model, management warned that there is uncertainty about the potential impact of COVID-19 on the Australian property market.
Positively, the company has implemented business continuity plans, which are working well. This includes remote working initiatives.
In respect to its cash flows and balance sheet, management believes the company is in a strong position to ride out any storm. It notes that its business model supports high cash flow conversion and its balance sheet is healthy with a leverage ratio of 1.6x as at December 2019. This gives it ample headroom against debt covenants.
And following its debt refinancing in November 2019, Domain's debt has maturities of 3 to 4 years.
