Full Year 2009 Analyst and Investor Presentation August

Transcription

1 REA Group Ltd Full Year 2009 Analyst and Investor Presentation August

2 FY09 was another record period in the history of REA Group ( REA ) in both traffic and EBITDA margin REA GROUP KEY METRICS - EXCLUDES UK OPERATIONS Revenues ($m) EBITDA ($m) Closing number Unique Browsers of Paying Agents (millions) $ ,879 $ ,341 $ $ , $89.4 $30.3 7, $54.9 $16.0 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 Jun-06 Jun-07 Jun-08 Jun-09 Jun-06 Jun-07 Jun-08 Jun-09 EBITDA margin 29% 34% 35% 37% Source: REA Group, Nielsen, Google Analytics, Omniture 2

3 REA continues to deliver strong growth across major key metrics. However, net profits were adversely impacted by the sale and impairment of the discontinued UK operations FINANCIAL PERFORMANCE OF THE REA GROUP * Note: Income Tax Expense is relatively high as most of the overseas tax losses are not being recognised. Source: REA Group 3

4 77% of total revenues were derived from real estate agents REVENUE SPLIT BY CUSTOMER FOR FY2009 Total = $167.8m Source: REA Group 4

5 Key driver of the growth in revenues and profits is Australia COUNTRY SEGMENT INFORMATION Source: REA Group 5

6 During FY09, the focus on key brands has resulted in a 33.6% increases in property p listings on continued operations. LISTINGS ON REA GROUP SITES AS AT JUNE 2009 Country Site June 2008 June 2009 realestate.com.au 432, ,527 Australia realcommercial.com.au 86, ,515 realholidays.com.au 21,474 21,000 Italy Casa.it 298, ,444 Luxembourg Region athome Group 62,337 75,028 Hong Kong squarefoot.com.hk 5,912 17,251 United Emirates propertyfinder.ae 7,817 21,463 New Zealand Commercial realcommercial.co.nz 5,999 14,048 Total continued operations 920,790 1,230,276 up by 33.6% New Zealand Residential allrealestate.co.nz 40,725 8,507 UK / International propertyfinder.com 496, ,790 allglobalproperties.com Source: REA Group 6

7 Site performance across the group has showed continued annual growth during FY09 REA GROUP PERFORMANCE IN JUNE 2008 AND JUNE 2009 UNIQUE BROWSERS PAGE IMPRESSIONS Country Site June 2008 June 2009 Growth June 2008 June 2009 Growth Australia realestate.com.au & mobile 4,137,869 4,669,039 13% 517,630, ,142,874 2% realcommercial.com.au 246, ,486 18% 6,332,080 6,812,014 8% realholidays.com.au 115, ,198 55% 2,557,589 2,964,004 16% Italy Casa.it 731,075 1,376,785 88% 19,610,720 33,207,911 69% Luxembourg Region athome Group 165, ,330 3% 4,880,183 5,424,031 11% Hong Kong squarefoot.com.hk 23,652 40,328 71% 317, ,610 81% United Emirates propertyfinder.ae 65,143 94,445 45% 412,513 1,196, % New Zealand Commercial and others Total continued operations realcommercial.co.nz, property.com.au, homeguru.com.au, ozvaluehome.com.au 60,939 98,786 62% 1,015,147 1,004,844-1% 5,546,330 6,919,397 25% 552,756, ,327,709 5% New Zealand Residential allrealestate.co.nz 228, closed 5,797, closed UK / International propertyfinder.com allglobalproperties.com 2,427,171 3,103,917 27% 32,211,532 36,695,555 18% Source: Nielsen Market Intelligence, Nielsen SiteCensus (REA Group, RCNZ, Casa, AtHome, SQF, AGP, Homeguru, Ozhomevalue) Google Analytics / Nielsen SiteCensus derived data (PFAE) 7

8 Key highlights from the Group s Australian operations AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES 8

9 The Australian business has delivered growth across all key dimensions AUSTRALIA AT A GLANCE 9,332 1,200 1,000 ARPA (Average Revenue Per Agent) $1, Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Key Information residential Revenues up from $121m (FY08) to $150m (FY09) online advertising EBITDA up from $62m (FY08) to $83m (FY09) Increased EBITDA margin from 51% (FY08) to 56% (FY09) commercial Average revenue per agent (ARPA) per month up from $885 online/ advertising (Jun08) to $1,040 (Jun09) Number of agents using one of the Australian sites up from 9,190 holiday rentals as at 30 June 08 to 9,332 as at 30 June 09 online/ advertising Source: REA Group 9

10 realestate.com.au delivers 85% of the Australian revenues REVENUE SPLIT BY BRAND - AUSTRALIA and others Source: REA Group 10

11 realestate.com.au continues to be the leading Australian realestate site Paying Subscribers Listings 8,600 8,400 8,200 8,000 7,800 7,600 7,400 Jun-07 Dec-07 Jun-08 Dec-08 Jun ,000 8, , , , , , , , , , , ,000 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 REVENUE SPLIT OF ARPA AVERAGRE REVENUE PER AGENT Depth related Subscription related Key Information #1 Australian residential real estate site with revenues of $128m for FY09 (FY08: $105m) Estimated 95% of agents use the site Unique Browsers in Jun09 considerably higher than all major competitors in Australia put together Property developer and third party advertiser segments continue to perform strongly and generate $34m of revenues in FY09 (FY08: $30m) Recent slowing in the economy has seen listings decline Source: REA Group 11

12 In June 2009, realestate.com.au continues to dominate with more than two times the unique browsers than the number two, domain.com.au Source: Nielsen MarketIntelligence 12

13 realcommercial.com.au has further consolidated its position as the number one commercial real estate site in Australia 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1, Paying Subscribers 1, , Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Unique Browsers 350, , , , , ,000 50,000 0 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Key Information #1 Australian commercial real estate site with revenues of $15m for FY09 (FY08: $10m) Continued growth in unique browsers. More than twice as high as those of the number 2 site, commercialrealestate.com.au Listings and Subscriber numbers continue to perform strongly despite current economic conditions realcommercial.com.au commercialrealestate.com.au Source: Nielsen MarketIntelligence, REA Group 13

14 realholidays.com.au has shown significant subscriber growth over FY09 Paying Subscribers Listings ,500 22,000 21, , , , Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 20,000 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 1,900,000 1,700,000 1,500,000 1,300,000 1,100, , , , , , Unique Browsers 178,198 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Key Information January 2009 UB spike caused by Nude Dude, an online viral marketing campaign which saw RHA significantly overtake nearest rival Stayz Source: Nielsen MarketIntelligence, REA Group 14

15 Key highlights from the Group s Italian operations AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES 15

16 The size of the Italian real estate market is similar to the Australian market ITALY / AUSTRALIA REAL ESTATE MARKET Total transactions Addressable real estate advertising market (2007) (2008) Billions of AUD Total Market Non Addressable (Pure branding & Other Ads) Addressable (Listings Based Ads) 20% 80% 35% 65% Australia Italy Australia Italy Source: Frost & Sullivan; L.E.K. interviews and analysis; REA Estimates 16

17 We expect further growth with the maturing of online advertising and increased internet penetration and usage ITALY - AUSTRALIA Internet penetration (2008) Share of online in total advertising market for real estate (2007) Australia Italy Australia Italy Australia Italy 17

18 THE DISTRIBUTION OF OUR CUSTOMERS In Italy there is a potential market of about Real Estate t agents Casa.it has paying agents that cover 25% of the Italian Real Estate Market AREA ITALIAN MARKET Agent distribution North 50% Center 37% South & Islands 13% TOTAL 100% Source: Italian Realestate Institute (FIAIP) 18

19 casa.it continues to lead in the emerging Italian market ITALY AT A GLANCE Subscribers to casa.it Paying Agents 9,000 8,000 7,000 6,000 8,053 EXCLUSIVE SUBSCRIBERS CASA.IT 31% SUBSCRIBERS TO CASA.IT AND OTHER PORTALS 62% 5,000 4,000 3,000 Feb-07 Sep-07 Apr-08 Nov-08 Jun-09 SOURCE: CASA.IT SURVEY 2009 Daily Unique Visits (Google Trends) Key Information casa.it defended its market leading position in UBs by the end of the period 34% recognition of the brand as online advertising portal for real estate (Source: Oto Research) Paying agents increased significantly from 5,514 (Jun08) to 8,053 (Jun09), consolidating Casa.it s position following further investment in sales and marketing Additional 2,682 agents on trial subscriptions. Historically, 20-40% of agents convert to paying subscriptions after 3 month trials casa.it signed a strategic partnership with the Italian Real Estate Institute (FIAIP) in June

20 casa.it is in the centre of the groups growth strategy and will undergo significant improvements CASA.IT STRATEGY Today Tomorrow Consumer Standard site Improved consumer experience with modern site features Customer Various subscriptions with multiple price points differentiate t by the number of listings included d leading to an involuntary restriction of customers to upload Two classes of subscriptions (standard and platinum) Platinum offers higher h branding and service Three price points (small, regular, and unlimited listings) Financials Manual annual billing in advance High annual setup fee serves as barrier to signup representing ½ of total invoice is recognised immediately as revenues Subscription fee representing the other ½ of the total invoice is deferred over 12 months Automated monthly billing (like at realestate.com.au) Charge of a reduced setup fee for year 1 only Full deferral of the product charge (subscription) resulting in a higher deferrals balance NOTE: This will result in a shift (and thereby a drop) by ¼ in the Italian annual revenues as a result of the deferral 20

21 Key highlights from the other operations AUSTRALIA ITALY LUXEMBOURG AND OTHER COUNTRIES 21

22 The Luxembourg market is small but very profitable LUXEMBOURG AT A GLANCE 500 Paying subscribers Market share Not on athome Added in FY As per June Feb-07 Sep-07 Apr-08 Nov-08 Jun-09 Total = ~560 agents (est.) Luxembourg Unique Browsers 100,000 95,000 90,000 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Key Information Profitable operation with EBITDA margin 33% for FY09 (FY08: 30%) athome.lu continues to be market leader in Luxembourg * Based on panel data and estimates LUX visitors only Source: Metriweb, REA Group 22

23 REA Group is managing a portfolio of growth options and has streamlined its portfolio over the course of the year OTHER MARKETS France/Germany Acquired with athome.lu in Feb 2007 French websites are strong players in their region German website covers Moselle region Only residential agent revenues Exit of the United Kingdom Exit of UK print business in May 2009 Sale of the UK online business in August 2009 Exit of other countries / entities Exit of Altowin business and Belgium presence in FY2009 Exit of residential business in New Zealand during FY2009 Sale of the Clarke Computers business (Trust accounting) Hong Kong Acquired Sep 2007 Two publications squarefoot.com.hk and Inside Discovery Bay Residential website targeting the English speaking users continues to attract customers and consumers New Zealand Commercial site 23

24 Disclaimer The material herein is a presentation of non-specific background information about the Company s current activities. It is information given in summary form and does not purport to be complete. Investors or potential investors should seek their own independent advice. This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of a particular investor. These should be considered when deciding if a particular investment is appropriate. 24