AI assistant
REA GROUP LTD Investor Presentation 2009
65679_rns_2009-08-19_02c59b87-11cf-4897-b1b6-4f28830e0234.pdf
Investor Presentation
Open in viewerOpens in your device viewer
REA Group Ltd
Full Year 2009Analyst and Investor Presentation August 2009
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
29% 34% 35% 37%
Source: REA Group, Nielsen, Google Analytics, Omniture
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 Analyst presentation - REA - FY09 results
77% of total revenues were derived from real estate agents
REVENUE SPLIT BY CUSTOMER FOR FY2009
Source: REA Group
Key driver of the growth in revenues and profits is Australia
COUNTRY SEGMENT INFORMATION
| Country | |||
|---|---|---|---|
| in $'000 | Revenue | EBITDA | Margin |
| FY 2009 | |||
| Australia | 149,651 | 83,484 | 56% |
| Italy | 8,540 | (3,691) | -43% |
| Luxembourg | 4,304 | 1,441 | 33% |
| Other countries | 5,300 | (6, 905) | -130% |
| Unallocated overhead | (12,029) | ||
| Total continued operations | 167,795 | 62,300 | 37% |
| FY 2008 | |||
| Australia | 120,719 | 61,946 | 51% |
| Italy | 5.401 | (2, 819) | -52% |
| Luxembourg | 3,532 | 1,054 | 30% |
| Other countries | 3,910 | (3,601) | $-92%$ |
| Loss of associate | |||
| (homeguru.com.au) | (185) | ||
| Unallocated overhead | (9, 762) | ||
| Total continued operations | 133,562 | 46,633 | 35% |
During FY09, the focus on key brands has resulted in a 33.6% increases in pp y g p ro pert y listin gs on continued o perations.
LISTINGS ON REA GROUP SITES AS AT JUNE 2009
| Cotruny | Site | Ju2008ne | Ju2009ne |
|---|---|---|---|
| lestaterea.com.au | 432,145 | 4327,57 | |
| Auliatras | lcoial.creammercom.au | 86,150 | 113,515 |
| lholidareas.com.ayu | 21,474 | 21,000 | |
| Iltay | Caitsa | 298,965 | 30,4445 |
| LuboReionxemurgg | GHotameroup | 62,337 | 02875, |
| HoKongng | fohkt.csquareoom | 5,912 | 17,251 |
| UnidEmiratetes | findetyproperr.ae | 7,817 | 21,463 |
| CoCoNeZelandiaiallwammmmerercc | lcoial.creammerco.nz | 9 ,995 | 148 ,04 |
| Tol –taindiottconueoperans | 920,907 | 1,230,267by33.6%up | |
| NeZelandReideialtwasn | llrelestateaa.co.nz | 40,275 | 8,057 |
| /UKInionltetrnaa | findetyproperr.comllglobalpiestaroper.com | 496,385 | 30,9077 |
Site performance across the group has showed continued annual growth during FY09
REA GROUP PERFORMANCE IN JUNE 2008 AND JUNE 2009
| UNIQUEBROWSERS | PAGEIMPRESSIONS | ||||||
|---|---|---|---|---|---|---|---|
| Cotryun | Site | Ju2008ne | Ju2009ne | Gthrow | Ju2008ne | Ju2009ne | Gthrow |
| les&biletaterea.com.amou | 4,137,869 | 4,669,039 | 13% | 517,630,627 | 527,142,874 | 2% | |
| lcoial.creammercom.au | 246,997 | 291,486 | 18% | 6,332,080 | 6,812,014 | 8% | |
| Auliatras | lholidareas.com.ayu | 115,236 | 178,198 | 55% | 2,557,589 | 2,964,004 | 16% |
| Ilyta | Caitsa | 731,075 | 1,376,785 | 88% | 19,610,720 | 33,207,911 | 69% |
| LuboReionxemurgg | HoGtameroup | 165,419 | 170,330 | 3% | 4,880,183 | 5,424,031 | 11% |
| HoKongng | fohkt.csquareoom | 23,652 | 40,328 | 71% | 317,233 | 575,610 | 81% |
| UnidEmiratetes | findetyproperr.ae | 65,143 | 94,445 | 45% | 412,513 | 1,196,421 | 190% |
| NeZelandwaCoial adhetmmercnors | lcoial.creammerco.nz,tytypproropperer.cocomm.aauu,homegurcom.au.u,luehoozvame.com.au | 60,939 | 98,786 | 62% | 1,015,147 | 1,004,844 | -1% |
| Tol –indtatconueiotoperans | 5,546,330 | 6,919,397 | 25% | 552,56,0927 | 58,320977,7 | 5% | |
| NeZelandReideialtwasn | lllrelreleslestatateteaaaa.coco.nznz | 222288,224477 | losdce | 55,779977,772255 | losdce | ||
| UK/Inionltetrnaa | findetyproperr.comllglobalpiestaroper.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) g ( p g )Google Analytics / Nielsen SiteCensus derived data (PFAE)
Key highlights from the Group's Australian operations
The Australian business has delivered growth across all key dimensions
realestate.com.au delivers 85% of the Australian revenues
REVENUE SPLIT BY BRAND - AUSTRALIA
Source: REA Group
realestate.com.au continues to be the leading Australian realestate site
In June 2009, realestate.com.au continues to dominate with more than two times the unique browsers than the number two, domain.com.au
realcommercial.com.au has further consolidated its position as the number one commercial real estate site in Australia
realholidays.com.au has shown significant subscriber growth over FY09
Source: Nielsen MarketIntelligence, REA Group
AUSTRALIA
ITALYLUXEMBOURGANDOTHER COUNTRIES
The size of the Italian real estate market is similar to the Australian market
ITALY / AUSTRALIA – REAL ESTATE MARKET
Source: Frost & Sullivan; L.E.K. interviews and analysis; REA Estimates
We expect further growth with the maturing of online advertising and increased internet penetration and usage
ITALY - AUSTRALIA
THE DISTRIBUTION OF OUR CUSTOMERS
In Italy there is a potential market of about 32 000 . R l ea Ett s ate agents
Casa.it has 8.050 paying agents that cover 25% of the ItalianReal Estate Market
| AREA | ITALIANMARKETAgdisibuiottrtenn |
|---|---|
| Nohtr | 50% |
| Cetenr | 3%7 |
| Soh&Isladstun | 13% |
| TOTAL | 100% |
Source: Italian Realestate Institute (FIAIP)
casa.it continues to lead in the emerging Italian market
casa.it is in the centre of the groups growth strategy and will undergo significant improvements
CASA.IT STRATEGY
| Today | Tomorrow | |
|---|---|---|
| Consumer | Sdaditatenrs | Imdieihdeitteproveconsumerexperncewmornsfetuares |
| Ctousmer | Vaiobsipioihlipleiceinttttsrussucrnswmuprpoffffeffddiiiibybhehbeblliisiiniinlluddtttetttttrenanumr ogscefledininvluiciototatrtaganonryresnolodtotocusmersupa | Twlaf sbsipio(daddlain)ttatocssesoucrnssnranpumfffefPlinihihehbrbddiinddiicettaumorsgranganservThricein(ll,ladlimidtsteeeprposmaregur,anunlisin)tgs |
| Finialsanc | Ml albillinindvanuannuagaanceHighl sfebaieigtutoannuaepeservesasrrrsnin½fliniceisisedttotauprepresengovorecognimdialytemeasrevenues | ()Adhlybillinlikeletotett rtateumamongaeas.com.auChaf adudfefo1lyturgeoreceseper yearon |
| Sufefbsipioinhehe½hetttttcrnerepresengorolinviceisdefed12hstotatorreovermon | fef()Fulldel oheduhabsipiott ctrraprocrgesucrnlininhighedefelsbalatresugarrrance | |
| NOTE:Thisill rlinhif(dhebydr)bytttesasanreaopwuinheIlial rlfhe¼ttat otnannuaevenuesasaresudefelrra |
The Luxembourg market is small but very profitable
REA Group is managing a portfolio of growth options and has streamlined its p y ortfolio over the course of the yea r
OTHER MARKETS
Acquired with athome.lu in Feb 2007
- •French websites are strong players in their region
- •German website covers Moselle region
- • Only residential a gent revenues y g
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
France/Germany 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)
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 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.