Global Trends in the Property Portal Industry

1. Trends
in
the
Property
Portal
World
Property
Portal
Watch
Conference
New
York
26
January
2015
Simon
Baker
Chairman
Property
Portal
Watch

2. Types
of
Property
Portal
Markets
Market
Characteris-cs
Example
Markets
Established
Market
structure
established
Business
model
finalised
Leaders
are
“real”
businesses
Online
now
the
dominant
property
adverLsing
medium
Western
Europe
US
Australia
Emerging
Market
structure
sLll
emerging
but
a
few
strong
players
Industry
becoming
more
comfortable
with
online
Strong
revenue
growth
Focus
on
signing
up
customers
/
opening
markets
Hong
Kong,
Singapore,
Malaysia,
Brazil,
Mexico,
Middle
East,
South
Africa
Early
Stage
Internet
starLng
to
get
tracLon
as
adverLsing
medium
Many
players
with
no
clear
leader
Small
/
no
revenues
being
generated
Most
players
are
underfunded
Africa
(excluding
SA),
Majority
of
South
Amercia,
Eastern
Europe,
Parts
of
Asia

3.
Trends
in
Established
Markets

4. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
fla=ening
–
but
s-ll
good

5. Annual
Revenue
Growth
–
Selected
Examples
(non
US)
Source:
Annual
reports,
Analyst
forecasts
15
–
30%
-­‐40%
-­‐20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2006
2007
2008
2009
2010
2011
2012
2013
2014
(e)
REA
Group
Rightmove
European
Portal
Zoopla

6. Annual
Revenue
Growth
–
Selected
Examples
Source:
Annual
reports,
Analyst
forecasts
-­‐40%
-­‐20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
2006
2007
2008
2009
2010
2011
2012
2013
2014
(e)
REA
Group
Rightmove
European
Portal
Zoopla
Trulia
Zillow
60
–
80%

7. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth

8. ARPA
Growth
for
Rightmove
and
REA
Group
(Aust)
Rightmove
REA
Group
30%
Year
on
Year
Growth
in
FY2014
13%
Year
on
Year
Growth
in
H1
2014
Source:
Analyst
PresentaLons,
Shareholder
PresentaLons
AUD
~3,000
June
2014

9. Drivers
of
Rightmove
Growth
(Agents
&
New
Homes)
Source:
Annual
Report,
Investor
PresentaLon,
PPW
Analysis
112.5
134.2
4.5
5.9
11.3
2012
2013
Volume
Increase
(709
new)
Price
Increase
New
Product
Sales
(Depth)
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
GBP
m

10. Drivers
of
Rightmove
Growth
(Agents
&
New
Homes)
Source:
Annual
Report,
Investor
PresentaLon,
PPW
Analysis
112.5
134.2
4.5
5.9
11.3
2012
2013
Volume
Increase
(709
new)
Price
Increase
New
Product
Sales
(Depth)
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
GBP
m

11. Drivers
of
Rightmove
Growth
(Agents
&
New
Homes)
Source:
Annual
Report,
Investor
PresentaLon,
PPW
Analysis
112.5
134.2
4.5
5.9
11.3
2012
2013
Price
Increase
New
Product
Sales
(Depth)
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
GBP
m
Volume
Increase
(709
new)

12. Drivers
of
Rightmove
Revenue
Growth
Source:
Annual
Report,
Investor
PresentaLon,
PPW
Analysis
112.5
134.2
4.5
5.9
11.3
2012
2013
New
Product
Sales
(Depth)
Depth
Revenue
(35%)
Subs
Revenue
(65%)
Depth
Revenue
(31%)
Subs
Revenue
(69%)
GBP
m
Price
Increase
Volume
Increase
(709
new)

13. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth

14. EBITDA
Margin
–
Selected
Portals
(non-­‐US)
Source:
Company
Reports,
Analyst
PresentaLons
-­‐100%
-­‐80%
-­‐60%
-­‐40%
-­‐20%
0%
20%
40%
60%
80%
100%
2009
2010
2011
2012
2013
2014
(e)
REA
Group
Rightmove
Soufun
Zoopla

15. EBITDA
Margin
–
Selected
Portals
Source:
Company
Reports,
Analyst
PresentaLons
-­‐100%
-­‐80%
-­‐60%
-­‐40%
-­‐20%
0%
20%
40%
60%
80%
100%
2009
2010
2011
2012
2013
2014
(e)
REA
Group
Rightmove
Soufun
Zoopla
Trulia
Zillow

16. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth
4. Mobile
is
most
important
channel

17. Percentage
of
Traffic
from
Mobile
Devices
%
Traffic
from
Mobile
Zillow
(1/14)
66%
Move
(3/14)
53%
Zoopla
(4/14)
>50%
Trulia
(3/14)
49%
Homes.com
(3/14)
44%
Rightmove
(4/14)
~43%
realestate.com.au
(FY
2014)
43%
Immoscout24
(5/13)
43%
UPDATE

18. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth
4. Mobile
is
most
important
channel
5. Ownership
consolida-on

19. Media
&
Funds
InvesLng
in
Established
Markets
In
Market
Out
of
Market
Axel
Springer
(Germany)
Immonet.de
(#2/3)
Seloger
(France)
#1
VerLcal
Immoweb
(Belgium)
#1
Yad2
(Israel)
#1
Hellman
&
Friedman
(USA)
ImmobilienScout24
(#1)
PropertyGuru
Group
(SE
Asia)
#2
ImmoScout24.ch
ImmoScout24.at
Schibsted
(Sweden)
Blocket
LeBonCoin.fr
(France)
Finn.no
(Norway)
Fotocasa
(Spain)
Subito
(Italy)
Willhaben
(Austria)
Mudah
(Malaysia)
Others

20. Media
&
Funds
InvesLng
in
Established
Markets
(Cont)
In
Market
Out
of
Market
New
Corp
(USA)
Move
Inc
(#3)
REA
Group
(62%)
iProperty
Group
(via
REA)
(13%)
Prop
Tiger
(25%)
Tiger
Global
(US)
Commonfloor
(India)
Daq.ie
(Ireland)
Idealista
(Spain)
Private
Property
(South
Africa)
Redfin
(USA)
Others

21. Portals
Are
ConsolidaLng
Markets
and
InvesLng
Portal
Acquisi-on
/
Investment
Immobiliare
(Italy
#1)
SpiLgatos
(Greece)
REA
Group
(Australia
#1)
iProperty
Group
(SE
Asia
20%)
Move
(USA
20%)
Domain
(Australia
#2)
Allhomes
(Canberra)
Next
(Japan)
Trovit
(Spain)
Zillow
(USA
#1)
Trulia
(USA
#2)

22. In
Market
ConsolidaLon
–
Zoopla
Closed
the
Gap
In
Market
Zoopla
Propertyfinder
Upmystreet
Thinkproperty
Byteplay
Findaproperty
(Merger)
PrimelocaLon
(Merger)

23. Gap
Between
Zoopla
and
Rightmove
has
Stablized

24. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth
4. Mobile
is
most
important
channel
5. Ownership
consolidaLon
6. Equity
market
more
excited
about
business
poten-al

25. Market
Cap
of
Listed
Stocks
(US$
m)
7
Month
Growth
-­‐6%
-­‐26%
-­‐4%
-­‐30%
-­‐5%
PrivaLsed
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
REA
Zillow
Rightmove
Soufun
Trulia
Zoopla
Move
Jul-­‐11
Jul-­‐12
Jul-­‐13
Jul-­‐14
Jan
26
15
-­‐40%

26. Revenue
MulLple
of
Selected
Listed
Stocks
0
5
10
15
20
25
REA
Zillow
Rightmove
Trulia
Zoopla
Soufun
Move
Average
May-­‐13
Oct-­‐13
Jan
26
15

27. EBITDA
MulLple
of
Selected
Listed
Stocks
-­‐100.0
-­‐80.0
-­‐60.0
-­‐40.0
-­‐20.0
0.0
20.0
40.0
Zillow
Trulia
Soufun
Rightmove
Zoopla
REA

28. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth
4. Mobile
is
most
important
channel
5. Ownership
consolidaLon
6. Equity
market
more
excited
about
business
potenLal
7. Horizontal
players
challenging
ver-cal
players

29. Key
Trends
in
the
Established
Property
Portal
World
1. Revenue
growth
flaiening
–
but
sLll
good
2. Leaders
aggressively
driving
ARPA
growth
3. Focus
on
cost
management
/
EBITDA
%
growth
4. Mobile
is
most
important
channel
5. Ownership
consolidaLon
6. Equity
market
more
excited
about
business
potenLal
7. Horizontal
players
challenging
verLcal
players
8. Interna-onal
adver-sing
of
lis-ngs

30. Local
Sites
MarkeLng
InternaLonal
LisLngs
Only

31. InternaLonal
SecLons
–
PromoLng
Overseas
Locally
Rightmove
–
3.6
million
internaLonal
searches
each
month

32. Rise
of
InternaLonal
LisLng
Syndicators
Syndi-­‐
cator
Portal
1
Portal
2
Portal
3
Portal
4
Portal
5
Global
Network
of
Sites
e.g.
Reseller
Portal
Agent
/
Developer

33. Key
Trends
in
the
Established
Property
Portal
World
10. Branding
for
Leaders
Moving
to
Lifestyle

34. Mature
Sites
Moving
to
Lifestyle
Branding
Copyright
Property
Portal
Watch
34
Version
1.0

35. Strong
Investment
in
2014
Branding
Campaigns
Copyright
Property
Portal
Watch
35
Version
1.0
Portal
Investment
Realestate.com.au
(AU)
TV
Rightmove
(UK)
TV,
Outdoor
Zillow
(US)
USD
65
m
Total
AdverLsing
Realtor.com
(US)
USD
35
m
TV,
Radio,
Web
Zoopla
(UK)
(#2)
TV,
Outdoor
Trulia
(US)
(#2)
USD
45
m
TV,
Radio,
Web

36. Key
Trends
in
the
Established
Property
Portal
World
10. Branding
for
Leaders
Moving
to
Lifestyle
11. Agents
are
Rebelling

37. Agent
Owned
and
Controlled
Sites

38. Zoopla
MarkeLng
Response

39.
Trends
in
Emerging
&
Early
Stage
Markets

40. Types
of
Property
Portal
Markets
Market
Characteris-cs
Example
Markets
Established
Market
structure
established
Business
model
finalised
Leaders
are
“real”
businesses
Online
now
the
dominant
property
adverLsing
medium
Western
Europe
US
Australia
Emerging
Market
structure
sLll
emerging
but
a
few
strong
players
Industry
becoming
more
comfortable
with
online
Strong
revenue
growth
Focus
on
signing
up
customers
/
opening
markets
Hong
Kong,
Singapore,
Malaysia,
Brazil,
Mexico,
Middle
East,
South
Africa
Early
Stage
Internet
starLng
to
get
tracLon
as
adverLsing
medium
Many
players
with
no
clear
leader
Small
/
no
revenues
being
generated
Most
players
are
underfunded
Africa
(excluding
SA),
Majority
of
South
Amercia,
Eastern
Europe,
Parts
of
Asia

41. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
cri-cal
to
success

42. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills

43. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
Compe--on

44. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
CompeLLon
4. Some
consolida-on
–
by
portals
and
investors

45. Navent
–
ConsolidaLng
the
Sth
American
Market
• Focus
on
Property
Portals
and
Jobs
Portals
in
Sth
America
• Investment
in:
– Imovelweb
(Brazil)
–
top
3
– Imovelweb
CuriLba
– Adondevivir
(Peru)
-­‐
#1
– Inmuebles24
(Mexico)
-­‐
#1/2
– Plusvalia
(Ecuador)
-­‐
#1
– Compreoalquile
(Panama)
– Conlallave
(Venezuela)
– Imovelpro
(Brazil
–
Soqware)
– Union
Desenvolvimento
de
Soqware
(Brazil
–
Soqware)
– CRM
Inmobiliario
(Mexico
–
Soqware)
– Wimoveis
(Brazil)
– Dridco
(ArgenLna)
• Raised
significant
money
to
target
other
Sth
American
investment
opportuniLes

46. One
Africa
Media
–
ConsolidaLng
the
African
Market
• Focus
on
Property
Portals,
Jobs,
Cars
and
Travel
in
Africa
• Investment
in:
– Privateproperty.co.za
– ProperLes.ng
(now
PrivateProperty.co.ng)
– BuyRentKenya.com
– PrivateProperty.co.na
• Raised
US$20m
to
target
other
African
investment
opportuniLes
–
from
Seek.com.au
(ASX:SEK)

47. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
CompeLLon
4. Some
consolidaLon
–
by
portals
and
investors
5. Emergence
of
Property
Portal
Accelerators

48. Example
Property
Portal
Accelerators
Company
Service
Provided
Mitula
Trovit
Nestoria
Drive
highly
qualified
traffic
on
a
CPC
basis
ListGlobally
Plug
and
play
internaLonal
search
for
any
portal
+
internaLonal
lisLng
syndicaLon
subscripLon
Floorplanner
Diakrit
Plug
and
play
floor
planning
soluLon
for
portals
Transmit
Ubiflow
Plug
and
play
XML
feed
management
soluLon
DisLl
Networks
Spam
and
unwanted
traffic
detecLon
and
protecLon
Global
Property
TV
Plug
and
play
video
editorial
content
soluLon
for
property
portals
Adslot
Plug
and
play
soluLon
to
capture
higher
yields
from
display
and
premium
adverLsing
products
Property
Portal
Watch
/
Property
Portal
ConsulLng
Quality
news,
informaLon,
advice
and
guidance
on
running
a
property
portal

49. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
CompeLLon
4. Some
consolidaLon
–
by
portals
and
investors
5. Emergence
of
Property
Portal
Accelerators
6. Mul-
country
players
emerging
–
staking
out
the
ground

50. Rocket
Media
Example

51. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
CompeLLon
4. Some
consolidaLon
–
by
portals
and
investors
5. Emergence
of
Property
Portal
Accelerators
6. MulL
country
players
emerging
–
staking
out
the
ground
7. Portals
looking
to
capture
part
of
the
commission

52. Key
Trends
in
the
Emerging
Property
Portal
World
1. Property
developer
segment
criLcal
to
success
2. Difficult
to
find
quality
internet
skills
3. Intense
CompeLLon
4. Some
consolidaLon
–
by
portals
and
investors
5. Emergence
of
Property
Portal
Accelerators
6. MulL
country
players
emerging
–
staking
out
the
ground
7. Portals
looking
to
capture
part
of
the
commission
8. Significant
capital
being
raised