1. Trends in the Property Portal
World
Property Portal Watch Conference
Singapore
7 May 2014
Simon Baker
Chairman Property Portal Watch
2. Introduction
• Former CEO / MD of the REA Group
• Former Chairman of the iProperty Group
• Investor in property portals including:
– iProperty Group (SE Asia)
– VivaReal (Brazil)
– Real Estate Investar (Australia)
– Mitula (Spain / Global)
– realestate.co.jp (Japan)
– LaEncontre (Peru)
• Other investments outside of property portals
3. Introduction (continued)
• Founder of Classified Ad Ventures
– Invests in Property Portal Accelerators
– Investments include:
• ListGlobally (founded)
• Transmit (founded)
• Property Portal Watch (founded)
• Launching Accelerator Sales Team
– Assist Property Portal Accelerators go to market
6. Make Up of Attendees
Accerator
9%
Investor
9%
Other
3%
Portal
66%
Real
Estate
7%
Software
6%
7. Countries in the Room
Western
Europe
Eastern
Europe
Asia / Sub
Continent
The Americas Africa Oceania
Denmark
France
Monaco
Netherlands
Spain
Sweden
Switzerland
Turkey
UK
Russia China
Hong Kong
India
Indonesia
Japan
Malaysia
Pakistan
Philippines
Singapore
Thailand
UAE
Vietnam
Brazil
US
Egypt Australia
26 countries
9. Types of Property Portal Markets
Market Characteristics Example Markets
Established Market structure established
Business model finalised
Leaders are “real” businesses
Online now the dominant property advertising medium
Western Europe
US
Australia
Emerging Market structure still 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 starting to get traction as advertising 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
10. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
12. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
13. ARPA Growth for Rightmove and REA Group (Aust)
RightmoveREA Group
29% Year on Year Growth in First Half 2014 15% Year on Year Growth in 2013
Source: Analyst Presentations, Shareholder Presentations
AUD 2,490
1st HY 2014
14. Drivers of Rightmove Growth (Agents & New Homes)
Source: Annual Report, Investor Presentation, 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%)
66% of
ARPA
Growth
from
New
Product
GBP m
15. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
17. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
18. 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 (12/13) 43%
Immoscout24 (5/13) 43%
Seloger (2012) 30%
19. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
20. Ownership Consolidation in Established Markets
In Market Out of Market
Axel Springer (Germany) Immonet.de (#2/3) Seloger (France) (#1)
Immoweb (Belgium) (#1)
iProperty Group (SE Asia) #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
Tiger Global (US) Commonfloor (India)
Daft.ie (Ireland)
Idealista (Spain)
Private Property (South Africa)
Redfin (USA)
Others
21. In Market Consolidation – Zoopla Closing the Gap
In Market
Zoopla Propertyfinder
Upmystreet
Thinkproperty
Byteplay
Findaproperty (Merger)
Primelocation (Merger)
23. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential
24. Market Cap of Listed Stocks (US$ m)
10 Month
Growth
60% 132% 19% 98% 13% -23%
0
1,000
2,000
3,000
4,000
5,000
6,000
REA Soufun Rightmove Zillow Trulia Move
Jul-11
Jul-12
Jul-13
Nov-13May 14
25. Revenue Multiple of Selected Listed Stocks
0.0
5.0
10.0
15.0
20.0
25.0
Rightmove Zillow Trulia REA Soufun Move Average
26. EBITDA Multiple of Selected Listed Stocks
-200.0
-150.0
-100.0
-50.0
0.0
50.0
100.0
Zillow Trulia Move Rightmove REA Soufun Average
Excluding
US stocks
27. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players
28. Key Trends in the Established Property Portal World
1. Revenue growth flattening – but still good
2. Leaders aggressively driving ARPA growth
3. Focus on cost management / EBITDA % growth
4. Mobile is most important channel
5. Major funds / companies buying portals
6. Equity market more excited about business potential
7. Horizontal players challenging vertical players
8. International advertising of listings
33. Types of Property Portal Markets
Market Characteristics Example Markets
Established Market structure established
Business model finalised
Leaders are “real” businesses
Online now the dominant property advertising medium
Western Europe
US
Australia
Emerging Market structure still 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,
Sth Africa
Early Stage Internet starting to get traction as advertising 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
34. Key Trends in the Emerging Property Portal World
1. Growth is still strong
36. Revenue Growth – iProperty in Malaysia and HK ($Am)
Source: Annual reports, Analyst forecasts
1.8
2.5
4.7
9.2
13.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2009 2010 2011 2012 2013 (e)
0.5
0.8
1.0
1.3
3.1
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012 2013 (e)
Malaysia Hong Kong
37. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
38. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
39. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Market leaders emerging
40. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Market leaders emerging
5. Some consolidation – by portals and investors
41. Navent – Consolidating the Sth American Market
• Focus on Property Portals and Jobs Portals in Sth America
• Investment in:
– Imovelweb (Brazil) – top 3
– Adondevivir (Peru) - #1
– Inmuebles (Mexico) - #1/2
– Plusvalia (Ecuador) - #1
– Compreoalquile (Panama)
– Conlallave (Venezuela)
– Imovelpro (Brazil – Software)
– CRM Inmobiliario (Mexico – Software)
• Recently raised US$30m to target other Sth American investment
opportunities
42. One Africa Media – Consolidating the African Market
• Focus on Property Portals, Jobs, Cars and Travel in Africa
• Investment in:
– Privateproperty.co.za
– Properties.ng (now PrivateProperty.co.ng)
• Recently raised US$20m to target other African investment opportunities
– from Seek.com.au (ASX:SEK)
43. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Market leaders emerging
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
44. Example Property Portal Accelerators
Company Service Provided
Mitula
Trovit
Nestoria
Drive highly qualified traffic on a CPC basis
ListGlobally Plug and play international search for any portal +
international listing syndication subscription
Floorplanner
Diakrit
Plug and play floor planning solution for portals
Transmit
XML2U
Plug and play XML feed management solution
Global Property TV Plug and play video editorial content solution for property
portals
Adslot Plug and play solution to capture higher yields from display
and premium advertising products
Property Portal Watch Quality news, information, advice and guidance on running a
property portal
45. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Market leaders emerging
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
7. Multi country players emerging – staking out the ground
47. Key Trends in the Emerging Property Portal World
1. Growth is still strong
2. Property developer segment critical to success
3. Difficult to find quality internet skills
4. Market leaders emerging
5. Some consolidation – by portals and investors
6. Emergence of Property Portal Accelerators
7. Multi country players emerging – staking out the ground
8. Portals looking to capture part of the commission
