Rea Group Ltd · ASX:REA
Rea — H1 FY2009 Earnings Presentation
24 slides from Rea's earnings presentation, Feb 25, 2009
Slide 1: 1st Half Year FY2009 Results Presentation
For personal use only Online Real Estate Advertising 1st Half Year FY 2009 (1st HY09) Results Presentation REA Group Ltd 25 February 2009 www.rea-group.com
Slide 2: First half of F09 was another record period for REA Group
The first half of F09 was another record period in the history of REA Group For personal use only REA GROUP KEY METRICS Revenues ($m) EBITDA ($m) Closing number Unique Browsers of Paying Agents (millions) 22,099 $91.3 8.1 $20.0 18,931 $71.4 6.1 $14.2 12,140 $47.7 4.0 $8.5 $24.5 7,058 2.9 $4.5 1H06 1
Slide 3: Financial performance of the REA Group
The REA Group continues to deliver strong year-on-year growth across all key metrics For personal use only FINANCIAL PERFORMANCE OF THE REA GROUP Financial Comparative Data FY 2006 FY 2006 FY 2007 FY 2007 FY 2008 FY 2008 FY 2009 ($’000) st nd st nd st 1 Half-Yr 2 Half-Yr 1 Half-Yr 2 Half-Yr 1 Half-Y
Slide 4: Locations of website operations
The REA Group operates a global network of real estate websites For personal use only LOCATIONS OF WEBSITE OPERATIONS Traffic agreement replacing former residential site Source: REA Group February 2009 REA Group - H1 2009 Results Presentation 4
Slide 5: Revenue split by customer for 1st HY 2009
78% of total revenues were derived from Real Estate Agents For personal use only REVENUE SPLIT BY CUSTOMER FOR 1st HY 2009 $10.3M DEVELOPERS (11%) THIRD PARTIES $71.0M $9.4M REAL ESTATE AGENTS (78%) (10%) $0.6M CONSUMERS (1%) Total = $91.3M Source: REA Group February 2009 REA Group - H1 2009 Results
Slide 6: Country segment information
Key driver of the growth in revenues and profits is Australia For personal use only COUNTRY SEGMENT INFORMATION Country Revenue EBITDA Margin in $’000 st 1 Half Year 2009 Australia 73,258 40,257 55% United Kingdom 10,129 (6,999) -69% Italy 2,958 (2,815) -95% Luxembourg 2,108 652 31% Other countries
Slide 7: Revenue split by country for 1st HY 2009
The Australian business delivered 80% of revenues (78% in 1st HY08) For personal use only REVENUE SPLIT BY COUNTRY FOR 1st HY 2009 UNITED KINGDOM Residential sites Print publications $3.0M ITALY (3%) Residential site $10.1M LUXEMBOURG AUSTRALIA Residential site Residential sites (11%) $2.1M $73.3M C
Slide 8: Key highlights from the Group's Australian operations
Key highlights from the Group’s Australian operations For personal use only AUSTRALIA ITALY UNITED KINGDOM LUXEMBOURG OTHER COUNTRIES February 2009 REA Group - H1 2009 Results Presentation 8
Slide 9: Australia at a glance
The Australian business has delivered significant growth across all key dimensions For personal use only AUSTRALIA AT A GLANCE ARPA (Average Revenue Per Agent) Paying Agents 9,284 1,200 10,000 9,000 1,000 8,000 800 $926 7,000 6,000 600 5,000 4,000 400 3,000 2,000 200 1,000 0 0 Dec-01 Dec-02 Dec-03 D
Slide 10: realestate.com.au leading Australian real estate site
realestate.com.au continues to be the leading Australian realestate site For personal use only Paying Subscribers Listings 8,500 8,437 500,000 471,000 8,400 480,000 8,300 460,000 8,200 440,000 8,100 420,000 8,000 400,000 7,900 380,000 7,800 360,000 7,700 340,000 7,600 320,000 300,000 7,500 Jun-07 De
Slide 11: realestate.com.au unique browsers versus competitors
In December 2008, realestate.com.au had more than two times the Australian unique browsers than the number two, domain.com.au For personal use only Total no of Australian Unique Browsers (000s) Dec 08 realestate.com.au 3,509 domain.com.au 1,591 realestateview .com.au 267 homehound.com.au 214 - 500 1
Slide 12: Page impressions compared to domain.com.au
In December 2008, visitors to realestate.com.au looked at nearly three times the pages of information compared to visitors to domain.com.au For personal use only Comparison of Page Impressions to Top 2 Australian Residential Property sites December 2008 millions 450 397m 400 350 300 250 200 143m 150
Slide 13: realcommercial.com.au number one commercial real estate site
realcommercial.com.au has continued to consolidate its position as the number one commercial realestate site in Australia For personal use only Paying Subscribers Listings 1,300 110,000 1,250 105,000 102,441 100,000 1,200 95,000 1,150 1,208 90,000 1,100 85,000 1,050 80,000 75,000 1,000 70,000 950 65
Slide 14: realholidays.com.au significant growth in declining economy
realholidays.com.au has shown significant growth in a declining economy For personal use only Paying Subscribers Listings 400 359 22,304 22,400 350 22,200 22,000 300 21,800 250 21,600 21,400 200 21,200 150 21,000 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Uni
Slide 15: Key highlights from the Group's overseas operations
Key highlights from the Group’s overseas operations For personal use only AUSTRALIA ITALY UNITED KINGDOM LUXEMBOURG OTHER COUNTRIES February 2009 REA Group - H1 2009 Results Presentation 15
Slide 16: Italy at a glance
Casa.it continues to lead in the emerging Italian market For personal use only ITALY AT A GLANCE Market share As per Paying Agents June 2008 Not on 37% 6,002 casa.it 6,000 36% 5,500 5,000 4,500 4,000 Added in 1st HY 2009 3,500 Trials 3% 24% 3,000 Feb-07 Aug-07 Feb-08 Aug-08 Dec-08 Total = 15,000 age
Slide 17: United Kingdom at a glance
Propertyfinder with its ‘sister’ sites continue to make progress in the UK market and have clearly moved into second place For personal use only UNITED KINGDOM AT A GLANCE Paying Agents Market share 6,000 As per 5,500 June 2008 45% 5,000 5,049 Not on PF 4,500 <50% 4,000 3,500 3,000 Effect of reducti
Slide 18: Luxembourg at a glance
The Luxembourg market is small but very profitable For personal use only LUXEMBOURG AT A GLANCE Not on atHome Paying subscribers 15% Market share 490 Added in 1H09 469 5% 470 450 430 As per June 08 410 80% 390 370 350 330 Feb-07 Aug-07 Feb-08 Aug-08 Dec-08 Total = 550 agents (est.) 120,000 Luxembour
Slide 19: Managing a portfolio of growth options
REA Group is managing a portfolio of growth options For personal use only OTHER MARKETS France Belgium United Arab Emirates Acquired with athome.lu in Feb 2007 Acquired Feb 2008 Acquired with athome.lu in Feb 2007 • Paying agent numbers increased by 14% to • Initial Focus on Dubai and entry into Abu
Slide 20: Appendix - Further investor data
Appendix - Further investor data For personal use only February 2009 REA Group - H1 2009 Results Presentation 20
Slide 21: Paying agents using REA Group sites
As at 31 December 2008, 22,099 paying agents used at least one of the REA Group sites For personal use only PAYING RESIDENTIAL AND COMMERCIAL AGENTS USING REA GROUP SITES June December Country Site Growth 2008 2008 realestate.com.au Australia realcommercial.com.au 9,190 9,284 1% propertylook.com.au
Slide 22: Listings on REA Group sites as at December 2008
During 1HY09, property listings across the group have only grown slightly For personal use only LISTINGS ON REA GROUP SITES AS AT DECEMBER 2008 Country Site June 2008 Dec 2008 realestate.com.au 432,145 470,846 Australia realcommercial.com.au 86,150 102,441 realholidays.com.au 21,474 22,304 allreales
Slide 23: January 2009 was a record month across many sites
January 2009 was a record month across many sites For personal use only REA GROUP PERFORMANCE IN DECEMBER 2008 AND JANUARY 2009 UNIQUE VISITORS PAGE VIEWS SITE Jan-09 Dec-08 Grow th % Jan-09 Dec-08 Grow th % rea-group.com 3,813 2,854 34% 11,425 8,968 27% realestate.com.au 4,830,725 3,867,163 2
Slide 24: Disclaimer
Disclaimer For personal use only 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